Managing the Online Travel Space
I’m sure you’ve heard these terms thrown around our industry but exactly how they interact with hotels can be tricky, even for the most seasoned hotel owner. Correctly navigating these channels are of utmost importance to your success so let’s take a moment for a brief overview.
The Global Distribution System, known simply as GDS, was first created by the airline industry for managing flight reservation data but has since grown to 4 major companies; Worldspan, Amadeus, Galileo, and Sabre, and include inventory for flight, hotels, car rentals, etc. The GDS is accessed by traditional and online travel agents (OTAs), airlines, hotels, car rentals companies, as well as Central Reservation Services (CRS) like InnLink to manage and process reservations. Hotels can utilize a CRS like InnLink to manage their GDS connections, rates, and inventory or contract with each GDS individually and manage all inventories independently.
How to Be Found
OTAs, such as Travelocity, Priceline, and Hotels.com, were created to give guests access to hotel reservation booking while bypassing a traditional travel agent. Today, OTAs are the source of a large portion of all travel bookings and independent properties may find themselves dependent on them for reservations. There is a cost to this exposure however, which typically reaches 25% of each reservation made through the OTA. Fortunately, the tides are turning and travelers are using many sources like TripAdvisor and OTAs as a research source before finally booking using the hotel’s website.
Metasearch is a relatively recent development in the travel industry but the idea has existed for quite some time. Metasearch basically expands the search parameters a guest can use to find a hotel, pulling from a variety of sources.
In early 2013, TripAdvisor launched their metasearch pilot for hotels which allows users to search for hotels based not only on name, but also on factors like location, price, property type, and chain while also cross-referencing with TripAdvisor review types.
Google Hotel Finder works on the same basic premise, dedicating a specific Google search engine just for finding hotels. It gives the guest the option to book directly from the search window or visit the hotel’s website.
GDS, OTAs, and metasearch are a solid foundation from which to build your hotel marketing strategy. Ultimately, reservations made through your website are the most affordable for your business. In the next few months, we will explore more ways to stay competitive with OTAs. Until then…