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Why hotel distribution costs should matter to corporates

The paper considers the wide range of channels through which consumers book hotels both now and in the future; at the benefits (and associated costs) of those channels, and the benefits corporates can realistically derive by helping their hotel suppliers to improve the efficiency of their distribution.

Hotel Solutions Provider, HRS, has released a new white paper that looks in depth at the costs to hoteliers of distributing their products to business customers, and why corporates should be taking a closer look at the systems powering their travel programmes.

The paper considers the wide range of channels through which consumers book hotels both now and in the future; at the benefits (and associated costs) of those channels, and the benefits corporates can realistically derive by helping their hotel suppliers to improve the efficiency of their distribution.

Jon West, Managing Director of HRS UK and Ireland commented: “Many travel managers are unlikely to be aware of how much their preferred hotels spend on distribution. This isn’t just when it comes to commission payment to TMCs but enhanced commissions to OTAs, sales and marketing funds and other hidden costs within the supply chain. Even fewer will have considered the true impact of those distribution costs on their preferred rates and whether by helping hotels on their corporate programmes to select lower cost channels they can use those savings to leverage incremental savings for themselves too.

“Our latest white paper aims to illustrate why corporates should be taking a closer look at the systems powering their travel programmes. Ultimately it is the buying community that holds the key to reducing their hotel suppliers’ distribution costs by controlling and specifying the channels through which their hotel programmes are distributed.”

HRS – The Cost of Choice

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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