Hotel booking agents
THE SPECIALIST SURVIVAL OF
What’s the future for the hotel booking agency sector? Is there one? Mark Harris investigates whether the consolidation of the two biggest names in the sector is creating a hybrid business model that trailblazes their survival
portfolio of specialist businesses – including BSI, Capita Business Travel, Expotel and Venues Event Management. The brands have now been brought under the umbrella of Capita Travel & Events. The Expotel deal followed Capita’s
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purchase of BSI – arguably Expotel’s biggest competitor – and brought together the two biggest names in the hotel booking agency sector, managing a combined £220million and £120million in corporate accommodation and meetings spend respectively. Both Expotel and BSI enjoyed specialist heritage and Capita chiefs maintain that their acquisition and re-branding under the
n September last year the £16million acquisition of Expotel marked the latest stage in the expansion of Capita’s business travel interests into a £525million
Capita banner are not intended to create a new mega-TMC. Instead, Capita Travel & Events is presented as a collection of special- ists under a single umbrella from whom clients can buy any combination of services without compromising value or service. “We saw a real gap in the market to
create a unique UK travel, accommodation and events proposition,” says managing director Trevor Elswood. “Expotel brought us additional depth, breadth of expertise and scale, especially in the conference and events, public sector and SME markets.” The merger certainly leaves plenty of clear
water between the biggest players. After Capita, the next biggest traditional agencies are Hotelzon (£103m turnover), Hotelscene (£95m) and Inntel (£51m). HRS’ ¤1billion+ includes leisure business.
To be or not to be? Capita's Trevor Elswood regards the merged businesses as neither HBA nor TMC. “We are a travel, accommo-dation and events organisation. We focus our energies on the specialist areas of the business which are created via people with specialist expertise and bespoke technology.”
One leading buyer believes that this
consolidation is overdue but that Capita have missed the opportunity to make a bold statement. “They are in no-man’s land instead of looking for a true USP that neither HBAs nor TMCs can deliver,” they say. The same buyer believes the merger is
a wake-up call for middle-ranking HBAs diversifying into travel. “They should focus on what they are good at and not trying to be what they are not. Some are making big statements but their infrastructure is weak because they lack the finances to keep up with the big boys and invest in technology.” Inntel managing director Douglas O'Neill
sees the merger as good news for his business, but not for the industry. “Consolidation takes both brands away from the traditional HBA model towards a more international organisation while we target UK corporates. However, the voice of the sector has been weakened. I don’t see BSI standing up for the HBA now.”
A meeting of minds In a cost-driven corporate market, agents and corporates agree there is still a demand for the specialist expertise associated
➔ THE BUSINESS TRAVEL MAGAZINE 27
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