Even though in certain industries, the intermediaries have been eliminated, the hospitality industry has its own share of intermediaries. The four intermediaries that I will use include meeting planners, hotel representatives, tour operators and wholesalers, travel bureaus and concierge. I would select the aforementioned group of intermediaries because of the advantages that they will bring to my hotel; especially considering the fact that my hotel is new and small (Lewis, 1997). First of all, intermediaries specialize in particular functions in the process of delivering service. Therefore, they add value to delivery of service through their long time experience and knowledge. Nonetheless, specialization amounts to more efficiency in the production as well as distribution of services. Intermediaries are known to charge low prices to the consumers hence with my small hotel, I would not incur a lot of losses when hiring them.
Travel agents have a wide knowledge about a particular area. Therefore, they have gained the trust of the travelers and guests (Oh & Pizam, 2008). Having them as intermediaries would imply that the hotel would not lack clients at any point in time. Meeting planners play the same role as the travel agents. They partner with the hotels so that visitors can be taken to that place. This reduces the cost of looking for clients by the hotel management.
Intermediaries more often than not take a big chunk of the amount paid for reservations by the clients. Based on the agents, the percentage ranges from 13% to approximately 33% of the reservation costs. Merchant websites often buy inventory from the hotels at a 33% mark-up on the rooms sold to the travelers. Even though hiring these agents has its own advantages, it also has its drawbacks. For instance, sometimes their rates are higher hence the profit margin reduces especially when the hotel is small and new.
References
Reich, A. (1997). Marketing management for the hospitality industry. New York: Wiley.
Reid, R., & Bojanic, D. (2001). Hospitality marketing management. New York: J. Wiley.
Oh, H., & Pizam, A. (2008). Handbook of hospitality marketing management. Oxford: Butterworth-Heinemann.
Lewis, R. (1997). Cases in hospitality marketing and management. New York: John Wiley.
