In today’s hyper-competitive hospitality landscape, hotels can no longer rely on a “build it and they will come” mindset. The hunger for travel is insatiable, but the demand for a hyper-personalized experience that starts long before a potential traveler clicks ‘book now’ has hit an all-time high. In this market, loyalty must be earned – not given, and digital marketing is not a luxury, it’s a necessity.

As hotels face increased competition from both traditional rivals and alternative lodging options, like Airbnb, capturing demand at scale has become more important than ever – but it’s also increasingly complex. What was once a straightforward task of promoting rooms and services has evolved into a sophisticated, data-driven effort to capture attention, appeal to individual guest preferences, and establish meaningful relationships. With personalization now at the core of guest expectations, the ability to deliver targeted, timely marketing across multiple channels is the key to driving bookings. For hoteliers, the challenge is not just how to execute these strategies, but how to do so efficiently and at scale, while ensuring return on investment.

The Evolution of Digital Marketing in Hospitality

The rise of the internet and the emergence of Online Travel Agencies (OTAs) in the late 1990s reshaped how travelers searched for accommodations, and the emergence of digital-first marketing strategies quickly became inevitable. As digital touchpoints usher in new norms of convenience and personalization, attention has become a commodity, and hotels must meet prospective guests where they are (online) if they hope to capture their interest. After all, travelers begin their ‘planning’ journey via multiple online sources, from social media inspiration to online research and reviews, long before they ever finalize the details of their next trip.

To this effect,  research from Expedia revealed that travelers spend an average of 303 minutes, or over 5 hours, engaging with travel content in the 45 days leading up to a booking decision. 

Moreover, that research found that travelers utilize an increasingly diverse range of online resources during their planning process, including:

• 80% of travelers rely on Online Travel Agencies (OTAs)
• 61% turn to search engines
• 58% use social media for inspiration
• 54% visit airline websites
• 51% explore meta travel websites

The digital landscape is vast – but it can also make for a fragmented journey, and travelers embark on an extensive period of research while considering their next destination. With this in mind, hotels must establish a strong online presence to connect with guests at each point in their pre-booking journey, by focusing on owned, earned and paid digital channels.

The Best of Both Worlds: Direct Bookings and OTAs

The tug-of-war between hospitality brands and OTAs is not new, and it won’t end anytime soon. OTAs have been the fastest-growing distribution channel in the tours, activities, and attractions space over the past decade. Still, throughout the pandemic, travelers demonstrated a renewed preference for direct bookings. During recessionary periods, however, OTAs typically experience an uptick in performance as guests become more cost-conscious.

Direct bookings allow hotels to capture more revenue per booking and establish direct relationships with guests, which provides opportunities for upselling and personalization that may otherwise be missed. At the same time, however, direct channels alone can limit a hotel’s reach, as OTAs have a global presence and extensive marketing budgets. Through OTAs, hotels can reach guests who might not otherwise consider their property.

Hotels should always employ tactics to increase direct bookings; however, they should  also strike a balance between OTAs and direct bookings by leveraging OTAs as an entry point to reach a broader audience, capturing first-time guests who may later be converted into loyal, direct bookers. By promoting direct booking benefits, such as exclusive discounts or tailored packages, hotels can encourage repeat guests  for future stays, thus cultivating stronger, more personalized relationships. When hotels establish a healthy balance between both channels, they can preserve their brand identity, maintain control of guest data, and ultimately drive more sustainable revenue growth across all booking platforms.

How Technology Empowers Hotels to Scale and Optimize Digital Marketing

Fortunately, the embrace of digital-first marketing strategies allows hotels to collect valuable guest data, enabling a far more impactful and scalable result than traditional, one-size-fits-all campaigns of the past. After all, expanding marketing reach across diverse markets, languages, and cultural nuances while ensuring that campaigns remain relevant and personalized is no small task. This process requires sophisticated data integration and tech-enabled automation, where guest preferences, booking behaviors, and regional trends are all captured, interpreted, and automatically leveraged to tailor marketing messages.

Notably, digital marketing technology has become more cost effective and measurable than legacy methods, largely due to its iterative design. Digital campaigns can be tracked and adjusted in real time, allowing hotels to pull in guest data from various touchpoints, optimize their marketing spend, and improve return on investment (ROI). Unlike the “spray and pray” tactics of the past, a dedicated digital marketing platform offers A/B testing, audience segmentation, and budget allocation to achieve better, measurable outcomes.What’s more, hotels can accelerate (and automate) the deployment of promotions across multiple channels, without the need for tedious, individual reviews across disconnected platforms. Using a centralized system, designed specifically for marketing to travelers, hotels can ensure consistent messaging across all channels, while eliminating inefficient and repetitive workflows.

As the saying goes – you can’t manage what you can’t measure, and the use of digital marketing technology unlocks deeper insights, providing hotels with customizable, automated reports. These performance summaries provide hotels with a roadmap to refine their strategies, improve bookings, and build stronger guest loyalty. It should come as no surprise, then, that research from the HotelTechReport revealed that 81% of hoteliers believe it’s very likely that technology will be more important for the success of a hotel business in the next five years.

In today’s fast-paced, data-driven world, hotels that fail to embrace digital marketing automation risk being left behind. By leveraging powerful digital marketing platforms, hotels can seamlessly navigate the otherwise complex world of modern guest expectations, efficiently manage multi-channel campaigns, and strike the right balance between direct bookings and OTA visibility. With the right digital marketing automation platform, hotels will not only drive demand at scale – they will also foster meaningful, lasting relationships with their guests while curating stronger brand identities.

Like most things in life, the travel industry has been through many evolutions. If we go back as far as 1758, the first known travel agency was founded when Richard Cox became the official travel agent of the British Royal Armed Forces. Almost a century later (1841), Thomas Cook opened the first leisure travel agency, and by 1845, he launched his first commercial packaged tour. The creation of travel agencies was, undeniably, a revolutionary moment in the history of the tourism industry; for many generations, these agencies were wholly responsible for making travel plans (and dream vacations) a reality. During this time, the path to booking was relatively linear and simplified – if you wanted to book a trip, you contacted your travel agent, shared your needs and preferences, and let them work their magic.

However, the booking journey has taken on a significantly different form today. As technology advances, we have entered an age of tech-driven independence and autonomy. Many experiences or touchpoints that formerly required the assistance or oversight of another individual (or even a team of individuals) can now be facilitated by digital tools. If we want the answer to a question, we can Google it or ask Alexa/Siri.

And if we want to book a trip, we can do it ourselves – from the destination research to the vetting of options/packages and the final booking decisions. That isn’t to say travel agencies are no longer relevant; many travelers will still seek the services of modern travel advisors to plan more elaborate or luxurious getaways. However, studies reveal that most (72%) travelers now prefer booking their trips online. In comparison, 48% of US smartphone users will use their phones exclusively when planning and researching their trip. When asked why behind their preference for online booking, most travelers cite speed, easy price comparisons, and lower prices as the leading motivations.

A Closer Look At The Modern Booking Journey

The path modern travelers take en route to their next destination is, more often than not, a nonlinear one. Why? Because with great tools comes great responsibility,  or, in this case, an endless barrage of mediums, channels, and touch-points competing for our attention. Not only do we have search engines at our fingertips to aid in the research phase of the trip-planning process, but we also have the influence of social media to consider. Travelers can find themselves struck by inspiration for their next vacation not only when they’re actively searching for it but also when they’re casually scrolling through their timeline on any given day. To this effect, research reveals that 97% of millennials share posts of their vacation on social media, with Instagram cited as the go-to social network for 48% of people who want to choose destinations to visit on their next escape.

Moreover, Expedia reports that 30% of Americans are influenced or inspired by social media when booking a trip, and a destination’s photo potential is an important consideration. Today’s consumers often bounce around to various channels (websites, social media pages, review sites, online travel agencies, etc.) before making a booking decision. In fact, research indicates that (on average) travelers view 141 pages of travel content before booking a trip — with that number going as high as 277 pages for travelers in the U.S. — and up to 25 page views on the day of purchase. The same study also revealed that OTAs were the most popular resource utilized in the 45 days before booking, followed by search engines, social media, airline websites, and meta-travel websites. Moreover, 80% of TripAdvisor users read at least six to 12 reviews before choosing a hotel.

Understanding that a traveler’s path to booking is complex and spread across various platforms is integral to identifying the countless engagement opportunities for hoteliers to convert more bookings.

The Role of Tech-Driven Personalization

As the number of channels and touchpoints between a hotel brand and travelers increases, so does the expectation for a more personalized experience across the entirety of the guest journey. After all, modern guests are well aware that their online activity is a treasure trove of personal data – but they aren’t willing to give up that data without receiving something meaningful in return. Research shows that over 90% of travelers want personalized online experiences, and 78% of travelers are more likely to book with properties that offer personalized experiences, with almost 50% willing to share the personal data necessary to promote an individualized stay. With this in mind, leading hotel brands invest in digital tools that seamlessly personalize and streamline the (online and offline) guest experience.

Fortunately, the emergence – and now, widespread adoption of – artificial intelligence (AI) technology has helped to simplify and scale the art of guest personalization. As the guest’s booking journey becomes more digital, hotel brands unlock the opportunity for AI-powered platforms and applications to take on more tasks and responsibilities. Leveraging this technology, hotels can offer personalized recommendations and suggestions based on individual preferences and past booking behavior,  providing travelers with tailored options that match their specific needs and preferences. Simply stated, AI and machine learning can aggregate data and automate repetitive tasks with a level of efficiency that manual human efforts can’t match. Hotels can use this to delight and better connect with guests.

Give Guests What They Want: Reliable, Personalized Options

When the core operational systems leveraged by hotels (such as the PMS, CRS, and Distribution Technology Provider) are powered by AI and machine learning, automation enhances the speed and accuracy of service, valuable guest insights are unlocked, operational inefficiencies are identified, and the booking journey becomes truly frictionless from start to finish. AI can also meaningfully enhance customer service through chatbots and virtual assistants that can assist guests with booking reservations, answering questions, and providing curated recommendations. In a world where countless guests prefer to book their vacations via online channels, AI-powered tech has, in many ways, assumed the role of an invisible (but very powerful) travel agent.

Distribution Technology Providers, in particular, play a crucial role in shaping the hotel booking journey for guests in this new, digitally transformed landscape. Distribution services include managing and distributing hotel inventory across various online channels such as travel websites, online travel agencies (OTAs), and global distribution systems (GDS). By effectively managing these channels, hotels can reach a wider audience and increase their online visibility, ultimately enhancing the booking experience for guests.

As prospective travelers vet prospective hotels before booking their next trip, a hotel’s Distribution Technology Provider works in the background to ensure all channels reflect accurate and up-to-date availability and pricing information via real-time synchronization. Moreover, high-performance distribution services enable hotels to implement dynamic pricing strategies to adjust room rates in real-time based on factors such as demand, occupancy, and market conditions.

More importantly, the seamless connection established between a Distribution Technology Provider and multiple online channels ensures hotels can provide guests with various choices regarding room types, rates, and packages. As you can imagine, in a world where digital autonomy is not only expected but demanded, guests will naturally favor those hotels that provide them with the best options, at the best prices, across their preferred channels.

With this value proposition in mind, let’s consider a scenario. Suppose a traveler views 141 pages of travel content before booking a trip and up to 25 page views on the day they book. What happens if they notice discrepancies pertaining to critical property information, such as pricing, while bouncing between hundreds of pages and channels? Most likely, that traveler will no longer feel confident that the information they see listed for that hotel is current and reliable. This is understandably frustrating and may result in a prospective guest developing a distrust towards a hotel brand before ever stepping foot on its property. Fortunately, high-performance distribution services will ensure this will never happen while making the booking journey more cost-effective and rewarding.

Simply stated, the world has moved to embrace a non-linear economy. Where the path to booking used to be predictable, it is now unpredictable, and hotels that hope to succeed in attracting and retaining guests must constantly adapt. By harnessing the power of machine learning and rich data to automate tasks, streamline and personalize the guest journey, and make their property visible across all channels, hotel brands can find the ‘suite’ spot of innovation and ensure their longevity in a hyper-competitive, ever-changing market.

Business travel is booming. According to the GBTA’s Business Travel Index Outlook report, business travel spending is projected to reach $1.4 trillion this year and climb to $1.8 trillion by 2027.

So what is driving business travel’s big comeback?

Business travel is essential for many jobs, including sales, client services, consulting, event management, and construction, among others. Travel is a key part of their work and is carefully budgeted for for these professionals, no matter the economic situation. Meeting clients face-to-face is still very important. Companies believe that in-person meetings boost performance and growth. Nearly 87% of business travelers agree.

Business travel now also encompasses events, conferences, and extended stays at various office locations. Additionally, with remote working still going strong, business travel includes coordinating in-person meetings for remote colleagues from time to time.

Bleisure—where business travelers incorporate leisure activities into their work trips—continues to trend. According to National Car Rental, 81% of travelers participate in some form of bleisure. Approximately 41% extend their business trips for leisure and 33% plan vacations around their business travel. DerbySoft facilitates these extended trips, thereby enhancing the overall travel experience.

Maximizing value from fewer but longer trips is as much about sustainability as it is about wellness, a growing focus for businesses. According to Trainline Partner Solutions, 52% of businesses have already committed to reducing their business travel emissions, and 82% plan to support employees in choosing low-carbon travel options. DerbySoft’s Business Travel Suite offers solutions that align with these sustainability goals.

However, the landscape has undergone a significant transformation. With evolving expectations, AI and technology advancements, heightened scrutiny on sustainability, and other emerging trends, achieving seamless business travel has become increasingly complex for TMCs, their clients, and suppliers.

Expectations are changing the travel landscape

The balance of power is shifting from TMCs to travelers, creating an increasingly competitive environment. Business travelers expect services and technologies that are as smooth as what they use in their personal lives.   They are closer than ever to the details of planning, booking, and managing their trips.

New booking tools, travel apps, and AI are redefining expectations for a smooth and personalized experience. The idea of choice goes beyond just picking flight times, baggage allowances, or meals like chicken or pasta. They want business travel services to understand their profiles, predict their needs, fill in the information automatically, and offer the best options to make the process easier. Travel managers also want real-time, detailed data experiences, both online and on mobile devices, to have a clear view of their travel programs.

This shift is leading to “consumerization,” which is changing how the business travel industry operates and its future possibilities.

Embracing modern technology to accelerate commerce

The new business travel landscape demands a strategic and forward-thinking approach. Embracing technology, understanding consumer behavior, and aligning with travel trends are key to managing business travel complexities.

DerbySoft’s Business Travel Suite (BTS) is designed to address these complexities, ensuring smooth coordination between Travel Management Companies (TMCs) and suppliers to offer unparalleled control over sourcing, efficiency gains, and substantial cost savings. By using advanced technologies like dynamic pricing and real-time data analytics, the suite helps allocate resources accurately, improving operational workflows.  Collaborating with partners like Arise and others ensures accurate reconciliation of bookings and commission payments.

With a single seamless connection to BTS, TMCs gain access to a comprehensive spectrum of rate and room options directly from suppliers, encompassing corporate, rack, negotiated, and loyalty rates. This eliminates the cumbersome task of handling multiple APIs. BTS facilitates direct connections with suppliers of various scales, enabling TMCs to offer access to both independent hotels and alternative accommodations. By removing technical constraints on room descriptions and offers, TMCs, and Suppliers can collaborate to create unique product offerings, lower costs, and provide better service to their clients, giving them a competitive edge in an ever-changing market.

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.

The hospitality industry is undergoing a significant transformation, driven by evolving guest demands and technological advancements. In this new era, known as the age of hotel commerce, hotel executives must adopt innovative strategies to stay competitive, streamline operations, and enhance guest experiences. Central to this transformation is the implementation of a robust hotel commerce platform.

Understanding the Hotel Commerce Platform

A hotel commerce platform is a comprehensive digital solution that centralizes various aspects of hotel management, similar to how e-commerce giants like Amazon operate. It serves as a hub for managing reservations, optimizing pricing, enhancing guest interactions, and providing actionable business insights. By integrating all these functions into one platform, hoteliers can improve efficiency, profitability, and customer satisfaction.

Meeting Modern Traveler Demands

Today’s travelers expect personalized and responsive service. A hotel commerce platform provides hoteliers with the tools to meet these expectations by offering clear data and meaningful insights. This enables hotel executives to swiftly adapt to changing guest preferences, enhancing the overall guest experience with greater personalization and responsiveness.

Centralized Operations and Data Management

One of the primary benefits of a hotel commerce platform is its ability to centralize operations and data. Fragmented data systems can hinder decision-making and resource allocation. By consolidating guest information and operational data into a single, accessible source, hoteliers can streamline management processes, eliminate inefficiencies, and make informed decisions that drive success.

Emulating E-commerce Giants

By adopting a hotel commerce platform, hoteliers can emulate the successful models of leading e-commerce companies. These platforms allow for enhanced service delivery, extensive convenience, and increased guest personalization. The result is a more efficient, streamlined operation that provides a competitive edge in the hospitality industry.

Driving Business Growth and Success

A hotel commerce platform is instrumental in driving business growth by consolidating key metrics across various departments. It accumulates booking, guest, and market data into a centralized hub, simplifying management and enhancing performance. This comprehensive view allows hotel executives to focus on strategic decision-making rather than mundane tasks, leading to increased profit margins, a stronger brand presence, and scalable business growth.

The age of hotel commerce presents a transformative opportunity for the hospitality industry. By adopting a robust hotel commerce platform, hotel executives can centralize operations, enhance guest experiences, and drive business growth. Embracing this technology will enable hoteliers to stay competitive, meet modern traveler demands, and ensure a successful future in the ever-evolving hospitality landscape.

So, what should hoteliers look for in a commerce accelerator platform? Download Accelerate Your Hotel Business: Why You Need a Hotel Commerce Platform and the Key Features to Look For. The guide includes helpful tips and recommendations to inform your purchasing decisions and set your hotel up for long-term growth and profitability.

An effective distribution strategy is crucial for every successful hotel or franchise. It plays a vital role in connecting potential guests with the right properties at just the right time and the right price. This leads to a consistent conversion of prospects into actual guests, opening up promising revenue streams. 

Hotel distribution is a complex task. Most of the time, hotels use multiple distribution channels without knowing which one gives the best outcome. This lack of clarity affects their ability to boost their revenue and occupancy levels. According to a recent study by Phocuswright, hotels with a solid distribution strategy saw a 12% increase in bookings compared to others.

Effective distribution management calls for precise decision-making, the use of technology, and a commitment to data-driven methods. However, putting this into practice can be easier said than done. Implementing these strategies can be much more complex than it sounds, often leading to significant challenges in ensuring smooth and profitable operations.

1. Lack of Data

Many hotels also make the error of underestimating the power of data. Without proper data analysis, hotels may not fully understand their market, target segments,  competition, or performance. Today’s guests have a wide range of choices, giving them more control than ever. Misunderstanding their preferences could lead to significant losses. It’s crucial that hoteliers understand these shopping and booking tendencies in their distribution strategy.

Additionally, the importance of recognizing regional differences in customer tendencies should not be overlooked. For instance, German and French customers may speak different languages but also have distinct booking behaviors. Understanding how each channel performs on individual properties can provide valuable data for those running hotel chains. This information helps you examine the impact each channel has on your business. Since these trends can shift rapidly, it’s vital to monitor channel performance daily and make adjustments as needed.  

2. Not Offering Personalized Services

Many hoteliers overlook the importance of offering personalized services to their guests. Today’s guests crave unique experiences. By providing generic services, you risk losing these guests to competitors who put a premium on personalization. Personalization can include everything from offering preferred room options based on past bookings to leveraging data analytics to predict a guest’s needs during their stay.

3. Not Keeping Up with Industry Trends

Another common mistake is not staying updated with the rapidly changing hospitality industry. The industry keeps evolving with new technological advancements and trends. If your distribution strategies don’t keep up with these changes, you risk being left behind by your competitors. To stay competitive, it’s critical to be aware of industry changes and quickly adjust your strategies accordingly. 

These common mistakes in hotel distribution strategy can significantly affect a property’s booking performance. Even the most minor mistakes can have far-reaching consequences. Distribution strategy errors can significantly influence key booking performance metrics, ultimately affecting a hotel’s bottom line. Explore how these mistakes impact revenue, occupancy rates, and customer satisfaction.

What Happens When Distribution Goes Wrong?

Small distribution mistakes in the hotel industry can lead to big problems. These mistakes can affect bookings, revenue, and guest satisfaction. Let’s examine how these mistakes can harm your hotel’s performance. 

• An incorrect rate or room count across channels or non-competitive rates can lead to missed earnings. Incorrect room availability can lead to overbooking or empty rooms and lost revenue. 
• Distribution errors can also hurt occupancy rates. If room availability isn’t accurate, rooms may remain unbooked, leading to lower occupancy. This can harm the hotel’s reputation and future bookings. 
• A bad hotel booking experience can lead to unhappy guests. Errors like wrong room descriptions, missing amenities, or different pricing can badly affect their stay. This can result in bad reviews, a damaged reputation, and fewer repeat bookings. 
• One hotel chain experienced a massive drop in bookings and revenue. It took several weeks to fix the problem and regain its market position after a technical issue in its distribution system caused incorrect room prices on online platforms. 
• A boutique hotel suffered from frequent guest complaints, bad reviews, and decreased occupancy rates due to a consistent overbooking problem caused by an inaccurate room availability display. 

These examples show how important a sound distribution strategy is. Even small mistakes can impact bookings, revenue, and guest satisfaction. Hotel owners must check their distribution channels to prevent these issues and keep their hotels successful in a tough industry.

Improving Hotel Bookings with Practical Solutions

Poor distribution strategies can hinder hotel booking performance. Fortunately, these mistakes can be fixed, and distribution efforts can be optimized with practical strategies and smart technology use. 

Using technology can significantly improve hotel distribution and booking performance. Hotels can manage their distribution more effectively using modern tools and systems and get ahead of the competition. Key technology solutions include: 

• Using software to automatically update inventory and ensure consistent rates across all distribution channels, Using a channel manager is about more than just streamlining your channel management. As a source of data, this tool is essential in helping make informed distribution decisions.
• Using revenue management systems that make use of data analysis and machine learning to set optimal prices and manage resources effectively
• Optimizing the booking engine to create a user-friendly experience, encouraging more direct bookings through the hotel’s website
• Integrating different hotel systems to personalize marketing efforts and make guest engagement more effective

By adopting these latest technological solutions, hoteliers can improve their distribution strategy, minimize manual errors, and witness improved booking performance. 

Using Technology to Improve Distribution Strategy

Technology is vital for optimizing distribution strategies and enhancing booking results in today’s fast-moving and highly competitive hotel industry. With innovative solutions easily available, hotels can utilize various tools to streamline distribution, improve efficiency, and deliver better results.

Partnering with a reputable and innovative distribution service provider like DerbySoft can be a game-changer. DerbySoft offers a range of services, including channel management, content management, and digital marketing. Their advanced technology and industry expertise can help hotels avoid common distribution mistakes and achieve revenue goals.

DerbySoft services can help hotels avoid these common mistakes. Our comprehensive distribution and marketing services help hotels diversify their distribution channels, optimize their online presence, use data analytics, personalize offerings, and stay up-to-date with industry trends. This can lead to a more effective and profitable distribution strategy.

Ready to discover how DerbySoft can elevate your hotel’s performance and connectivity? Visit us at derbysoft.com to explore our solutions and unlock new opportunities for growth.

No hotelier needs to be convinced of the importance of listing their properties on multiple online platforms. In fact, the average independent hotel is listed on 5 to 7 different channels. Today’s guests demand instant availability and pricing, whether on Google, Online Travel Agents (OTAs) like Expedia, or your independent hotel’s own website. Yet, manually updating these details across the web can eat up hours per day. What’s more, inaccurate or out-of-date information on even one booking platform can lead to lost revenue and administrative headaches.

Enter the channel manager, a vital solution that automatically lists real-time pricing, availability, and other details across multiple channels, increasing visibility, occupancy rates, and, ultimately, profit. Channel managers can save hoteliers up to 4 hours a day in manual inventory management and increase revenue by 15 to 20%. 

While a channel manager is a must-have for any savvy, independent hotelier, selecting the right channel management partner can be daunting. Below are some key features you should look for. 

1 – Connectivity to Your Guests Wherever They Book

It’s crucial that any channel manager you consider is seamlessly connected with the key players in selling hotel inventory, including Global Distribution Systems (GDS) such as Amadeus, Sabre, and Travelport, and OTAs like Booking.com, Agoda, and Expedia. Ensuring your properties have correct availability and pricing on these platforms will help you reach a larger audience and maximize online visibility.

However, you’ll also want to prioritize channel managers with connections to channels that target your property’s preferred guests and their unique needs. For example, if your hotel sees many guests from China, you’ll want a channel manager that offers integrations with a variety of Chinese OTAs. If your accommodation offers an activity like golf, your channel manager should partner with platforms that cater to golf enthusiasts.

Pro Tip: The more connection options you have through your channel manager, the more opportunities you’ll have to grow visibility and revenue. Review the full list of connections offered by the vendor closely. 

2 – Dependable, Real-Time Inventory Updates Across Channels

Client-facing strategies to deal with overbooking and pricing discrepancies have become part of every independent hotel’s arsenal. But do they have to be?

A truly effective channel manager should minimize these issues with to-the-second inventory updates consistently being rolled out across all channels. However, in practice, some channel management providers have more efficient data transfer times than others. For this reason, choosing a channel manager with top-of-class update speeds is essential. Reliable, real-time synchronization will help avoid inaccurate pricing and availability and allow you to make immediate adjustments to capitalize on market demand or match competitor pricing, giving your hotel a competitive edge.

Pro Tip: Make sure you ask specific questions about the vendor’s transfer speeds.

3 – Smooth and Stress-Free Integration with Your Current Systems

It can be frustrating to allocate the time and effort to adopt a new technology solution only to discover it doesn’t fit with your hotel’s current processes.

Your ideal channel manager should seamlessly integrate with your existing property management system (PMS). A smooth partnership between the two will allow you to update inventory and rates instantly and retrieve reservations from different online channels. Automating the transfer of this type of data sharply reduces human error and reclaims hundreds of work hours.

The right channel manager can also be integrated with your central reservation system (CRS), letting you manage reservations from all distribution channels in one place, and your revenue management system (RMS), allowing you to optimize pricing strategies. By sharing data with the RMS, the channel manager can receive insights and recommendations on pricing adjustments based on market demand, competitor rates, and other factors. This integration empowers hoteliers to make informed decisions and maximize revenue.

Pro Tip: Ensure your channel manager links with your accounting and financial systems, letting you smoothly transfer bookings, payments, and invoices.

4 – Advanced Analytics to Help You Sell More

Evaluating reporting and analytics capabilities is fundamental before making the final decision. Your channel manager should track key metrics in real-time, including occupancy rates, revenue per available room (RevPAR), average daily rate (ADR), and bookings by channel, and report them to you in an easy-to-understand format.

Taking it one step further, a best-fit channel manager has reporting that can be tailored to your specific needs. For example, DerbySoft offers self-defined reporting templates and an email scheduler, where you can choose exactly which data is sent your way and when.

Comprehensive reporting that tracks your hotel’s performance is essential for making data-driven decisions about strategies to boost occupancy and revenue. This kind of reporting also helps you quickly identify and respond to booking trends.

Pro Tip: Choose a channel manager that offers advanced, customizable, real-time analytics and business intelligence tools. This will enable data-driven decision-making and strategic adjustments, ultimately boosting revenue and maximizing occupancy rates.

5 – Robust Data Security for Guest Peace-of-Mind

One way to lose guest confidence is through a cybersecurity breach. That’s why it’s crucial to have a channel manager who can protect your independent hotel’s confidential information. 

The most important security feature is perhaps the encryption techniques used to protect your data during transmission and storage. Confidential data like guest information and financial records should be encrypted using advanced algorithms, which make it extremely difficult for hackers to access. What’s more, channel manager systems should have strict access controls so that data is only available to authorized personnel within your hotel.

Another critical feature of a trustworthy channel manager is regular, rigorous security audits and vulnerability assessments. These are conducted by third-party experts to fix weaknesses and make system improvements. Firewalls block unauthorized access attempts, and intrusion detection systems, which alert you of potential security breaches, are also vital. Additionally, compliance with data protection regulations such as General Data Protection Regulation (GDPR) is a must-have.

Finally, you want to ensure your hotel’s protection in an emergency. With a channel manager that regularly backs up your hotel’s data, you’ll lose minimal information if any systems fail. Additionally, your chosen software should have a disaster recovery mechanism, ensuring your hotel can quickly recover and resume operations after a security incident or natural disaster.

Pro Tip: Opt for a trusted channel manager with advanced encryption, strict access controls, regular security audits, and disaster recovery systems to ensure your hotel’s data remains secure and guest trust intact.

6 – High-Quality Customer Service and Support

A strong customer support system can help you save time and maximize benefits from your channel manager.

To choose the best solutions partner, first evaluate your hotel’s needs. For example, each channel manager provides different levels of customer support. Some offer 24/7 customer service, which can be a boon for independent hoteliers operating in different time zones or having issues that need immediate attention. Others may only be available during typical business hours. 

The quality of support can also vary. Some systems may provide multi-channel support through phone, email, and live chat, so hotels can choose their preferred communication method. Others have a dedicated support team specialized in helping with technical issues, or providing training. 

If you prefer to troubleshoot problems yourself, a channel manager with dedicated self-help resources like user guides, tutorials, FAQs, and troubleshooting articles is invaluable to resolve any issues quickly.

Pro Tip: When selecting a channel manager, prioritize those offering robust, multi-channel customer support and extensive self-help resources to ensure swift and effective problem resolution. Reviewing websites, online forums, and testimonials from other hoteliers can also let you know whether current users are satisfied with the support available.

7 – Next-Generation AI Optimization

With independent hoteliers expected to handle more than ever, those who don’t harness the power of AI to streamline their operations and boost revenue will fall behind. Looking for AI capabilities in your channel manager is a natural next step. 

One way that AI can be used in a channel manager is through data analytics. For example, DerbySoft leverages AI in its channel management system to analyze vast amounts of data and make performance-optimizing decisions in real-time. The platform’s intelligent pricing algorithm dynamically adjusts the rate of each room based on market trends, competitor pricing, and historical data, maximizing revenue and occupancy rates. Similarly, its intelligent inventory management automatically allocates available rooms across channels based on factors like demand, booking patterns, and customer preferences. 

The benefits of AI don’t stop there. DerbySoft’s intelligent rate parity monitoring checks the prices of your hotel across the web to detect any discrepancies, while its predictive analytics uses historical data and market trends to provide insights on future demand patterns. Tools like predictive analytics are instrumental for hoteliers who want to make informed choices about pricing, promotion, and inventory management.

Pro Tip: Integrate a channel manager with AI-powered data analytics and dynamic pricing to stay ahead of market trends and optimize your room rates in real-time. Harness tools like predictive analytics and rate parity monitoring to make data-driven decisions that enhance revenue and occupancy.

8 – Value-Add Services to Further Boost Revenue

In the competitive hospitality sector, a channel manager should stand out by offering value-added features.  DerbySoft’s integrated digital marketing services can be directly connected to its channel manager. These services use intelligent technology to run effective marketing campaigns across multiple channels. They automate and optimize ad targeting and management, bidding strategies, and reporting, leading to increased bookings for your marketing budget.

DerbySoft offers exceptional marketing expertise specific to the hospitality field. It lets your independent properties easily capitalize on metasearch opportunities for channels like Google, Tripadvisor, and Skyscanner.

Pro Tip: Leverage integrated digital marketing services within your channel manager to increase bookings without inflating your marketing budget. Look for channel managers like DerbySoft that offer specialized expertise and automation for effective ad targeting and optimization in the hospitality sector.

Takeaways

A well-chosen channel management system can transform your property’s visibility and profitability. However, it’s not just about having any system but about having the right one. 

Don’t assume that all distribution systems are the same. Vendors offer solutions that can vary greatly in capability, ease of use, service, support, and performance. A good solution partner, like DerbySoft, should understand the current challenges in the hospitality industry and be ready to address how future changes will affect your hotel’s profits.

By considering these factors carefully and talking with your team, you can make a smart choice that fits your business goals and gives you a competitive edge in a changing market.

Put DerbySoft to the test and request a demo today! One of our product experts will gladly demonstrate our product offering and show you how it can improve your business. Invest in a commerce accelerator system that will take your hotel bookings to the next level!

We are now well into the second quarter of 2024, and the business travel industry is poised for considerable growth. As I travel around the country and internationally, I have noticed an uptick in people traveling for business in most airports that I have frequented. We all thought there would be a decline in business travel due to the introduction of several remote communication platforms that we adopted during the pandemic, but this didn’t happen. When it comes to business, basic communication, information exchange, and online calls and emails will work. For all other business interactions beyond the basics, in-person meetings serve more value.

When it comes to the data, a GBTA study forecasts business travel expenditure could exceed $1 trillion by 2024 and potentially surpass that figure by 2027. When it comes to the data, a GBTA study forecasts business travel expenditure could exceed $1 trillion by 2024 and potentially surpass that figure by 2027. No longer just a minor fraction of the whole, business travel now represents the most rapidly growing segment of the global tourism industry. Estimates suggest that by 2030, the international business travel industry could rocket to an impressive $2.97 trillion, a substantial increase from the $711 billion recorded in 2021.

The Resurgence of Business Travel: Bleisure and Beyond

A recent Deloitte report points to the resurgence of live events and the relaxation of travel restrictions as the leading catalysts for the projected sustained rise in business travel. Currently, the average business traveler embarks on nine business trips each year. Notably, these trips can range from a brief, two-day stint to an extended assignment of up to 28 days. The trend of combining business trips with leisure activities, often called “bleisure travel”, has gained impressive traction recently. This surge in popularity shows no signs of slowing down any time soon.

According to Allied Market Research, the worldwide bleisure market boasted a significant value of $315.3 billion in 2022. Over the next ten years, it’s slated to more than double, crossing the $731.4 billion mark by 2032. This trend suggests an annual compounded growth rate of 8.9%.

The macro trends of globalization and the burgeoning growth of emerging markets, particularly those in rapidly developing economies like China and India, are largely fueling the trajectory of business travel. For organizations expanding their international operations, meeting in person and establishing a local foothold in markets are key to their success strategy. 

So, what other elements are igniting this demand surge? Amid so many claims over the last few years that virtual meetings are poised to replace in-person business engagements, what’s driving this flurry of business travel?

Let’s delve into what’s truly accelerating the wave and how it will impact hoteliers in the short and long term.

How has the business travel industry evolved from 2020 to 2024?

As per a Skift report, business trips are becoming more goal-oriented, with detailed planning to ensure optimal value. Business travel that contributes directly to revenue growth, such as finalizing deals or contracts, is receiving more favorable consideration.  The focus also shifts towards environmental sustainability in the sector. To limit their carbon emissions, corporates showed a preference to green travel options, thus escalating demand for eco-friendly hotels and sustainable travel solutions. Notably, an astounding 88% of business leaders stated they are inclined towards hotels explicitly about their sustainability efforts. 

A demographic transformation was also noticeable as more young professionals became frequent flyers. For this new generation workforce, business travel is a benefit, not a chore. A Forbes article reveals that 65% of young professionals see it as a status marker. 

Predictions suggest a strong resurgence of business travel this year. A Global Business Travel Association (GBTA) study anticipates about a 21% boom. Some other insights from the report 

Business travel in the Middle East and Africa is set to grow by 15%, fostered by improved economies, business expansion, and a rising middle-class ‘business travel’ culture.

Business travel in the United States is expected to increase by 25%, thanks to a healthy economy, a preference for in-person meetings, and the rise of remote work.

In Europe, business travel is predicted to grow as a result of economic recovery, expansion of international businesses, and the increasing trend of remote work and ‘digital nomadism’.

What strategies are hotels implementing to attract business travelers?

Hotels are adapting to the rise of business travel by updating their services to cater to business travelers. One key tactic is to offer flexible booking options, considering that business travelers often have changing schedules. Hotels with easy reservation changes, late arrivals, and straightforward cancellations are the preferred choice for these travelers.  We are also seeing more travelers combining business and leisure, known as ‘bleisure.’  –  extending their business trips and using their downtime to explore local sights and activities.

By 2024, 75% of business travelers anticipate hotels will offer flexible cancellation policies. Moreover, rewards programs offering perks like free Wi-Fi, upgraded rooms, and access to business facilities are appealing to business-based guests. Hotel bookings using reward systems by business travelers are expected to grow by 10% in 2024.

Hotels are also attracting business guests with amenities tailored to their needs. These include fast internet, work areas in rooms, business centers, and meeting spaces. Some hotels even offer tech devices such as iPads or smart TVs to improve guests’ work efficiency.

Frictionless service is also crucial for hotels catering to business travelers. Understanding the importance of convenience and speed for these guests, hotels offer personalized service, quick check-ins/check-outs, and 24/7 concierge services. They also use technology solutions like mobile apps for room service or check-in and AI chatbots to answer customer questions.

Location is important for hotels serving business guests. They commonly pick locations in or near business centers or transport hubs. Partnerships with local businesses can benefit guests with discounts and special offers, enhancing their travel experience.

Understanding that business travel can be stressful, hotels are increasing their emphasis on wellness. They offer facilities like fitness centers, spas, healthy dining options, and even mindfulness or yoga sessions. These wellness services play a significant role in attracting business travelers who want to balance work and well-being.

Lastly, modern business travelers place high importance on sustainability, with a preference for properties and brands that align with their personal values, offering such as energy efficiency, waste management, or contributions to local communities.

How DerbySoft delivers on business travel.

DerbySoft offers world-class solutions for hotels aiming to tap the growing business travel segment. Their connectivity solutions increase hotel visibility on top business travel platforms, including Global Distribution Systems (GDS), boosting the hotel booking experience for business travelers. Their newly launched Business Travel Solution (BTS) connects Travel Management Companies (TMCs) and suppliers with real-time rates and booking data while integrating mapping, content, and reconciliation services. This technological integration enables TMCs to cater to business travelers effectively. 

DerbySoft also offers advanced digital marketing services such as SEO and SEM, further enhancing hotels’ online visibility and attracting tech-savvy business travelers. Their metasearch management tool provides a robust presence on metasearch platforms for hotels, while their advanced data analytics capabilities furnish valuable insights into business traveler preferences. These insights work as an effective tool for hotels to develop targeted marketing strategies for business travelers, increasing customer satisfaction and loyalty.

By leveraging DerbySoft’s comprehensive marketing and connectivity solutions, hotels can effectively capitalize on the growth of business travel in 2024 and beyond, ultimately enhancing their revenue and profitability.

As the stadium lights turn down, the venue thrums with an energy so palpable that the air might spontaneously combust. Seemingly on cue, a fan lets out an excited shout, and suddenly hundreds,  if not thousands,  join in, the volume building like a wave. The roar becomes deafening, with the promise of the highly anticipated performance ahead. Suddenly, lights sweep across the stadium to settle onto the glittering figure now rising from the depths of the stage, poised with a mic in hand as she croons, “Welcome… to the Eras tour!” 

The Taylor Swift Effect, as it has been called, is more than an effect – it’s a star power phenomenon that seemingly envelopes entire cities, economies, and industries in its wake. Taylor Swift is one of the most influential trailblazers to grace the entertainment industry over the last two decades. 

The enthusiasm of Swift’s fans is not only good for ticket sales – it’s good for business at large. Swift’s recent concerts gave the US economy an estimated boost of $5.7 billion, not just in terms of tickets but also costumes, travel, hotels, food, and other ancillary spending. As Forbes aptly put it, “Fandoms are a powerful economic force” – and the Swiftie fandom might be the most considerable force we’ve encountered yet.

The swift economy: By the numbers

Of course, the influence of celebrities on the hospitality business is hardly a novel concept. But at this particular time in history, the impact of public figures is at its peak. Hotels that have hosted celebrities often see a 25% increase in inquiries after the celebrity’s stay. Some studies report hotels that have been the site of high-profile celebrity events see a 50% increase in bookings in the following year.

Today, digital channels provide the illusion of connection and proximity; unlike decades past, celebrities have a direct line to their fans from anywhere in the world, at any time. And when we consider Taylor Swift’s influence by the numbers, the results are nothing short of astounding.

The Common Sense Institute reported that Swift’s U.S. tour could generate $4.6 billion in total consumer spending (larger than the GDP of 35 countries), with a $140 million boost to Colorado’s GDP alone (Swift brings her tour to Denver in July). The Washington Post used World Bank data to report that she made more than the annual economic output of 42 nations in 2022. 

When we consider Swift’s impact on the economy, it should be no surprise that the singer’s influence has reached the hospitality industry. When Swift announces a concert, fans from around the world flock to the city, leading to an increase in hotel bookings. 

However, Swift’s influence extends beyond her concert dates. Fans often travel to places she has mentioned in her songs or social media posts, leading to increased tourism and hotel bookings in these areas. For example, after Swift mentioned the city of Nashville in her songs and interviews, the city saw a boost in tourism, benefiting local hotels. In 2014, she stayed at the Castle Hill Inn in Newport, Rhode Island, while house hunting in the area. After her stay, the hotel received widespread media attention, leading to increased bookings and revenue. Whenever she is nominated for an award, fans and media flock to the city where the award ceremony is being held, leading to a surge in hotel bookings.

With the recent Eras tour spanning 20 U.S. cities (including 53 nights of concerts), the U.S. Travel Association reported that each Swiftie spent an average of $1,300 on travel, hotels, food, and merchandise – far outpacing typical spending patterns. The association estimates that Swifties collectively contributed to $10 billion or more in economic impact, while STR estimates that hotels pulled in $208 million in revenue following Swift’s US shows over the summer, without accounting for extended fan stays and other factors.

To this effect, hotels in cities where Swift toured saw record-high occupancy rates and a significant uptick in average daily room rates. To take a closer look at Swift’s impact on the industry, the DerbySoft business intelligence group pulled ADRs for cities across North America where Taylor Swift had a concert to see how much rates increased from 2022 to 2023. The results are undeniably staggering: Atlanta, Chicago, Detroit, Pittsburgh, and Cincinnati hotels saw an average uptick in ADR of 71%. 

Swift’s multifaceted influence proves a lucrative force in the hospitality industry. With the high demand for accommodation, hotels can afford to increase their room rates. This is especially true for hotels that are within walking distance of the concert venues. Aside from hotel bookings, fans also spend on food, transportation, shopping, and other local attractions. This increased spending benefits not just hotels but also other businesses in the area.

Moreover, the artist’s tours have also influenced hotel marketing strategies. Many hotels have created Taylor Swift-themed packages or promotions to attract her fans. These packages may include concert tickets, special room decorations, exclusive merchandise, or even a Taylor Swift-themed menu at the hotel restaurant. 

With fans coming from different parts of the world, hotels have the chance to showcase their services and facilities to a global audience. This can lead to increased brand recognition and potentially attract more international guests in the future.

Just as the US dates that Swift performed in 2023 did, her international concerts in the new year are expected to roll in another billion dollars and draw fans of all ages, with plenty of enthusiasm for and money to spend on trips and outings to see the entertainer. It will be interesting to see if those cities experience a similar ADR uptick to the U.S. cities that benefited from her tour this year. 

The hospitality landscape is experiencing an upswing. With a 14.1% increase in 2023 compared to November 2022, it’s crucial to unpack these trends and understand their implications. 

The Global Landscape of Hotel Bookings

According to the DerbySoft data, the year 2023 has marked an increase in global bookings, painting a promising picture for the industry’s future. A 14.1% rise compared to the same period last year highlights an ongoing recovery and growth trajectory post-pandemic. Such insights are not just numbers; they’re beacons guiding towards strategic planning and investment, especially in technology solutions, such as our very own Property Connector, serving both hotel chains and independent hotels for connectivity needs, which can manage these expanding horizons.

Regional Booking Trends Unveiled

North America: Amidst the global upsurge, North America stands as a bastion of stability. Yet, within this steadiness, cities like Newark, Pittsburgh, and Honolulu have emerged as burgeoning hotspots, indicating localized growth and the potential for targeted marketing strategies.

Asia’s Ascension: The Asian market, particularly China, has shown an impressive doubling in bookings, signaling strong regional confidence and a rebounding travel industry.

Europe’s Economic Indicators: Europe continues to be a diverse landscape. The Netherlands is witnessing a remarkable Average Daily Rate (ADR) growth of 34.5%, a testament to its robust market. Meanwhile, Spain maintains a steady lead in the sheer volume of bookings, suggesting a continued appeal to international travelers.

Middle Eastern Movement: The United Arab Emirates stands out in the Middle East with a booking growth rate of 19%, underscoring the region’s growing prominence as a travel and business hub.

The Pivotal Role of Channel Managers

In this era of growth, channel managers are more critical than ever. They empower hotels to distribute inventory efficiently, optimize revenue, and keep pace with the rapid shifts in consumer booking behavior. DerbySoft’s channel manager solution exemplifies this pivotal role, offering seamless connectivity and real-time management capabilities that are indispensable in today’s fast-paced market.

A Graphical Glimpse into Booking Behaviors

This graph offers a visual narrative of the booking trends over the past year. Notice the steady climb in bookings with the peaks and valleys of travel behavior, culminating in the notable surge in November 2023 compared to the same period of the last year. This illustration is a valuable tool for industry professionals to visualize market movements and strategize accordingly.

Staying Ahead with DerbySoft

Looking towards the horizon, it’s clear that the trajectory of hotel bookings will continue to evolve. Keeping ahead of these trends is paramount. DerbySoft is committed to providing insights and cutting-edge solutions that ensure you’re not just keeping up but staying ahead in the competitive hospitality industry.

Conclusion

Understanding and leveraging global booking trends are key to making informed business decisions. This year’s data signals a robust recovery and opportunities for strategic growth in the hospitality sector.

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