Will the value of brands remain sustainable in today's distribution age?
8 experts shared their view
World-class distribution was once one of the key value-adds of signing up with a hotel chain or brand. Today, however, this advantage has been severely eroded to the point where independent properties can access better and more cost-effective distribution channels.
From a distribution perspective, is the era of the hotel chain coming to an end?
This viewpoint is co-created with IDeaS a SAS company
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The Value Of Brands In Today’s Distribution Age
If you'd asked me ten years ago about the future of hotel brands in the digital age, I'd have been uncertain. I could see the dramatic changes that were happening. Hotels' 'distribution costs' - particularly commissions paid to online travel agents (OTAs), other online intermediaries and brand loyalty schemes - were increasing rapidly, while fees paid to 'traditional' partners - wholesalers, tour operators, GDS, agents and the brands, themselves - showed no signs of decline.
And those trends have only accelerated. Google remains the largest beneficiary of online growth, with a significant majority of all searches and bookings originating from its platforms. Among its largest customers - from any industry - are Booking.com and Expedia, the world's largest OTAs (excl. China), who continue to invest heavily in online search and traditional TV advertising to remain top of mind for hotel guests. Those billions of dollars in spending each year come directly from the owners of hotels, particularly here in Europe.
In this article, Matt Luscombe, CEO of Cycas Hospitality - one of Europe's leading hotel management companies - explains why, regardless of their booking channel, global hotel brands continue to remain relevant to guests and take share from unbranded hotels.”
Related article by Matt Luscombe