The travel industry has experienced significant growth in recent years, particularly in the online sector. According to a study by Statista, the online travel booking market is projected to reach $817 billion by 2023, up from $629 billion in 2017. With the rise of online travel businesses, competition has become more intense than ever. To cater to this neck-and-neck competition, travel agencies try and work with more and more suppliers to offer maximum and unique options to their customers. Offline providers are also a part of this puzzle – Online travel agencies work with them to diversify their offerings and get relatively lesser rates. While having diversified suppliers is great but this often results in inconsistent, incomplete, and duplicate hotel data. However, travel agencies map online providers, but they often overlook offline providers. And there’s opportunity cost attached to it. Let’s explore how!
What are offline hotel providers?
Offline hotel providers supply hotel inventory and services to travel agencies through traditional offline channels. These suppliers typically have contracts and partnerships with various hotels worldwide and act as intermediaries between the hotels and travel agencies. They maintain a database of hotel options, availability, rates, and other relevant information.
Offline hotel suppliers offer travel agencies access to a wide range of hotels, from budget accommodations to luxury resorts, and provide detailed descriptions, images, amenities, and location information for each property. They negotiate special rates and discounts with hotels, which can benefit travel agencies seeking competitive pricing.
Why map offline providers?
Everything is great up until this point, but if online travel agencies only map online providers, the chances of getting many same properties from offline providers also go higher. This, in turn, can result in your platform listing duplicate properties and missing business. Also, you do not get a bigger view of what differentiators your offline providers offer, something you can monetize and use to your advantage.
In such a scenario, mapping offline hotel providers has become essential for all online travel businesses to gain an edge in the market.
Here in this piece, we underline why mapping offline providers is a must exercise for all online travel ventures by straightaway highlighting its benefits.
Five crucial benefits of mapping offline providers
Mapping offline providers can single-handedly add a new dimension to any online travel business, enable them to offer unique lodging offering and of course adding an additional revenue stream. So, let’s have a deeper look at the benefits one at a time.
- Offers a wider range of options
Online travel businesses provide travelers with a range of options, including flights, hotels, and activities. However, offline hotel providers, such as small independent hotels or apartments, are often overlooked by online travel companies. This lack of representation is a missed opportunity, as according to a report by Airbnb, the top three reasons for booking alternative lodging options (like small independent hotels and apartments) are cost savings, authenticity, and a unique experience. By mapping these offline hotel providers, online travel businesses can offer a wider range of choices to their customers, leading to a better customer experience and increased loyalty.
- Provides a more authentic experience
Mapping offline hotel providers can help online travel businesses provide a more authentic experience to travelers. A study by TrustYou found that 76% of travelers are looking for local and authentic experiences when traveling. Small independent hotels often have unique features, such as local decor, homemade breakfasts, or personalized service, that cannot be replicated by large hotel chains. By partnering with these providers, online travel businesses can offer travelers a more authentic experience, leading to better customer satisfaction and retention.
- Creates an additional revenue stream
Offline hotel providers can also create an additional revenue stream for online travel businesses. A study by Skift Research found that alternative lodging options like small independent hotels and apartments accounted for 23% of the total lodging market in 2017, up from 20% in 2013. By partnering with these providers, online travel companies can earn a commission on the bookings made through their platform. This can help increase revenue and profitability for online travel businesses.
- Improves the overall travel experience
Mapping offline hotel providers can also significantly improve the overall travel experience for travelers. According to a survey by TGA, 51% of travelers said they want to experience a destination as a local. By providing a wider range of choices, and a more authentic experience, online travel businesses can create more comprehensive travel experiences and travel packages. This, in turn, can lead to better customer satisfaction and increased loyalty.
- Differentiates from competitors
Finally, mapping offline hotel providers can help online travel businesses differentiate themselves from their competitors. In a highly competitive market, providing a unique and personalized experience can help businesses stand out from the crowd. According to a survey by Think with Google, 61% of travelers are more likely to book with a travel brand that offers personalized recommendations or experiences. By partnering with small independent hotels or apartments, online travel businesses can offer a more authentic and personalized experience, setting them apart from their competitors.
Conclusion!
In conclusion, mapping offline hotel providers is essential for all online travel businesses because it opens a broader range of options. And provides an X factor to travel businesses by enabling them to offer more authentic experiences to their customers. Also, travel businesses can gain a sizeable competitive advantage by including these small independent hotels and apartments, which form a considerable chunk of the lodging market, leading to increased revenue and profitability. The Market is unorganized, yet mapping providers like Vervotech can effectively map these offline providers using AI and Machine Learning algorithms. The travel industry constantly evolves, and those who embrace the changes will ultimately thrive in the Market.
