The Evolution of Hotel Service Distribution, Case Study Example

In future, the hotel call centers will play a strategic role of catering for specialized customers’ needs. One important observation to make from the online travel markets is that while online travel agency offers packages and packaging they are not well equipped to offer specialized services. The operators call centers are well equipped to offer itineraries or specialized needs. In addition, by observing more mature online booking markets such as US online travel market, we note that the online booking will reach a point of natural reliance on offline purchase channel to cater for a segment of customers with special demands, or who need personalized service. Due to their personal touch, the call centers have potential of catering for specific customer needs hence promoting customers’ loyalties. The trends observed in the US online travel markets are expected in Europe and Asia markets matures.

Compared to online services, operating a call center is more expensive yet crucial. They boost sale opportunities and recognize customers’ needs as well as increase loyalties. This is the reason why chain hotel should encourage them. However, call centers should be centralized; this will reduce call center operation costs while enjoying the associated benefits.

The chain hotel effort to shift online booking services to their own website worked very well. Data from research indicate that booking on hotel braded website increased as the chain invested in direct distribution in 2008. Similarly, the revenue of hotel braded website grew at a faster rate than those of online travel, agency. This was because of hotel to drive of more online direct booking, a reduction in inventory made available to online travel agencies and hotel packages.

This was a wise move as it enabled the hotel to secure their customer base as well as their revenues. Personally, I believe that Cruise Line should do more online booking as it is a more cost effective way of serving the customer and can create a long-term relationship with the customer

Acquisition and mergers are wise moves by distribution service providers because they enable companies to secure bigger customers- base as well as increase their revenues. Such moves also benefit online travel agencies because they provide with an alternative way to reach users who were checking out travel offering using peer and professional reviews. In addition, acquisition and mergers also provided additional platform for advertisement and self-promotion.

Overall, the DSP evolution has involved the rise of interactive marketing and advertising agencies as well as marketing platforms and transaction engines. In addition, such cooperation enables provision of better services, support travel management with information for budget management and travelers security. In future, I would recommend merging the DPS in to one system that ties different hospitality system together.

Google has one of the biggest and most advanced search engines in the world. The company is well positioned to enter in online travel service. As one of the most common search engines Google has accumulated a lot of information about its users. With such information, Google can offer platform for personal advertising targeting potential travelers among its customers. Thus, the company can venture into online travel service by offering such information to the main players in the industry such as hotel and travel agency. The best and easiest way of entering the industry is through acquisition of smaller search engine and then realigning with the online travel agency and chain hotel to ensure that inline hotel service reach a wider customer base.