4 years ago
 

Same-day and opaque the future as hoteliers get choosy with distribution?

Perhaps stating what has become increasingly obvious, Hotwire has released research on how concerned hoteliers are about discounting and its effect on brands.

Although it draws on the opinions of quite a small sample, 75 European hoteliers, they account for 13,000 rooms in 45 countries.

The study shows 75% believe discounting has a negative impact on brand and more than 80% say they are discounting more now than five years ago.

While the report does not suggest hoteliers will stop discounting, Hotwire’s senior manager Michelle Rosinsky says they are likely to be more discerning about distribution channels, the level of discounts and timing.

This, says Rosinsky, is likely to play into Hotwire’s hands as price cutting becomes more last-minute and hoteliers turn to opaque sites and mobile.

Here’s a breakdown of key findings:

  • Mobile is becoming a popular channel for exclusive, targeted discounts – 21% of hoteliers are offering mobile-only discounts and 40% say they discount on mobile more than a year ago.
  • The study says hoteliers have become sophisticated at managing price cuts with very last-minute discounts introduced in recent months for same-day bookings – one-in-twenty  hotels offers the largest discounts for last 24 hours and more than a quarter offer the largest within seven days.
  • Opaque has become more popular with Hotwire saying it has doubled revenue in the past 12 months. The report suggests hoteliers see opaque as one of the safest methods for discounting with 75% saying brand protection is a key reason to use the channel.
  • The conclusion, as you might have guessed, is that discounting is necessary with a third of travellers saying they never or rarely buy a room that hasn’t been reduced, but it has to be at the right time.

This latest study comes on top of Hotwire’s report from April this year revealing more than half of consumers never or rarely pay full price when they shop.

In addition, 90% say they will continue to bargain hunt even if their economic situation improves.

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About the Writer :: Linda Fox

Linda Fox is deputy editor for Tnooz. For the past eight years she has worked as a freelance journalist across a range of B2B titles including Travolution, ABTA Magazine, Travelmole and the Business Travel Magazine.

In this time she has also undertaken corporate projects for a number of high profile travel technology, travel management and research companies.

Prior to her freelance career she covered hotels and technology news for Travel Trade Gazette for seven years. Linda joined TTG from Caterer & Hotelkeeper where she worked on the features desk for more than five years.

 

Comments

  1. Alexandra B

    Whenever I see a report like that I’m always more interested as to WHY hotels choose to discount their rooms. Do they have some sort of analytics/past experience to justify the discounts or is this some sort of desperate, irrational attempt at selling inventory?

     
 
 

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