Viewpoints

There is an inherent value in brands as a way of reassuring guests of a certain quality due to standards imposed by brands. Especially when going to an unknown location. While online reviews have helped independent hotels for some time it is hard to know what standards the reviewer had.

The activity in the market today looks to be more of a 'land grab' for major multi-brand operators. The logic being that if I have enough brands across a broad range of the market from a quantity and quality perspective then I increase bargaining power and also exposure to an existing and future customer base.

Another 'exciting' are brand from the XYZ Hotel Company. Am I excited? Is the consumer excited? Doubtful. Brands without marketing support are merely exercises for marketing gurus who like to play with logos and interior designers.

My view is that it's not a simple topic and there are several aspects to consider. 1 - On moving in to hotel space, this is a natural progression when tracking all of the existing OTA's. Over time all of the third party players will broaden their capabilities into other markets, although all will be secondary to search engine powered travel platforms such as Google.

AirBnB is clearly a phenomenon that is disrupting the hospitality industry as we know it. I am not sure if this can be classified as a “friend or foe” but to me it is clear that the dramatic rise of this type of lodging should pose some real questions to hoteliers.

Looking at competition from the standpoint of how it is hurting profits is never a great way to look at it. That rates can't be raised is a good thing for guests. The question of the acquisition and Airbnb's intention is: what can it bring to the customer.