Was hotel marketing always this complicated? Part Two of Three – GDS consolidation and rise of OTAs
For the most part the hotel industry did not have the coordination or the moxie to fight like the airlines and simply paid the higher distribution fees and travel agent commissions.
NB: This is a viewpoint of Jason Price, executive vice president at HeBS Digital.
At the onset of the new decade (1990) it became apparent that travel agents were caught in a price battle between the remaining four global distribution systems and the airlines.
These four GDS vendors controlled the marketing and distribution channel for the entire industry. They had market power and could impose higher fees at a whim on both the agent and airline. At the same time airlines sought ways to lower their distribution costs.