How are travel distribution strategies changing?
So with the increasing importance of the online travel agencies and the dominance they have in the distribution channels online right now, we’re seeing hotel partners and transportation companies really try to shift more of the bookings directly to their website.
South West Airlines have been doing it for years, recently Frontier Airlines decided to not send its inventory on Expedia, so it’ll be interesting to see how and if hotels will go down that path. There are obviously the OTAs online, but there are also mobile native applications like Hotel Tonight that’s taken more and more place or in France, Very Last Room, with discounts up to 70% off same day. We’re seeing that last minute trend continuing, so it will be important for hotel partners to really understand and manage the channels where they distribute their rooms inventory because it is a key issue right now in how to manage the various channels and managing the yield and return you have basically for your inventory.