Hotels' web sites hit back at third-parties

Branding is the key to beating competition for internet sales, according to the big hotel companies at this year's Berlin hotel conference.
At last year's IHIF, the threat posed by third-party booking companies such as Travelocity, Expedia and Octopus, was a hot topic.
But now the big hotel groups claim they have fought back, saying sales through their own branded websites are growing at twice and three times the rates of third-party sites.
Tim Davis, head of distribution and E-commerce at Hilton Group, said the hotel giant had successfully increased sales through its own central call centre and branded website in the past three years.
"Three years ago less than 20% of bookings came through our central booking point," Davis said. "It has now grown to 40%."
Hilton also claims that 70% of online sales come direct through its own website, while only a third are made through some form of distribution company.
"Business through our own website is growing three times faster than through third parties," Davis said.
Stephen Powell, senior vice-president sales and marketing at InterContinental Hotels Group, agreed that growth in bookings through intermediaries had slowed.
"We have seen high double-digit growth through our own website," he said.
Roeland Vos, president of Europe, Africa and Middle East at Starwood hotels, pointed to recent hospitality appointments from outside the industry as evidence that branding remained key.
Ian Carter at Hilton, Andrew Cosslett at InterContinental and Steve Heyer at Starwood were all examples of the trade acknowledging its need for external expertise, he said.

BOXHEAD: Vox pop from IHIF in Berlin

BOXTEXT: What has been the hot topic for you at this year's conference?

The general air of optimism and the positive outlook on the European hotel industry. It is good for new developments and growing companies.
Chris Day, Managing Director, Christie & Co

The number of major property disposals successfully concluded in the past couple of weeks, including InterContinental, Hilton, Whitbread and the Courtyard deals. We haven't had this number of major deals in such a short space of time for a long while.
Rod Taylor, relationship Direct & Hotels Team Leader, Barclays Bank

After three years of speculation, the big thing is the reality of the split between hotel ownership and operations which, with all these recent deals, is now actually happening.
Douglas Grant,
Director, Hotel Investment Advisors

There is a wall of money out there and too little product. I am concerned that buyers don't overpay as there is a danger that some of the deals are looking a little frothy.
David Bailey,
Director, TRI Hospitality Consulting
The fact that the big brands have finally got it together and sorted out the bricks and brains issue. I am amazed at the amount of cash around caused by blue-chip money now viewing the hotel sector as a good investment.
Nick Smart, Commercial Development Director, Radisson Edwardian hotels

"There was a level of optimism that we haven't seen since 2000. I also think there was a lot of interest in how to extract value from asset management."
Chris Rouse,
senior director at CB Richard Ellis HotelS

CAPTION: Tim Davis: "40% of bookings come through our central booking point"

CAPTION: Hilton's Ian Carter: external expertise benefits the industry