The Internet is the ultimate “Direct Distribution Medium”. A
direct-to-consumer model should become the foundation, the centerpiece
of any hotel’s online distribution strategy. It conforms to the lowest
cost and most inexpensive method to distribute inventory. A
direct-to-consumer model provides long-term competitive advantages by
lessening dependence on intermediaries, online discounters and
traditional channels that may soon become obsolete. Any promising,
sustainable, and defensible distribution strategy must start with the
hotel brand website.
In the offline world hoteliers enjoy more direct sales (75%) than
indirect (agency, intermediaries) sales (15%-20%). In the online world
hotels are less aggressive than the airlines in bypassing the third
party intermediary and agency channel. This year for example only
54%-56% of online hotel bookings will be direct sales, though some
major brands already boast direct vs. indirect ratios of 75:25.
HeBS believes that with the adoption of Direct Online Distribution
Strategies by the major hotel brands, including optimized brand
websites, rate parity, best rate guarantees, aggressive Internet
marketing and search marketing strategies, etc., the direct portion of
online distribution can grow to more than 65% by 2010. Some major
brands already achieve 75:25 direct vs.
indirect online distribution ratio.
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