EFT Travel Distribution Middle East 2008The rapid development of suppliers' direct distribution channel vis-a-vis progress made by the online intermediaries is being considered as the major development in travel distribution in the Middle East region.

Published: 17 Jun 2008

EFT Travel Distribution Middle East 2008

The rapid development of suppliers' direct distribution channel vis-a-vis progress made by the online intermediaries is being considered as the major development in travel distribution in the Middle East region.

According to Euromonitor International, `supplier direct' as a channel dominates with almost 90% of Internet transactions.

According to Cem Cetinturk, Regional Director, Middle East & Africa, TravelCLICK, a speaker during EyeforTravel's first Travel Distribution Middle East conference being held in Dubai, hotels in the region are showing signs of ensuring their online distribution infrastructure is in place.

"(At the same time) For some (hotels) it may not be there yet as they still think "why do I have to pay fee for my online distribution if the guest is coming to my hotel anyhow"," shared Cetinturk.

In terms of behaviour, is the Middle East market still in browse online buy offline mode?

Responding to the same, Cetinturk said, "I believe this myth is going to be over soon. Due to higher flexibility of web booking engines, now it is more browse and buy online...Hospitality products couldn't have fitted better to online search as a glove."

He elaborated further by saying, "It was almost impossible to check/compare all offline, but online helped to collect/sort/compare/mash up etc. Then, the challenge was related to the web booking engines. However, as web booking engines are becoming more flexible, more secure and more user friendly now than the past, this gives higher comfort level to the buyers."

On the role of channels such as hotel direct online and 3rd party Internet channels, Tarek Elsherif Regional Director of Sales & Marketing, Millennium Hotels & Resorts - Middle East & N.Africa said, "From a hotelier point of view and specifically from sales and revenue management point of view, I see these channels as my extended sales force and my sales manager who reaches out to clients at their homes, computers and everywhere. There are hotels, who still consider these channels as luxury that they cannot afford or they look at it as this is the media to sell at your highest rates no matter what is the competition offering."

Further on online distribution, he said, "To start with we have to agree that there is a price for everything, and considering these channels as my extended sales team, then there should be at least some expenses equivalent to the salary of this sales person, which is represented in the web search optimisation, pay per click, and IT. I still believe that cost of doing business online is still less than GDS where you still have to pay transaction fees and commissions no matter how long is the stay and how low is the rate, while on online business the actual cost of the booking is minimal and all other expenses should be considered as cost of doing business."

Ritesh Gupta

EyeforTravel.com