In the world of hospitality, landing high-value corporate bookings can feel like a race where big hotel chains have a big head start.
NB: This is an article from Cendyn, one of our Expert Partners
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But what if you could level the playing field and tap directly into the corporate travel market, filling rooms year-round and boosting your revenue? For hotels looking to break into this lucrative space, a Global Distribution System (GDS) might just be the game-changer you need.
Let’s uncover how GDS can help you compete with industry giants, attract more corporate clients, and turn your off-peak seasons into revenue goldmines.
Key challenges faced by hoteliers
The corporate travel sector holds great potential for hotels, yet certain barriers can make it difficult for smaller properties to effectively capture this market. Here are some of the primary obstacles hoteliers encounter when trying to attract corporate travelers:
- Difficulty in attracting corporate travelers: Unlike leisure travelers who tend to book directly, corporate clients typically rely on corporate travel platforms and established booking channels. Without a presence on these platforms, many hotels may be nearly invisible to corporate clients.
- Limited visibility on corporate booking channels: Corporate travel managers often mandate the use of GDS for booking their managed corporate program. TMCs and Consortia often use GDS platforms to deliver their own branded rate programs to streamline reservations and offer added value for business clients who may not have their own dedicated program in place. Hotels not listed on these channels risk losing out on valuable corporate bookings.
- Brand awareness and resource constraints: Competing against well-established chains that have dedicated corporate sales teams can be a significant obstacle for independent hotels. Without the resources or expertise to effectively promote their properties, many hotels find it challenging to establish a strong presence in the corporate market.
- Inclusion in a mandated travel program: Corporate buyers frequently require special rates or agreements to be rolled out to their travelers annually as their managed travel program to utilize. Without a streamlined platform like the GDS, loading the rates for selected hotels and ensuring the RFP accepted hotels are selected by the travelers can detract from other core business operations.
- Missed opportunities: Without access to the corporate travel network, hotels may struggle to fill rooms during off-peak or quieter seasons. This results in lower occupancy rates, especially during times when corporate travel could provide consistent bookings.
How GDS can address these challenges
A Global Distribution System (GDS) is a centralized network that connects hotels with a vast array of corporate travel planners, agencies, and online booking platforms. This powerful tool is designed to improve a hotel’s visibility and access to the corporate market by streamlining booking and rate management processes. Here’s how a GDS can specifically address the challenges faced by your hotel:
