Answer 1
GDSs and other intermediaries can earn profits while suppliers lose money because while revenues may suffer for both during periods of slow economic activity, the intermediaries do not have to absorb anywhere near the operating costs of the suppliers.
Answer 2
In contrast to what is happening as reviewed in Question 1, worldwide standards for comfort and convenience are becoming more uniform. Small inns with bathrooms down the hall have a difficult time competing with modern hotels that provide in-room plumbing. A greater number of travelers now demand better meals even in small villages and towns. The newly rich and those with comfortable incomes from nations with rapidly expanding economies, such as India and China, want to experience the same level of comfort on trips as their western counterparts. The largest number of new hotels built in former Eastern block countries in Europe have come from the common molds of the big chains, like Hilton, Marriott, and others. Thus, travel choices for where to go and what to do while there may have expanded, but greater commonality exists in available creature comforts while there.
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