Thursday, September 16, 2004

Fool.com: Room Disservice [Motley Fool Take] September 15, 2004

Fool.com: Room Disservice [Motley Fool Take] September 15, 2004: "Cendant (NYSE: CD) and IAC/InterActive (Nasdaq: IACI) were smooching yesterday"
Incs comments Cendants other deals with distributers ... says of the arrangment " this is great for the wired traveler, it's also pretty sad for the lodging specialists....

I'll never understand why the industry's many lodging operators run bone-dry websites with little to no sticky content. They would rather dump available rooms at dirt-cheap rates through the likes of Priceline.com (Nasdaq: PCLN) and Hotwire than create a magnetic destination that would allow them to move rooms on their terms.

The reason that Travelzoo (Nasdaq: TZOO) has been on a scrutinized tear -- beyond its flimsy float -- is that it has been able to pass off its brokered deals as content.

Rick Munarriz concludes "I'm not naive. I realize that an empty room is a wash. Booked at enough pocket change to cover housekeeping, utilities, and processing fees, a cheap room booked is better than a vacant one. Yet why aren't the chains trying harder to draw users to their virtual front desk where they can charge retail?

Cendant's trying. Running CheapTickets.com is a great way to move some of its surplus room inventory. But the industry still needs a lot to learn. Our own Travel Center is a good place to start. Because content isn't just king -- it's a coatrack away from a king bed, too....

He asks: "Which sites do you use when you need to book a flight or a room fast and at the best rate possible? What would draw you over to a lodging operator's own site? All this and more in the Cheap Air Fares discussion board."


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