Digital Distribution Strategies

If you’re in any way involved in your hotel’s online distribution you’ve most likely come across Booking.com Basic by now. Through this programme, Booking.com pulls wholesaler rates to sell publicly on their platform. The programme is neither on an opt-in nor an opt-out basis – participation isn’t negotiable. The concept isn’t new, the likes of Amoma have been bothering hotels for years with this strategy. The difference is that on Booking.com it will have a significant impact on your hotel’s business.

Most traditional hoteliers would think you lost your mind if you said you were going to debrand and become an independent hotel. “How will you survive without brand recognition and backing of the brand? No one will find or book you! You will never able to compete with the other branded hotels next door!” Well we did it anyway. And this is how (true story).

The first time I heard it was from a colleague in the office who overheard it in a strategy meeting in one of our hotels. The second time it was first-hand – A sarcastic comment from a GM along the lines of “So I prepare for Finance complaining about commission again?”. And then finally one day, I was confronted and given feedback; I need to be more careful when suggesting OTA focused actions to the hotels as it might send the wrong message. What message I asked myself? That I was an undercover agent trying to drive commission revenues for Booking.com or Expedia?

In golf, a handicap is a numerical measure of a golfer’s potential ability that levels the playing field for everyone and allows players at different levels to compete fairly against each other. With this in mind I finally came up with an explanation to our latest market share results that would surely satisfy my GM; Our hotel is simply put a mediocre amateur golfer and our competitive set is comprised of Tiger Woods and Jason Day. No wonder we never win – We need a handicap!