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For Hotels, There’s No Room Left for Online Travel Agencies

foxbusiness.com

61–70 of 133 posts

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#61

If hotel chains were managed by sensible, tech-aware people, they wouldn't bother with these expensive, rearguard marketing campaigns. Instead, they'd get together and form an industry working group, and design simple, standard data formats and querying/booking APIs, and then make all their data available through them. This would make it far easier to build a hotel search engine, which would cause an explosion of com…

> they'd get together and form an industry working group, and design simple, standard data formats and querying/booking APIs, and then make all their data available through them Are you familiar with SABRE/AMEDEUS? The flight industry did exactly this and it's been a disaster for them. Heck, they even handle hotel bookings as well.

I don't know this domain. Can expand on why is it a disaster for the flight industry ?

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#62
post #41

“There had been this perception that to get the best price, you book through a different channel than going direct,” he said. “That’s never actually been the case.” Yeah, that's a load of crap. I always start with an aggregator, and if I find a place that I like, I check their website as well. Unless they're cheaper or offer some major perks, I book through the 3rd party site. Of the last 5 hotels I've booked, going…

A few months ago I booked a hotel for a trip. I checked the 3rd parties, found a hotel and then tried to go direct. HHonors claims the best prices online if you're logged in--it was the same as the booking third party (Groupon Getaways via Expedia), except Groupon gave 10% back in Groupon Bucks. I arrived at the hotel, they noted my HHonors basic membership and mentioned I wasn't receiving points due to booking with…

I called a Hilton once after seeing the same place cheaper on HotelTonight, the woman said she couldn't match the rate... So I got it for the "impossible" to match rate (and the hotel paid a commission for the privilege!).

Price matching is great when it works, but infuriating when you can't actually back it up. It should all be automated, I can't imagine someone at Hilton is manually setting HotelTonight prices and not telling anyone.

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#63
post #55

The base issue is that the fees that agencies/aggregators like booking.com are (IMHO outrageously) high, in the 15% (a minimum that I believe very few hotels pay) up to 25%-30%. On average, it is something like 18%-20%. To have a term of comparison, in the old times when travel agencies existed, the fee was more in the 5%-10% range. Small hotels must submit to them to have any visibility on the net, and (I believe it…

> The base issue is that the fees that agencies/aggregators like booking.com are (IMHO outrageously) high, in the 15% (a minimum that I believe very few hotels pay) up to 25%-30%. On average, it is something like 18%-20%.

Don't overlook the value of a known cost. The alternative is to buy a bunch of advertising that may not result in any bookings (travel related CPC ads are expensive).

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#64
post #58

If hotel chains were managed by sensible, tech-aware people, they wouldn't bother with these expensive, rearguard marketing campaigns. Instead, they'd get together and form an industry working group, and design simple, standard data formats and querying/booking APIs, and then make all their data available through them. This would make it far easier to build a hotel search engine, which would cause an explosion of com…

This would reduce the hotel's value proposition to a commodity. It would only work for the most impersonal of hotels, the hotel equivalent of McDonalds, competing on price and standardized features. The kinds of hotel you wouldn't want to stay at, if you had a choice.

Plenty of people choose McDonalds for the reliable consistency of the experience. Sure, it's a mediocre hamburger, but you're virtually guaranteed it won't be a horrible one.

The same thing is appealing for hotels, IMO.

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#65

Paywall bypass link: https://m.facebook.com/l.php?u=https%3A%2F%2Fwww.wsj.com%2Fa...

Curious how this got a downvote. Apparently WSJ employees read HN lol.

Perhaps because the link got changed to a non-paywall version hosted by Fox Business...

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#66
post #58

If hotel chains were managed by sensible, tech-aware people, they wouldn't bother with these expensive, rearguard marketing campaigns. Instead, they'd get together and form an industry working group, and design simple, standard data formats and querying/booking APIs, and then make all their data available through them. This would make it far easier to build a hotel search engine, which would cause an explosion of com…

This would reduce the hotel's value proposition to a commodity. It would only work for the most impersonal of hotels, the hotel equivalent of McDonalds, competing on price and standardized features. The kinds of hotel you wouldn't want to stay at, if you had a choice.

I love staying at those hotels. In fact, I wish hotel rooms were commodities that competed on two factors: cleanliness and quietness. Everything else to me is frivolous, as I'm not interested at all in spending any time in a hotel outside of the time it takes me to get ready in the morning and sleep at night.

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#67
post #66
post #58

Earlier quoted context omitted.

This would reduce the hotel's value proposition to a commodity. It would only work for the most impersonal of hotels, the hotel equivalent of McDonalds, competing on price and standardized features. The kinds of hotel you wouldn't want to stay at, if you had a choice.

I love staying at those hotels. In fact, I wish hotel rooms were commodities that competed on two factors: cleanliness and quietness. Everything else to me is frivolous, as I'm not interested at all in spending any time in a hotel outside of the time it takes me to get ready in the morning and sleep at night.

> In fact, I wish hotel rooms were commodities that competed on two factors: cleanliness and quietness.

A commoditized market has products, by definition, that compete on one factor, price.

If you care about cleanliness, quietness, or other qualitative features being areas of active competition, you don't want a commoditized market.

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#68
post #58

If hotel chains were managed by sensible, tech-aware people, they wouldn't bother with these expensive, rearguard marketing campaigns. Instead, they'd get together and form an industry working group, and design simple, standard data formats and querying/booking APIs, and then make all their data available through them. This would make it far easier to build a hotel search engine, which would cause an explosion of com…

This would reduce the hotel's value proposition to a commodity. It would only work for the most impersonal of hotels, the hotel equivalent of McDonalds, competing on price and standardized features. The kinds of hotel you wouldn't want to stay at, if you had a choice.

I don't think that would be the case at all. People choose hotels based on price, location, amenities, and reviews. Making it easier to compare vacancy listings isn't all of a sudden going to make the customer seeking a 4 star hotel, choose a $50/night motel because of the price differential.

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#69
post #65

Earlier quoted context omitted.

Curious how this got a downvote. Apparently WSJ employees read HN lol.

Perhaps because the link got changed to a non-paywall version hosted by Fox Business...

I posted this long before they did that.

Re: For Hotels, There’s No Room Left for Online Travel Agencies

#70
post #66

Earlier quoted context omitted.

I love staying at those hotels. In fact, I wish hotel rooms were commodities that competed on two factors: cleanliness and quietness. Everything else to me is frivolous, as I'm not interested at all in spending any time in a hotel outside of the time it takes me to get ready in the morning and sleep at night.

> In fact, I wish hotel rooms were commodities that competed on two factors: cleanliness and quietness. A commoditized market has products, by definition, that compete on one factor, price. If you care about cleanliness, quietness, or other qualitative features being areas of active competition, you don't want a commoditized market.

Commoditized market does not mean lack of options or low quality goods. It just means the differences are predefined aka it's X octane gas without lead and a bunch of other things that you don't need to see on the pump.

People don't just buy generic meat they buy Grade A (means something) Prime Rib (means something) Angus Beef (means something).

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