Online channel management

It seems that online booking systems are the way of the future.

Advantages of Online Travel Agencies

• Your business is always available for reservations:

  Online booking systems mean your business is open 24 hours a day, seven days a week. In other words, your customers can make a reservation whenever it fits into their schedule (without you or your employees having to be there). Over $450 billion was spent by consumers online in 2017, and that number will only go up. Additionally, studies have shown that immediate availability when shopping for products or services dramatically increases the number of purchases or appointments.

• An online booking system will reduce no-shows

  Customers who made a financial commitment by booking their own reservations are more likely to show up, resulting in significantly fewer no-show tee times. In the event a customer does need to cancel, their spot automatically becomes available again so someone else can book it.

• Online booking means faster payments

  An online booking system can require customers to prepay for activities and golf rentals. If you currently do not have an online tee sheet, you have to wait for players to show up before you can collect payment for events or tee times. Online booking systems allow you to capture that new revenue as soon as players schedule with your course.

• Less phone time

  With an online booking system in place, all the info players need to schedule with your course is right on the screen; there is no need to call into your course.

• You get valuable insight into your business

  Online booking systems come with a dashboard of analytics that helps you quickly determine your most popular sellers. With at-a-glance data that is simple to understand, you’re able to focus on creating offers your customers want the most–and grow your business by doing so.

• Maximum visibility

Open up your property to a wider local and domestic international audience online through Instant Channel Manager’s 200+ connections to online travel agencies (OTAs), Global Distribution System (GDS), payment gateways and other booking applications. The Internet presents huge opportunities to increase your bookings. What are you doing about it? At the beginning of the year 2019, all the indicators suggested that the hotel industry could know the outcome of a fight that the hotel distributors have been fighting for several years: who knows who will definitely take the lead of the hotel distribution between OTAs and the institutions themselves via their official website. Today, it is undeniable that the OTAs are the champions of the online sale of nights with a market share of nearly 80% worldwide for the two leaders, Booking.com and Expedia. The two behemoths in the distribution can also boast double-digit annual growth rates over the last decade. However, some events in 2018 suggest a reversal of this trend.

Online Travel Industry Overview

Online travel agencies (OTAs) and direct travel suppliers are the two major modes of booking. Based on the type of platform, the market is bifurcated into mobile and desktop. The different service types include transportation, travel accommodation, and vacation packages. Key age groups of the market are 22-31, 32-43, 44-56, and >56. The market is further analyzed across geographical regions, namely, North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, and Rest of Europe), Asia-Pacific (India, China, Japan, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

What the Future Holds

It is clear that, at least for the near future, large hotel chains are not about to back down. They are enjoying the billboard effect and making every effort to retain website visitors and convert them to direct bookings. There are costs involved, of course, be it their direct booking campaigns or the priority pricing they offer their guests. However, the upside is the creation of a loyal customer base that will continue to seek out direct bookings.

Surprisingly, OTAs may not suffer in the long run. Smaller hotels still have much to gain from the exposure they receive via OTAs. These hotels have less bargaining power and often pay OTAs the highest commissions. As large portions of the younger generation still prefer OTAs, and as this market continues to grow, OTAs may find that the shift in bookings is actually in their favor. Their loyal customer base, who opt for memorable experiences, such as those available with unique independent hotels, will generate them higher commissions per booking anyways.

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