Direct bookings have been harder for smaller hotels and mom-and-pop tour operators to get than for the big guys. Still, tech providers, such as Sojern, Xola, and Destinia, aim to democratize online marketing tools.
A few months ago, activist investor Elliott Management took Amadeus rival Travelport private. Elliott also happens to be the largest shareholder of Whitbread, the parent company of Premier Inn. That hotel chain has now dropped its contract with Amadeus for software services. Coincidence?
Amadeus deserves credit for making strides in reducing its dependence on its original core business of airline distribution. Few companies in any industry succeed in diversifying. But work remains to be done. Plus, the company may not be doing enough to capture Asia's potential as a market.
Independent hotels don’t have the global resources of major chains when it comes to building traditional guest loyalty programs. But independent hoteliers are pushing the envelope and finding creative ways to reward loyal guests and guests who book direct.
With this deal, Amadeus Hospitality finally has a chance to start selling its enterprise software after years of perfecting its platform-based offering.
Agents may be placing more hotel bookings through global distribution systems, but the fact remains that hotels would like to move away from expensive distribution channels like these.