Monthly Archives: octubre 2016

Three main threats/opportunities for hotels.

The other day I shared this video in OUR twitter account.

Screen Shot 2016-10-08 at 17.01.34Today, I want to provide a wider review. At the end of the day, Accor’s strategic action, try to give a successful answer to one of the three main threats/opportunities facing hotels companies nowadays.

For starters…

Threat/Opportunity Number 1) Online travel agents (Expedia/Priceline) and central reservation systems, for instance Booking (a member of Priceline group), are becoming an oligopsony.

Threat/Opportunity Number 2) Data Aggregators/Meta-Search Engines and infomediaries are playing all the cards. Tripadvisor was only a social networking site to share reviews, now you also can make reservations. Trivago was a Data Aggregator, now you also can make direct reservations. Google makes its own movement with Google Hotel Ads also allowing direct reservations in exchange for a commission. You can choose to pay for CPC (cost per click), CPA (Cost per Acquisition) or a mix of both.

Here you can see more information…

Threat/Opportunity Number 3) The sharing economy. We debate a lot about this topic here and here.

Focus on 1 and 2 Accor created their own distribution channel and invite independent hotels to use it (not afraid to upset franchisees).  In order to create this new channel, Accor bought fastbooking which allow them to change prices in all their chain of value in a responsive design way? I love Touristology’s games!!!

Here you can enjoy this video:

From a strategic point of view…. What is the point to open MY channel and transform it into OUR channel?

  1. To attract more customers (because they will see more offers)?!?!?

            2.To send a message to Booking, Expedia…. If you increase your commission… I will mark down mine!?!?!?

            3.To control the chain of value!?!?!?

Is this a good movement for an independent hotel in EU (remember they are 70% of the rooms in EU BUT only a 30% in USA)?  OR if you join, you are just helping to create another member of the oligopsony (By the way, a member that it is also your competitor. So, hotelier? YES! Competitor? As well!

BUT…Jordi what about the third one (The sharing economy) Well, Accor is active in this field too. They acquired 30% of oasis collections. They also acquired 49% of squarebreak and the Jo & Joe brand that appears in the video of the tweet try to give an open space for locals and tourists.

So, you can buy/make agreements with apartments intermediaries. You can add value combining sharing economy and professional service as Room-Mate is doing with Bemate as we saw here. Or Choice hotels opening a new division.

What about to join to another movement…Touristology’s one?!?!?!

1) Looking for specialized segments avoiding the oligopsony! By the way, be sure that you avoid Dr. Frankensteins segmentation !!!

Competing with value not with low prices!

Selling all the things Touristology can provide (international contacts, bounding experiences, boost of creativity…) and avoiding to compete with nowadays commodities: rooms, food and beverage and meeting places!!!

You can find some examples here. But..

...The best option is to talk to any of my Touristologists!!! They will say to you: Do you want to deal with a fast-changing distribution landscape? Maybe is time to be proactive!!!!