Interest and demand for travel in Latin America continues to grow, says Clem Bason, vice-president - Hotel Supplier Relations, Hotwire.com.

Published: 19 Apr 2006

Interest and demand for travel in Latin America continues to grow, says Clem Bason, vice-president - Hotel Supplier Relations, Hotwire.com.

In an interview with EyeforTravel.com's Ritesh Gupta, he said that travel suppliers in Latin America can capitalise on all of this demand by working with online channels like Hotwire as part of their distribution strategy.

On company’s operations, he said: “Latin America is a high-growth area for Hotwire. The demand from our customers for travel to the region is increasing, and we’re meeting that demand by working with suppliers throughout Latin America. Over the past two years, we’ve focused on expanding our presence throughout the region, particularly in Mexico and the Caribbean. We have several market managers who are focused on building relationships with hoteliers and expanding our offerings in the markets. We’ve initially focused on establishing a strong presence in key destinations like Los Cabos, Puerto Vallarta, and the Bahamas. Looking ahead, we plan to build upon our existing offerings in smaller, niche destinations such as St. Maarten, St. Lucia and Barbados.”

He also shared his viewpoint about travel distribution related developments and other issues. Excerpts:

How do you assess various options for distribution or changing relationship with distribution partners, especially in the online arena, in Latin America?

Hotwire remains in a strong position because of the unique value that we offer to our supplier partners in helping them generate incremental revenue. Hotwire’s opaque model enables hotels to discount rates while protecting their brand and pricing integrity.

Moving forward, we can expect to see options to fill rooms during need periods to increase and become more robust. As Hotwire continues to expand its footprint in Latin America, we’re in an event better position to help hoteliers manage revenue and improve hotel occupancy and RevPAR.

Another trend driving change is that travel options in Latin America are expanding rapidly, and investment in the region is booming. Travelers need help in understanding the diversity in destinations and how suppliers’ offerings shape up, and that’s where an online partner like Hotwire enters the picture. We’re an efficient way for suppliers to gain exposure to travelers who are focused on price.

Finally, distribution partners will become increasingly involved in hotel “re-launches” after remodeling. With volume now going through some online channels, Hotwire can work closely with its hotel partners so that they go live at the rates they want and at the occupancy levels they need. Hoteliers have multiple distribution options to choose from – Hotwire focuses on managing unsold rooms, while our sister sites address other needs. For example, Expedia Corporate Travel reaches business travelers, while Expedia and Hotels.com generate other small group and transient demand.

How would you consider growth of distribution channels in this part of the world?

Interest and demand for travel in Latin America continues to grow. Travel suppliers in Latin America can capitalize on all of this demand by working with online channels like Hotwire as part of their distribution strategy.

For Hotwire, Latin America represents a strong opportunity for us to grow as a distribution channel. Our customers are increasingly looking to Hotwire to provide deals on international destinations, with Mexico and the Caribbean among our most popular markets to date.

How has Internet as a medium shaped up in a building brand? What are its strengths?

The strength of an Internet channel such as Hotwire.com is the ability for travel suppliers to expand their reach with a cost-effective distribution model. Hotwire specifically provides a unique value proposition with its opaque business model, enabling our supplier partners to sell excess inventory and generate incremental revenue – without diluting their other channels.

How has your relationship with suppliers evolving?

Our relationship with suppliers continues to remain strong because Hotwire excels at helping fill unsold rooms, particularly during periods when they face lower occupancy rates. Customers are increasingly relying on Hotwire because they know we can provide them with great value. Exposure to these price-driven customers is exactly what suppliers are looking for – and what they get – when working with us.