Disintermediation in hospitality industry: how to face a changing scenario

Today the way hotels engage with their markets is evolving rapidly as travelers’ habits regarding accommodation search and criteria that drive their choices are evolving rapidly as well. In this changing scenario a key concept hoteliers must focus on is disintermediation: it is about establishing a direct connection with their clients, right from the accommodation booking phase, and adapting to their need in order to achieve customer delight and success for their hotel businesses.

What does disintermediation mean in hospitality?

As EHL Hospitality Insights writes,

“disintermediation means removing as much of the middleman as possible. To be more specific, it has to do with helping customers get more direct access toitems, services or in general booking by reducing or eliminating third parties.  This type of strategy empowers brands and customers to interact more directly with one another, providing organizations with more information about the needs of their target customers so they can continueto build their business to serve these expectations”.

Thanks to internet-related technologies and trends, hotels can easily achieve disintermediation in accommodation and service sales as OTA’s, GDS’s and meta search engines allow travelers to process by themselves a huge amount of information regarding their booking choices. Moreover, these tools are driving a massive shift towards a “do it yourself” mentality in travelers.

Therefore, disintermediation is a hospitality trend that is growing exponentially.

Why is disintermediation essential for hotels?

Disintermediation is essential for hotel business survival and growth for 2 very important reasons:

  1. disintermediation eliminates agency and referral fees allowing hoteliers to increase their profit margins
  1. disintermediation allows hoteliers to establish a direct relationship with their guests resulting in the possibility of collecting precious data about guest desires, preferences and satisfaction. If used properly, this data allows hoteliers to shape their services and offers in the best possible way to meet their markets’ demand and face the competition.

How does Manet Mobile Solutions help hoteliers disintermediate?

MMS’s mission is to help hoteliers improve profitability of their businesses, increase guest satisfaction and improve service management and delivery.

These benefits are pursued in 2 ways:

Firstly by equipping hotels with Manet, the powerful, smart, fully customisable digital concierge that has already been adopted by some of the most important hotel brands in the world.

Secondly, by enrolling hoteliers to the Hotelier 4.0 business development program specifically designed to help hoteliers discover their weakenesses and take advantage of opportunities arising from emerging trends and digital transformation in the hospitality industry.

If you’re an hotelier and want to learn more about the Hotelier 4.0 program by Manet contact us now to get a free digital audit for your hotel business.

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