Richard Eastman Article

The Hotel Distribution Muddle

 

Hotel distribution is forging to the forefront of corporate travel management scrutiny as hotel costs now rival or exceed air travel budgets in most big corporations.

 

Yet managing hotel distribution costs is proving quit challenging when compared with air travel cost oversight. The vast majority of corporate travel managers have backgrounds linked solidly to the Global Distribution Systems (GDS) business model. The GDS is the ?tool of the trade? around which the industry books, measures, tracks, and audits corporate travel expenditures. Essentially, from a corporate travel manager?s perspective, the hotel booking dilemma is almost directly inverse to the challenges of buying and managing air travel costs.

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Business Travel Executive  MARCH 2008

Down The Drain

 

OK ... you?re a travel manager overseeing a couple million ... or a couple hundred million ... of travel spend for a major company. So, what?s the single most important aspect of managing your hotel spend? And how do today?s existing and evolving hotel distribution structures impact this management task?

 

Make a note ? jot your answer down before you read on. It?s actually a pretty simple answer ... but understanding this key element of hotel spend is essential to managing corporate travel spend and the inherent risk/cost of planning around a linear extension of the distribution tools you use today; particularly in corporate America.

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Business Travel Executive   SEPTEMBER 2007

Evolution, Not Revolution

 

While some of the issues raised by BTC Chairman Kevin Mitchell?s essay "Revolution In Canada" are valid, the "us-versus-them" approach hurts business travel managers and their corporations because it ...

 

(a) fails to deal with the real issue of the societal transformation confronting travel managers/executives,
(b) distorts the economic realities of both the past business processes and future needs of travel manager/executives,
(c) creates a schism between buyers and providers that is costly to both, and
(d) demeans the role of travel executives who buy and manage the travel needs of corporate employees.

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