44-45 INDUSTRY hotels 2/12/08 15:04 Page 45
industry report – hotels 45
7:6. LOCATION CAME OUT AS THE TOP PRIORITY TO CLIENTS WHEN BOOKING A HOTEL
Bookings: serviced apartments
WITH PRICE A LOT LESS OF AN ISSUE
7:7. Do you use serviced apartments?
Yes 46%
No 54%
7:8. If yes, how do you book them?
GDS 41%
direct 59%
63% 26%
findings demonstrate that best available rates [on
WITH AIRLINE
the GDS] are still the best in the market for flexible
requirements. This has helped drive business through
COMMISSIONS
the GDS and not hotel direct websites, where agents NOW ALMOST
lose out on segment fees. The GDS is also vital because
NON-EXISTENT,
of the back office information it provides.”
Hotel bookings in general have remained strong this
IT’S NO SURPRISE
year, with 60% of respondents claiming volumes have
THAT AGENTS
increased over the past 12 months (7:1), with only 6%
ARE PUTTING
experiencing a decline. More than half of respondents
MORE EFFORT
say hotel bookings as a percentage of overall bookings
has increased in the past year. Although 38% have seen
INTO HOTEL
no change in the sector, 54% claim it has grown (7:3). BOOKINGS
Janzen said: “As an independent agent, there is a
greater focus on increasing hotel bookings as it has
until now not really been recognised as a priority.
Earnings of 8–10% commission, not to mention GDS
signet fees, have suddenly highlighted the untapped
earning potential for every agent – especially in an
economic environment where every penny counts.”
Thevenot agrees the commission aspect is important.
“Corporate travel agents have dramatically improved
their efficiency in meeting their clients’ booking
criteria,” he said. “With airline commissions now almost
non-existent, it does not surprise me that agents are
concentrating more effort on hotels, knowing they can
usually make up to 10% commission.”
He adds that it is also getting easier for agents to
book hotels. “Technology companies are investing in
tools to support the sale of accommodation, with innov-
ations such as alternate property display, best available
rate, mapping, multimedia and graphical inputs.”
The location of a hotel still remains the traveller’s
main concern when making a reservation, though the
importance of cost has risen from 20% to 26% in the
past year (7:6). Thevenot concluded: “It is no surprise
that location is still the first thing the traveller is
interested in. But it is also clear that recent economic
constraints have led to a greater focus on how much
budget is dedicated to hotel spend. This is bound to
continue into next year. But, for the time being, it
remains location, location, location.” L52159
ttgbusiness.com ❖ industry report 2008
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