GLOBAL UPDATE
THEDISRUPTORS
The Disruptors addresses issues ranging from the impact of emerging booking channels and metamediaries to how to best implement new strategies related to mobile technologies and social media .
ON THE VERGE OF NEW DISRUPTION
OTAS ARE LIKELY TO FIGHT TO KEEP THE EXISTING U . S . RULES IN PLACE , BUT MANY BELIEVE IT WON ’ T BE LONG BEFORE U . S . COURTS BREAK DOWN RESTRICTIVE CONTRACTS
AS WELL .
The next 12 to 24 months could be as transformative as the early years of OTAs . First , European courts have ruled OTAs are no longer able to enforce parity and availability rules in their contracts . Hotels in the affected countries can now give different rates to different channels . OTAs are likely to fight to keep the existing U . S . rules in place , but many believe it won ’ t be long before U . S . courts break down restrictive contracts as well .
The next couple years also will welcome several big-name competitors to the distribution landscape . Amazon is already building a team of industry vets to strengthen its travel offering . Google continues to add new travel offerings as well , following a referral-fee model instead of pure commission .
It is a transformative time that needs a strong hotelier voice . Once these programs are put in place , they become entrenched .
Chris Jackson , GCOMMERCE , Park City , Utah
ROOM-TYPE PRICING ON DEMAND
This may sound like an obvious pricing tip , but many hotels still aren ’ t yielding room types . Changing rates between room types based on demand can be extremely profitable .
Imagine a hotel with just two room types — king and double . It ’ s in a city near a convention center and predominantly filled with business travelers seeking out king rooms that typically sell for US $ 50 more than double rooms . But if some weekend there is not a conference in town and there is a circus drawing families instead , the usually lessdesired double-double rooms may be in more demand and king rooms left empty . In that instance , why not yield up doubles and actually charge more for those than kings ? This ensures doubles are available for guests who need them , and more price-conscious guests who don ’ t have a preference can opt for the king . This boosts occupancy on king rooms and drives rate on doubles .
Approaching this manually requires requires a lot of data entry . Most hotels have more than two room types , so you have to weigh how involved you want to get and be selective about when it ’ s worth the effort . If you can find a way to automate it between your technology systems , it can be extremely profitable .
Patrick Bosworth , DUETTO , San Francisco
CHANGING RATES BETWEEN ROOM TYPES BASED ON DEMAND CAN BE EXTREMELY PROFITABLE .
Check out more HOTELS Disruptors news at hotelsm . ag / HOTELSDisruptors
20 HOTELS September 2015 www . hotelsmag . com