Hotels bungle Web pricing

Top UK hotel groups are failing to make the most of the Internet, says a new survey from management consultants KPMG.

While leisure customers are reasonably well catered for through discount offers and special breaks, corporate guests often find it cheaper and easier to book by telephone, the report said.

"We found rates were as much as 35% cheaper by either phoning the hotel directly or through the central reservations system," said KPMG hotel industry consultant Nick Pattie.

Just two out of 12 leading UK hotel groups surveyed by KPMG offered Internet prices that matched those offered by the hotels themselves or their central reservations offices. "Hotels that fail to develop an effective e-commerce strategy will not simply lose out on new market opportunities," said Pattie, "they will lose existing market share."

By failing to take advantage of on-line booking, hotel groups were also passing up the cost savings it offered them.

One barrier to corporate bookings over the Internet was that half the groups surveyed could not confirm a booking on-line. "Corporate customers are unlikely to risk waiting for a confirmation when they can get an immediate response by telephone or via a travel agent," said Pattie.

Market researchers have predicted that on-line hotel bookings will grow by at least 500% over the next two or three years.

At the moment, on-line bookings in the UK account for less than 1% of the market. In North America, the percentage is double that.

by David Shrimpton