TheYou Tube threat

Allan Simpson, chief executive of eRoomBidder, the online trading marketplace for hoteliers, believes that YouTube is a massive threat to hoteliers' businesses. Here he explains why.

The YouTube genre of websites represents the most significant threat to the promotion of hotel businesses since the industry allowed the internet to commoditise rooms.

The website features user-made videos (using mobile phones, video cameras or webcams) on a wide range of subjects that could include your hotel.

As an industry, hoteliers played straight into the hands of online agents and most are still doing it today with "lowest available rate guarantees" on their websites. In some cases, these are the primary selling proposition.

Very few hotels are actually selling their proposition on the internet. Instead, the internet is still being used to commoditise rooms.

Ask yourself these questions:

• Will the content (video, audio or text) be a true and accurate reflection of your business?
• Will the content always be positive?
• Will the content promote your business as you would want to promote it?

I beliver that your answer to all three questions would be "no".

You can't stop user-generated content but you can challenge it with your own presentations. In order to do this, you need to develop and maintain an effective presence on the internet which tells prospective customers your story from your perspective, in such a way that these potential customers feel compelled to buy something from you.

I doubt that you'll actually take heed of my warning and do something about your own online promotion because the hotel industry has never risen to the challenge of the internet before. An overwhelming majority of hoteliers are challenged by technology and fail to see the marketing opportunities available.

Here are a few more examples to illustrate my point:

Commoditisation - The downward pressure on rate is a constant threat and the industry allowed it to happen the day it abdicated sales responsibilities to online agents.

E-mail - Do you use it properly? Do you read it? Do you respond promptly? Do you craft your outgoing messages carefully? Do you have a proper (fit for business purpose) e-mail address?

Blogs - The "user-generated content" and "social networking" precursor of the You Tube phenomenon. How many of you use a blog to help promote your business? How many of you have ever seen a blog, much less actually used one?

Websites - Hotel websites are generally pretty awful. If they're not playing music or screaming "buy a room NOW!" from every page, they show revolving images of hotel rooms that spin so quickly the experience leaves the user quite ill.

The only reason hotels are still getting online bookings is because people still need to make them.

The internet represents a wonderful opportunity for hotels to prospect, promote and sell their services.

To do it successfully takes time, money and a bit of thought. You have never had access to such a flexible, immediate, rich method of dealing with your customers before. If you don't embrace it now, you will let other people occupy your territory in cyberspace - yet again.