Modern travelers have easy access to a variety of booking options 24/7. For the best hotel experience, you can research dates, locations, prices, amenities, and more online.
The formidable global online travel market will be valued at $2.3 trillion in 2023, with online travel agencies (OTAs), direct suppliers, and ancillary suppliers entering the market, with a compound annual growth rate of 10.3% by 2030. expected to grow.
Given this growth, the days when hoteliers could rely on just one channel for bookings are long gone. Just as travelers can research every detail of their trip, hoteliers should also research strategies to optimize their booking channels to reap the benefits.
Hotel distribution and connectivity platform Siteminder has over 40,000 hotel customers looking for this kind of support from their reservation solutions.
James Bishop, VP of Ecosystems and Strategic Partnerships, says: hotel management network The importance of effective business intelligence in the increasingly competitive hotel reservation market.
hotel booking intelligence
Bishop said that with the help of technology, hoteliers can “establish the right mix of reservation sources for their property and situation to maximize revenue and provide the best possible experience for guests.” He emphasizes the need to do so.
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According to Bishop, hoteliers can choose software that provides real-time, actionable insight into the performance of their connected booking channels and consider which channels to consider connecting to. Such software helps hotels in making extensive forecasts and adjusting market conditions.
Digital tools can provide detailed data and customized reports, allowing hotels to identify key trends at a glance and compare the exact number of nights and revenue generated from specific channels and source markets.
Mr Bishop added: “Expand your reach to your target customers, especially if a hotelier wants to grow with a specific segment (such as corporate travelers or international travelers) but your existing connections are underperforming.” You should consider adding new connections, staying within your niche segment.”
The ever-important questions of revenue and price parity are likely to cloud hoteliers’ strategies regarding booking channel distribution.
To help hoteliers avoid missing out on revenue by under- or over-pricing, Bishop advocates for software with dynamic revenue management capabilities that can manage price parity in real-time. “This eliminates reliance on manual input and potentially unstable integrations that can lead to inconsistencies and contract issues.”
He also cautioned about the complexity of the distribution situation, as rates sold to uncontracted/unmanaged lodging vendors typically have less control on the part of the hotel, resulting in disparities.
“Thankfully, the industry is becoming more aware of this and major companies are publicly acknowledging that they need to do a better job of controlling rate leakage.”
Comparison of booking channels and hotel websites
The rise of travel booking leaders like Airbnb, Booking.com, and Expedia is creating disruptive competition for hotel-owned websites.
However, despite a 33% increase in international bookings as a percentage of all bookings, hotel websites still rank at the top of more than a third of the company’s list of top booking sources, according to SiteMinder data. is ranked.
Particularly in the UK, direct booking holds a unique position compared to other channels. Hotel websites remained her third highest revenue source for UK lodging businesses in 2023.
This is despite a 17% increase in the share of international bookings, which Siteminder expects to favor indirect channels.
Price increases are impacting the majority of travelers, and hoteliers have more opportunities to convert guests who seek deals through their websites.
UK-based consumer choice nonprofit organization Which? recently urged travelers to book directly with hotels to get the best deals. They found that half of the time you’ll get the cheapest price if you book directly with the hotel rather than using a booking site.
In contrast, Bishop highlights the tendency of travelers to view packages and benefits as key elements of a hotel’s website, as well as their willingness to purchase extras to optimize their stay.
“These two trends give the hotel industry more scope to introduce unique products that maximize value for money while maintaining price parity with booking channels.”
However, there’s no point in having a great sale on your website if it’s not viewed and easy to claim. Bishop advises that hoteliers need to drive traffic through optimal visibility through OTAs, metasearch engines, and solid search engine optimization.
“Direct doesn’t mean ‘free,'” he points out. “There is a real cost to maintaining high-converting digital channels and driving qualified traffic to maximize their potential.”
An important part of the story, but not the whole story
There is no one-size-fits-all solution for the hotel industry when it comes to booking channels, Bishop acknowledged. hotel management network “A significant number of hoteliers have a limited number of distribution channels.”
Bishop says the ideal number of distribution channels is five to seven, plus the hotel’s direct website. The rationale behind this is that “other channels will compete for the same inventory, causing other channels to fail.” If you’re only marketing through a few channels, you won’t have to work as hard to sell your inventory. ”
Hoteliers should also consider working with wholesalers because “customers aren’t buying through Booking.com, Expedia, or the hotel’s direct website.” This opens up a whole new set of potential customers for your hotel. It’s a gradual growth in demand. ”
Choosing a booking channel is also a decision that needs to be made in parallel with a marketing strategy, so hotels can feel that their chosen channel is appropriate from a branding perspective.
Bishop urges hoteliers to remember that “each booking channel is unique.” Data is an important part of the story, but it’s not the whole story. ”
