White Paper: “Distribution Channel Analysis: a Guide for Hotels” by Cindy Estis Green & Mark V. Lomanno

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This report states:

“Ten Things You Should Know:

1)  Hotel demand in the U.S. market is “price inelastic” on an industrywide basis for all hotel types. That means lowering prices will not stimulate enough incremental demand to make up for the rate reductions; there isn’t enough demand in most markets to compensate—therefore, the net result of lower rates is lower revenue levels. This is mainly due to limited demand for lodging.

2)  On a property level, a hotel may be able to lower prices in certain circumstances to generate enough demand within a comp set to result in a net positive revenue outcome. However, because the rates are so transparent and prominent in current and emerging digital venues, by the time the competitors match the lowered rate, the first hotel that lowered its rates loses any benefit in terms of a demand bump and the entire competitive set may have a harder time increasing rates commensurate with the increased cost of doing business.” (1)

Read this entire fabulous 13 page report, Distribution Channel Analysis – Summary Download.

These finding are directly correlated to the golf industry in our opinion.

It would be interesting to hear the responses to this report by the spin doctors at GolfNow and EZLinks Golf LLC (A PGA TOUR affiliated company).

To brew up their magic potent as the three witches enter, they might call on William to say, “Double, double toil and trouble; Fire burn, and caldron bubble.”  Or as Jerry Maquire would say, “Show us the money” you are incrementally creating for the golf industry.

I will show you where the money is, click here to generate some for your course.  I will give you a money back guarantee if you apply the insights.  Will they?

 

 

 

Footnote

(1)  Cindy Estis Green & Mark V. Lomanno, “An A H &  LA Special Report – Distribution Channel Analysis for Hotels”, Published by HSMAI Foundation

 

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