• Newsletter May 9: direct comparisons
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| | | | | | Campbell Gray to open
The Merchant House in Bahrain
Bahrain: Campbell Gray Hotels will open the 47-key Merchant House in Manama in September.
Read more...
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Cost saving of direct bookings is minimal says report
Belgium: A new report says hotels which attempt to boost direct bookings over OTA business risk having lower occupancy rates with "no measurable" savings on costs.
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Dukes London adds extra room category
UK: Five-star Mayfair hotel Dukes London has completed a renovation and unveiled a new Deluxe room category.
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Head chef and operations manager appointed at Gisborough Hall
UK: Karl Rochford and Amy Baker have taken up new roles at Gisborough Hall in North Yorkshire.
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Direct comparisons
• The recent ETTSA report in to the cost of direct bookings versus OTA bookings makes for interesting reading - it was bold enough to fly in the face of conventional wisdom and has already started provoking some serious debate.
The report's author Ian Lowden said: "When cost, revenue and consumer behaviour dynamics are accurately modelled, it's clear the cost of moving indirect bookings to 'direct' is marginal and possibly negative for the hotel", while ETTSA secretary general Christoph Klenner said: "The widely held belief that direct distribution is cheaper than indirect distribution has been debunked once and for all in this study. It seems the major incentive for hoteliers to push direct sales is to reduce transparency and comparability for consumers, reducing competition between hotels. Customers must be given the choice of which channels best suits their needs."
But the response to the report has been instant. Avvio CEO Frank Reeves says: "While it's important to understand that the sponsors of this report ETTSA are directed by representatives of OTAs and online distributors, it would be wrong to make light of the need for hoteliers to fully understand - and tightly control - the relative costs of direct versus OTA bookings. It's worth emphasising also that the hotel example used in the report is representative of the major chains rather than independents. There are important differences such as Franchise fees, CRS fees, loyalty etc, that are worth considering. I disagree with the premise that direct bookings are the same - or even worse - than OTA bookings and I believe most hoteliers feel the same."
Reeves goes on to list several reasons he believes that direct bookings are advantageous. To read the full story and reaction click here.
The 2018 Boutique and Lifestyle Hotel Summit, which takes place on May 21 and 22 in London, includes a session called: Demand management, dynamic pricing and direct booking, what's next for OTAs? Click here to find out more and buy tickets.
George Sell, editor, Boutique Hotel News
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| | Meetings venues are adapting to changing times
Despite some uncertainties regarding the strength of the economy, the meetings industry has benefited from a strong start to 2018 says MIA chief executive Jane Longhurst.
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| Noise annoys: Interview - Niklas Moeller
BHN caught up with Niklas Moeller, vice president with K.R Moeller Associates, to find out about the challenges facing hospitality providers when it comes to noise management.
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| | | | | | | | | November 2018
Dubai, UAE
Date tbc
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| | | Interview: Kim Bardoul, The Highland Group
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| | Interview: Nick Turner, Laura Ashley Hotels & Resorts
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| | BHN at IHIF 2018: Klaus Kohlmayr, IDeaS
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| BHN at Sleep 2017: Tristan Auer
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| | | | | EDITORIAL
George Sell. Editor,
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| ONLINE SALES, CONFERENCE
AND EXHIBITION
Katie Houghton
Head of Sales |
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