When it comes to the word ‘direct’ in relation to sourcing hotel accommodation, as many of you may know, ‘contracting’ is not quite the same as ‘connecting’.
Before the pandemic hit, tour operators, online travel agents (OTAs) and wholesalers were increasingly linking to hotels via direct, dynamic connections such as channel managers and switches – and moving away from the more traditional method of securing direct, negotiated contracts with individual properties.
This was predominantly initiated by hoteliers as they used new technologies and looked to reduce the complexity of managing direct contract agreements. But will this trend continue now the pandemic is largely over?
If anything the recent pandemic climate has led to an acceleration of this trend for direct connections as both the demand and supply of this type of dynamic agreement has increased.
But why?
Firstly, both the travel companies and the hotels have found themselves in a position where they no longer have the resources to load, manage and maintain a complex relationship, due to resources possibly being reduced due to the pandemic.
Direct contracting can definitely be labour intensive from both the point of loading and ongoing maintenance as new rates and offers are released. And if you need to consider multiple markets, brands and channels then the effort increases proportionately.
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