Life at sharp end of hostel distribution as mega-brands close ranks
Whilst a backtrack on the commission hike would prevent a lot of the immediate inventory loss facing WRI, many of the loudest voices in the industry have undoubtedly lost their trust in HostelWorld and HostelBookers, and will begin to reduce reliance upon it as a distribution network, no longer viewing them as the “partner” that they were before.
There has recently been some rather seismic activity taking place in that often little known end of the accommodation distribution debate – hostels.
Almost one year after Web Reservations International (WRI), parent company of HostelWorld, acquired its main competitor in the online hostel reservations market, HostelBookers, the new joint company announced to hostel owners that commissions would be increasing from 10% to 12%, and in some cases 15% from the end of February.
The move was somewhat inevitable, with the company owned by private equity company Hellman Friedman, however, the way in which WRI broke the news to hostel owners has created great waves of discontent in the industry, and the direction of the tide is somewhat unclear.
Read full story at: http://www.tnooz.com/article/hostel-distribution-mega-brands-close-ranks/