In a recent article entitled, “Fairness and Channel Coordination,” two Wharton marketing professors and one from the University of Minnesota summarize their research by saying:
A manufacturer and a retailer can both end up making more money if they are fair minded, setting prices with an eye to achieving an equitable outcome in their joint marketing channel as opposed to merely maximizing their individual profits.
Our experience working with small luxury hotels and wholesalers would indicate there is much truth to the professor’s findings.
Hotel bookings are generally higher with those wholesalers where a better relationship exists. And the best relationships are those where both parties feel they are being treated fairly.
What do you think? Safe travels – Madigan Pratt