Online Travel Agencies (OTAs)

OTAs Launching Hotel Brands: Opportunity or Threat? - Triptease

Excerpt from Triptease

Online booking giant Ctrip has finally made the move into hotel management with the launch of hotel management brand Rezen Hotels Group. The aim of the launch, announced at the World Cultural and Tourism Forum in China, is to bring together high-end Chinese hotels under one banner and improve their performance with 'big data analysis' backed by Ctrip.

In some ways hotel management is a natural progression from the marketing and distribution already undertaken by Ctrip and other OTAs on behalf of the hotels they work with. Indeed, Peter O'Connor of ESSEC Business School suggested last year that rapidly rising franchise fees could lead hotels to abandon their chain affiliation in favor of simply handing the reins to their OTA partners.

The launch of Rezen Hotels Group is symptomatic of a travel industry in which the boundaries between suppliers and distributors, distributors and advertisers, grow fuzzier each day. The questions it raises for the Direct Booking Movement are intriguing; is this, for instance, a blueprint for how major OTAs could lend their powerful data scale to the benefit of hotels? Does it call into question the staying power of high-fee, asset-light hotel brands? 

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