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Hotel booking agents ➔


“I don’t see how the merged Capita/BSI/ Expotel business can still be a specialist and don’t think the wider corporate market should read anything into it. This is part of a cycle; specialists grow, get acquired and swallowed up. Then other niche specialists arise,” he says. Another leading buyer does not believe


that HBAs will try to reinvent themselves as TMCs. He reasons that many small HBAs have not adopted new technology and therefore when it comes to processes they struggle to see the value they should be providing. “Just as TMCs don’t understand what HBAs do, HBAs don’t understand what a TMC does. It’s a case of mutual naivety.”


“ Technology has allowed some elements of travel to


be commoditised and driven online because they require much less touch, especially for point to point journeys





Future prospects Despite the consolidation of the two biggest names in the sector, the hotel booking agency and venue finding community remains up-beat about the future. Martin Coleman of ABC Connection


believes the prospects for HBAs are positive for three reasons. “First, we are seeing small to medium-sized HBAs winning significant corporate transient and meetings business. Second, HBAs are deploying low touch, low cost solutions for transient and medium touch bespoke solutions for meetings.


Finally, corporates still require personal contact in the meetings sector and for groups, which means that small to medium size agencies can realistically manage a number of major accounts.” HBAA's Parnham predicts that the long


term impact on the sector will depend on whether BSI and Expotel collectively become one large HBA – or TMC – but that there will be more consolidation as agencies find it hard to remain viable while meeting their clients’ more intense service requirements. “Smaller agencies also need to be able


to share technology instead of bearing development costs alone,” says Parnham. “It is possible to have common platforms and still be able to differentiate between providers – the mobile phone operators have shown that it’s how you package your product to suit your target customer.” The future looks rosy for those able to


deliver best in class and quality, and that the demand for specialists will remain undimmed. And while corporates may encourage those specialist suppliers to offer a more diverse range of services, those suppliers will remain specialists. The big issue is whether those specialists can diversify successfully, and on a scale that will create acceptance among corporates.


sleep well work well


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At Hotelscene we look after your every accommodation need – as well as your meetings and events requirements – so your employees can concentrate on the job in hand. Sleep well, work well.


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