Independent Luxury Hotels Face Strategic Challenge in Controlling Demand Origin Despite Increased Direct Booking Investments
📈 Independent luxury hotels struggle with intermediary platform commissions. These platforms control introductions, while hotels control experiences, leading to a demand origin problem misdiagnosed for 20 years. Despite strategies like channel rebalancing to reduce operational costs and increase direct bookings, the issue persists. Hotels remain unaware of potential guests until competitor platforms introduce them. Without addressing demand origins, hotels cannot fully govern guest relationships, even when direct bookings increase.
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