95 percent of visitors to these sites do not buy on the site. In 2006 it was estimated that 70% of visitors to sites like Expedia, ended up buying Direct from the supplier. This is why Expedia has moved into advertising, realizing that they do influence buying decisions at a an important stage of the buying cycle. The GDS imposed minimum monthly billings as a way of charging for exposure.

Global Distribution Systems (GDS) are an important part of the market mix and are now affordable for small hotels. GDS is the largest travel distribution network in the world. Over 600,000 international travel agents use them. In addition many Internet Distribution Systems (IDS), such as Travelocity, have traditionally pulled content from the GDS to offer booking for resorts not signed with them.

The GDS have acted to some extent as a channel management tool for thousands of IDS sites. This too is changing as IDS favour direct contracts with resorts and always put their own direct contracts on top of the list. We expect that IDS will drop GDS content when they have a critical mass of direct-contract suppliers.

The issue then is how many systems will you, as supplier, be required to manage.

The role of marketing is becoming very much the role of controlling content, rates, availability and visibility on the Internet (Channel Management). The new order is taking shape. New technology is driving direct business and making it easier to control and manage distribution. Technology is more accessible and affordable and Suppliers who use it are taking control.

Ian R Clayton, AXSES -----------------------

For the full article see blog: http://axses-ianclayton.blogspot.com/2008/10/distribution.html

Notes 1. PhoCusWright: "In fact, more than twice as many online travelers (36%) believe that the supplier-direct channel provides the best customer service compared to 15% who choose the online travel agency channel. Even offline agencies, which are coveted for their personal touch in a technology-driven world, did not fare as well, with 33% claiming they provide the best customer service". ....more>>>