How Distribution is Evolving for the Hospitality Industry

How Distribution is Evolving for the Hospitality Industry

The distribution landscape for hotels has been evolving in various ways post-pandemic. Here are some key trends and changes that have emerged.
by 
HyperGuest
Technology
Hotel
July 26, 2023

The distribution landscape for hotels has been evolving in various ways post-pandemic. Here are some key trends and changes that have emerged:

Increased dependence on online travel agencies (OTAs)

The pandemic accelerated the shift toward online bookings and digital channels. Hotels have been focusing more on their online presence and investing in their websites, online travel agencies (OTAs), and other digital platforms to attract guests. The use of mobile apps and direct booking channels has also gained popularity.

Amadeus provides hospitality solutions that are designed to enrich every stage of the traveler's journey to help hospitality providers acquire, service, and retain guests by profitably driving demand, increasing operational efficiency, and converting them into loyal fans.

Travel Media Group gives hotels a competitive edge through digital marketing and business insights while achieving superior results in engagement, awareness, and reputation.

Fuel Travel and its modular technology suite give hoteliers tools to increase guest engagement and direct bookings.

Direct bookings and brand loyalty

While OTAs have played a significant role, hotels are also focusing on encouraging direct bookings through their own websites. This is partly driven by the desire to reduce reliance on OTAs and retain more revenue. Hotels are implementing strategies such as offering exclusive discounts, loyalty programs, and personalized experiences to incentivize guests to book directly.

d-edge hospitality solutions Combining ease of use and performance, all their solutions are interconnected to help hoteliers leverage the entire distribution value chain.

TrustYou easily manages guest surveys from pre-stay to post-stay, improves your reputation with smart data, and increases revenue with more bookings.

Vertical Booking Direct booking platform on the hotel website with a perfectly adaptable graphical user interface and upselling tools to increase conversions.

The Guestbook is the world’s first cash-back hotel loyalty program that rewards members for booking directly at over 700 of the best independent & boutique brand hotels in major travel destinations around the globe.

Simple Booking is a different booking engine suite that will make your hotel life as cloudless as never before. They don’t simply want to boost your online direct bookings. They want to change your life. Sit down, relax and grow!

Shift towards mobile bookings

The pandemic has accelerated the adoption of mobile bookings. Travelers are increasingly using smartphones and mobile apps to research, book, and manage their hotel stays. Hotels are investing in mobile-friendly websites and user-friendly apps to capture this growing segment of travelers.

Oaky's  hyper-personalized and automated upselling engine helps hotels drive additional profit from their existing customers by delivering a superior guest experience.

eviivo manages all your bookings, guests, travel agencies, and stakeholders on the go!

Stay the complete guest experience OS to offer guest access to all your hotel services from their smartphones.

Flexible booking policies

Many hotels have introduced flexible booking policies to accommodate the changing travel landscape and traveler preferences. These policies often include options for free cancellations or modifications, as well as offering refundable or non-refundable rates, allowing guests to make bookings with more confidence.

TripTease - connects your hotel to the hard-to-reach price, market, and customer data that effective marketing campaigns depend on.

Google Hotel Ads - hotel campaigns let you bid for hotel ads that appear when a traveler searches for a hotel on Search or Maps.

Booking Factory - simplify running a hotel, on your own terms You decide what you want from your hotel management system, and we make it happen.

Dynamic pricing, revenue management, and flexibility

Given the fluctuating demand and changing market conditions, hotels have been utilizing dynamic pricing and revenue management strategies more effectively. By leveraging data and analytics, hotels can optimize pricing and distribution channels to maximize revenue.

IDeaS Revenue Solutions provide revenue performance advisors for advice and guidance on where it matters most for your business.

Duetto - cloud-based hotel & casino revenue management software delivers real-time insights on pricing, forecasting, and demand.

BEONx Go beyond Revenue Management – measure overall Hotel Quality, Operational Efficiency, Profitability and Sustainability across your entire operation.

HotelPartner Revenue Management It is their vision to ensure a sustainable growth for accommodation providers by optimizing their profitability and partnering with them into a successful and secure future.

Enhanced use of technology

Hotels are leveraging technology to streamline operations and enhance the guest experience. This includes contactless check-in/out processes, digital room keys, mobile concierge services, and in-room automation. Technology integration is aimed at reducing physical contact, improving efficiency, and meeting guests' evolving expectations.

SiteMinder - gives you a single place to manage everything with access to real-time insights, bookings, guests, distribution and payments.

RoomCloud Channel Manager for hotels and apartments, where streamlining your operations and maximizing revenue is effortless. With their solution, you will have centralized booking control and automated channel synchronization at your fingertips.

RateGain One of the world’s largest processors of hotel bookings, pricing intelligence, and customer travel-intent, RateGain today provides SaaS solutions for travel and hospitality helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.

Dingus offers the only 360 solution on the market for tourism properties commercialization. FROM the rate, to the payment of the booking.

HotelRunner Maximize your revenue.

Connect to the world’s leading booking websites. Boost your online presence, enhance your occupancy rates, and reach potential guests globally.

Sustainability and eco-consciousness

The pandemic has highlighted the importance of sustainability and eco-consciousness. Hotels are increasingly incorporating these values into their distribution strategies, promoting their green initiatives, and appealing to environmentally conscious travelers.

HKeeper differentiates your hotel by creating a smart work process and making the world more sustainable.

Zen Ecosystem™ - remotely monitor and manage temperatures within any space — conference rooms, the gym, guest rooms, tenant units, and common areas — without having to visit the room and disrupt anyone.

EcoStruxure ™ for hotels provides innovative hotel technology to maximize operational, energy, and resource efficiency while providing an exceptional guest experience to drive loyalty and revenue.

Personalization and Guest Preferences

Hotels are placing a greater emphasis on personalization and understanding guest preferences. They are utilizing customer relationship management (CRM) systems and data analytics to gather guest data, deliver targeted marketing campaigns, and provide tailored offers and experiences, thereby improving guest satisfaction and loyalty.

Userguest display personalized incentives to boost hotel revenue where it counts!

The Hotels Network - attract, engage, and convert visitors throughout the online booking journey by using predictive personalization to offer each guest a unique user experience.

Pressreader - let your guests choose what they want to read so you don’t have to.

B2B Distribution

B2B distribution for hotels offers the benefits of increased exposure and reach to a wider audience of travel agents, corporate clients, and online travel agencies (OTAs), resulting in higher occupancy rates and revenue potential. Additionally, it allows hotels to streamline their operations by leveraging technology platforms that simplify inventory management, reservations, and payments.

HyperGuest, a pioneer in B2B direct distribution transforms the way hotels distribute their rooms by making it more transparent, controlled, and profitable.

Meetingpackage is an intuitive and automated solution to manage group bookings for accommodation and Meetings & Events sales.

Bookingpal provides managed distribution via a suite of products and services specifically designed for the Vacation Rental industry to increase revenue, occupancy & efficiency. With a seamless connection between your PMS and various channels.

Hotel Distribution Channel Pricing and Segmentation

This illustrates different hotel distribution channels and their associated pricing and customer segments. It highlights how hotels can strategically price their offerings based on the target audience and distribution channels.

1.      Direct Bookings:

  • Pricing: Best rates are offered directly through the hotel's official website or reservation desk.
  • Customer Segment: Independent travelers, loyal customers, and those seeking personalized services.

2.      Online Travel Agencies (OTAs):

  • Pricing: Competitively priced packages and promotions to attract a wider customer base.
  • Customer Segment: Budget-conscious travelers, online deal seekers, and those looking for convenience.

3.      Global Distribution Systems (GDS):

  • Pricing: Negotiated rates for travel agents and corporate clients.
  • Customer Segment: Business travelers, travel agencies, and corporate clients.

4.      Wholesalers:

  • Pricing: Discounted rates are offered in bulk to tour operators, travel agencies, and resellers.
  • Customer Segment: Tour operators, travel agencies, and large-scale travel resellers.

5.      Meta-search Engines:

  • Pricing: Rate comparison tools aggregating data from various channels.
  • Customer Segment: Price-sensitive travelers looking for the best deals and options.

6.      Corporate Contracts:

  • Pricing: Pre-negotiated rates based on long-term contracts with corporate clients.
  • Customer Segment: Companies and their employees require frequent business travel.

7.      Consortia and Travel Management Companies (TMCs):

  • Pricing: Exclusive rates negotiated for members and managed corporate travel programs.
  • Customer Segment: Travel agencies, corporate travel departments, and high-end business travelers.

Remember, the pricing and customer segments mentioned above can vary depending on the hotel's location, target market, and overall business strategy.

Conclusion

In conclusion, the distribution landscape for the hotel industry has undergone significant changes and trends post-pandemic. Hotels have increasingly relied on online travel agencies (OTAs) and mobile bookings to attract guests and boost revenue. However, there has also been a shift towards encouraging direct bookings and brand loyalty through exclusive discounts and personalized experiences. 

Flexible booking policies have been implemented to accommodate changing travel preferences, while dynamic pricing and revenue management strategies have been adopted to optimize revenue. The enhanced use of technology, sustainability initiatives, personalization, and understanding of guest preferences have become crucial for hotels to meet evolving expectations. 

B2B distribution has offered hotels increased exposure and operational streamlining, while strategic pricing and segmentation across various distribution channels have become essential for targeting specific customer segments effectively. Ultimately, these evolving distribution strategies help hotels adapt and thrive in the ever-changing hotel industry.

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