General Data Protection Regulation (GDPR) for OTAs
The General Data Protection Regulation (GDPR) is the most robust privacy law in effect today, first enforced on 25 May 2018. It was created by the European Union (EU) to regulate organizations handling the personal data of citizens of the European Union. Online travel agencies (OTAs) also come into its purview as they deal with sensitive personal data. Is GDPR just a legal mandate to operate in the European market? How important is it for OTAs? What an OTA needs to do is become a GDPR-compliant entity. We will answer all of it in this piece. Let’s start with a bit of history first. OTAs often attract strict GDPR surveillance, a lot of it because one of the most known and talked about data breaches happened in the travel industry; when British Airways experienced this leak back in 2018, new GDPR rules were introduced the same year. This breach affected more than 420,000 people (about half the population of Montana). Subsequently, British Airways was heavily fined as well. So, this was about the severity of the rules and consequences. But GDPR is not just about compliance. Following it not only saves OTAs from potential fines but also enhances their practices in managing customer data. As an OTA, if you are looking to make your way into the European market or are already there but not su re about data protection regulations, read on. Beyond a legal mandate, GDPR compliance is a strategic differentiator that fosters a culture of transparency and accountability. Let’s quickly address the elephant in the room: what it takes for OTAs to become GDPR compliant. 1. Conduct a Holistic Data AuditBefore formulating a compliance strategy, OTAs must go into the details of their data ecosystem. A comprehensive data audit is not just a procedural formality; it’s a strategic initiative to understand, categorize, and responsibly manage the pool data in their possession. 2.Streamline Data CollectionGDPR excels the concept of data minimization. It translates into a significant change for OTAs – a move from exhaustive data collection to targeted, purpose-driven gathering. Simplifying and refining data collection processes ensures compliance without compromising operational efficiency. 3.Consent as a ConversationIn the GDPR rulebook, consent is not a checkbox; it’s a subtle conversation between the OTA and the user. Revamping consent mechanisms involves adopting user-friendly language and ensuring that individuals clearly understand how their data will be used. 4.Cybersecurity EnhancementCybersecurity is not an option in a time marked by data breaches; it’s necessary. OTAs must invest in cybersecurity, creating digital walls that safeguard customer data against evolving threats. 5.The Role of a Data Protection Officer (DPO)Appointing a Data Protection Officer is not just a regulatory requirement; it’s a strategic move. A qualified DPO becomes the guardian of compliance, ensuring that the OTA meets regulatory standards and evolves as a proactive custodian of customer data. 6.Protocols for RightsGDPR provides specific rights to data subjects. OTAs must establish streamlined protocols for responding to requests, transforming compliance from a bureaucratic process into a customer-centric engagement. 7.Continuous TrainingCompliance is not a one-time feat but a continuous journey. Regular training programs empower OTA employees to arm themselves against evolving data protection threats. As we mentioned earlier, GDPR compliance is not a checkbox; it’s a pledge to customer data security. It’s an opportunity for OTAs to redefine their narrative, positioning themselves as compliant entities and pioneers in ethical data management. Beyond mitigating risks, GDPR compliance becomes a strategic necessity, which opens doors for OTAs to establish themselves as customer-first businesses that value their trust. Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: sales@vervotech.com
Effective strategies for OTAs to optimize conversions
Online travel agencies (OTAs) persistently face the challenge of shopping cart abandonment; it certainly demands a nuanced approach. A recent finding from Travelport underscores a critical trend — 64% of travelers, having explored trips on an OTA, opt to book directly with suppliers. It prompts a crucial question: where do OTAs stumble, and how can they refine the traveler journey for enhanced conversions? This article explains the intricate layers of the traveler’s journey, moving beyond the conventional focus on securing bookings. It delves into each phase, deciphering key strategies OTAs can employ to increase conversions. 1.Mobile OptimizationOptimization for mobile platforms is imperative, aligning with Google’s data that 60% of destination searches stem from mobile devices.Ensuring swift site loading is an anchor, even a 10-second delay risks a substantial 120% increase in bounce rates. Strategic SEO and PPC campaigns are equally important, which target practical keywords and have a narrative around experiential queries. This early interaction allows OTAs to gradually construct traveler personas, setting the stage for future conversions. 2.Seizing the Shopping PhaseAs inspiration transforms into active exploration, travelers enter the shopping phase. Here, the speed of query responses is paramount. OTAs must hit the much talked about “search sweet spot,” using mobile-optimized APIs and intelligent caching to deliver rapid responses.Diversity in fare options and the transparent display of traveler reviews become crucial during this stage. Trust, a vital element according to Travelport’s research, is significantly influenced by reviews on OTA sites, establishing the foundation for brand loyalty. Read More – Managing Online Reviews and Reputation for OTAs3.Closing the Deal with a Booking The booking stage represents the connection between intent and action. While price remains a crucial factor, OTAs must showcase their value proposition. It includes a user-friendly booking process, a multi-device approach to align with modern traveler habits, and tools predicting price fluctuations. The goal is to secure bookings and make OTAs the preferred choice when users are ready to book. 4.Preparing for the Trip Post-booking, the pre-trip phase offers an additional avenue for OTAs to deepen relationships. Timely reminders and pre-trip ancillary upsell, such as flight add-ons and car rentals, add value and convenience. OTAs can foster loyalty even before the trip commences by positioning themselves as trusted partners. 5.Enhancing the In-Trip Experience As the journey starts, the focus shifts to enhancing the in-trip experience. Personalized travel tips and recommendations based on user preferences elevate the traveler’s experience. In-trip assistance through various communication channels, such as app chats or text messages, strengthens the OTA’s role as a reliable travel companion. 6.Post-Trip Engagement Most OTAs conclude their narrative with a single trip, but the transformative potential lies in post-trip engagement. Requesting feedback, understanding customer experiences, and ensuring a seamless post-trip journey contribute to customer loyalty. Convenience plays a pivotal role, with 73% of travelers acknowledging that the ability to book an entire trip in one place encourages re-booking with an OTA. The eventual success in the online travel industry is decided by many factors that go beyond just securing bookings. Understanding and optimizing the entire traveler journey is a crucial pie of the puzzle. From inspiring travelers with relevant content to providing smooth booking experiences and post-trip engagement, each step plays a crucial role in converting users into loyal customers. This article underlines these variables as a roadmap for OTA leaders seeking concrete ways to optimize conversations. Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: sales@vervotech.com
Navigating Airline Relationships as an OTA: Tips for Success
Online travel agencies have been one of the primary sources of airline distribution for more than 2 decades. They account for over a third of all online airline bookings and are efficient at selling flights and reaching customers. Airlines may need help to get on their own. But in this state of the airline industry, with record load factors and profit margins, airlines gradually depend more on OTAs and vice versa. Many airlines need proper relationships with OTAs. In several cases, they don’t engage the OTAs for fear of getting taken advantage of. But as an OTA, the buck stops with you to manage this relationship for sustained success. As an OTA, the airlines are your strategic partners. The tactical measures won’t help the cause; you must think long-term. How you see the relationship growing over the years, there is no straight tea to it. Yet, certain denominators can go a long way in managing this relationship. Here, we talk about seven of them. Build trust through communication:Effective communication forms the foundation of any successful relationship. Initiate regular and transparent contact with airline representatives. Share insights about your customer base, booking trends, and market demands. It builds trust and allows airlines to alter their services to meet their customers’ needs better. Read More – Five ways OTAs should assess payment service providersUnderstand common goals: A successful partnership is one where both parties gain something. Take the time to comprehend the airline’s business objectives and communicate independently. Finding common ground can create mutually beneficial strategies that enhance your brand and the airline’s reputation. Negotiate fair terms, A win-win agreement: When it comes to establishing contracts and agreements, fairness is critical. Negotiate reasonable terms that reflect the value each party brings to the table. It includes discussing commission rates, marketing support, and any exclusive offerings. A balanced agreement sets the stage for a long-lasting and fruitful partnership. Collaborate on tech to enhance common goals:Customer Experience is a differentiator that benefits your OTA and the airlines you work with. It’s a common goal. Collaborate on technological advancements you achieve on the front booking processes and pass on the benefits to airlines. And you can ask airlines for demand data to serve better CX through cycles. Help airlines come up with innovative offerings: As an OTA, you have access to deep data on traveler preferences and behaviors. You can share this information with your airline partners to help them enhance their offerings. The customer insights you contribute to help Airlines develop more innovative offerings that ring a bell with fliers, which, apart from good marketing, also bring more bookings. Adapt to market changes together:The travel industry is highly susceptible to external factors, such as economic shifts, global events, and technological watersheds. Stay adaptable and work closely with your airline partners to get through these changes. Flexibility and collaboration will help both parties weather challenges and capitalize on emerging opportunities. Invest in relationship management: Building and maintaining solid relationships requires ongoing effort. Dedicate resources to relationship management, ensuring you have dedicated personnel responsible for nurturing connections with airline partners. Regular check-ins, feedback sessions, and collaborative brainstorming can foster a sense of partnership that goes beyond the transactio nal. As we mentioned earlier, GDPR compliance is not a checkbox; it’s a pledge to customer data security. It’s an opportunity for OTAs to redefine their narrative, positioning themselves as compliant entities and pioneers in ethical data management. Beyond mitigating risks, GDPR compliance becomes a strategic necessity, which opens doors for OTAs to establish themselves as customer-first businesses that value their trust. As mentioned earlier in this piece, the relationship between OTAs and airlines is strategic. You have to approach it the same way. Come out as enablers and partners, not just a marketplace that is eying a pie of their revenue for eyeballs. The denominators we discussed could be the start of something unique and unprecedented. We are sure it will help!
How robotic process automation drives efficiency in the hospitality industry
A survey conducted by Duetto revealed that approximately 78% of hoteliers were expected to increase their hotel tech investments in the next three years. This surge in technology adoption within the hospitality industry indicates the sector’s readiness to embrace digital transformation. Robotic Process Automation (RPA) will be a crucial link in the journey. RPA can lower the cost of the entire itinerary and transaction processing, saving hospitality companies a lot of money in the long run. Robotic Process Automation in the travel and hospitality sector involves deploying software bots to perform repetitive and manual tasks that traditionally require human intervention. This technology empowers human representatives and management teams to redirect their focus toward tasks that demand personalized attention, ultimately enhancing customer experiences. Many hotels rely on hospitality software to manage their operations comprehensively. However, when such software is unavailable, RPA bots can step in to automate various operational tasks, ensuring a smoother workflow. Let’s look at some popular use cases. Responding to Room Availability InquiriesRPA-enabled chatbots are capable of efficiently handling guests’ questions regarding room availability and room features. By transforming the interaction into a conversational one, these chatbots simplify the process, offering guests quick and accurate information. Managing ReservationsRPA bots can automate the entire room reservation process. They can access real-time room availability by exchanging data between the hotel’s website and database, creating guest profiles, reconciling online payments, and reserving rooms automatically. It not only streamlines the booking process but also eliminates the need for regular human intervention, which reduces the net occurrence of errors in reservations. Automated Check-Ins and Check-Outs RPA bots can track check-in and check-out times for hotel guests and send reminders through various channels, such as mobile apps, SMS messages, WhatsApp, or email. This helps prevent misunderstandings and additional charges due to overstaying while also optimizing room preparation for the next guests. MarketingRPA can enhance marketing efforts by filling missing data fields in hotel CRM applications with third-party services like travel APIs. This consolidation of guest information facilitates sales, marketing, and customer success activities. PricingDynamic hotel pricing can involve adjusting room rates based on seasons, days of the week, special events, or competitor prices. RPA bots can scrape competitor websites for pricing data and automatically update a hotel’s room rates according to predefined rules, offering more competitive pricing. Customer ServiceRPA can assist in monitoring and analyzing customer reviews. Bots can extract and rank reviews based on importance, legitimacy, and sentiment using Optical Character Recognition (OCR) and Natural Language Processing (NLP). This ensures that genuine complaints are addressed promptly, improving customer satisfaction and preventing fraudulent reviews. FinancesIn finance, RPA in the hospitality industry extends beyond industry-specific processes to encompass general financial tasks common across various sectors. These include revenue reconciliation, payment approval, report preparation, automated discounts for frequent guests, and real-time addition of room service charges to guest bills. RPA is definitely working as a process enabler in the hospitality industry that automates highly repetitive tasks. For hotels, optimizing operations means they can look beyond operations and save human resources more tangible tasks and create differential through CX in this rapidly evolving market. The significant investments in hotel technology underscore the industry’s recognition of RPA’s potential to drive efficiency and innovation, ultimately placing human attention back at the heart of the travel and hospitality experience.Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: sales@vervotech.com
Accommodation demand forecasting with forward looking data
The travel demand has been anything but predictable since 2020 for obvious reasons, with factors like smaller booking windows, shifting source markets, and changes in guest priorities. What used to be known as almost fixed travel trends was completely upset in early 2020. Today, due to external security situations, internal security issues in many countries, restrictions and countries’ entry requirements shape travel and destination choices more than holiday seasons and promotions. To effectively manage your hotel’s revenue and distribution strategies, you must look beyond traditional historical data and focus on forward-looking data. This article will explore why historical data is insufficient and the advantages of leveraging future-facing data. Due to geopolitical turmoil and crises in different parts of the world, booking windows are now drastically different as people prefer to reserve at the last minute to avoid losing money due to sudden new travel regulations. Even what used to be high and low seasons have changed as travelers avoid long-haul flights. All these factors reduce the importance of historical data and its information. Yes, it can still indicate which results you can achieve at your hotel, which still holds value. However, due to the many market changes, live, future-facing demand data should now take center stage in your pricing strategy. It will be essential to determine optimal prices, win reservations, and generate maximum revenue in the future. Booking windows are also drastically different as people prefer to reserve at the last minute to avoid losing money due to sudden new travel regulations. Even what used to be high and low seasons have changed as travelers avoid long-haul flights, and the meetings industry is only restarting slowly.All these factors reduce the importance of historical data and its information. Yes, it can still indicate which results you can achieve at your hotel, which still holds value. However, due to the many market changes, live, future-facing demand data should now take center stage in your pricing strategy. It will be essential to determine optimal prices, win reservations, and generate maximum revenue in the future.Forward-looking data is top-of-funnel data that allows you to predict upcoming demand and trends in the market. Real-time future-facing data is the key to quick responses to market shifts and seizing all chances to drive revenue. Below, you’ll find some examples of forward-looking data: Search volume for flights and hotels on OTAs and search engines Analyzing search volume trends can provide insights into traveler interest and demand for your destination. Activity on alternative lodging and meta-review sites Monitoring guest reviews and ratings on platforms like TripAdvisor can help you gauge the popularity of your property and understand guest sentiments. Events and holidays in your area and your primary source markets Staying informed about local and international events can help you anticipate spikes in demand and adjust your pricing strategies accordingly. Search pressure on search engines Tracking search pressure can give you real-time visibility into how competitive your destination is and how likely travelers are to book. Competitor insights Understanding your competitors’ pricing for the coming days/weeks/months, availability and predicted arrivals to a destination can help devise your own pricing decisions. Using future-facing data in revenue management brings many benefits. These are the three most important ones: Chance to Realize More Revenue Opportunities Future-facing data shows you the earliest signs of demand, e.g., people’s flight or hotel searches. Getting a heads-up on this early on allows you to adapt your rates to capitalize on demand shifts. Supply your revenue management system (RMS) with this information for automatic rate updates. More Precise Forecasting As long as historical data remains unreliable, future-facing data is the best way to create reliable forecasts. The external information will create a broader and more precise result. Targeted Promotions and Ad Campaigns Source market data reveals where travelers are researching your destination right now. It can also reveal which guest demographic is searching, how long they want to stay, and which days of the week they wish to travel. And this information is very handy for creating targeted promotional/ad campaigns. Forward-looking data is essential for creating a clear picture of the market and building long-term pricing strategies. It allows you to get ready for travel rebound and regular travel seasons in the future. But you can do way more with future-facing data. For example, you can use it to update your prices in real time whenever demand shifts continuously. Whether you choose to manually collect and analyze this data or leverage an RMS for automated updates, embracing future-facing data is essential to manage demand in the hospitality industry. Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: sales@vervotech.com
How online travel businesses can boost conversions by optimizing search output
As an online travel business, you understand that hotel search patterns are varied, but do you know if not understood and optimized, they can also go against you? A huge amount of your visitors can bounce off your booking portal and book their accommodation from somewhere else if the search queries don’t match their search intent. Unfavorable search experience is not just a UX problem but also a revenue problem. As a business selling accommodations online, your search should be optimized enough to target specific locations, varying with your demand data in that location. How can you achieve it? There are multiple approaches to do it, applicable in different scenarios. Let’s have a deeper look at them. Radius Based Approach The radius-based approach is the opposite of employing a one-size-fits-all strategy. The method involves deciding on a standard radius for all potential hotel queries in a pre-decided radius. Suppose a traveler is looking for accommodation near a popular landmark or a specific location. So you have to account for all geotags within the designated radius, your search engine will show entries for all targeted locations and point-of-interest searches in the radius. To understand it better, let’s say a user seeking a hotel within a 5-kilometer radius of the Eiffel Tower in Paris is instantly presented with relevant options because you have tagged all geocodes within a five-kilometers radius taking a point of interest i.e. Eiffel Tower in this case. Polygon based approachThe polygon-based approach is best suited when you are targeting a specific geography and want to cover everything that defines that geography. To apply this method, you need to account for latitude, longitude and geotags outlining the entire periphery of a city or specific area. Hotel name-based approach The approach allows visitors to quickly find properties by simply typing a keyword, they don’t have to spell out the name of any location, saving them time and improving your user experience and look-to-book ratio. When travelers come to your website and interact with your booking engine, the last thing you want is for your search results to show no response to their search query. The second worst thing is irrelevant options. If your search box throws up results, it is good. At the same time, if the visitors are coming to your search box, there is a huge opportunity. This is the closest you get to converting a potential customer. You can significantly improve your conversion numbers by understanding the search patterns and optimizing them with area and polygon-based approaches. Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: sales@vervotech.com
MOR or not MOR, what’s best for OTAs? A comparison
In this “online travel agency payment infrastructure” series, we previously discussed PCI DSS compliance; once you have clarity on that, the next thing that OTAs often are in dilemma whether to be Merchant of Record (MOR) or not. And unfortunately, there’s no winner answer to it. Both have a fair share of upsides and downsides. What is suitable for you will depend on where you stand as OTA and how much control you need over payments. Here, in this piece, we present a non-opinionated comparison so you can assess both options neutrally. To reiterate, whether you choose to be MOR or Not, it does not excuse you from PCI compliance. Let’s look at how one weighs versus another. As an OTA, your responsibilities come down significantly if you choose not to be a MOR and outsourcing it. You don’t need a payment gateway, set up a merchant account, or build cumbersome logic per se. You can automatically process customers’ payment data through GDS or other suppliers. Credit card details will route directly from your website to your providers. That said, there are still scenarios despite outsourcing MoR when you have to store customer data for a while, like during the flight booking process when there is a time lag, you have to keep card data till you get PNR from ARS. The major downside of not being MOR is that you have very little control over prices. You might have to wait for weeks for your commissions. Sometimes, the duration might stretch even more. Read More – How to optimize an OTA website for search enginesAs the MOR, you can set and adjust prices based on your business strategy, market trends, and customer demand. This flexibility can be a significant advantage in a dynamic and competitive travel industry. Direct Management of Commissions: Being the MOR allows you to streamline commission payouts, ensuring you receive your earnings more quickly and consistently. You’re not reliant on third-party suppliers, which can sometimes lead to delays in receiving commissions. Enhanced CX: Customers dealing directly with your OTA throughout the booking process can benefit from a more seamless and personalized experience. This direct interaction can improve customer satisfaction and foster long-term loyalty. Investment in Payment Infrastructure: Assuming the MOR role requires significant investment in payment infrastructure, including payment gateways, merchant accounts, and secure data storage. This investment can be costly and time-consuming. PCI Compliance Burden: When you are the MOR, you take full responsibility for PCI DSS compliance. Meeting these rigorous security standards can be a complex and ongoing process, demanding resources and expertise in data security. Operational Complexity: Managing payment processing and compliance adds another layer of operat ional complexity to your OTA business. This complexity can result in higher administrative costs and increased risk if not managed effectively. If being MOR is something that’s a requirement of your online travel agency, you will also have to make a call on PSPs; we have done a separate piece on it. Follow “How OTAs should assess payment service providers”. Whether as an OTA you choose to be the Merchant of Record or not, it’s essential to weigh the trade-offs carefully. The decision will depend on your business model, resources, and your long-term strategic goals. Understanding the implications and balancing them is the real deal. As we stated earlier, there’s no definite answer; aligning with this piece’s information, you can now weigh your options more effectively. Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: sales@vervotech.com
How Hotel-to-City mapping helps OTAs build efficient search functionality
The success of online travel businesses’ hotel booking is heavily tied to platforms’ intrinsic ability to provide a search experience that aligns with travelers’ intent. If the search goes awry and users don’t find results aligning with their queries, they may not proceed and swiftly move on to another agency. Hotel-to-City Mapping is a feature provided by leading Hotel Mapping tools that addresses this challenge of vague search experience which ensures that users find precisely what they’re looking for, reducing the likelihood of abandoned bookings and dissatisfied customers. The first hurdle that users encounter when exploring online hotel bookings is not finding answers to their search query or search hierarchy which is confusing. Suppose a scenario a user from the USA searches a hyper-local query “paradise’ and finds no results because no attributions are provided at the backend to search query. While when proper attribution is provided with connected location IDs after each city, the search results look below. So, let’s discuss how you can fix this UX problem in detail with hotel-to-city mapping using different modules. At the heart of efficient search processes lies the use of City Location IDs. These unique identifiers, assigned to each city independently of supplier information, contribute to smoother backend operations. This Hotel-to-city mapping module ensures that online travel businesses can provide fast and accurate attributions, minimizing the risk of user frustration due to delayed or irrelevant search results. Understanding that a well-structured search hierarchy is critical, Hotel-to-City Mapping introduces the concept of City Location IDs. These unique identifiers are assigned to each city, irrespective of supplier information, enabling online travel businesses to run queries and configurations seamlessly. The result is an intuitive search experience that aligns with users’ expectations, reducing the risk of them seeking alternatives elsewhere. Hotel-to-city mapping also but extends to connected locations. By displaying specific properties in areas linked to a master city location, the feature ensures that users can explore different parts of a city seamlessly. This interconnected approach adds depth to the search experience, offering a more comprehensive view of available accommodations. Hotel-to-City Mapping allows you to map points of interest, with Location IDs and codes associated with attractions, users can tailor their search based on convenience facilities such as airports, train stations, and tourist hotspots. This integration empowers users to make informed choices, aligning their accommodation preferences with their travel objectives. Hotel-to-City Mapping feature offered by Hotel Mapping Solutions addresses the challenge of vague or no search results directly impacting user experiences through building intuitive search hierarchies, providing connected locations, and integrating points of interest. The right search result can make or break a booking, so adopting Hotel-to-City Mapping is worth a shout for all online travel businesses selling accommodations. Vervotech is a leading Ho tel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: sales@vervotech.com
Why Apartment Mapping is the need of the hour for travel agencies in 2024
The rise of the sharing economy and COVID-19 made vacation rentals and apartments a popular choice among travelers. A Research and Markets report shared the global vacation rental market size is expected to reach $119 billion by 2030. There is a growing preference for apartments and homes among travelers, thanks to the comfort, privacy, safety, better amenities and reasonable tariffs. Also, platforms like Airbnb, Vrbo, Booking.com, and FlipKey have understood the traveler’s pulse and keep offering lucrative alternatives to the traditional hotel experience. Short-term rentals are gradually becoming a mainstream accommodation choice. And 2023 is predicted to be the year of reimagining travel, where 73% of travelers are more optimistic about travel than they were in 2022. So, it’s time for accommodation providers such as OTAs, tour operators, DMCs, and TMCs to focus on enhancing their platform with apartment mapping. This blog will explain apartment mapping, its challenges, why it is a must in 2023 and its benefits. Let’s get straight into it. What is apartment mapping? Apartment mapping or matching is the process of aggregating apartment IDs from various suppliers in an organized manner. This minimizes inconsistency and duplicate apartment names on the website. The end goal of apartment mapping is to improve customer booking experience, where the end-user can view organized and accurate apartment information without duplicates. Apartment mapping powered by AI and NLP follows data cleansing, data standardization, apartment content enrichment and deduplication. Overall, apartment mapping takes care of the following details: Apartment address apartment name contact details geocodes general description policies amenities Why is apartment mapping a must? The short-term rental or vacation rental ecosystem is growing profoundly. Travelers are looking for offbeat homes that bring a dash of adventure or unique experience to their holiday trips. And due to the increasing demand for vacation rentals, every travel agency wants to invest in short-term rentals. However, there is a good share of complexity involved with apartments, such as apartment data being unstructured, apartment information being minimal, unreliable and ambiguous data. Here’s how apartments are described on vacation rental platforms or OTAs: 30A Beach Cottage – Gated, Private Beach, Heated Pool Sleek 30A Beach Vacation Condo with Private Beach Access, Heated Pool Both descriptions are of the same property but are displayed as two unique properties on the website. Also, the vacation rental information is highly variable, due to which travel agencies tend to miss out on duplicate data. That’s why there is a growing need for apartment mapping. Now that we have explained apartment mapping and its necessity let’s find out its on-going challenges. Apartment mapping challenges Apartment mapping or non-hotel accommodation (NHA) mapping is highly complex. Here are some of the challenges associated with apartment mapping: 1. Unstructured data Apartment data is cluttered with details that need to be streamlined to avoid duplication. This massive unstructured data adds a layer of complexity to the apartment mapping process. 2. Minimal apartment data Unfortunately the apartment data is not as straightforward as hotels. The descriptions are catchy and don’t have complete information. For example, Cottage in Yosemite National Park. Stay in the heart of the woods. This apartment title has minimal details about the apartment name, room type, number of rooms, etc. Because of such minimal data, the mapping process for apartments or vacation rentals turns out to be a tedious task. 3. Increase in bad mapping Minimal data and unstructured apartment information lead to inaccurate matching, which increases bad mapping volumes. Here’s an example of two different condos in Atlanta. Contemporary Condo Located in the Center of Downtown Atlanta Crispy & Clean 1 Bedroom Condo in the Heart of Downtown Atlanta Both condos have a similar title but are different properties. Due to unstructured data challenges, 2 different apartments get wrongly grouped under one ID, resulting in bad mapping. 4. Plenty of data variation Apartments have various data variations, such as the condo might be open for a week or it might shut down immediately. Such changes don’t get updated by the property managers, making it difficult for OTAs to sell right apartments at the right time to the right traveler. Recommended: Vacation rental software: Five key features to consider Conclusion The future of travel is influenced by short-term rentals, and it is expected to topple hotels, resorts and redefine the hospitality industry. 2023 is the year when vacation rentals will be highly in demand; that’s why travel agencies must look into solving the growing issue of apartment data duplication on priority. Vervotech offers apartment mapping powered by AI, and machine learning with an accuracy of 99.999% and a coverage of above 98%. Currently, we have mapped over 1 million apartments and have 700,000 apartment IDs. How do we do it? We have a robust manual content analyst team that verifies every apartment and short-term rental and ensures accurate data is showcased on our client’s platform.
BNPL for online travel companies: Explained
Six out of ten users of online commerce use BNPL (Buy now, pay later) as a payment option. The user base is expanding and is expected to be as massive as 360 million by 2027. Making BNPL a payment option too important to be ignored for any online business, which obviously includes online travel businesses. The market trends and consumer interests are evident, and the online travel industry has to catch up to this trend. As an online travel business, what should be your BNPL approach? If you are inclined to implement it, what are your options? In this piece, we will address these questions in greater detail. Buy Now, customers can split their payments into multiple, often interest-free installments. This deferred payment option is a game-changer for businesses as it attracts a broader customer base and encourages higher-value purchases. For online businesses, BNPL offers several advantages. It can increase the average order value, reduce cart abandonment rates, and attract a wider demographic by providing flexible payment terms. Importantly, BNPL companies bear the risk of customer defaults, making it a risk mitigation strategy for businesses despite the apparent benefits. BNPL services typically work as follows for companies: Payment Options: Once integrated, BNPL becomes one of the payment options available to customers during checkout. Customers can select BNPL as their preferred method when they reach the payment stage. Instant Approval: BNPL providers often perform a quick credit check or assess the customer’s financial health in real time. This approval process can take just a few seconds, and eligible customers can proceed with their purchase. Payment Schedules: Customers can choose how to spread their payments – commonly into 4 or 6 equal installments. These installments are billed automatically over several weeks or months. Customer Engagement: BNPL services improve customer engagement by providing a more affordable way to purchase products or services. This can lead to higher customer loyalty and repeat business. Fees and Costs: BNPL providers often charge companies a fee for using their services, usually a percentage of the transaction amount. However, this fee is offset by the increased sales and customer retention. Selecting the correct Buy Now, Pay Later provider is the first step towards making this decision a success for your online travel business. Here are vital factors to consider when making this choice: Industry Focus: Some BNPL providers, like Klarna or Affirm, serve multiple industries, while others, such as Fly Now Pay Later, focus exclusively on the travel sector. Consider whether you prefer a provider specialized in travel or one with a broader industry reach. Commission Structure: Understand the two main commission structures – merchant transaction fee loans and shopper interest loans. Merchant transaction fee loans involve paying a commission to the BNPL provider, usually a percentage of the purchase amount. Shopper interest loans mean customers pay interest, but you don’t pay commissions. Evaluate which structure aligns with your business goals and customer base. Cost Benefit Analysis: BNPL fees can be higher than those for credit card transactions. Carefully examine the fee structure and consider the cost of customer acquisition and increasing sales volume. Some providers may not charge merchants, which is worth considering. Pre-integrated Payment Partners: Ensure your chosen BNPL provider seamlessly integrates with your payment processing solution. Using payment technology like Stripe, prioritize providers with existing integrations to streamline the implementation process. Security: Fraud is a concern in financial matters, including BNPL. Opt for reputable BNPL lenders with robust security procedures, fraud checks, and customer vetting processes. Ensure that your own online payment solution maintains a high level of security to prevent fraudulent activity. When considering partnership models, you have two main options: Merchant-Partner Model: This common approach involves integrating the BNPL payment option into your website’s checkout process. While widely used, it may require effort to adapt your existing checkout flow to accommodate the new payment functionality. BNPL App Model: In this model, the BNPL provider includes your travel products in their app, creating a virtual shopping mall. Users can access and purchase products, including travel offerings, through the app. Some providers redirect shoppers to your website, while others enable in-app bookings. This model is suitable for businesses with a diverse range of products, but for travel businesses, the merchant-partner model is often preferable. Once you’ve identified a suitable BNPL partner, you must complete an application providing basic information about your company. Most BNPL providers have vetting procedures for merchants to ensure compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. BNPL is no longer just a fad. It’s an avenue that can significantly help your online travel business increase the bottom line. Implementation complexity depends on your chosen partnership model and the preexisting compatibility with your payment technology. If you opt for the merchant-partner model, be prepared for the possibility of building an integration from scratch. Most BNPL providers offer open APIs to link to your payment system. If you showcase your travel inventory in their app, some providers will handle the integration themselves. Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: sales@vervotech.com
