Did you know 94% of hotel IT decision makers are planning to invest in technology this year? Amadeus recently released a survey of 100 senior hospitality leaders across ten major markets, and the results are both eye-opening and encouraging.
NB: This is an article from Amadeus
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According to the report, nearly all hoteliers are planning to invest more in 2024 than they did last year, with a significant focus on leveraging advanced technologies to streamline operations, improve guest satisfaction, and boost revenue.
Since my colleagues have already touched on what’s driving these investments and put a spotlight on digital marketing, let’s deep dive into some of the insights around distribution.
The importance and challenges of a diverse channel mix
Developing a diverse channel mix is essential for hoteliers aiming to maximize both reach and revenue. Direct websites, Brand.com, online travel agencies, metasearch, global distribution systems (GDSs) – these all have their place and play an important role in reaching travelers where they shop and book. However, managing all these channels can be confusing for the average hotelier.
When it comes to handling bookings from numerous sources, efficiency (36%), having too many channels to manage (29%), and finding ways of reaching new guest audiences (26%) are rated as the three biggest challenges facing hoteliers in terms of distribution.
Additionally, over half of the hoteliers we surveyed noted that it’s the consolidation of data and sales insights (53%) that was a key driver in using an indirect distribution strategy. At the same time, every one of the hoteliers responding to our survey say they are keen to broaden and improve the services they offer guests.
Why GDS usage is on the rise
When it comes to serving evolving traveler tastes, 85% of respondents to our survey feel that personalization could help them to deliver more than 5% growth in incremental revenue. In addition to having a strong hotel booking engine with upselling and personalization features, the GDS is a critical platform for hotels to capture more bookings. By marketing to travel sellers the unique features a property offers, including deals, promotions, and tailored packages, the hotel can secure incremental revenue, while the end traveler benefits from having a stay that is tailored to their interests.
