Expedia Group has released new findings showing that Hotel Connectivity plays a critical role in hotel performance. The research reveals that fully connected properties achieve stronger revenue results. In addition, these properties experience less operational friction and greater confidence in inventory management.
The research was based on information gained from 1,500 managers in hotels operating in six international markets. The research analyzed the influence of connectivity implementation at different levels on workload, revenue performance, and efficiency. Consequently, it became clear that total connectivity brings definite benefits to business over partial and non-connected solutions.
As stated in the research findings, 81% of fully connected hotels have made progress in terms of occupancy, average daily rates, or revenue per available room. On the other hand, only 52% of basic connectivity hotels have experienced improvement. In addition, 83% of fully connected hotels feel that connectivity affects profitability.
In addition, the research indicates that Hotel Connectivity makes processes less manual. 81% of decision makers from fully connected hotels noted the process to be less manual compared to 49% of basic connectivity hotels. Additionally, many unconnected properties still manage OTA-related tasks manually.
Chris Hodges, Vice President of Global Connectivity & Partner Solutions at Expedia Group, emphasized the growing importance of automation within travel distribution.
“As booking channels proliferate, travel distribution is becoming increasingly complex, and hoteliers using connectivity providers and API capabilities can automate workflows, streamline operations, reduce pressure on their teams and improve profitability,” said Chris Hodges, Vice President of Global Connectivity & Partner Solutions, Expedia Group. “Our goal is to continue removing friction from travel distribution by developing APIs that address the most critical needs of our hotel partners and connectivity providers.”
Expedia Group Supports the Move Toward Full Connectivity
The research also highlighted the operational advantages of connectivity. Nearly 95% of fully connected properties expressed confidence that rate and availability updates reach all channels within 15 minutes. By comparison, confidence levels declined among properties with limited or no connectivity.
Hotels without connectivity face greater operational risks. According to the research, unconnected properties tend to suffer from cases of overbooking and reservation delivery problems. This is why numerous hotel operators are looking into making technological investments in order to boost reliability and performance.
Nonetheless, there are some obstacles in front of them. Approximately 32% of hoteliers fear losing their control over the price or inventory. Another 25% have difficulties with technical resources. Moreover, 24% see no clear benefit of being connected at all.
Expedia Group, on the other hand, is continuously working on the development of its Autonomous Distribution. The program consists of such technologies as Autonomous Onboarding, Autonomous Management, and Autonomous Optimization. With the help of all of those, the hotel business can be simplified and optimized.
With travel distribution getting more complicated, hotel connectivity becomes an important driver of performance and automation.
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News Source: Businesswire.com
