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14/12/2006 - Change Needed in the Hotel Industry

The imminent announcement by German-owned TUI of 4,000 job losses in the UK highlights all too neatly (though painfully for its employees) just how radically the global travel market has changed over the last few years. With more of us going online to book our holidays, larger tour operators are not just having to make serious cuts in order to improve performance, but alter the fundamental core of their businesses to compete with the thousands of travel agents now trading online.

In recent years, a gradual shake-up of the airline sector has also seen market leaders such as Lufthansa and BA streamline their services to compete with the likes of easyJet. Indeed, long gone are the days when you'd automatically receive an in-flight meal of chicken or beef coupled with a glass of wine. But if that means cheaper airfares and greater value for money, then I'm all for it.

However, it's an altogether different situation in the hotel sector. Here, at least, I'd argue that very little has changed. Sure, the world's largest hotel chains have successfully adapted to take online bookings, but once the customer arrives at their chosen property, they'll almost certainly feel less empowered.

How many of us yearn for a reasonably priced mini bar and free bottled water upon arrival? Why is it that four and five star hotels won't provide a quality buffet breakfast for less than 20 EUR per head? And, can anyone explain why, when a minority of hotels can offer free wireless Internet access, the vast majority charge an extortionate 18 EUR or more for 24hr access? As for the convenient, yet vastly overpriced hotel taxi, sky-high (in-room) telephone charges and the rather off-putting fee for on-demand feature films, don't even get me started! In a nutshell, it can add up to fleecing the guest for all he/she is worth.

However, it's only a matter of time before an easyJet style operator offers most, if not all of the traditional hotel creature comforts that we enjoy, for a fraction of the price. And they'll be successful too. At least while the big guns take stock of their falling revenues, before finally following suit.
 

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