HOTELS


hotel market,” states Tom Rigby, commercial director at Reed & Mackay. “TMCs also need to be actively supporting clients and assess the impact on hotel programmes. Market consolidation can bring about price increases so flexibility to tailor rates can also make independent hotels good-value for money.” Four-star hotels, both chains and independents, are now becoming more sophisticated in using yield management techniques. They’re blocking preferred rate availability when demand is high. They can do this by regularly re-designating what constitutes a standard room. Analysis by Advito found that in Europe, preferred rates were unavailable over one-third of the time; in the other regions it was at least one-fifth. “The risk of inventory control by a few


is real and present. We already see in some cities like New York and Washington DC the number of hotels controlled by Marriott is at an unhealthy level and reportedly affecting room rates,” decries Neil Armorgie, chief executive of WIN Global Travel Network. “Staying on top of the developments


and understanding the myriad brands and what they stand for is a challenge. As well as understanding what is included and what is extra to the room rate, consolidation in the sector is a concern.”


MORE THAN A BED FACTORY On a positive note, it’s increasingly advantageous for buyers that this segment is working hard to be more than just a glorified, upscale bed factory. Increased competition and brand proliferation means there is a lot more on offer. “Much of this is due to the growing


demand for less generic hotel environments. With such diversity now in the market, the star ratings system has almost become archaic and does not necessarily enable brands to think outside the box,” says Adrian Parkes, chief executive of the GTMC. There is no doubt that it is difficult for


hotels to distinguish themselves from competitors when their base product is a spot to sleep, a bathroom, a television and a wardrobe.


BUYINGBUSINESSTRAVEL.COM BBT July/August 2018 83


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