Ever since the wide spread adoption of online travel agencies for travel planning and booking in the early 2000’s, hotels and other accommodation providers faced the challenge of maintaining the power over selling their rooms. But the emergence of mobile in travel opens up a new threat for hoteliers: The power over up-selling auxiliary services and other in-destination activities (Skift).
MOBILES IMPACT ON DAY-TO-DAY OPERATIONS
The mobile reach of the big OTAs opens up a new opportunity for them to expand their portfolio of sellable services. Due to the fact that travellers can be reached easily via OTAs’ own apps, the range of offers could be expanded towards providing services also during the travel stage. A potential scenario could include an OTA app that would allow visitors to check-in upon arrival (thereby bypassing the typical ‘front desk’ check-in experience entirely), upgrade their room, add breakfast, make dining reservations, book tours and activities or order further additional services. Thus, hotels will face new competition in one of their core business areas, namely servicing customers during their stay.
STRATEGIC REPOSITIONING OF OTAs
The first signs of this development already appear on the horizon. The review portal TripAdvisor for instance is set out to own the entire travel cycle. In addition to providing reviews, inspiration and hotel meta-search, it strives to position itself increasingly as an in-destination concierge as well. Expedia on the other hand, reserved plenty of space for tours and other in-destination experiences in its recent re-design of the website, thereby reinforcing the expansion towards further stages of the travel cycle.
TECHNOLOGY DRIVEN SHIFT
This shift in strategy, away from an emphasis on specific stages of the travel cycle (e.g Review services for inspiration and post travel sharing, OTAs for consideration and conversion, etc) towards a more holistic approach of covering the entire travel experience, is both driven and determined by developments in technology, in particular mobile technologies. Location based services, geo-fancing and increasingly sophisticated recommendation systems, provide all the information a travel agency would need to deliver meaningful and personalised service offerings that meet tourists’ needs during their stay. It is therefore time for hoteliers to account for this upcoming shift in the competitive landscape within their strategic decision making.
Discussioncomments powered by Disqus
More from #DTTT
In May we present:Meet…Heili Klandorf-Järvsoo from Estonia Tourist Board
Heili Klandorf-Järvsoo is the Head of Tourism Marketing at Visit Estonia, and she will be joining us at #DTTTCampus alongside a panel of other DMOs to share insights on the in’s and out’s of Visit Estonia’s ‘Storytellers Nest’.
In May we present:Meet…Kevin Wright from Travel Oregon
In a world of always-on content, information overload and the ever-changing digital consumer, how do you stand out from the competition and most importantly, reach your audience? Kevin Wright, Vice President of Global Marketing for Travel Oregon will be joining us at #DTTTCampus in June to talk about Reflecting on the Role of Content to […]
In May we present:Meet…Gloria Loree from Destination Canada
We caught up with Gloria from Destination Canada ahead of #DTTTCampus to get a sneak peek into what we can expect from her talk on Designing Signature Experiences to Build Brand and Narrative.#brand experiences #destination canada #brand narrative #brand stories
In May we present:Meet…Daniel Bury VR Filmmaker
Daniel Bury is one of the youngest & most up and coming creators in the world of VR film-making, travelling the world to create immersive experiences through unique 360 and VR storytelling.#VR experiences #virtual reality experiences #daniel bury #filmmaker #dtttcampus #virtual reality #Vr
In May we present:5 Reasons Why to Visit #DTTTCampus 2019
In short, #DTTTCampus is a full exploration into the destination experience, with valuable insights on navigating the digital landscape and the ever-changing consumer behaviour of travellers today.#dttt campus #keynote speakers #workshops #destination experience #oslo #destination marketing #Visit Oslo
In May we present:Meet…Paul Kubalek – Digital Media Manager at Saalbach Hinterglemm
Paul will be joining us at #DTTTCampus alongside a panel of other DMOs to talk about working with influencers, the story behind the ‘Storybase’ campaign and the kind of results they’ve seen since this campaign began.#influencer experiences #storybase #influencer marketing #influencer