Hotel representation firms help smaller independent brands hold their ground among big brands, but can they hold their ground against new online marketing channels?
The relationship between hotels and the firms that represent them is changing due to the internet. In the past, the two partied performed the simple transaction of fee paid for international travel trade. With so many communications channels opened ia the internet, what is the new referral value of these representation firms? Are they still worth the investment?Great Hotels of the World (GHOTW) is now trying to regain ground with a business model is centered on proprietary technology. They aim to maintain their relevance by providing hoteliers with tools to publish and manage content across all distribution channels, including GDS, web, social, and mobile.Further, GHOTW’s pricing model reduces representation and distribution costs by 30% or more. They alternatively offer a subscription-based pricing model where one licensing fee covers all representation services. So although the internet has changed the role of hotel reps, GHOTW’s strategy shows that it is possible for reps to stay relevant.
