Hotel sector is in turmoil, but not due to the sharing economy

One might assume (if you read only the kowtowing Airbnb-friendly media) that hoteliers are running scared from threat of the sharing economy.

That may be true in some quarters, but there are equally some more earthly matters that are in need of attention.

A focus group carried out with hoteliers at the World Travel Market in London last year by Revinate and SiteMinder found that issues around distribution and the customers were far higher up the list of challenges than the rise of the sharing economy.

At the top of the pile is the guest experience, with “hoteliers admitting they invest too much of their already-limited time and resources into driving one-off transient bookings which lead to high guest acquisition costs”.

Other areas of concern include tech integration and data collection.

SiteMinder managing director Mike Ford says:

“Hoteliers have access to big data that nobody else does – that is, their own guest data.

“What we continue to see, however, is the use of disparate, legacy systems that prevent the real-time automation hoteliers need to do their jobs.

“Often, these technologies also do not meet today’s data security standards and while no technology can guarantee full protection of guest data, using technology that has achieved the industry’s stringent security benchmarks is one way they can be ahead.”

So what are the challenges facing hoteliers?

Of particular note is the apparent nonchalant attitude to SEO and domination of online travel agencies.

See the chart below:


Author of the report, Dr Peter O’Connor, says:

“Most people involved in hotel distribution and online marketing would agree that the whole area is in turmoil right now, with both technology and consumer expectations evolving extremely rapidly.

“At the same time, competition in the online environment continues to become more intense, with the result that hotels need to pay much more attention to how and where they are being sold, as well as invest in the right systems and expertise to ensure they can compete effectively in this highly turbulent environment.”

NB: Hotel tablet image via Shutterstock.

Share on FacebookTweet about this on TwitterShare on LinkedInEmail to someone
Kevin May

About the Writer :: Kevin May

Kevin May was a co-founder and member of the editorial team from September 2009 to June 2017.



Your email address will not be published. Required fields are marked *

  1. Barbara Worcester

    Hello Kevin!
    Barb Worcester here, PRpro. You get a lot of my Press announcements. My client, IBC Hotels and InnSuites Hospitality Trust find this article interesting, as you bring up some very valid points. IBC does integrate and provide full guest data. They are on the right track. Would you accept a follow-up article to this piece? We would love to send you one!

    Here’s some info on IBC – InnDependent Boutique Collection

    For Hoteliers: IBC, founded by independent hoteliers, is a leading cloud-based technology platform with collection benefits for independent and boutique hotels that allows hotels to attract and reach guests with tools to optimally operate their hotel. The global IBC platform is designed to increase RevPAR and includes a Loyalty Program, Purchasing Program, 24/7 Support and much more. No long term contract is required.

    For Consumers: IBC is one of the largest independent hotel companies with 6,300+ members representing 170 countries and over 2,000,000 rooms and suites. IBC is dedicated to providing guests with a unique, non-cookie cutter hotel experience in addition to providing value-added add-ons such as rental car, activity and attractions, cancellation protection and more.

    Guests love the InnDependent InnCentives loyalty program that provides a free stay at any worldwide IBC Hotel of their choice after booking 12 nights on IBC with easy access via Facebook, Google or Email. InnDependent InnCentives has no blackouts and is easy. IBC does all the work for you. Stay Independent, Get Rewarded.


Newsletter Subscription

Please subscribe now to Tnooz’s FREE daily newsletter.

This lively package of news and information from Tnooz’s web site provides a convenient digest of what’s happening in technology that drives the global travel, tourism and hospitality market.

  • Cancel