A form of e-capitalism has come into play that gives more weight to middlemen than producers. As a result, an unacceptable power struggle is developing with those who were supposed to assist the actors of the real economy and who ended up taking power and dictating their conditions. The giants of the virtual economy captured productivity levers, leaving their partners with a complex choice: to become simple purveyors of increasingly anonymous products, to leap into a costly technological race to compete on the Web, or to opt for total integration of distribution based on the strength of brands. The economic model of digital commerce giants has completely reversed the roles. Technology is replacing people. Optimization of charges – including taxation – is pushed to the extreme, generating net profitability ratios of 50% versus ten times less in the hotel industry in the best case. By making a pact with online agencies, hotel groups thought they had isolated the problem, but they allowed a Trojan horse onto their territory. Franchiser groups ran up against the discontentment of their franchises who question the justification of fees that no longer even exonerate them from paying OTAs along the hotel distribution highway. Caught in the middle, hotel operators are trying to loosen the vice that is squeezing their margins and investment capacity. Tomorrow mobile applications will add additional costs that will bite a bit further into the margin. In the end, digital marketing has impoverished operators, draining a good share of their business while they still assume most investments and costs. Get the full story at Hospitality.Net