Post by mdkabila on Mar 11, 2024 4:27:10 GMT -5
Hyatt is considering ceasing distribution of its hotels on Expedia and co . Few times has a giant in the hotel world cornered an OTA by asking for more advantageous contractual terms. Leaving a portal is not a painless operation, but Hyatt seems to have already prepared a plan B so as not to be affected too much. Last week, all the owners of the properties associated with Hyatt were notified that the group intends to terminate its "Corporate Lodging Agreement" with Expedia if by July 31st it does not find an agreement satisfactory for both parties, with a decisive lower commissions and more flexible conditions.
This is certainly an aggressive negotiation tactic , yet Hyatt spokespeople say they are ready to face the possibility of leaving Expedia and its distribution channels (including Hotels.com, Travelocity, Orbitz, Hotwire, Wotif). Hyatt's plan B Stopping sales on Expedia could lead to a major Denmark Phone Number loss of visibility – unthinkable for the majority of independent hotels that have always relied on this channel and have a large American customer base. Hyatt, however, reassures its affiliates by saying that it already has a strategy ready to counteract the side effects. Let's see the initiatives it is preparing to undertake. Enhance the loyalty program This move is probably part of a strategy that in the last year has seen many hotel groups focus on direct bookings and loyalty programs as much as possible.
Hyatt said it is ready to do everything it can to increase direct bookings, improve customer relationships and reduce costs . To do so, it will primarily leverage the new World of Hyatt platform , launched in March 2017 to create a community of guests, offer benefits and increase engagement. Transforming commissions into marketing actions To achieve what was said in the previous point, Hyatt wants to attack the market with more pervasive marketing actions than in the past. For this reason, it asks North American hotels to take advantage of the savings on commissions that they will no longer have to pay to Expedia and to put on the table the 7% more annual fees due to the group .
This is certainly an aggressive negotiation tactic , yet Hyatt spokespeople say they are ready to face the possibility of leaving Expedia and its distribution channels (including Hotels.com, Travelocity, Orbitz, Hotwire, Wotif). Hyatt's plan B Stopping sales on Expedia could lead to a major Denmark Phone Number loss of visibility – unthinkable for the majority of independent hotels that have always relied on this channel and have a large American customer base. Hyatt, however, reassures its affiliates by saying that it already has a strategy ready to counteract the side effects. Let's see the initiatives it is preparing to undertake. Enhance the loyalty program This move is probably part of a strategy that in the last year has seen many hotel groups focus on direct bookings and loyalty programs as much as possible.
Hyatt said it is ready to do everything it can to increase direct bookings, improve customer relationships and reduce costs . To do so, it will primarily leverage the new World of Hyatt platform , launched in March 2017 to create a community of guests, offer benefits and increase engagement. Transforming commissions into marketing actions To achieve what was said in the previous point, Hyatt wants to attack the market with more pervasive marketing actions than in the past. For this reason, it asks North American hotels to take advantage of the savings on commissions that they will no longer have to pay to Expedia and to put on the table the 7% more annual fees due to the group .