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HSMAI hosted an Executive Roundtable for Chief Digital Officers from hotel management companies. Industry experts identified four main challenges and provided insights into the complexities and strategies involved in these areas.
1. Rate Parity and Distribution Control
The industry faces challenges in maintaining rate parity due to unintended channel distribution. The complexity of controlling where rates end up once distributed remains a significant issue.
Solutions:
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- Implement transparent and legal rate distribution disclosures to ensure control over where rates end up.
- Develop strategies to manage unintended channel distribution effectively.
2. Consumer and Vendor Relationships
Consumer behavior and vendor practices significantly impact rate integrity. It is crucial for vendors to adhere to agreements and avoid leaking rates to unauthorized channels.
Solutions:
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- Enforce agreements with vendors to prevent rate leakage to unauthorized channels.
- Improve management and enforcement of vendor relationships to maintain rate integrity.
3. Legal and Compliance Issues
Legal challenges in enforcing rate distribution agreements highlight the importance of having clear and enforceable contracts. There is a need for education on handling legal and compliance aspects within the industry.
Solutions:
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- Establish industry-wide legal standards and certifications.
- Industry-wide education on legal and compliance aspects.
4. Technological Advancements and Challenges
Rapid technological changes impact how rates are distributed and monitored, presenting both opportunities and challenges. New tools can improve transparency and control in rate distribution but also introduce complexities.
Solutions:
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- Stay updated with technological trends to maintain compliance and competitive advantage.
- Utilize new tools to improve transparency and control in rate distribution.
HSMAI hosts unique by-invitation forums for executives. If you are interested in being invited to upcoming roundtables, please email Juli Jones.