1. What do you think was the root cause of shifting market share of reservations (i.e. bookings) made directly on the proprietary Web site to reservations made on the third-party channel of distribution (e.g., Travelocity. Expedia)?
Customers prefer to compare different brands. The third-party channel of distribution meets their needs. Clients will find a satisfactory result by entering search criteria on the third-party websites.
Sometimes, the third-party channel of ...view middle of the document...
On the other hand, it’s difficult to cover everything for any company. To outsource the some services to the third-party is a good choice for the Hotel. The third-party companies are more professional.
2. What recommendation will you make to the GM of The Independent once you finish sipping your cappuccino? What should the Independent do tomorrow? What should it change about its operations, if anything?
From the data, we can see that the bookings of the third-party’s website is higher than the hotel website’s. Over time, the difference has become wider. The GM of the hotel should cooperate with a good third-party company. In order to gain the profit the hotel can outsource the online services. As a hotel, it should focus on the daily operation and reduce the input on building its website.
3. What do you think is the key lesson learned the Independent? What general guidelines would you have for your many other clients in and outside the lodging industry?
The Internet enters a rapid development period, and the construction of corporate image in the Network Times becomes a new subject. A Hotel can develop its businesses from a successful online service system. There are the professionals. Every company should focus on what it can be excellent at.