As online sales and reservations contribute more revenue to hospitality, travel, and other physical presence businesses (businesses whose connection to consumers occurs at a physical experience point rather than virtually), immature companies without a balanced scorecard approach to overall success may mistake the boom in online sales with a signal to reduce expenditures in traditional customer channels. When metrics like share pricing and margin trump metrics like call times, abandonment rates, opportunity costs, and customer loyalty, the gains from online success may be short lived.
Bloomberg reports on recent online gains by Marriott over third party competitors:
Marriott Seizes Bookings From Expedia to Boost Share Price
By Oliver Staley
Sept. 18 (Bloomberg) — Marriott International Inc., the world’s largest hotel operator, has battled back against online travel agents such as Expedia.com to become the eighth-biggest Internet retailer by sales. That’s one of the reasons investors should buy the stock even after a 10 percent tumble this year.
Through Marriott.com, the Bethesda, Maryland-based lodging company sold $3.7 billion worth of rooms in 2006, more than doubling revenue from the site in 2004. For the first half of 2007, Web sales for Marriott hotels, which range from luxury Ritz-Carltons to lower-priced Fairfield Inns, were up almost 25 percent.
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