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Hoteliers worry over commoditization

This article is one of the many new reasons that as an innkeeper, you must serve a specific group of people, and become their “go-to” source for travel in your area. The very first set of training I give is about increasing the “fame” of you and your inn.

Here’s the story:

As the dynamics of distribution change, some hoteliers and industry professionals worry the hotel sector is becoming commoditized. Hotel marketers must carefully weigh the growing needs of intelligent distribution and revenue management with the demands and desires of partners and guests.

Hotels are commodities to some and unique, service-oriented escapes to others. In light of this, hoteliers must carefully weigh the growing needs of intelligent distribution and revenue management with the demands and desires of partners and guests.

That was the central message Monday during a panel discussing the question “Are hotels commodities?” at the Master Innholders’ 21st Annual Hotel General Managers’ Conference.

“If hotels are trading on price, then, yes, hotels are segmented commodities, but if you add to your offering what is unique and special about any property or destination, then it’s possible to get away from full-on commoditization,” said Mark Lewis, managing director of hotel representation company HotelREZ.

The panelists agreed that the sector must embrace all possible distribution channels.

“We have to be very careful at the luxury end. Now at the 3- and 4-star level, we are seeing commoditization, especially in fast-moving hotel companies in which the guest basically gets a box and then seemingly has to buy soap, towels, Wi-Fi and service, et cetera,” said Stuart Johnson, general manager of luxury London property Brown’s Hotel.

Get the full story at Hotel News Now

 

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