MONTH IN REVIEW
COMMENT | PETER HANCOCK
Disrupt the
disrupters
By PETER HANCOCK,
chief executive of Pride of Britain Hotels
W
henever a group of customer as a fool, because that of a hotel stay while recognising
hoteliers gathers you can room on that night may never have the advantages of apartments
be pretty sure the subject been offered at the higher rate when, for example, staying away
of Online Travel Agents (OTAs) shown. Similarly, the order in which from home for extended periods on
will come up, such has been their results appear is commercially driven business. It was also noted that there
success in disrupting the old ways of so those the company most keenly aren’t many serviced apartments
selling rooms. wants people to book are those with in the spectacular rural settings we
the highest commission or perhaps represent; they are largely to be
fair-minded by nature, hoteliers a combination of high commission found in big towns and cities.
usually speak up for both sides of the and the ability to eat into a generous argument too. Yes, the commission additional discount extracted from frequently cited as a disruptive
charges are shockingly high but look the hotel in its contract. threat to our business is Airbnb,
Being extremely courteous and
at all the exposure you get. The level
We may assume that the
The other phenomenon
valued towards the end of 2017 at
of anger has definitely subsided as disrupters will themselves become a staggering $31bn. To dismiss it as
our industry gets used to trading in victims of, as yet unknown, new an irrelevance would be stupid, of
this way, with some hotel businesses operators, rather like Uber cutting course, though again I suspect its
so hooked on OTA bookings they up the London taxi scene or those impact on the hotel model may have
have sacrificed profit for occupancy. cheeky Meerkats taking over the role been overstated given that what we
of the independent insurance broker. really sell is service above all else.
Consumers assume they are now
Despite all these apparently
being served up genuine ‘best deals’ We certainly cannot go on accepting and love the ease of booking, landing 15% to 20% commission as the norm hostile developments, new hotels
those of us who market independent and the technology that has allowed keep opening and PWC, among
luxury hotels with the challenge of OTAs to flourish can surely facilitate others, are forecasting growth
presenting the direct-booking option better models that are fairer to both in 2018. Perhaps this is because
as just as easy and, in crafty ways, hotelier and consumer. the hotel industry is itself one
better value.
I recently took part in a debate
massive disruptive force, continually
looking at another form of disruption, reinventing itself according to
not realise is that the information namely the rise of the serviced customers’ tastes and managing
being presented to them is far from apartment which some people believe to delight and surprise guests year
transparent. The rate for a specific poses a threat to the traditional after year. We’ve come a long way
room type at a particular hotel on a hotel. I am delighted to say that we since my first full time hotel job, when
certain date will often be presented won the argument decisively, pointing people were impressed by the mere
as a huge discount off the ‘normal’ out the huge part warm, professional presence of an en-suite bathroom
rate. This in many cases treats the hospitality plays in the enjoyment and a bog standard colour TV.
But what the general public may
April 2018
www.hotelowner.co.uk
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