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
Customer Retention for OTAs: Strategies for Loyalty
Customer retention is not just a metric; it reflects a brand’s ability to maintain a loyal customer base over time. Retaining customers becomes paramount in an industry where travel is infrequent, and consumers are price sensitive. According to Statista, the average 90-day retention for hospitality and travel apps is 44%, highlighting the need for sound retention strategies. Acquiring new customers is more expensive than retaining existing ones, making it imperative for OTAs to focus on building long-term relationships. With the travel and hospitality industry experiencing a steady recovery, OTAs are witnessing increased user engagement. However, transforming these sporadic users into loyal, repeat customers takes time and effort. As users tend to forget their app experiences during the gaps between trips, effective customer retention strategies become a competitive advantage, preventing users from shifting to other brands. 1. Make the first impression the lasting impression The first interaction with an OTA is similar to a first date. Optimizing the onboarding experience is crucial in showcasing the platform’s value and helping users reach the ‘wow’ moment early. Research indicates that a well-designed onboarding flow can increase engagement by 400% and boost retention rates by 50%. 2. Increase user sessions Capturing rich data, creating advanced user segments, and adopting an omnichannel engagement approach contribute to increased user sessions. Rich data, including user preferences and behaviors, allows OTAs to fine-tune their communication and offerings, developing a stronger sense of connection with users. Read More – Choosing the Right Hotel Suppliers for Your OTA3. Bite-sized content for storytelling Beyond transactional interactions, OTAs can engage users by providing bite-sized content on destinations. Short videos, interactive graphics, and lists of popular places create additional incentives for users to open the website/app, enhancing brand recall and increasing user retention. 4. One-stop solution for travel OTAs can also position themselves as the go-to solution for all travel requirements. It simplifies the travel experience for end users; offerings could be real-time spending insights, enabling additional service bookings, etc. 5. Implement loyalty programs Loyalty programs are an effective tool for customer retention. Rewarding repeat customers with points or exclusive perks encourages brand loyalty. OTAs can retain users and save on commissions by nurturing a personal connection and boosting direct bookings. 6. Assess past guests and bookings Segmenting users based on recency, frequency, and monetary value allows OTAs to identify and prioritize ‘super-travelers.’ Formulating personalized strategies for these VIP users can turn them into brand ambassadors, contributing to long-term retention. 7. Offer flexibility Offering flexibility in bookings – whether for free or a nominal charge – encourages travelers to complete their reservations. This strategy is particularly relevant when uncertainties are routine. 8. Gamify travel Introducing gamification elements, such as badges and progress wheels, adds a fun dimension to the travel experience. Encouraging users to explore various services or destinations within the app enhances engagement and contributes to customer retention. Expedia: Unifying Loyalty Programs Aggregating various loyalty programs into one, Expedia’s ‘One Key‘ aims to leverage its massive user base and offer a diverse range of travel products. Booking.com: Genius Program and Rewards & Wallet The Genius program focuses on immediate benefits with upfront discounts, while the Rewards & Wallet feature introduces a new retention level through an overarching payment platform. OTAs often face the challenge of building and retaining a loyal customer base. Thinking outside the box and implementing a well-thought-out strategy can create compelling value propositions for OTAs that resonate with their users, nurturing long-term relationships. The next decade is poised to be defined by those who successfully cultivate genuine customer loyalty and can create a community of loyal users. 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
Managing Online Reviews and Reputation for OTAs
As an online travel agency, your growth trajectory hinges considerably on maintaining a positive reputation and degree of trust among your target audience. Online reviews have become a powerful medium for defining customer perceptions and influencing booking decisions. This detailed blog post explores the nuanced approach to managing online reviews and the reputation of OTAs, providing an in-depth analysis of the strategies that can lead to sustained success. Stick on till the end. Online reviews have transformed into a digital form of word-of-mouth, carrying significant weight in the decision-making process for travelers. Nearly 93% of users say online reviews impacted their buying decisions. Positive reviews not only strengthen OTA’s credibility but also contribute to increased bookings and customer loyalty. Conversely, negative reviews can have a cascading effect, eroding trust and deterring potential customers. Recognizing the influential power of online reviews is paramount for OTAs to continue to be relevant. Beyond the surface level of positive or negative sentiment analysis, analyzing reviews provides insights into specific customer preferences, pain points, and areas for improvement. Utilizing sophisticated sentiment analysis tools allows OTAs to categorize and interpret feedback, identifying trends that may not be immediately apparent. Regularly monitoring customer sentiment provides a proactive approach, enabling OTAs to adapt their services in real time to meet highly dynamic customer expectations. Read More – How to optimize an OTA website for search engines1. Proactive Engagement: Respond promptly and thoughtfully to both positive and negative reviews. Express genuine appreciation for positive feedback and address negative comments with empathy, showing a commitment to resolving issues. 2. Have a Review Generation Strategy Encourage satisfied customers to leave positive reviews through personalized post-purchase emails. Explore incentive-based programs or loyalty initiatives to motivate customers to share their positive experiences. 3. Leveraging Modern Tech Invest in sophisticated reputation management tools that offer comprehensive monitoring and analysis capabilities. Deploy advanced AI tools for sentiment analysis, allowing for quick identification of emerging trends and customer concerns. 4. Consistent Brand Messaging Maintain a cohesive brand voice across all communication channels, ensuring a harmonious alignment with customer expectations. Regularly audit and update online content to reflect the essence of the OTA’s offerings and values. 5. Learning from Negative Feedback View negative reviews as opportunities for improvement rather than setbacks. Implement strategic changes based on recurring themes in negative feedback, showing a commitment to continuous enhancement. 6. Showcase Positive Experiences Actively seek and promote customer testimonials, highlighting positive experiences. Share success stories on various platforms, including social media and the OTA’s website. 7. Manage Social Media Presence/Active Social Listening Stay vigilant on social media platforms, addressing customer queries and concerns promptly. Utilize social listening tools to monitor brand mentions and sentiment across social channels 8. Collaborate with Influencers Partner with travel influencers to showcase positive experiences with the OTA. Use influencer marketing to reach a broader audience and enhance brand credibility. Online reputation management is not just a strategic choice but an imperative for OTAs. Agencies that prioritize online reviews and actively engage with customers will be better positioned to thrive in the current travel technology market. Actively using advanced tech, embracing customer feedback, and implementing a comprehensive set of practical strategies, OTAs can confidently manage their online reputation and brand personality to resonate with travelers worldwide, ensuring sustained success in the long run. 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
Effectiveness of affiliate programs for travel agencies
Affiliate marketing has evolved remarkably, becoming a crucial weapon in the marketing arsenal of any e-business. According to Rewardful, the affiliate marketing industry is expected to reach $21.1 billion in 2024 and $15.7 billion (about $48 per person in the US) by 2024. Astute Analytica reports that the industry will reach $36.9 billion (about $110 per person in the US) by 2030. This meteoric rise not only underscores the current importance of affiliate programs but also implies a growing recognition of their effectiveness in driving revenue for businesses, and it’s no different for the travel sector. One of the distinctive features of affiliate programs is the ability to form mutually beneficial partnerships with influencers, bloggers, and other relevant content creators. These collaborations create a relationship where both parties stand to gain. Travel influencers, who have significant audiences, become powerful advocates for promoting products or services, while travel companies, in turn, gain access to a broader and potentially untapped consumer base. To truly understand the impact of affiliate programs, let’s delve into the numbers. A survey conducted by Statista revealed that a staggering 81% of brands leverage affiliate marketing to some extent in their overall marketing strategy. Within the travel sector, this statistic translates into a significant market share of about one-sixth. Furthermore, a study by Forrester Consulting found that businesses engaged in affiliate marketing. These statistics highlight the tangible benefits that affiliate programs bring to the table. Now, it takes us to how travel agencies can benefit from it. Stick on as we elaborate on the key benefits next. Let’s explore the specific benefits that affiliate marketing brings to travel agencies in 2024: 1. Revenue GenerationAffiliate marketing serves as a potent revenue-generation tool for travel agencies. By collaborating with influencers and content creators, agencies can tap into new customer bases, resulting in increased bookings and revenue. 2. Increased Brand Awareness Through strategic partnerships, travel agencies can boost their brand visibility. Influencers, with their engaged audiences, provide a platform for agencies to showcase their offerings to a broader demographic, ultimately increasing brand awareness. 3. Build Relationships with Other Businesses Affiliate programs foster collaboration and relationship-building with other businesses. Partnerships with influencers, hotels, airlines, and other entities in the travel ecosystem contribute to a network that can be leveraged for mutual growth and support. 4. Increased Visibility and Traffic One of the primary advantages of affiliate marketing is the boost in visibility and traffic. As influencers promote travel agencies’ services, they increase website visits and inquiries, providing valuable exposure to target websites. 5. Cost-Effective Approach Compared to traditional advertising, affiliate marketing is often a more cost-effective approach. Agencies pay commissions based on actual sales, ensuring that marketing budgets are allocated efficiently with a clear return on investment. 6. Helps Scale Your Traffic and Sales Affiliate marketing acts as a catalyst for scaling both traffic and sales. The ripple effect of influencers’ recommendations can lead to exponential growth, driving more potential customers to the agency’s services. 7. High Return on Investment (ROI) The performance-based nature of affiliate marketing ensures a high return on investment. Agencies only pay for actual conversions, making it a financially prudent strategy directly impacting the bottom line. The effectiveness of affiliate programs in the travel industry is not just a fleeting trend but a strategic necessity. And it’s here to stay. The data presented throughout this exploration and the specific benefits outlined support the idea that forming strategic partnerships with influencers and content creators can significantly impact agencies’ brand visibility, customer retention, and revenue. Employing affiliate marketing with a data-driven, quality-focused approach is a strategy that can work wonders. 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
Six economic theories to handle demand fluctuations in OTA operations
Online travel agencies face seasonal fluctuations every year, which have a significant bearing on their stability and growth. Understanding economic theories that explain these cycles can be very helpful for CXOs of OTAs to manage resources throughout the year. These theories act as strategic tools, providing a roadmap to navigate the complexities of seasonal changes in the travel industry. In this piece we will look into six critical economic theories and explain their potential applications to strategically empower OTAs to manage seasonal shifts. 1. Elasticity Theory: Dynamic pricing to improve bottom line Elasticity theory, a microeconomics groundwork, explores consumer demand’s responsiveness to price changes. For OTAs, this theory becomes a tool for managing the nuances of the seasonal market. With dynamically adjusting prices based on elasticity (adjust prices based on relative demand), OTAs can optimize revenue during peak seasons without alienating cost-sensitive customers during slower periods. This approach is a nuanced application of economic principles that can significantly improve the OTA’s bottom line. Example: Consider a hotel booking OTA that dynamically adjusts its room prices based on demand elasticity. During peak travel seasons, such as holidays or major events, the OTA could increase room prices as demand rises. Conversely, during off-peak periods, it might offer discounts or special promotions to attract cost-sensitive customers. This approach ensures that OTA optimizes revenue without losing customers during slower times. Read More – Five ways OTAs should assess payment service providers2. Game Theory: Sell stories beyond campaignsGame theory, originating from strategic studies, examines decision-makers’ interactions in competitive scenarios. OTAs can employ game theory to craft marketing campaigns that are strategic narratives rather than mere promotions. Tailoring marketing efforts during peak seasons and maintaining a strategic presence during off-peak times positions OTAs as adaptive players, ensuring they remain top-of-mind for travelers. Example: Any online travel business can strategically utilize game theory in its marketing campaigns by creating engaging narratives. During peak seasons, the OTA might run a campaign that runs like a story, involving customers in a series of events or challenges related to travel. During off-peak times, it can maintain a strategic presence through interactive content and ongoing storytelling to keep customers engaged and interested in the brand. 3. Resource-Based View: Diversify offerings as your unique voiceResource-based view theory focuses on the unique and valuable resources a firm possesses. For OTAs, this theory translates into strategic diversification. OTAs can be more visible by offering diverse travel products through exclusive partnerships or providing distinguishable travel experiences. This approach showcases resilience during slower periods by capturing the attention and loyalty of travelers seeking distinct offerings. Example: For instance, an OTA can collaborate with local tour operators, local homestays offering curated and exclusive travel packages. This approach distinguishes the OTA from competitors and attracts travelers seeking distinct experiences. 4. Brand Equity: Trust-building in quiet timesBrand equity principles emphasize the importance of trust in consumer decision-making. Investing in building a trustworthy brand becomes a necessity for OTAs. Even in quieter seasons, the confidence built will likely translate into customer loyalty, revealing the brand’s human side that weathers seasonal fluctuations. Example: During slower seasons, an online travel business can invest in building brand equity by emphasizing trustworthiness. It could implement transparent communication about safety measures, introduce customer satisfaction guarantees, and actively engage with customers on social media. This trust-building effort ensures that even in quiet times, customers are more likely to choose this OTA due to the established brand reputation. 5. Tech Agility: Innovating for operational freedom:Using technology as an ally for operational agility, OTAs can integrate artificial intelligence and machine learning for real-time insights. This tech-driven agility allows OTAs to adapt proactively to changing demand patterns, bringing a human touch to operational flexibility in the face of seasonal uncertainties. Example: Implementing AI, machine learning algorithms and other modern tech, any OTA can analyze real-time data to predict demand patterns and adjust inventory and pricing accordingly. This tech-driven approach allows the OTA to respond promptly to changing market conditions, which could be make or break in travel industry. 6. Co-opetition: Collaborate for collective growth Co-opetition, where collaboration complements competition, becomes a strategic move for OTAs. Forming partnerships with industry peers creates a collaborative advantage. Sharing insights, resources, and strategies during peaks and valleys can strengthen the entire travel community, collectively helping OTAs sail through seasonal shifts. Example: Online travel businesses can come together to form an industry consortium that shares market insights and collaborates on marketing strategies. During peak seasons, they might jointly promote travel packages, and during seasons, they share resources to reduce costs. This co-opetition strategy benefits the entire travel B2C travel tech community. Incorporating these six economic theories—Elasticity Theory, Game Theory, Resource-Based View, Brand Equity, Tech Agility, and Co-opetition- into your strategic approach to managing the unpredictable seasonal demand can be extremely useful. Each theory contributes a unique perspective for OTAs to adapt and thrive in all demand cycles. 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
Six leading in-room hotel technology trends in 2024
In the last few years, hotels heavily focused on technology to improve the guest stay. From Wi-Fi to smart TVs, hotels are constantly using in-room hotel technologies to make their guests’ experience better. If you see Forbes’s roundup of the world’s best hotels, you will find most of the hotels featured in the list are the ones who did up their technology game big time. In-room hotel tech makes staying easier for guests and saves you big money on operations. Also, you give your guests a reason to come back to your property. Are you also keen on incorporating the latest technologies into your hotel rooms? We got you covered. Here in this piece, we will cover all the major in-room hotel technology trends in 2022. Six major in-room hotel technology trends in 2023 There are many in-room technologies that hotels worldwide are testing, so we will not focus on in-room hotel technologies that are just being tried out of fad. Here we will focus on technologies with contextual significance trending this year. And these are technologies that did work for other hotels in the industry, offered value in terms of positive feedback from guests, increased revenue, improved approval ratings, etc. So, without further ado, let’s look at these top six breakthrough in-room hotel technologies, which could be the norm in the future. Web-Based Room Service Apps Making back-and-forth calls to hotel room service is mostly an awkward experience for guests. Hotels are now removing the calling barrier by using web-based applications to process all room service requests. The web applications run smoothly on both smartphones and personal computers. They make the delivery of this app even more effortless, which involves no human involvement. They place QR codes at the most accessible space that guests scan to access the whole app. And start placing their requests, food orders, tracking, room cleaning, and all other ancillaries. Smart Voice Controlled Thermostats Ideal room temperature enhances the quality of sleep. Experts say 18.3 is the best temperature to sleep at, but it varies from guest to guest and their home geographies. But what hotels can do is they can offer the best thermostats to guests. So, now hotels are placing smart voice-controlled thermostats, which also have touch screen functionality. Robo Services To maximize guest privacy and minimize human involvement in in-room services, hotels are employing robots to manage and transport laundry. Also, robots are delivering snacks, moving around the tables, and all other similar exercises which would actually require a human Smart Showers The Smart showers are automated and can directly sync with the in-room touch screen devices. Guests can set the temperature of the shower before even entering the washroom. The Smart showers are extremely helpful for the elderly and children who need these adjustments done by someone accompanying them. These showers also have temperature adjustment keypads and displays. The showers also consume less water and energy than conventional geysers and running water setups. The experts in the hospitality industry predict that these showers will become mainstream in not more than 15 years. Customer Support Videos A report suggests that guests favor customers support in the form of videos (live or recorded). Along the lines of the Smart menu, hotels are now facilitating video chat support through QR codes. In the service section, guests get a link, which directly connects them to customer support over a video chat. The chats enable guests to get their issues resolved in real-time. And if needed, request for an in-person visit. In-room Interactive Screens Traditionally, guests tend to use their own devices for casual internet browsing. To add vow factors, hotels are either placing interactive computing screens or providing tablets to the guests. It also gives hotels an excellent opportunity for product placement and upsell in-hotel ancillaries. Recommended: What is loyalty SAAS solution | Know different vendors in the travel market The hotel technology trends mentioned above tell a story of how the industry per se is shaping. In times to come, you will see hotel hotels using more in-room technologies. The reasoning behind it is simple- as most people will have smart technologies in their homes, so they will seek a stay that is not too different from their homes. And offers them a more connected experience. Therefore, if you introduce the technologies we discussed now, you will have the beginners’ advantage.
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.
