Special report: A clean start to hotel distribution post COVID-19

27.11.2023 - 09:53 / traveldailynews.com / Tatiana Rokou

After 9/11 and again after the 2008 financial crash, when hoteliers were in similar situations, they handed inventory over to OTAs at deep discounts to get “heads in beds,” and soon distribution partners held more power over inventory than the suppliers themselves.

CLE Content and Hotel Recovery 2020 published “Special Report: A Clean Start to Hotel Distribution Post COVID-19,” in which we talk to leading hotel revenue, marketing and distribution experts from across the industry about the short- and long-term prospects for hotel distribution.

As hospitality rebounds from an unprecedented shutdown, hoteliers are in some ways starting from scratch, and the temptation is there to fill rooms with any available demand. In this report, experts discuss why recovery hinges on operators remembering past lessons and remaining steadfast on optimizing distribution and channel mix. 

One area hoteliers have made significant progress over the past decade is building collaborative revenue, marketing and distribution strategies. Revenue and marketing departments often team on distribution strategy, which includes partner negotiations, optimizing channel mix, executing a loyalty strategy, sending profitable promotions, etc. Collectively, hotels have improved by using data to make more profitable distribution decisions, which has become a critical part of the long-term success of a hotel.

The fear is, however, that with coronavirus effectively forcing hoteliers to hit the “reset” button, many will go back to their old tendencies. After 9/11 and again after the 2008 financial crash, when hoteliers were in similar situations, they handed inventory over to OTAs at deep discounts to get “heads in beds,” and soon distribution partners held more power over inventory than the suppliers themselves.

Here are six highlights from “A Clean Start to Hotel Distribution Post COVID-19:”

1. “In terms of demand, we’re starting from scratch, so it’s understandable that many hotels are courting whatever demand they can find, however they can find it,” says industry veteran and SHR CEO Rod Jimenez. 

2. Early recovery data from Kalibri Labs shows ADR and occupancy are growing in primarily two rate categories: OTA and Loyalty Member Rates, a big change from previous downturns where OTA dominated the recovery in the early stages. 

3. A look at the state of OTA partners, which face pressure from slipping commissions and revenues as well as a newcomer in the space: Google. Expedia discusses it’s program to help lodging suppliers maximize cashflow through reduced compensation and extended payment terms.

4. Dori Stein, CEO of Fornova, says OTAs will be critical to recovery as they are popular with driving travelers and those looking for value,