Hraba Hospitality Consulting

This is a really big question. I would love to see the industry really delve into this.  The transition from real world to online has been very fast, and a lot of the “infrastructure” is so much e-duct tape, putty, and last minute jury rigs – all of which should have meant to be temporary so that we can rebuild our online world of distribution based off tried and true methods, as they evolve.  I know our industry is never that pro-active, but maybe we have an opportunity to start learning from where we are losing the most money, and patch those leaks.

This Argophilia post by Phillip Butler starts the conversation: Who is the big bad wolf of hotel marketing?  Simply put, there isn’t just one –  OTA’s, Franchise Fees, Internet Marketing Fees, Booking Engine Fees.  This is one leaky ship.

Here is my response, but I am more interested in what all of you have to say?
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Great read. Thank you much. =)

I always thought of the OTA’s as something that filled the gap during the off line to online distribution evolution. They were a stopgap solution. They are now becoming unnecessary, and getting in the way of commerce because they are becoming obsolete, where they used to promote some level of commerce for our industry. Distribution has changed… and their role will phase out. It won’t be in the next 5, maybe 10…. but this will all change. I adore how people revile when you suggest the guy on top won’t be there forever.  The fact is, nothing is forever, and new paradigms unfold.

Another big bad wolf, on top of franchise fees? Ridiculous internet consulting firm charges by hourly consulting model.  Buuteeq is doing some good with simple pricing plans… it makes a lot more sense, and you aren’t nickel and dimed for the internet marketing group’s mistakes or on the job training.

Lastly…. commissions to booking engines. Including the franchise fees, as well… Engines like Synexis get promoted by franchise and flag brands, which then take a cut. It’s incredible how much money is lost to an engine that simply helps facilitate online booking. Eventually, the hotels will realize the money lost can be recouped quickly by building and designing a proprietary engine of your own, off a template, for the hotel to own, outright. That can save 20K – 100K+ a year.  I imagine a management group could justify the development fees to an owner group, based solely off the last 3 years of annual or commissionable fees that the property made to the booking engine company.

Would anyone have any idea how much it would cost for development of a competent template, and simple engine with solid UI – that includes a mobile component? Is that $100k or more?  I know… you can always spend more. =)

Unfortunately, Twitter and user generated review sites seem to have a lot more ROI, interaction, and traction than Facebook — which is only unfortunate because it seems they get less attention than Facebook.  Unlucky FB users, on the other hand, are stuck in the loop of hating Facebook, while being completely incapable of escaping it. People are already asking if Facebook actually has a monopoly, and whether it should be managed as a utility.  I don’t like that conversation, because it’s like we are giving up on the obvious fact – there could be something better.  Until then, we need to stay on top of this poorly conceived, and inherently damaged, network.

There is a big discussion going on about the equity of attention in social media, and that curating attention is more important than posting information.  Curation is a fine line, and studies have (more…)

Cheers and good day! Your friendly neighborhood Hotelier trying to stay on top of hotel news, and travel info, and hospitality & management philosophy… oh yeah… and technology or social media.  Okay okay… I am apparently trying to keep you updated on everything, and here is a little more from my corner of the internet…. endless relevant information filtered into a relatively decadent lunch sized chunk.  Enjoy!  Don’t hesitate (more…)

A colleague and I were bemoaning the difficulty with modern customer service, and the fact that so many tech support numbers are no longer offered as toll free unless it is someone like HP or Dell. Per usual, I fanatically inject my own experiences into the situation, and muse about the long and wild road of in-room phones at hotels… specifically the way technological innovation and advancement has, constantly, caught our industry unaware to the point that we shoot ourselves in the foot.

It isn’t right not to have access to free phone tech for a product, but it is the way modern business is happening. Telephony has altered greatly (understatement) in the last two decades…and property level we are still calling them “PBX”. What’s more is that the IT guys at hotels are well versed enough to know just to ignore it.  I have seen one or two try to explain.. “Well the PBX doesn’t really exist anymore”, the GM will point to the operator, and then the IT guy capitulates with a shrug.

We hotels used to gouge consumers for phone calls because they had no choice, and it was a BRILLIANT revenue stream. Then came calling cards, and hotels started losing lots of revenue… and per our typical furrowed brow, it took us a couple years to figure out why. Even dial-up modems for AOL and prodigy services were (more…)

I was ranting and raving about not being able to keep structure or organization with social media, so I took some time to find some useful programs to help me out.   Well…. this is pretty cut and dry:    A quick, succinct post for you to be made aware of (and yet another onslaught from) useful social media tools.  Social Media is simply a tool in itself… so they are tools for tools.  With some of my friends’ more sophomoric moments of wit… they might suggest including myself would make it a third tool.  =)

A list of 10 tools that you might know of, or might not.  As many of these lists go you will likely act as I do…. Stoic, dismissive, and blase…  I will find myself say, “I know all these already,” ……. and then (more…)

Josiah Mackenzie, hotel marketing pro, blew my mind once again with his exhaustive and insightful advice in using Flickr for Hotels.  His social media plan and help is just…. wow.  Thanks sir.  Some of his thoughts will be in the social media bible, whenever someone has enough time to sit down and write one (even though it seems to change second to second).  Whatever the case, his work always gets me thinking.  This time it brought me back to the vague, somewhat uneasy marriage of business and flickr.

Something people don’t seem to want to talk about, or at least isn’t brought up too often in regards to Flickr, is their famously nebulous Flickr TOS & Yahoo Terms of Service.  I have spoken to (more…)