Question

Central reservations systems are extremely expensive. Research and development, equipment, and staffing can easily run into hundreds of millions of dollars. How has this prohibitive cost structure changed the hotel industry? How will it change business in the future? And what options are available to the smaller and startup chains in the industry?

Answer 1

The high cost of central reservations systems in the hotel industry has changed the industry by concentrating power in larger chains and limiting options for smaller chains.

Step-by-step explanation:

The prohibitive cost structure of central reservations systems in the hotel industry has changed the industry in several ways. Firstly, it has increased the concentration of power in larger hotel chains that have the financial resources to invest in these systems. As a result, smaller and startup chains may struggle to compete effectively. Secondly, the high cost of these systems has led to increased dependency on third-party online booking platforms, which can further limit the options available to smaller chains. Lastly, the cost structure of central reservations systems is likely to continue affecting the hotel industry in the future, as advancements in technology and greater demand for personalized and seamless booking experiences may drive up costs even further.