Top 5: the most popular stories you may have missed in June

In the hottest week of the year in the UK to date, we share some of the stories that raised temperatures in the month of June

As we head into summer, you might have expected a slow down in big stories. Not so. From Lufthansa taking a swipe at the GDSs to hotels reining in the wholesalers and how an Indian OTA has spotted an opportunity higher margin hotels and packages, there is plenty to keep the industry simmering.

1. Hotels, the wholesaler hell and the fight back

How hotels manage their relationship with wholesalers is a growing challenge for revenue management and distribution executives. In conversation with a number of big and small hoteliers from chains like IHG, First Hotels and SOKOS, Finland EyeforTravel heard about the impact on hotels when wholesalers play dirty. These relationships, however, are changing with some of the bigger players really clamping down by rewriting their contracts and holding partners accountable. For national players, it’s not so easy though. This story first emerged at the Travel Distribution Summit, Europe.

Take a look at this fully searchable presentation by Brian Hicks VP Revenue Management IHG on pricing and transparency in the hotel space.

 

2. Lufthansa and the GDS surcharge: risky or inspired?

The big story of the month was that Lufthansa Group (LHG) stuck two fingers up at the global distribution systems. The decision €16 surcharge to any booking made via a GDS was labelled ‘brave’ and ‘interesting’ to  ‘harsh’, ‘anti-competitive’, and ‘counter-intuitive’.  We speculate on whether the move amounts to corporate suicide or in fact a recognition that to thrive in this hyper competitive world requires a real understanding of the needs of the connected traveller. The story first published on Tnooz attracted a number of comments with some suggesting it was ‘facile’, while others pointed to the German carriers move as ‘brilliant’ and a ‘well thought out solution to a growing problem’.

Join us at Connected Traveller 2015 (Oct 22-23).   

3. Betting against yourself

Regular EyeforTravel columnist Tom Bacon writes this month that it’s not what you think will happen but what you don’t think will happen that presents the greatest opportunity in RM. He is talking about the challenge of getting forecasts right; it’s not easy and chances are that it will be a bit off. But there is a onpportunity, he writes, “in expecting the unexpected” and there are two basic steps built into most RM processes that recognise this need. He shares these as well as several other bigger steps that revenue managers can take to improve forecasts. Don’t miss it!

4. 15 stand out marketing stats from the world of online travel

If you missed EyeforTravel’s Online Marketing Strategies for Travel 2015 conference in Miami don’t worry. Help is at hand from Frederic Gonzalo, a senior marketing and communications expert, who attended and captured some of the most interesting stats to emerge from the event.

Here are his top 3 stats:

139 - the number of reviews written every minute on TripAdvisor, the most downloaded mobile app (42%) followed by Priceline (15%), Expedia (14%) and Orbitz (13%)

25-60% - the number of visitors lost with each click in the path to purchase on mobile

69% - of travelers begin their search online… via a mobile

View this fully searchable presentation to better understand your multi-channel social strategy

 

5. Mobile, hotel and packages: where MakeMyTrip is making good things happen

In India, the country’s biggest online travel agent has spotted an opportunity in making more hotels bookable online and the share price is responding, Sally White reports. That’s being helped along by this Asian Tiger’s economic growth, a surprising, if unbelievable 7.5%.  With further rate cuts expected the market is looking for good news and international investors have favoured Indian investments since Prime Minister Narendra Modiwas elected. They like the look of his reform programme, and this will all help to drive consumer spending, and thus travel. Although a long way off analysts’ targets, 8 million air passengers booked on the site last year and the firm is banking on continued growth in higher margin hotel and package revenue, not to mention bus and rail travel.

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