The Relationship with On Line Travel Agencies (OTA) Should Be That of a Partnership. By Leora Lanz and Eydie Shapiro Thursday, 29th October 2009

HVS' thoughts on the Choice and Expedia situation this week -

In light of the current news regarding Choice Hotels’ attempt at negotiating with Expedia/Hotels.com, it is important that hoteliers take note.

We have learned since September 11, 2001 that it is up to us to retain our brand and pricing integrity and manage our revenue. The third party relationships which began as a mechanism to move our available inventory, have professionally evolved and matured into win-win partnerships.

Keep in mind that the business booked by the OTAs should not be considered a “market segment.” The OTAs provide another channel for selling our rooms.

We as hotel marketers have learned and continue to learn, how to oversee our rate strategies and work with the OTAs to assist us in maintaining our brand promises.

To be bullied by a third party in a “take it or leave it” scenario, where the agency becomes the effective revenue manager for the hotel, is contrary to everything we’ve learned in this past decade of yield management. Now is not the time to unravel the paradigm that’s evolved.

While the relationship should be a partnership, remember your inventory of hotel rooms is yours to manage. Not someone else’s. We must not allow this situation to turn into another post-9/11 scenario where the hotels lose control.

The OTAs are our marketing partners that we’ve developed positive relationships with. Let’s keep it that way.

About Leora Lanz
Leora Halpern Lanz joined HVS as its Director of Marketing in February 1999. She is responsible for coordinating the global marketing and external promotion of HVS’ worldwide office network and comprehensive hospitality services. Additionally, she coordinates the internal communications for the firm as well as contributes to the production of the firm's weekly e-newsletter, website and intranet. Her efforts have earned her Awards from the prestigious Hospitality Sales & Marketing Association International (HSMAI) as well as awards from within HVS itself.

Leora also serves as Director of HVS Sales & Marketing Services -- providing sales, marketing, revenue management and public relations expertise for the hospitality industry.

www.hvs.com