The ambivalent relationship between hoteliers and online travel agencies (OTAs) is well-known. Hoteliers appreciate OTAs for their booking capabilities but are frustrated by their control over guest data and tactics that hinder hotels’ commercial efforts. This ongoing struggle was highlighted recently when Spain’s regulatory agency fined Booking.com over €413 million for imposing “unfair commercial conditions” on hotels in the country.
However, today’s hoteliers have multiple options for their distribution strategies. By leveraging technology to capture, connect, and analyze guest data, hotels can enhance guest experiences and boost revenue.
This topic was a focal point during a discussion with Sebastien Leitner, vice president of strategic partnerships at Cloudbeds, and Javier Delgado, managing partner and EMEA CEO at Mirai, at the Phocuswright Europe event in June.
“Distribution costs are a significant chunk of any hotel cost these days. It’s the right time to sharpen the pencil,” Delgado remarked. “ADRs [average daily rates] are very high, but if you can reduce your costs and, more importantly, your dependency on third parties, that’s the wise thing to do now. Hotels need to own the conversation and understand who the traveler is so they can build a relationship – that’s the whole point.”
Delgado also discussed the European Union’s Digital Markets Act and its potential to bring significant changes to distribution and digital marketing.
A significant challenge for hoteliers is the legacy technology that keeps data siloed, preventing a comprehensive view of guests. However, Leitner remains optimistic. “We’ve been working on exchanging data between platforms and finding connectivity for decades. Are we finished? No, and we continually have to invest in it.”
Both experts shared their views on artificial intelligence, machine learning, and automation, emphasizing that technology’s ultimate value lies in freeing hoteliers to create exceptional guest experiences that encourage repeat business.
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