It’s truly remarkable, the collective pat on the back our industry often gives itself for “mastering” distribution. This quiet satisfaction that we’ve somehow reached the holy grail of digital capability, that the channels are open and the bookings are flowing. The reality strikes me as profoundly myopic, like claiming you’ve stocked a supermarket when only the bread aisle is truly operational.
We’ve done a decent job of getting heads in beds via digital channels. Room inventory, pricing, availability – that part of the machine hums along, albeit with its own quirks and complexities. We’ve built sophisticated platforms, connected to myriad OTAs and GDSs, and developed intricate revenue management systems. And because of this, there’s a prevailing, frankly ill-conceived, idea that we’re “there.” That distribution, as a strategic pillar, is largely a solved problem.
The irony is that distribution teams are shrinking in an environment where we are only just beginning to distribute end-to-end industry products and services. It’s like declaring victory at halftime when you’re still a dozen points down. We should be signalling an increase in focus, in investment, in human capital, as we pursue the digital shelf for the rest of the hospitality product set.
Think about it. We’re talking about food and beverage – not just room service, but restaurant reservations, pre-paid meals, bespoke dining experiences. We’re talking about spa treatments, golf tee times, local tours, unique activities, event spaces, meeting room packages, gym access, retail products, even parking spots. These are all high-value, digitally-tradable assets that, for the most part, are stuck in the analog age or reliant on cumbersome, individual property-level systems. The billions in untapped revenue, the sheer scale of the opportunity being left on the table, is staggering.
We’ve optimized one single line in a vast product catalog. It’s like having a perfectly efficient system for selling just one type of soft drink, when the entire beverage aisle, let alone the whole grocery store, is waiting to be digitized and properly merchandised. The customer is out there, digitally savvy, ready to book everything at the touch of a button, but we’re forcing them to make a separate phone call, fill out a form, or even show up in person for anything beyond the room itself.
No, we are absolutely not “there” yet. We’ve only just begun the true digital transformation of hospitality distribution. The holy grail isn’t a single product line; it’s an integrated, seamless digital marketplace for the entire guest experience. And until we commit to that, we’re simply leaving money on the digital shelf.
Life is so tech. But our distribution vision is still stuck in a single room.
Mark Fancourt
