Are global distribution systems a core part of your hotel distribution strategy? Why they should be.
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.
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.
Travel sellers are connecting to the GDS for an average of 6 times daily for nearly 9 hours, as they rely heavily on the platform to shop and book the best deals for their clients. In response, hoteliers are increasingly offering a variety of accommodations and services tailored to the unique needs of leisure and corporate travelers – options with a focus on greater choice, better service, and full end-to-end trip management.
With corporate travel on the rise, the lines are rapidly blurring between personal and business trips, creating ‘blended’ travel – a mix of business and leisure. This shift caters to travelers who want to mix work with leisure, extend their stays, enjoy more in-person interactions, and explore destinations beyond their employer commitments. Travel sellers say that more than a quarter of all bookings now fall into this category.
A bright future for hotel distribution
To effectively reach travelers in today's booking landscape, it's essential for hoteliers to understand their preferences and tailor their strategies across various channels, including the GDS. By leveraging advanced technology like the Amadeus Travel Platform, hoteliers can manage distribution efforts effectively, while maintaining full control over inventory and rates.
The Travel Technology Investment Trends 2024 report has truly enlightened me, offering valuable insights into the future of hotel distribution by showing how hoteliers are exploring and investing in new merchandizing options to better serve guests and enhance their experiences.
A key takeaway is the vital role that the GDS should play in any hotelier's distribution strategy. Connecting to a GDS not only streamlines operations but also maximizes visibility and access to a global market, making it a crucial component for driving success in the competitive travel industry.
About Amadeus
Amadeus powers more personalized and authentic travel experiences. Our solutions are designed to enrich every stage of the traveller journey and help hospitality providers acquire, service, and retain guests by profitably driving demand and converting them into loyal fans.
Backed by over 30 years of experience, we design open, cutting-edge software to provide the most efficient, trusted, and reliable systems for our customers. With experts in 175+ countries, we have a deep understanding of the hospitality industry and a desire to enable our hotel partners to create memorable guest experiences.
To find out more about Amadeus, visit www.amadeus-hospitality.com.
