What are hotel groups, hotel chains, and hotel brands?
For B2B travel companies like yours, understanding how hotel groups, chains, and brands operate is key to meeting their needs efficiently. In the global hospitality market, these categories dictate everything from pricing strategies to service consistency. Knowing how these elements work allows you to offer better options, negotiate smarter deals, and enhance the overall travel experience for your clients. Let’s explore what sets hotel groups, chains, and brands apart and how this knowledge can improve your business strategies. Hotel groups are major enterprises that own or manage a wide range of hotel chains and brands. They bring together diverse hotel types, from high-end resorts to budget-friendly options, all under one corporate umbrella. For B2B travel companies, working with hotel groups simplifies the booking process, providing a wide variety of choices from a single source. Marriott International, for example, is the largest hotel group globally, with over 30 brands and 9,000 properties. It covers every traveler category, from luxury (The Ritz-Carlton) to more affordable options (Fairfield Inn). This range allows B2B travel companies to meet different client needs while ensuring quality and consistency. Partnering with a hotel group means access to multiple brands and properties in different markets. This simplifies contract negotiations, offering discounts or loyalty benefits, and enables you to offer a wide range of solutions for various client needs. Hotel Brands: Meeting Specific Client Needs Hotel brands represent the identity and service level that a hotel chain promises to deliver. Brands target specific types of travelers and experiences, from high-end luxury to budget accommodations. For B2B travel companies, understanding the strengths of each brand helps in aligning the right property with your clients’ needs. For example, within Marriott’s portfolio, The Ritz-Carlton is known for luxury and exclusivity, while Courtyard by Marriott focuses on business travelers seeking comfort and efficiency. Each brand offers different features, and knowing these distinctions helps you recommend the right property for the right client. Why It Matters for B2B Travel: Offering the right hotel brand can significantly enhance the client’s experience. Matching your client’s expectations with the correct brand strengthens your service offering and increases client satisfaction. Understanding Hotel Ownership Models Hotel groups operate through various ownership models, each with its own benefits. Understanding these models helps travel companies evaluate service levels, negotiate better terms, and offer more informed recommendations. Full Ownership: The hotel group owns and operates the property directly, giving them complete control over service and quality. Franchising: Independent hotel owners operate under a hotel group’s brand, paying fees to use their marketing and support services. This model allows hotel groups to expand rapidly without directly managing each property. Management Contracts: The hotel group manages the hotel on behalf of the owner, handling day-to-day operations while the owner maintains the property. This model is common in markets like Asia. Leasing: Hotel groups lease properties from owners and operate them for a fixed period, maintaining control over operations and service levels. Knowing the ownership model helps you anticipate service quality and consistency. Franchised hotels, for example, may offer slightly different experiences compared to fully owned or managed properties, allowing you to set the right expectations for your clients. Final Words! Over 2 billion people are expected to travel by 2026, and these players will largely influence their experience. Knowledge of these structures allows you to offer better travel solutions, and negotiate smarter deals. Mastering how these hospitality giants operate will help you serve your clients more effectively and grow your business at pace and consistently. The travel industry stands at a critical juncture. Addressing the complexities of a fragmented ecosystem requires a collaborative approach and a commitment to open technology. Through united efforts, we can create a one-click travel experience that meets and exceeds customer expectations. This ongoing investment in the future of travel is not just about improving the customer experience; it’s about making travel an effortless and appealing choice that can compete with any other luxury option. As the industry moves forward, all players are invited to join in this effort, working together to create a travel experience that is not only smooth but also compelling. Hotel chains are collections of hotels operating under the same brand, providing standardized services across multiple locations. For business travelers or corporate clients, this consistency is a major advantage. They know exactly what to expect, whether they stay at a hotel in London, New York, or Tokyo. Chains follow strict operational guidelines that ensure the same level of service across all properties. An example is Hilton Worldwide, which operates nearly 7,800 properties under 24 brands. Each of these brands serves different market segments, allowing travel companies to choose the right fit for their clients, whether it’s a luxury stay at Waldorf Astoria or a mid-tier option at DoubleTree. Standardization across hotel chains ensures a reliable experience for your clients, making it easier for you to offer consistent service recommendations. Many chains also have loyalty programs, like Hilton Honors, which offer additional value for frequent travelers.
What is hotel mapping and why it matters for your online travel business
The global online travel market, valued at USD 1105.80 billion in 2022, is projected to grow from USD 1237.39 billion in 2023 to USD 3041.92 billion by 2031, with a compound annual growth rate (CAGR) of 11.90% during the forecast period (2024-2031). The industry has transformed significantly with the rise of online travel agencies (OTAs), travel hubs, and hotel aggregators. However, this growth also brings challenges, particularly in maintaining accurate and consistent data. Effective hotel mapping is critical in addressing these challenges. Hotel mapping involves correlating hotel IDs across different suppliers to ensure consistency in hotel data, including pricing and availability. This process is crucial for providing accurate information to customers and avoiding issues such as overbooking or incorrectly displayed prices. Read More – What is Hotel Mapping And Room Mapping?Key Details Managed in Hotel Mapping: Property name Contact information Address ZIP code Descriptions Geo-location Policies Effective hotel mapping is vital for OTAs to offer the best prices and ensure up-to-date availability. This process prevents: False Negatives: Missing matches between suppliers and internal databases, resulting in unrealized revenue due to higher prices offered. False Positives: Incorrect matches lead to financial losses and customer dissatisfaction. Challenges in Hotel Mapping Precision vs. Coverage Balancing precision and coverage are essential. High precision reduces false positives, while comprehensive coverage minimizes false negatives. Advanced AI and machine learning solutions are the best approaches to reduce these errors. Slow Automatic Mapping Large datasets make automatic mapping time-consuming. For instance, matching 1,000 hotels with another 1,000 requires 1,000,000 comparisons, which can be impractical in real-time operations. Ineffectiveness of Manual Mapping Manual mapping must be faster and more efficient for the fast-paced online travel industry. Semi-automated solutions combining AI/ML with human intervention are more effective. Vervotech’s hotel mapping solution is designed to address these challenges comprehensively: Data Collection Vervotech collects hotel data from various sources, including suppliers, direct chains, channel managers, switches, GDSs, and extranet hotels. This data is collected either through API or standard FTP file transfer. Data Standardization Data from suppliers often has different attributes or needs more consistency. To avoid inconsistencies, Vervotech standardizes this data into a static framework. Data Processing Using advanced AI and ML algorithms, Vervotech analyzes and identifies property information, such as hotel type, ID, amenities, policies, star ratings, and reviews. The system groups similar hotels with identical parameters into one category. Outcome Vervotech delivers mapped data through three basic APIs, providing newly added, updated, and deleted hotels. Users can easily download hotel content by calling the Get Hotel Content endpoint API. Accuracy & Coverage Extensive Coverage: Ensures 98% coverage and unmatched accuracy of 99.999%, eliminating issues caused by incorrect hotel listings. Vast Supplier Network: Manages content from over 400 suppliers, fully mapped for convenience. Dedicated Portal This portal provides a clear overview of the distribution network and highlights the best available matches to ensure complete visibility over your pipeline. Speed & Efficiency Advanced AI/ML Algorithms enable rapid mapping of hotel content, enabling it to update and map content faster than competitors. Granular API All hotel content and mapping data are distributed using a set of web services designed for granularity, allowing detailed parameter downloads with minimal content. Real-Time Updates Multiple Updates in Real Time ensure active collaboration with leading suppliers, leveraging AI and ML technology to push content to booking platforms within minutes. Self-Service Portal It ensures users have complete visibility over their data through a self-service portal, which allows access and control over their distribution network. All changes are synchronized to provide the greatest control over the content. These views provide: Insights into supplier content quality. Highlighting duplicate content. Outdated data. Other potential issues for optimization. NHA (Non-Hotel Accommodation) Mapping In addition to traditional hotels, Vervotech’s mapping includes data from regional vacation rental providers, ensuring comprehensive accommodation options. Data Collection Vervotech collects hotel data from various sources, including suppliers, direct chains, channel managers, switches, GDSs, and extranet hotels. This data is collected either through API or standard FTP file transfer. Data Standardization Data from suppliers often has different attributes or needs more consistency. To avoid inconsistencies, Vervotech standardizes this data into a static framework. Data Processing Using advanced AI and ML algorithms, Vervotech analyzes and identifies property information, such as hotel type, ID, amenities, policies, star ratings, and reviews. The system groups similar hotels with identical parameters into one category. Outcome Vervotech delivers mapped data through three basic APIs, providing newly added, updated, and deleted hotels. Users can easily download hotel content by calling the Get Hotel Content endpoint API. An accurate and comprehensive hotel mapping solution is essential for staying competitive in the online travel industry. Vervotech’s advanced approach ensures high precision, complete automation, and unmatched speed, making it an indispensable tool for OTAs and travel businesses. 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
Boost Your OTA’s Profitability: The ROI of Investing in Hotel Mapping
Imagine Sarah, a business traveler on a tight schedule. She needs to book a hotel in Chicago for an important meeting. She quickly finds a hotel online that looks perfect – close to the office, clean, and affordable. But when she checks the address on a map, it shows a location far away in the suburbs! Confused, she tries another website, but this one places the hotel in a different neighborhood. It isn’t the case for every hotel, but it’s a common occurrence that can leave your travelers wondering if you are somehow “gaming the system.” This widespread problem of inconsistent listings is one that many providers are actively trying to address. The culprit? The sheer size and complexity of the hospitality distribution market, where data often isn’t displayed consistently across suppliers. If you are an OTA or DMC, providing a seamless experience should be your top priority. Hotel mapping can solve this problem, let’s discuss how! Enhancing User Experience Imagine a traveller eagerly planning their dream vacation, only encountering duplicate listings or outdated hotel information. Frustrating, right? Poor descriptions and inconsistent data can quickly erode trust and harm the user experience. High-quality content mapping ensures that the most accurate and current information is presented to your customers, creating a trustworthy and enjoyable booking process. It’s an open secret that accurate hotel descriptions and photos are critical factors when making a booking decision. Read More – Customer Retention for OTAsImproving Look-to-Book Ratio and Margins Different suppliers often have varying rates for the same room due to individual agreements with hotels. Accurate hotel mapping allows OTAs to compare these rates effectively, choose the most competitive prices, and ultimately increase conversions. Offers with higher margins can be prioritized, significantly boosting profitability. Reducing Costly Mapping Errors Mapping errors can be expensive. An average hotel mapping error can cost an OTA around $1,600 in additional expenses. This includes the cost of cancelling incorrect bookings, securing the correct hotel, handling transfers, and covering operational expenses. Mapping providers aim for near-perfect accuracy, minimizing these costly mistakes. Each error not only impacts on the company’s profit and loss statement but also damages its reputation. Mapping as a Service One popular method is using an online tool with a simple user interface. Uploading hotel inventory files allows mapping to be completed automatically with minimal human intervention. Once mapped, the inventory file can be downloaded for use. Distributors can also invite partners to map inventory on their behalf, streamlining the process. APIs for Dynamic Integration For a more integrated approach, APIs can be used to connect inventory data directly. This method allows for consistent updates without the need for new file uploads, making it particularly useful for dynamic content like pricing. Integrating an API might require technical capabilities, but it ensures that content mapping is updated automatically, which is beneficial for booking engines and other related products. Vervotech’s Hotel Mapping utilizes advanced AI technology to ensure accurate and error-free hotel listings by eliminating duplicate properties. It integrates content from over 400 suppliers, standardizing and de-duplicating the information to maintain a high level of accuracy. Clients have access to a dedicated self-service portal that provides complete visibility over their mapped content. The platform offers flexible integration options, supporting both CSV and API-based methods for a fully automated content management experience. Additionally, Vervotech maps non-hotel accommodations, including regional vacation rental providers. The system guarantees a remarkable 99.999% accuracy in mapped hotel content, with 98% coverage of hotels, and delivers updates within 24 hours. Granular APIs enable clients to download detailed content parameters, ensuring they always have up-to-date information. Vervotech also provides 24/7 support to address any concerns promptly, regardless of the client’s location. Investing in quality hotel mapping is not just a technical necessity but a strategic advantage for OTAs. It enhances the user experience, improves conversion rates, and minimizes costly errors, all of which contribute to a healthier bottom line. Effective content mapping technology helps OTAs offer the best possible service to their customers while maximizing their profitability. 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
Setting legacy code objectives for OTAs
Online travel agencies understand the need for modernization as they constantly face the pressure to scale and innovate to outpace current competition and new entrants. And it’s not easy because a lot of OTAs rely on the experience of tech providers which complements internal expertise. Addressing legacy code is a critical block of this puzzle, and to solve this OTAs must set objectives of legacy code because not everything is redundant. OTAs must understand that before they label a code as ‘legacy’, it was generating functional and commercial value for the company, and many of these systems still provide considerable value today. Deciding what was legacy and what had to be transformed is the most important part of determining the priorities of legacy codes. Here we look at the “hows” of this in detail. Evaluating Operational CostsUnderstanding the financial implications of maintaining legacy systems is paramount. Questions surrounding infrastructure costs, engineering time, reliability, and scalability comparisons to modern systems form the foundation of this evaluation. Read More – Navigating Airline Relationships as an OTAAssessing Engineering Resources and Skills Identifying documentation availability, skill gaps, and the balance of engineering time between maintenance and new development sheds light on the human aspect of legacy code transformation. Gauging Business ValueLegacy systems may be aged, but their contribution to revenue streams can’t be dismissed. Assessing their revenue generation capabilities, compatibility with service level agreements (SLAs), and understanding technical dependencies is crucial for informed decision-making. Approaches to Addressing Legacy CodeIn determining the most suitable approaches, various factors such as development costs, long-term strategy, and modernization speed come into play. The spectrum of tactics includes retaining through API encapsulation, refactoring, revising, rebuilding, replacing, re-platforming, integrating off-the-shelf software, and building new solutions. Legacy Code and Technical Debt DriversIdentifying the drivers behind legacy code accumulation is essential. Factors like outdated technology stacks, high infrastructure costs, and lack of automation contribute to technical debt. Successfully transforming legacy code goes beyond technical solutions; it requires a holistic approach encompassing Team, Trust, and Tech. Investing in upskilling engineers and providing them with the necessary training ensures alignment with modern engineering practices. Collaborations with external vendors and creating specialized teams foster a culture of learning and expertise sharing. Building robust governance structures, documentation practices, and decision-making committees streamlines the modernization journey and builds trust. Adhering to compliance standards like PCI DSS ensures data security throughout the process. Equipping teams with the right tools and technologies, such as CI/CD pipelines and architecture patterns like Pub/Sub and Event Sourcing, enhances system observability, consistency, and scalability. Setting objectives for transforming legacy code in OTAs requires a balanced approach that acknowledges historical value, evaluates current realities, and aligns with future business goals. And simply trying to eliminate the incumbent code terming “legacy” may not make a lot of business sense. 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
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
Cloud Infrastructure for Scalable and Secure Travel Booking Platforms
As online travel booking platforms strive to meet the expectations of modern-day travelers who are sensitive to security, give a lot of importance to user experience, and are aware of their choices, choosing whether to use cloud infrastructure becomes highly critical. In this blog post, we will explore the vital importance of scalable and secure cloud solutions for travel booking platforms, the economics of it, and why they should be employed over in-premise infra. Scalability is more than just a buzzword – it’s a necessity. Cloud infrastructure offers solutions to handle fluctuating workloads, ensuring that the platform can seamlessly accommodate increasing users during peak travel seasons. The ability to scale up or down on demand optimizes performance and allows businesses to manage costs effectively. Data-backed Scalability Benefits A recent study by Deloitte reveals that travel bookings can experience sudden spikes during holiday seasons, with transaction volumes increasing by up to 17%. Cloud infrastructure’s auto-scaling capabilities have proven to be a game-changer in handling such surges, providing a responsive and reliable platform for users even during peak times. Protection Against Cyber Threats With the rising frequency and sophistication of cyber threats, security is non-negotiable for travel booking platforms. Cloud services provide robust security measures, including encryption, firewalls, and multi-factor authentication, creating a virtual fortress around sensitive customer data. Recent data breaches in the travel industry underline the urgency for comprehensive security, making the Cloud an imperative choice. The Cost of Insecurity A survey among travelers highlighted that 58% of respondents consider the security of their personal information a critical factor when choosing a travel booking platform. Instances of data breaches not only tarnish a platform’s reputation but can also result in severe financial repercussions. Investing in a secure cloud infrastructure is not just a matter of compliance but a strategic move to gain and retain customer trust. Disaster Recovery Travel booking platforms are entrusted with vast amounts of data, including customer profiles, payment information, and booking history. In a system failure or a catastrophic event, the ability to recover data swiftly can be made or broken. Cloud-based disaster recovery solutions ensure data resilience, minimizing downtime and maintaining the integrity of critical information. Real-world Impact of Downtime 98% of organizations say a single hour of downtime costs over $100,000, including travel. The financial consequences and reputational damage highlight the necessity for a robust disaster recovery strategy. Cloud infrastructure facilitates data backup and offers geo-redundancy, ensuring that data is stored in multiple locations to mitigate the impact of regional outages. Contrary to the misconception that cloud services are cost-prohibitive, a well-architected cloud infrastructure can significantly reduce operational costs. The pay-as-you-go model allows travel booking platforms to pay only for the resources they consume, eliminating the need for significant upfront investments in physical infrastructure. A Comparative Analysis A credible report by v500 Systems cited that organizations leveraging cloud infrastructure experience an average cost reduction of 30% compared to traditional on-premises solutions. It includes direct savings on hardware and maintenance and indirect savings through increased operational efficiency and reduced time to market for new features. Employing cloud infrastructure becomes a strategic imperative for new travel businesses and other SMEs. The data-backed benefits of scalability, security, resilience, and cost-efficiency make the Cloud an indispensable choice for those seeking to optimize costs without comprising operational bandwidth and security. 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
