Final - Online hotel distribution
I've chosen this article after having subcribed to google alerts. The title of this article caught my attention mainly because of the words "eBay" and "travel". The information in the article is very interesting as we know that eBay is the world's most popular online shopping website where people can trade anything they want; eBay have more than a hundred million members registered from all around the world and on an average day, there are millions of items listed such as cars, CDs, DVDs, clothes, toys etc...so why not flight tickets or hotel rooms?
And even if it is said that travel sales figures on eBay are still small and most of the products are short break auctions, the Great Hotels Organization (GHO) has signed a distribution deal with Cultuzz available on eBay mostly in European countries. Furthermore, people spend more time on eBay than any other online site including Expedia, Travelocity, Hotels, Lastminute and Orbitz.
How does it work? GHO members simply set a minimum package or room night price (not visible to the consumer) and sell to the highest bidder.
In my opinion, eBay is already becoming an very important competitor to other online distribution channels and it could become the ultimate travel distribution channel; as previously said, eBay is the world's most popular online shooping website and moreover, there are now systems that can link PMS and CRS systems directly into eBay. Therefore, this distribution channel system through eBay could help hoteliers manage and sale their vacant room capacity more easily and increase room revenue.
However, one could wonder what would be the impact(s) on hotel brands, online channels like Expedia, Lastminute..., and eBay itself, etc.
