Converging risk factors in the travel market could push online
distribution back 10 years, warns the boss of a leading hotel
representation company.
Niels Pedersen, managing director of 1,500-member
consortium Supranational Hotels, highlighting six danger signs to which
the sector must respond, called for regulation of e-commerce suppliers.
He said: "I foresee a buyers market returning within 12-18
months - partly as the cost of travel rises through fuel charges and
environmental taxes, and partly because too many new hotels are being
built.
"Before then, however, today's rip-off market – high
prices, low efficiency, widespread guest dissatisfaction – is returning
the reputation of online bookings to the pioneering days of the
mid-1990s.
"The answer is for e-commerce suppliers to become regulated
and then establish agreed and accredited standards for bedroom
sourcing, payment protection and problem solving, or alternatively risk
losing their market to the safer jurisdiction of travel agents."
Pedersen says the six issues to be tackled are:
· There is currently a sellers market for hotels in
many locations and they are fuller and therefore more choosy as to the
electronic middlemen with whom they want to work. In addition, the
major hotel brands are trying to cut out intermediaries in favour of
attracting bookings direct.
· This means that commissions to such dot.com
suppliers are being halved from recent levels of 25% or more, and
consequently their call centre operations are being reduced in size and
efficiency and cannot properly handle any booking problems that arise.
· Disillusion with unreliable email communication
is mounting because an estimated 1 in 6 goes astray – whether
inadvertently deleted, or diverted by anti-spam security. More guests
are arriving to find no knowledge of their booking, and no room in a
full hotel.
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