Hotel chains are luring clients away from intermediaries like travel agents and into direct channels by developing new product and loyalty offerings that exclude bookings made by travel agents.
World Tourism Network (WTN) Chairman Juergen Steinmetz published a statement on behalf of the WTN advocacy committee on eTurbo News, criticising hotel groups for limiting travellers abilities to earn loyalty points and benefits when their bookings are made through third-party providers, saying that the practice discourages the use of travel agents, tour operators and TMCs.
Several airlines are also currently trying hard to use similar tactics to lure agents customers away and into their direct channels. But the methodology has already backfired on at least one of them.
Otto de Vries , Asata CEO and Executive Director of WTAAA, raises the topic of American Airlines' manipulation of loyalty benefits to drive NDC and direct bookings. The severe aftermath is a good example of how these methods can go wrong .
I think that is a great case study to show how it is disenfranchising a very important channel and those customers. First and foremost, AA realised it was a bad idea and reversed it. And I think we need to comment on that because, at the end of the day, this is incredibly short-sighted and does not fully respect the customers choice of channel of booking, says De Vries.
