EFT Travel Distribution Middle East 2008Recently, a senior distribution executive of a global hotel chain stated that the individual hotels have lost out on technology and support costs simply due to the fact that they are small businesses with limited scale.

Published: 18 Jun 2008

EFT Travel Distribution Middle East 2008

Recently, a senior distribution executive of a global hotel chain stated that the individual hotels have lost out on technology and support costs simply due to the fact that they are small businesses with limited scale.

That is where the power of big hotel groups allows operators to take advantage of scale and leading edge technologies by joining a network of hotels.

In order to get a viewpoint of the hoteliers in a market like Middle East, EyeforTravel.com's Ritesh Gupta spoke to the industry executives during EyeforTravel's first Travel Distribution Middle East conference in Dubai. Excerpts:

Tarek Elsherif, Regional Director of Sales & Marketing, Millennium Hotels & Resorts - Middle East & N.Africa: I would say that this is true to certain extent concerning the power of being big hotel group and having the resources to support all hotels in the chain.

However, the small business now are also grouping to form a larger purchase power for online distribution and to take advantage of the latest technology available in the market.

A very good example of that is the formation of the "Small Hotels of the World" which offers these hotels - which are mostly not associated with any brands – the opportunity to be visible on GDS and online.

Romain Saada, Director of Revenue Management, Shangri-La Hotel, Dubai: We constantly upgrade our system and look for areas of synergy. We recently changed our CRS Provider as we intend to fully use the capabilities of our revenue management system throughout our properties.

For smaller operators, they would have to think about their technology costs (PMS, CRS, Distribution channels) as it might be too costly.

Sathis M. Aravinda, e-Distribution Manager, Emirate of Abu Dhabi & Al Ain, Rotana Hotels & Resorts: It (individual hotels losing out on technology and support costs) is quite true considering the Middle East market, where 75% of the hotels are small business with limited scale.

When it comes to distribution, the greater portion is generated by hotel direct sales. However, with the regional economical and commercial shift, development of international hotels, introduction and expansion of airlines and technological changes in the region, these small hotels are influenced to comply with certain requirements to ensure their presence in the international market. Hence, joining the network of hotels, such as Great Hotels of the World, Utell Hotels & Resorts, Leading Hotels of the World, has been one of the best and cost effective solutions.