Thursday, March 22, 2007

3rd Party Sites VS hotel group sites on BRG practiceWe take the example of Orbitz.

They guaranty the best rate. In fact if the guest find a lower price within 24 hours after the booking, they refund the difference.It is a customer satisfaction strategy, they are not loosing the sale but they are not fidelise the customer.In comparison, Hotel group like Mariott make you pay the lower rate you can find plus 20% discount. It is a brand royalty program. Their goal is to satisfy and fidelise the customer.

Strategy:The strategy of Marriott is to fidelize and to control all their own distribution channels (phone, web...)That way the GM must check their distribution channels very closely.

Compared to it a hotel site like Mariott focus on the loyalty: when you book trough a Marriot chanel (internet, phone, travel agency...) for a brand of the group (Renaissance Hotels & Resorts, Springhill Suites...) you have 24 hours to search if you find a better price for:
- the same room category, the same hotel, the same dates

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