The End of Channel Management as We Know It | Hospitality Business News - 0 views
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Xin Jing on 24 Jan 12In the late eighteen-century, customers use postal service to reserve lodging. After that telegraph became effective way to book and reserve. Until 1940s, airlines build a relationship with travel agents and their hotels, an original network was formed. In the end of the 1970s, the airlines provide electronic system for travel agencies to checking availability and reserving airline seats which we called GDS. It offers efficient and costless booking channel. On the other hand, the hotel suffer three commission costs for a single booking which are travel agent, switching company and GDS proprietor. In 1994, Hyatt developed internet distribution system (IDS) which reduce some costs but add intermediary cost. In the last century, the OTAs became a new channel. Customers booking is variables and each channel have its own attendant costs. The hotel should flexible when dealing with the rate, meanwhile carefully monitored the cost of each channel. Therefore the automated channel management system become a trend. Softeware systems now can analyze real-time market data and adjust rate across all the channels 24 hours a day.