Can Travelocity help protect Six Continents’ pricing?
Six Continent’s deal with Travelocity allows Travelocity’s merchant (wholesale) model “to distribute rooms for Six Continent with dynamic pricing and real-time availability, linked directly to Six Continents’ reservations and yield management systems.” This has the potential to give Six Continents more control over price. Travelocity is under pressure to grow its hotel revenue as a way to catch up with its larger and more profitable competitors in the hotel segment. This suggests that Travelocity will be aggressive with its public prices and with advertising spend as a way to gain market share. If the deal with Six Continents is an indicator, Travelocity has actively entered the wholesaler market and is aggressively seeking access to hotel inventory. Now fully owned by Sabre, Travelocity also has more financial resources and a strategic fit to pursue increased market share. Can local conditions turn the tide of lost price control? An improved economic climate, deals with intermediaries
