In today’s hyper-connected travel landscape, hoteliers everywhere are seeking ways to cut through the noise, capture the attention of prospective guests, and turn those interactions into truly profitable reservations. The challenge has intensified with global competition, fast-shifting guest expectations, and rapidly evolving technology. Yet, these very forces can become powerful catalysts for growth when harnessed with the right strategy and the right tools.

At DerbySoft, we’ve spent years helping hotels navigate the complexities of distribution and revenue management through technology solutions that enable clear, demonstrable returns on investment. In this article, I’d like to share some thoughts on how robust hotel commerce technology can become the engine of sustainable profitability, brand recognition, and lasting success for properties of all sizes.

Embracing a Shifting Hospitality Landscape

Over the last decade, the hospitality industry has transformed dramatically. Many hotels have moved away from purely traditional distribution models—such as offline travel agencies and direct phone bookings—and toward a world dominated by online travel agencies (OTAs), metasearch platforms, and a wealth of digital touchpoints. On one hand, this shift has granted greater visibility to a worldwide market; on the other, it has introduced new layers of complexity: managing rate parity, crafting pricing strategies, and optimizing inventory.

As competition grows fiercer, hoteliers must juggle multiple sales channels, each with unique requirements around pricing, marketing, and target audiences. While traditional revenue management (RM) systems have historically helped forecast demand, some struggle to react quickly to real-time market changes. To succeed in this environment, hotels need commerce technology that not only assimilates historical data but also integrates with on-property systems to support ongoing, dynamic adjustments in pricing and distribution.

At DerbySoft, we recognized that hotels often encounter a gap between high-level revenue strategies and the daily realities of on-property execution. Sophisticated forecasting or dynamic pricing methods are beneficial, but only if they can be deployed swiftly to every distribution channel and operational platform. Bridging that gap—between strategy and action—can be the difference between merely being present in the market and actively shaping demand.

The Importance of System Integration

It’s common for hotels to rely on an array of technology platforms—the challenge is making these platforms collaborate effectively, rather than functioning in silos. In an ideal setup, revenue management, distribution and property-level systems are interconnected so that rate and inventory updates can flow automatically—informing and enabling faster decision-making. When such a connection is established, hoteliers benefit in several critical ways:

Operational Efficiency: With automation handling routine updates, front-desk, reservations, and sales teams can focus on strategic objectives, such as strengthening guest relationships and customizing offers, rather than on repetitive data entry.

Real-Time Pricing: Agility in pricing is vital. Instead of waiting for teams to manually update rates, automated adjustments can mirror shifts in demand throughout the day. When your rates accurately match market conditions, you increase the odds of maximizing both occupancy and revenue per available room (RevPAR).

Streamlined Inventory Distribution: Changes in room availability—whether from group bookings, maintenance blocks, or unexpected cancellations—are instantly communicated to every relevant channel. This decreases the risk of overbooking and ensures that all listings accurately reflect real-time availability.

Data Consistency: Hoteliers can’t afford data mismatches across platforms. When systems are fully integrated, all channels display the same rates and availability, reflecting an honest “single source of truth.” This consistency eliminates confusion for guests and upholds brand integrity.

Dynamic, Targeted Strategies for Higher Profitability

If we boil down modern revenue management, it’s really about deploying dynamic, targeted approaches to pricing and availability. In earlier days, hotels largely set rates based on seasonal patterns and a general sense of how competitors were pricing. Today, the power of data analytics and machine learning can pinpoint more nuanced guest segments, identify micro trends, and align rates accordingly, sometimes changing strategies multiple times in a single day.

By using integrated travel commerce  and RM systems, hotels can take advantage of:

• Segment-Specific Pricing: Through advanced analysis, you might discover that leisure travelers from a particular region are more inclined to book premium room types when offered a small discount or value-added perk. With a real-time connection between your revenue management solution and on-property systems, you can automate these unique offers for that specific segment, improving yield without overextending discounts to other demographics.
• Time-Sensitive Restrictions: In periods of high demand—such as during large conferences or local events—automatic restrictions like minimum-length-of-stay requirements can be applied. This ensures you’re optimizing both occupancy and rate, effectively capitalizing on peak demand windows.
• Rapid Reaction to Market Changes: If demand suddenly spikes due to favorable market conditions, integrated systems can nimbly increase rates. Conversely, when a big event gets canceled or demand drops, you can adjust rates downward to capture new bookings and mitigate the slow period. This balance of proactive and reactive pricing safeguards your top line against volatility.

When revenue management is divorced from real-time on-property insights, the potential benefits of dynamic strategies can be diminished. A seamless link between your RM platform, marketing,  distribution, and the day-to-day operational environment closes that gap—allowing hotels to adopt proactive, data-driven, and profitable approaches.

Cutting Through Distribution Complexity

Distribution could be described as the “lifeblood” of today’s hospitality business, but it also brings its own set of challenges. Too many distribution channels create administrative headaches and opportunities for error; too few limit a hotel’s exposure to potential guests. Achieving the ideal distribution mix and guaranteeing all channels remain in sync often requires advanced tools that can handle real-time updates.

One of DerbySoft’s core missions is to help hoteliers simplify and optimize this landscape so the guest journey remains front and center. When you have a well-orchestrated system feeding accurate rates and availability to every channel, you reduce common pain points—like discrepancies in posted rates or booking confirmations that arrive too late. A strong, integrated approach to distribution management delivers:

• Consistent Guest Experience: No matter where guests research or book, they receive uniform, up-to-date information. This consistency helps to build trust and brand loyalty.
• Channel Profitability Analysis: With reliable data flowing into your revenue management solution, you can identify which channels yield the most profitable bookings. If you discover that certain OTAs or metasearch sites bring in higher acquisition costs or less favorable booking windows, you can recalibrate your distribution approach accordingly.
• Increased Direct Bookings: Integrations with your direct booking platform allow you to highlight promotions or loyalty benefits that might not be available through third parties. By automating these updates, you encourage more guests to book directly.

Personalization and Profitability

Room rates and occupancy levels are only part of the profitability equation. Today’s guests want more than a bed for the night; they crave meaningful experiences that feel tailored to their preferences. Hotels that deliver personalized touches—from room upgrades for returning guests to curated local recommendations—tend to earn stronger reviews and repeat business.

Technology is a critical ally in this quest for personalization. As guest data accumulates through booking histories, loyalty programs, and CRM platforms, hotels can identify recurring patterns and preferences. Integrating these insights with your RM tools and on-property systems ensures that every guest interaction, whether digital or in person, can reflect a deeper understanding of individual likes and needs.

For instance, an integrated setup might surface data about a guest’s prior preference for higher-floor rooms and late check-out. Armed with that knowledge, your staff can proactively offer those features during the booking process or upon check-in. Not only does this encourage upselling or cross-selling opportunities, but it also forges a more meaningful connection between guest and property. Over time, positive experiences—amplified by social media and word-of-mouth—translate into improved reputation, stronger brand loyalty, and more profitable reservations.

Making an Impact Where It Matters

For many hoteliers, the true value of travel commerce technology lies in its ability to remove friction and reveal overlooked opportunities. By automating updates, standardizing data, and opening up lines of visibility across the organization, an integrated approach to revenue, marketing and distribution management results in:

Consistent Brand Experience: When your online presence, on-property experience, and post-stay communication align seamlessly, guests build a positive, cohesive picture of who you are and why they should return.

Improved Profit Margins: When you set the right rate for the right guest at the right time, you reduce missed revenue opportunities and avoid unnecessary discounting.

Reduced Manual Work: Eliminating repetitive tasks and errors frees your team to focus on high-touch services that differentiate your property—whether that’s a more welcoming check-in process or personalized in-room amenities.

Better Informed Decision-Making: Having a robust data repository and real-time visibility equips you to tweak your strategies quickly if external conditions change. It’s one thing to have a forecast; it’s another to adapt that forecast on the fly with confidence.

Conclusion

In a marketplace where travelers often encounter dozens of properties and booking options before making a final decision, the hotels that consistently stand out are those that optimize every stage of the guest journey—from the initial rate search to the post-stay follow-up. Achieving this level of excellence requires a fusion of strategy, data, and technology.

We at DerbySoft believe this continued push toward greater connectivity and smarter analytics will help hotels craft even more nuanced, profitable approaches to commerce. By leveraging every piece of relevant data—be it forecasted demand, real-time booking pace, or emerging travel trends—hoteliers can adapt to a volatile market far faster than ever before. That speed and accuracy, in turn, create competitive advantages: capturing more bookings at optimal rates, targeting new guest segments with tailored offers, and elevating overall guest satisfaction. Our mission has always been to support hotels in simplifying distribution and maximizing profitability through advanced but user-friendly solutions.

Moving forward, success will be measured by how effectively we blend personalized, human-centric service with cutting-edge technology, ensuring that every reservation is not just a transaction but a step toward deeper guest relationships and more profitable outcomes.

The global business travel sector is entering a pivotal phase, poised for transformative growth that combines heightened demand, technological advancements, and a strategic focus on sustainability. Recent forecasts and industry surveys suggest that 2025 will mark not just a full recovery of pre-2019 levels but also a fundamental reshaping of how business travel operates, as budgets rise, travel patterns evolve, and companies prioritize innovative solutions. As a leader in travel technology, DerbySoft recognizes that this resurgence offers unparalleled opportunities. By leveraging advanced connectivity, data analytics, and sustainable practices, we help travel brands navigate this dynamic environment. Here’s an in-depth analysis of the trends shaping 2025, supported by statistics and insights from GBTA and other authoritative sources.

Global Business Travel Spending: A Surge in Growth

According to the Global Business Travel Association (GBTA), global business travel spending is expected to reach $1.48 trillion by the end of 2024, exceeding the previous record of $1.43 trillion in 2019. This trajectory continues upward, with spending forecasted to hit $2 trillion by 2028. Deloitte’s Corporate Travel Outlook aligns with these figures, noting that 58% of travel managers expect budgets to increase in 2025, reflecting rising demand for face-to-face interactions in client meetings, conferences, and internal collaborations.

• Regional Highlights:
  • Asia-Pacific: This region leads the resurgence, with a projected compound annual growth rate (CAGR) of 6-7%. China and India are driving this growth, supported by expanding economies and increased corporate activities.
  • North America: Business travel spending in the United States is forecasted to hit $350 billion by 2025, driven by the return of large-scale events and domestic travel demand.
  • Europe: While rebounding at a slower pace, Europe’s business travel market is growing at a CAGR of 4-5%, with Germany, the UK, and France leading the recovery.

The Evolving Profile of Business Travelers

Business travel is no longer limited to executives or sales representatives. By 2025, the volume of trips taken by employees across all roles will rival 2019’s highs, driven by the growing need for company-wide retreats, team-building events, and in-person collaborations among distributed workforces. Skift’s 2025 Megatrends forecast notes that work trips for all employees, fueled by hybrid work models, will account for a significant portion of corporate travel. According to the AMEX GBTA forecast, meeting budgets are anticipated to increase by 1-5%, with 60% of meetings expected to be held in person—signaling a significant rise in travel for small group gatherings. When it comes to spending, the report reveals that 74% are optimistic about the health of the industry.

• Gen Z and Millennial Travelers: Younger employees are shaping the future of business travel with their demand for flexibility, seamless digital experiences, and environmentally conscious options. This demographic is also more likely to blend business with leisure (“bleisure” travel), with GBTA reporting that 46% of travel buyers observed a rise in such trips in 2024.
• Linked and Extended Trips: More than 53% of buyers noted an increase in “linked trips,” where multiple meetings or stops are combined into a single itinerary. Simultaneously, 36% reported that trip durations are getting longer, reflecting the need to maximize travel efficiency.

Technology: The Cornerstone of Growth and Efficiency

Technology is at the forefront of reshaping the business travel ecosystem. While GBTA reports that 88% of travel management companies (TMCs) and 74% of suppliers believe their organizations are performing well in terms of technology, significant opportunities remain to integrate advanced tools such as artificial intelligence (AI), blockchain, and real-time analytics.

• AI in Business Travel: Adoption of AI is on the rise, with 44% of travel professionals expressing excitement about its potential, up from 32% the previous year. AI-powered tools offer personalized travel recommendations, automate booking processes, and provide real-time expense tracking. Yet, adoption remains limited, with only 14% of buyers actively using AI in their programs—a clear indicator of untapped potential.
• Attribute Based Selling:   Data-driven Attribute-Based Selling (ABS) enhances this approach by dynamically pricing individual room attributes based on factors like availability, guest persona, and attribute combinations. This allows guests to select the features they value most, creating a personalized booking experience and a seamless journey from start to finish.
• Real-Time Data Analytics: Companies are increasingly using analytics to identify cost-saving opportunities, optimize travel patterns, and enhance traveler satisfaction. This data-driven approach allows for dynamic policy adjustments based on real-time market conditions.

Sustainability: A Strategic Imperative for the Future

Sustainability has moved from a “nice-to-have” to a critical focus for the business travel industry. GBTA reports that 46% of travel programs prioritized sustainability in 2024, with 44% actively integrating green initiatives into their policies. However, obstacles such as higher costs, complexity, and inconsistent standards remain significant barriers.

• Regional Leadership in Sustainability:
  • In Europe, 60% of travel buyers have integrated sustainability initiatives into their programs, compared to 36% in North America. European markets also lead in adopting multimodal travel options such as rail and public transport.
  • The Asia-Pacific region is increasingly incorporating sustainable practices, driven by government policies and corporate mandates.
• Eco-Friendly Travel Choices: The shift toward lower-emission travel options is gaining momentum. GBTA found that 38% of buyers reported an increase in rail travel, while 33% observed more multimodal trips.

At DerbySoft, we are committed to enabling sustainability through tools that can help travel providers align with corporate social responsibility goals while maintaining operational efficiency.

Balancing Growth with Cost Efficiency

While the business travel market is poised for expansion, managing rising travel costs remains a top concern. GBTA’s survey reveals that 78% of travel buyers cite cost control as a strategic priority for 2025. Key strategies include:

• Dynamic Travel Policies: Flexible policies allow employees to make cost-conscious decisions, such as choosing budget-friendly accommodations or off-peak travel times.
• Partnerships with TMCs: By leveraging the expertise of TMCs, businesses can negotiate better rates, streamline itineraries, and gain valuable insights into travel trends.
• Virtual Meetings as a Supplement: Companies continue to invest in hybrid meeting technologies, balancing the benefits of in-person interactions with the cost and sustainability advantages of virtual solutions.

2025: A Turning Point for Business Travel

As the business travel sector approaches the new year, it is clear that the industry is entering a new era—one defined by innovation, sustainability, and a deeper understanding of traveler needs. This transformation is not without its challenges, but it is precisely these challenges that present opportunities for companies willing to embrace change.

DerbySoft’s Business Travel Suite (BTS) simplifies collaboration between Travel Management Companies (TMCs) and suppliers, improving efficiency and reducing costs. With advanced features like dynamic pricing and real-time analytics, BTS streamlines workflows and ensures accurate booking and commission reconciliation through partnerships with providers like Arise.

A single connection to BTS gives TMCs direct access to a wide range of rates—corporate, rack, negotiated, and loyalty—without the hassle of managing multiple APIs. It connects suppliers of all sizes, from independent hotels to alternative accommodations, enabling unique product offerings and better service. BTS empowers hoteliers and travel companies to cut costs, expand market reach, and maintain a competitive edge in the evolving travel industry.

Together, let’s redefine the possibilities for 2025 and beyond.

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.