MCR Hotels Trial Runs Attribute Pricing
(“One of the US's largest hotel owners is charging guests $25 to use the swimming pool and $20 to check in early — but is cutting room prices in return,” August 18, 2021 via Business Insider)
In an interview with the Wall Street Journal, hotel owner and operator, MCR Hotels CEO, Tyler Morse, shared the company’s plans to begin offering attribute pricing for 12 of its independent hotels. According to Morse, the company plans to reduce its hotels’ base room rates, while at the same time charging additional fees for guests’ use of certain of the hotels’ amenities (e.g., pool or fitness center) or other services (e.g., early arrival). Whether MCR’s plans signal the beginning of the lodging industry’s long discussed transition to attribute pricing remains to be seen. With many hotels suspending traditional guest services (e.g. daily housekeeping) during the pandemic (and owners reaping the associated economic benefits), the post-pandemic return of the lodging industry may provide a unique opportunity to rethink guest room pricing. How these new practices might fit with legacy distribution systems, OTA fee structures, sales contracting practices, etc., remains to be seen.
Where did summer go? It was another quiet week in the online travel world, though I expect things may pick up in the weeks ahead as everyone returns from their summer breaks. Enjoy.
Travelport and Amazon Web Services Announce Travel Startup Accelerator
(“Travelport Teams With Amazon Web Services to Support Travel Startups,” September 2, 2021 via Skift Travel News) (subscription may be required)
Recently, Travelport and Amazon Web Services (AWS) announced the launch of a travel startup accelerator designed to provide travel entrepreneurs access to data and channel expertise, potential supplier partners (including hotels) and prospective travelers. The inaugural session will feature 10 travel startups with a focus on digital marketing and personalization. Judges will include representatives from American Express GBT, Internova and Priceline.
Russian Authorities Impose Anti-Trust Penalty on Booking.com
(“Booking.com Faces $17.5 Million Competition Fine in Russia,” August 26, 2021 via Skift) (subscription may be required)
Russia’s federal antimonopoly service (FAS) announced that it was imposing a $17.5 million dollar fine on Booking.com for its alleged abuse of its market dominant position. The fine comes nine months after FAS accused the online travel agent of violating Russia’s competition laws. Booking.com plans to appeal the fine.
Greg Duff founded and chairs Foster Garvey’s national Hospitality, Travel & Tourism group. His practice largely focuses on operations-oriented matters faced by hospitality industry members, including sales and marketing, distribution and e-commerce, procurement and technology. Greg also serves as counsel and legal advisor to many of the hospitality industry’s associations and trade groups, including AH&LA, HFTP and HSMAI.