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Biz-Changing Trends in Travel Distribution 1/2


What are some of the major trends affecting travel distribution over the last several years of increasing rates, occupancy, RevPAR and profits?

In this article, part one of two, some major trends are discussed. There are probably a dozen trends of varying duration that could be examined. For the purpose of this series, four key business-changing trends were chosen that show some clear consistency and persistence over time:

  • Transaction volume continues to shift to electronic channels, particularly to the Internet.

  • The growth in Internet volume, particularly direct Internet transactions, is at the expense of voice channels and third-party channels.

  • Integration of transaction-oriented booking engines with rich site design, search engine optimization and customer relationship management techniques in order to drive trial by new customers, elevate the dialog with existing customers and increase share of mind and wallet.

  • Consolidation within the distribution industry continues, as niche players need to combine to gain meaningful scale and larger players acquire broader capabilities.

The following section examines how each of these major trends affects how room revenue gets delivered to your hotels.

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