With the hotel industry experiencing unprecedented change in distribution patterns, guest columnist Ed Perry says hoteliers need to shift up a gear

From our reputation being in the spotlight to the rise of metasearch and the power of those with big marketing budgets, the current hospitality landscape requires us to be more on top of trends than ever before.

In this environment, it’s important for us to be on top of things that can change the game and education is the key to onward success. From my recent observations attending industry forums, conferences and events, there are few emerging trends that could help impact the bottom line. They’re important lessons and I hope you find them useful.

1. Reputation: it’s the number one game-changer

One of the biggest game changers to our success is our online reputation. We are the owners of our own legacy here. Everything we do from a customer perspective has a direct impact on sales. We can create incredible websites with the latest optimisation methods. We can travel the world visiting our best travel agency and corporate clients. We can engage in the most competitive pricing in our comp set. However, if we can’t find ways to get our people and product on board to expectations of the customer, it will be hard to reap the benefits of our hard work. As much as we try to find answers in innovative industry reporting and analysis, the concept of hospitality has refreshed itself to take on new meaning to our bottom lines. Needless to say, everyone in a hotel plays a huge role in the success of our online reputation, which drives our profitability.

2. Metasearch: yes maybe hotels really can go up against the OTAs 

The next change that has snuck up on us like a reaper in the night is metasearch. Metasearch has been a part of our reality for many years and has added value to the consumer experience. The real difference right now is that metasearch has taken on a new dynamic.

With the arrival of TripConnect by TripAdvisor, early adopting independent hotels have gotten an opportunity to showcase their product right up against the likes of major OTAs in diverse geographical regions. This has resulted in a healthy discussion among hoteliers about the cost of distribution and what responsibility hotels have to look after their own distribution destiny.

Some important questions have arisen and include:

• Can I distribute my rooms directly through a direct distribution channel on a site that has become a household name in consumer reviews?
• If I do, can I distribute that same room at a lower cost of distribution than an OTA can provide on the same site?
• Or will my expenses in cost-per-click fees exceed what is normally spent on commission to OTAs for selling the same room?

In an era in which hotels increasingly strive to drive direct distribution, all eyes are on the maths to determine what works out best for hotels.

3. Direct distribution: let’s prepare for a revamp

The above leads to a revamp of direct distribution. As an industry, we have fine-tuned our web and mobile strategies to attract a customer base to book directly with us. We promise better content, better access to deals and an enhanced customer experience. Along came metasearch and our lens now needs to change.

All of a sudden, the concept of ‘direct’ actually is driven in part by a third party search site. One only needs to look at the metasearch acquisitions of the past year to understand how important these sites (in part owned by OTAs) have changed our view of the world. Suddenly, it’s not just search engine marketing or search engine optimisation that matters. It’s how we interact with third parties to augment our direct distribution strategies.

4. The power of advertising: it’s no joke

Augmenting to the ‘OTA shuffle’ is the cost factor. Direct distribution is by far the most sought after method of distribution by hoteliers. One opportunity is to analyze the cost of consumer attention to our efforts. On a recent business trip in the airline boarding area, I watched two back-to-back paid commercials on the boarding screen from two OTAs. One was advertising guest experience that they deliver. The other focused on price.

Although most of us are not fortunate enough to afford ongoing marketing spots at major transportation hubs, we should be aware of the power that advertising can play in capturing consumer attention. If we are unable to compete on a dollar for dollar basis, perhaps we need to look at the resources we do have. That effectively means developing a great website, optimising that website and selectively partnering with the right distributors to maximise our efforts.

It also means providing the very best customer service available pre, during and post trip to ensure ongoing loyalty to the product and brand we sell.

Standing out in the sea of travel marketing isn’t easy but some hotels are managing to do so and as hoteliers in a fast-moving world, we need to continue to embrace change.

Edward Perry is a social media evangelist and Senior Director at Worldhotels. Find him on Twitter @ http://twitter.com/edwardperry