The business travel industry’s evolution demands more efficient, dynamic, and customer-focused travel distribution systems. Advanced distribution capabilities, often referred to as New Distribution Capability (NDC), present a transformative opportunity for stakeholders—from travel management companies (TMCs) to hoteliers—to address persistent challenges and unlock new potential. These innovations are reshaping the travel distribution landscape, enabling greater efficiency, personalization, and flexibility across the ecosystem.

The Demand for Seamless Travel Distribution

Corporate travelers today expect a frictionless booking experience, characterized by extensive inventory access, dynamic pricing options, and tailored customizations. Whether it’s loyalty-based promotions, specific room attributes, or diverse payment options, corporate buyers and travelers alike demand a comprehensive and intuitive platform.

For travel management companies, addressing these expectations is critical. Leakage—bookings made outside preferred channels—remains a significant issue, with some programs reporting rates as high as 50%. Common causes include insufficient inventory, poor booking experiences, and limited payment options. Reducing these friction points is essential for TMCs to enhance traveler trust and compliance with corporate policies.

The Role of Advanced Distribution Capabilities

Modern distribution capabilities redefine how inventory is accessed and utilized throughout the business travel ecosystem. Through direct connections to hotel central reservation systems (CRS) and enhanced content aggregation platforms, TMCs can now provide a streamlined shopping experience that overcomes traditional limitations.

1. Expanded Inventory Access

Advanced systems allow TMCs to display comprehensive inventory, from standard corporate rates to promotional and loyalty-based rates, all within a single platform. This ensures travelers can access the full range of options without resorting to external consumer platforms, reinforcing trust in preferred booking channels.

2. Enhanced Personalization

Travelers increasingly expect tailored booking options, such as preferred room types, add-ons like breakfast, and loyalty-based benefits. Attribute-based shopping empowers hoteliers to offer these personalized experiences at the booking stage, boosting satisfaction and revenue.

3. Seamless Payment Solutions

Payment remains a pain point in business travel. New distribution systems incorporate virtual payment options and global strategies, simplifying transactions and minimizing administrative burdens for travelers and TMCs alike.

4. Centralized Multi-Sourcing

By aggregating content from GDS, OTAs, and direct hotel connections, advanced systems provide corporate buyers with a single source of truth for rates and availability. This not only streamlines reporting and compliance but also reduces booking fragmentation.

Opportunities for Hoteliers

For hoteliers, these advancements create pathways to optimize revenue and enhance competitiveness.

Revenue Optimization Through Attribute-Based Selling

Dynamic pricing for room attributes and bundled services enables hotels to drive incremental revenue. Whether offering specific room types or loyalty-based promotions, these features create a more engaging booking experience while boosting profitability.

Reduced Distribution Costs

By connecting directly to intermediaries like DerbySoft, hotels can reduce reliance on costly third-party distribution channels, maintain control over inventory, and strategically manage rate strategies.

Loyalty Integration

Modern distribution tools allow hotels to engage travelers earlier in the booking process, extending loyalty benefits at the point of sale. This strengthens customer relationships and enhances loyalty program enrollment.

Challenges and Lessons from Other Industries

While the potential of advanced distribution capabilities is significant, the path to full adoption requires navigating industry-specific hurdles.

Fragmented Hotel Technology

The fragmented nature of the hotel industry’s technology stack poses challenges. Many property management systems (PMS) and CRSs lack the capabilities to support modern distribution requirements, leading to inconsistencies in the booking experience.

The Need for Standardization

Unlike the airline industry, where NDC has progressed through standardization, the hotel sector remains highly fragmented. Achieving consensus on implementation strategies and definitions will require industry-wide collaboration.

Insights from Airlines

The airline industry’s adoption of NDC highlights the importance of simplicity and partnership. Hotels can leverage these insights to prioritize streamlined technology solutions and partnerships that deliver clear benefits for all stakeholders.

Collaboration as the Path Forward

The future of business travel distribution lies in partnership. Stakeholders across the ecosystem—TMCs, hoteliers, and technology providers—must work together to prioritize traveler-centric experiences, optimize operations, and reduce costs.

Key Priorities for Success:

1. Traveler-Centric Design: Deliver seamless booking experiences with dynamic pricing, personalization, and transparency.
2. Technology Investments: Embrace platforms that support multi-sourcing, attribute-based selling, and robust data reporting.
3. Collaborative Frameworks: Develop partnerships that align operational goals with traveler needs and streamline content delivery.
4. Sustainability and Duty of Care: Integrate sustainability initiatives and ensure compliance with corporate safety standards and tracking needs.

Advanced distribution capabilities offer the business travel industry a unique opportunity to address long-standing inefficiencies and deliver unparalleled value. By adopting these innovations, stakeholders can redefine the traveler experience, optimize revenue, and navigate the challenges of an ever-evolving market.

DerbySoft is proud to support this evolution by providing cutting-edge solutions that empower travel brands to thrive. Together, we can shape the future of travel distribution and unlock its full potential.

Premier Inn Partners with DerbySoft to Enhance TMC Collaboration

Premier Inn is now seamlessly connected via DerbySoft, offering TMCs the most efficient and powerful way to collaborate with the UK’s leading budget hotel chain, benefiting corporate clients and travelers. This integration streamlines processes like configuring electronic central payment (eCNP), managing central billing (with invoices automatically sent to the correct client email), and pre-setting travel allowances like dinner, drinks, premium WiFi, and parking—all personalized at the client level.

Advanced Features and Enhanced Billing Functions

TMCs can also benefit from advanced billing functions using level three folio data and a new API for invoice collection. Other enhancements include city tax management, corporate rate mapping, and DerbySoft’s Content Suite, which ensures up-to-date, high-quality content for a smoother booking experience.

Stephen Addison on Simplifying Corporate Travel Management

“Through our partnership with DerbySoft, we can significantly extend our reach and provide our TMC partners with a greater choice of booking options, helping them enhance traveler satisfaction while simplifying corporate travel management,” states Stephen Addison, Head of Sales and Distribution for Premier Inn. “Extending our availability will also enable more guests to experience the high standards of convenience, service, and affordability that Premier Inn is known for.”

With this connection, TMCs gain a competitive edge, offering better efficiency and a more tailored experience for corporate clients when booking with Premier Inn.

DerbySoft’s Business Travel Suite connects TMCs and hotel organizations directly, offering comprehensive rate options for business travelers.

Ready to explore how DerbySoft’s Business Travel Suite can transform your operations and elevate your success in the competitive landscape? Contact us today derbysoft.com.