Hotel Chains Bet on New Ways of Selling to Corporate Travelers
Skift Take
Hotel chains are quietly planning to shift their distribution strategies, aiming to bypass traditional intermediaries and boost direct bookings from corporate travel buyers. But with billions at stake, expect fights from legacy players.
Hotel chains are quietly developing plans to bypass traditional booking intermediaries, aiming to increase direct bookings from corporations and businesses.
Why it matters: This move could disrupt how business travel is sold today, potentially squeezing out traditional travel management companies and online travel agencies.
Why hotels are pushing for change: Some hotel executives believe they can woo more business travelers to book directly if they provide more interesting offers that can't be found via third parties. So, they're working on technology upgrades to provide distinctive offers.
Hotels Unbundle the Hotel RoomMajor hotel chains like IHG, Choice Hotels, Marriott, and Hilton are testing a new pricing and booking process called attribute-based booking.
Attribute-based booking is a bit like the "Build a Bear" toy concept. A traveler may pick from things they want in a room — such as a queen-size bed or a corner room — à la carte. Travelers bundle their choices and get a "custom" price. Earlier this year, IHG rolled out a function on its mobile app that lets travelers find and book rooms based on a few attributes, such as rooms on a high floor. The business travel twist is that hotel groups are now working on versions of attribute-based booking relevant to road war