The universe of hotel distribution is in a period of transition, according to a panel of experts speaking during HSMAI’s recent Revenue Optimization Conference.
Panelists speaking during the “Avoiding collisions in distribution’s fast lane” session said technology will have a profound impact on how hotels approach distribution going forward.
Lew Harasymiw, director of distribution strategy and connectivity for InterContinental Hotels Group, said investment in distribution technology is critical for hotel companies like his.
A lot of hoteliers “still function on spreadsheets,” he said. “We have this conversation every year, yet some still continue to use spreadsheets. … Now it’s about how we move to the next level.”
Arvind Bala, senior director of global distribution and channel management for Four Seasons Hotels and Resorts, said hotel distribution is clearly lacking in some areas.
“There’s an endless wish list (for tech improvements),” he said. “We spend a lot of money on the top of the funnel, but content parity and syndication are weak for us as an industry. That is an area we look for the industry to solve and our partners to solve.”
Innovation or hype?
One of the trending new technologies in hotel distribution has been blockchain, the underlying tech for several cryptocurrencies like Bitcoin.
Some in the industry are hopeful the technology can be used to create an underlying network of hotel inventory that could circumvent the existing system of online travel agencies and other expensive third-party platforms.
But Harasymiw said he’s not convinced distribution is the first place blockchain technology will be deployed in the hotel industry. He said the best approach to growing in a new technology like blockchain is to find smaller ways it can be useful before trying to revolutionize the industry.
“We’re trying to solve all our problems immediately, but the best approach I’ve seen is to be incremental,” he said. “Little by little, you can see where it fits and what makes sense. So maybe distribution isn’t the best starting point, but I do think the endgame will benefit (distribution).”
