This is another example of the shifting landscape that was written about earlier this year.
Who Controls Room Inventory?
When a hotelier leverages the tools provided by traditional Distribution entities, the hotel must be keenly aware their pricing and channel distribution strategy is now exposed. In the case of Priceline, they now possess marketing (Buuteeq) as well as reservation system (Hotel Ninjas) capabilities in their service offering. In this particular case, the lines are now blurred regarding the traditional lines of Supply and Demand side functionality/services.
At Above Property, we expect to see more of the same in the coming months. From the Traveler to the hotel room, the path is filled with rate parity, adware fees, commission fees, revenue shares and rebates across multiple vendors. While these services are being consolidated, it should also be recognized that underlying Supply side technology is legacy based. For example, inventory still resides in a legacy database that has very rigid configurations. Revenue Management systems must work within the rigid confines of the legacy systems. Above Property has solved this issue by modernizing the data model, leveraging NoSQL data stores and revenue optimizing every transaction. While consolidation is a natural evolution, the legacy Supply-side systems must be modernized for the industry to realize today’s technology advancements.
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