A Monumental Shift for Hoteliers … if they act fast! Booking.com is designated by the European Union as a gatekeeper under the Digital Markets Act.

EU Recognises Booking.com as Gatekeeper

Monday, 13th May marked a significant milestone for the hospitality industry as the European Union designated Booking.com, a prominent Online Travel Agency (OTA), as a gatekeeper under the Digital Markets Act. This highly anticipated decision empowers hotels to take back control over their pricing strategies, placing them firmly in command of their product offerings.

The designation’s noteworthy implication lies in the elimination of rate parity clauses, granting hotels the freedom to introduce promotions and offer lower rates on their own websites in contrast to OTA platforms. This double opportunity now stands as a significant boon for forward-thinking hoteliers, empowering them to fortify their direct online bookings and diminish reliance on OTA channels.

With this newfound autonomy, hotels can optimise their earnings by reducing dependence on OTA commissions and, equally importantly, ensure the delivery of unmatched guest experiences. Moreover, by leveraging direct bookings to their fullest extent, hotels can tap into invaluable data insights. These insights facilitate personalised interactions with guests at every stage, enhancing service quality, and solidifying brand identity throughout the booking process.

Looking ahead, the European Commission will closely monitor adherence with these DMA obligations, with potential fines for non-compliance. Additionally, ongoing discussions with relevant stakeholders aim to ensure further fair and competitive markets in the digital sector.

“The European Commission’s decision ensures greater choice for consumers and opens up new business opportunities for hotels,” stated Margrethe Vestager, Executive Vice-President responsible for competition policy.”

This pivotal decision presents astute hoteliers with a significant opportunity to thrive in the digital landscape. This window of time, more so than ever, underscores the critical importance of investing in your hotel’s technology. It goes beyond merely cutting commissions; it’s about reclaiming ownership of the entire guest experience, from booking to post-stay communication – and revisiting.

But, move with purpose Hoteliers.

Consider the case of France, whose ban on rate parity in 2014 was hailed as a liberation from OTA dominance, the below is from a 2015 article:

“It is a real revolution that is underway for the French hotel industry and for our customers, after the decision of the Competition Authority, this vote will contribute to the establishment of a renovated contractual framework to restore conditions of a commercial relationship based on trust between hotels and booking sites in the interest of the consumer.”

However, almost a decade later, Booking Holdings didn’t just maintain its market share; it quadrupled it.

Why?

France hosts a significant number of independent hotels, particularly in the one to four-star segment, comprising roughly 83% of the country’s hotel landscape. These independent establishments frequently prioritise other operational aspects over investments in technology. Could this continued neglect and insufficient investment in booking technology and digital marketing now be revealing themselves as a costly oversight?

Hoteliers, seize this pivotal moment. Investing in your hotel’s tech stack is even more financially compelling than you realise, and one seamless guest experience … often ensures another.

AKA: Mastering the Art of Booking Aggregators vs Direct Bookings. Despite the popularity of third-party booking sites and online travel agencies (OTAs), there is still an appetite amongst consumers to book directly with the hotel.

Hotel visitors and holidaymakers are more mobile and online savvy today than ever before. Indeed, from our research we know, 37% of people are now using third-party online booking sites to book their accommodation, highlighting the increased demand for this type of booking platform.

However, despite the popularity of third-party booking sites and online travel agencies (OTAs), there is still an appetite amongst consumers to book directly with the hotel. In fact, three in five people who have visited a hotel in the past six months prefer to book via a hotel’s website directly.

This begs the question: how do hoteliers maximise the opportunity presented by both third-party sites and direct online bookings?

Booking aggregators are a ‘must-have’ for hoteliers

As a key part of the marketing mix, OTAs provide an effective way to boost a hotel’s visibility, especially amongst potential first-time guests and during quieter periods. What’s more, we know people seek convenient and efficient experiences when spending time in hospitality, so the same can be expected of hotel booking experiences.

Having every accommodation option available in one place provides potential guests with an easy booking experience, which encourages them to turn looking into booking.

That being said, it doesn’t mean using booking aggregators comes without challenges. Only half (53%) of those who have booked a hotel stay in the past six months say third-party websites are easy to use. What’s more, only 50% realise that by using these sites, the website takes a slice of the booking cost from hoteliers. Once consumers know this, 63% say they are more likely to book directly with a hotel.

The benefits of listing a hotel on booking aggregator sites make doing so essential, especially as competition is fierce and you want to be where your competitors are. So, what does this mean for hoteliers?

How hoteliers can make the booking process as guest-friendly as possible?

Encouraging potential guests to go directly to their website will not only drive bookings but can increase guest spend and revPAR, as well as build loyalty and encourage guests to return. The key to success here is to ensure that owned booking platforms are user-friendly, up-to-date, responsive and secure.

We know that 60% of hotel guests book through the hotel’s website, making it the most popular channel to book through. To make the most of this opportunity, ensuring guests can easily book and update their reservations online is key to providing a great experience. Sending friendly reminders in the run-up to a stay adds a light personal touch to the customer journey that guests will appreciate.

Having a user-friendly booking system can drive revPAR too. With the right booking tools, hotels can offer guests added extras at the time of booking, such as ordering room service on their first night, Champagne to the hotel room or booking a table at the on-site restaurant. Offering guests these options can help drive overall spending at a time when guests are in buying mode.

Once a good online booking system has been established, what happens next? Offering a blanket discount or incentive to re-book may be partially effective in enticing some guests to return and book directly. However, to maximise this opportunity, hoteliers should consider offering guests reasons to return that tap into their individual preferences and needs.

From looking to booking – how to incentivise guests to book direct

We know four in five (83%) of consumers say a discount on a future visit would encourage them to visit a hotel again but to ensure they take that next step and book, hoteliers would benefit from having a customer relationship management strategy in place to utilise all the valuable data they collect on their guests. This will ensure they are providing guests with offers and promotions that are personalised and encourage them to book directly with the hotel next time.

To create these hyper-personalised offers for customers, data is key. All aspects of the hotel’s tech stack should be fully integrated so that data can be stored in one central location, enabling hoteliers to have a 360-degree view of the hotel, including a full breakdown of the most and least successful aspects of the business.

Once a hotelier has a greater understanding of their business, as well as their guests’ needs and preferences, hotels can create a whole host of incentives which lead to bookings, such as generous bounce-back deals or triggered voucher codes, as well as hyper-personalised incentives to guests based on their spending habits during their last stay, encouraging them to return.

How social media can take direct bookings to the next level

Social media platforms are also becoming increasingly important sources of bookings and, while only small numbers have booked a hotel via Facebook (11%), Instagram (11%) and Twitter (9%) so far, many more would be interested in doing so. Including the option to enquire or book via social media is an easy way to drive direct bookings.

Therefore, being present, active and helpful on social media is a great way to engage guests as well as drive loyalty and improve guest sentiment. In addition, something as simple as adding a booking button to social media pages can help generate incremental bookings.

Hoteliers that list their hotels on third-party booking sites and OTAs will not only increase the general visibility of their venues but leveraging both can drive occupancy as well as increase overall profitability. Once the customer is booked in, leveraging technology to provide personal touches and rewards can incentivise future bookings and build customer loyalty.

Hoteliers that do this will ultimately gain an advantage, helping them grow more profitable direct sales, drive more spend per stay, enhance overall brand perception and raise overall traveller satisfaction.

If you’ve ever wondered how travel agencies, travel management companies, and even your corporate travel department find the best deals on flights, hotels, and car hire, the answer likely lies in a Global Distribution System (GDS).

But what exactly is a GDS, how does it work and how can it benefit your hotel? If you’re new to GDS software, then we’ve got you covered. This guide will break it down for you and provide five compelling reasons why connecting to these systems can be a lucrative additional revenue stream.

What is a Global Distribution System (GDS)?

Think of a Global Distribution System (GDS) as the backbone of the travel industry. It’s essentially a massive database that contains information about flights, hotel rooms, car hire, and other travel-related services. But it’s not just a static database – it’s a dynamic platform that allows travel providers to search, compare, and book travel products in real time.

Who uses GDS software?

Travel agencies, Travel Management Companies (TMCs), and corporate travel departments all utilise GDS software to secure the best possible rates for their clients or staff.
By leveraging GDS, these organisations can compare prices availability, and booking options efficiently, ensuring cost-effective and convenient travel arrangements.

How does a GDS software work?

GDS works by connecting travel services, such as airlines, hotels, and car hire companies, with travel providers. It aggregates real-time data on availability, pricing, and schedules, allowing users to search, compare, and book travel services seamlessly.
GDS operates as a centralised database that facilitates transactions between travel industry players, ensuring accurate and up-to-date information is accessible, thereby streamlining the booking process and optimising travel arrangements.

Five compelling reasons hotels connect to GDS platforms

#1. Access to a wide distribution network

Connecting to a GDS opens your hotel to a vast network of 750,000 travel agents, TMCs, online booking platforms, and corporate clients, expanding your reach, visibility, and potential customer base.

#2. Efficient inventory management

GDS platforms offer tools for centralised inventory management, making it easier to manage room availability, rates, and restrictions across multiple distribution channels.

#4. Dynamic pricing

GDS platforms allow for dynamic pricing strategies, enabling hotels to adjust rates based on demand, market trends, and competitor pricing to maximise revenue potential.

#4. Access to data insights

GDS platforms provide valuable analytics and reporting tools, offering insights into booking patterns, guest demographics, and market trends, which can inform strategic decision-making and marketing efforts.

#5. Competitive Advantage

By connecting to a GDS, hotels can gain a competitive edge by reaching new markets, attracting more guests, and optimising revenue potential in the highly competitive travel industry.

GDS Vs OTA Bookings

OTAs, such as Expedia and Booking.com, provide a user-friendly platform for consumers to search, compare, and book travel services directly online.

In contrast, GDS platforms act as intermediaries that connect travel service providers with travel agencies, TMCs, and corporate travel departments, offering comprehensive access to travel data and booking capabilities.

OTAs undoubtedly play a significant role in driving bookings, but overlooking the potential of the corporate travel segment can be a missed opportunity. And with GDS being in the top five revenue-generating channels in the UK, maintaining a diverse channel mix that includes both OTAs and GDS is key to optimising your property’s visibility and increasing direct bookings.

Choosing the right GDS provider for your hotel

Choosing a provider for GDS distribution is a crucial decision for hotels seeking to maximise their reach and revenue potential.

HotelREZ a High Level integration partner, stands out as a leading SaaS-enabled company for accommodation providers, offering comprehensive solutions to more than 2,500 independent hotels, apartments, and hotel groups in more than 100 countries, including private label GDS chain code solutions.

What’s more, its GDS software has an extensive reach, connecting to over 750,000 travel agents, TMCs, or corporate travel departments.

With an impressive portfolio of customers, including renowned names such as StayCity ApartHotels, Dorint Hotels & Resorts, and The Zetter Group, HotelREZ has established itself as a trusted partner in the hospitality industry. Its broad client base underscores the company’s ability to deliver results and support the unique requirements of various hoteliers.

In conclusion, connecting to a GDS can unlock a world of opportunities for hoteliers, offering access to a wider distribution network, increased visibility, and valuable data insights. And embracing HotelREZ GDS as another revenue stream can be a strategic move to drive growth and success in the dynamic travel industry.

To find out more download HotelREZ’s Insights Report or to talk to a member of the HotelREZ team, simply email info@hotelrez.com, and one of their GDS experts will call you back.

In this detailed and insightful presentation, Pete provides expert guidance on:

• Maximising the potential of your restaurant or bar
• Leveraging your room service offering
• Promoting your F&B offerings through various social media platforms
• Implementing innovative loyalty programs and personalised discounts to hotel guests

This presentation walks you through practical hints and tips to enhance your services, as well as discussing various channels to promote F&B offers, loyalty programs, and personalised discounts to guests. By implementing these strategies, you can improve your F&B engagement, boost loyalty, and maximise your hotel’s F&B potential.

In the ever-evolving landscape of the hospitality industry, technology plays a pivotal role in enhancing guest experiences and streamlining hotel operations. However, navigating through the myriad of technical terms and jargon can be a daunting task.

Our Hotel Technology Jargon Buster is here to unravel the mysteries behind the buzzwords and acronyms commonly used in the world of hotel tech.

Channel Manager

Software that enables hotels to update room availability and rates in real-time across multiple online distribution channels, ensuring consistency and avoiding overbooking.

CRM (Customer Relationship Management)

Strategies, technologies, and practices that hotels use to manage and analyze customer interactions throughout the guest lifecycle, with the goal of improving customer satisfaction and loyalty.

CRMS (Customer Relationship Management System)

Definition: Software that helps hotels manage and analyze customer interactions and data throughout the guest lifecycle to improve customer relationships and drive loyalty.

CRS (Central Reservation System)

A system that allows hotels to manage and distribute room inventory and rates across various distribution channels, including online travel agencies (OTAs) and the hotel’s website.

IBE (Internet Booking Engine)

A tool integrated into a hotel’s website to facilitate direct online bookings by guests.

IoT (Internet of Things)

The interconnection of devices (such as thermostats, lighting, and sensors) embedded with software, enabling them to collect and exchange data, enhancing guest comfort and operational efficiency.

Kitchen Display System (KDS)

KDS streamlines communication between the kitchen and the front of the house, improving order accuracy and kitchen efficiency, enabling operators to do away with paper tickets.

Mobile Room Keys

Mobile apps that allow guests to use their smartphones as room keys, streamlining the check-in and check-out process.

OTA (Online Travel Agency)

Websites and platforms that allow users to book hotel rooms online. Examples include Booking.com, Expedia, and Hotels.com.

PMS (Property Management System)

A centralised software platform that helps hotels manage their daily operations, including reservations, check-ins, check-outs, billing, and room assignments.

POS (Point of Sale) System

Systems that handle transactions between the hotel and guests, including food and beverage purchases, spa services, and other on-site expenses.

Smart Room Technology

Integrating IoT devices and automation to enhance in-room experiences, such as smart lighting, temperature control, and entertainment systems. Immerse guests in a tech-savvy environment with cutting-edge smart room technology.

Table Management System

This system helps hotel restaurants manage reservations, table assignments, and waitlists, optimise seating arrangements and reduce guest waiting times with an intuitive table management system.

Other specialised terms and phrases utilised by professionals in the hotel industry to evaluate hotel performance and effectiveness can sometimes be bewildering. These often revolve around key performance indicators (KPIs) which serve as benchmarks for success. Some of the most common include:

ADR (Average Daily Rate)

The average rate charged per occupied room in a hotel over a specific period, calculated by dividing total room revenue by the total number of occupied rooms.

CPOR (Cost per Occupied Room)

Used in the hotel industry to evaluate operational efficiency and cost management, CPOR represents the total operating costs associated with each room that is occupied by a guest during a specific period.

GOPPAR (Gross Operating Profit per Available Room)

performance metric that evaluates a hotel’s profitability by measuring the gross operating profit generated per available room, calculated by subtracting total operating expenses from total revenue and dividing by the total number of available rooms.

Occupancy Rate

The percentage of available rooms that are occupied during a specific period, calculated by dividing the number of occupied rooms by the total number of available rooms and multiplying by 100.

RevPAR (Revenue per Available Room)

RevPAR is calculated by dividing the total revenue generated by room sales by the total number of available rooms in a given period. It is a crucial indicator of a hotel’s revenue-generating efficiency and helps managers assess pricing strategies, demand trends, and overall performance in comparison to competitors.

Armed with this Hotel Technology Jargon Buster, you’re now equipped to navigate the complexities of the technological landscape within the hospitality industry. As technology continues to advance, staying informed about these terms is crucial for hoteliers looking to provide top-notch guest experiences and optimise their operations.

Embrace the tech revolution and make your hotel a beacon of innovation in the competitive world of hospitality!