The rise of digitalization is such that as soon as an average human being gets an idea of something they need, they get their hands on a smartphone and search for it on Google rather than looking for a provider nearby. This involves booking hotels too, through online platforms that include online travel agencies (OTAs) and direct booking engines. The growth in the use of these platforms has been highlighted by the World Tourism Organization and the Hotel Association of India, along with the factors behind why humans use them and how hotels benefit from this trend.
What is the Role of Hotel Booking Software in Market Dynamics?
The visibility of hotels on a hotel booking software, along with their competition, pricing, and other factors on that platform, affects their overall performance. At the core of its development, a hotel management software integrates several systems: property management systems (PMS), channel managers, payment gateways, and customer relationship management (CRM) tools. Collectively, these systems influence market supply and demand in the following ways:
1. Dynamic Pricing
Hotels that adopt dynamic pricing strategies see a higher RevPAR (Revenue per Available Room) than their competitors. In modern times, online booking platforms support this practice through revenue management systems (RMS) that adjust room rates based on demand patterns, market trends, peak season, and competitor pricing. The common results such an approach brings include:
- Real-time rate adjustments during festivals or peak travel seasons
- Automated minimum stay restrictions
- Yield optimization for premium room categories
2. Inventory Distribution Across Multiple Channels
Across hotel reservation systems, a hotel can easily manage its inventory, which involves the number of rooms available or booked to avoid overbooking. The multiple channels feature rate parity and availability synchronization, a critical aspect of hotel management. Digital booking software allows hotels to distribute inventory simultaneously across:
- OTAs
- Direct website bookings
- Corporate booking portals
- GDS networks
- Meta-search engines
3. Data-Driven Decision Making
By improving their visibility across booking platforms, hotels get critical data that shows overall customer trends, which can help them make future business decisions. These metrics include:
- Cancellation patterns
- Customer demographics
- Price sensitivity
- Seasonal demand shifts
Why do Customers Prefer Online Hotel Booking Platforms?
The growth of hotels and their visibility on hotel booking platforms has more to do with the preferences of customers rather than the choice of the hotels themselves. In the present time, whether for a vacation or a business trip, people prefer online booking platforms to reserve their stay as the platforms offer transparency, convenience, instant confirmation, and comparative pricing, helping them to make clear decisions with an interesting user experience. The following are some factors explained in-depth that support this present preference of customers:
1. Price Comparison and Transparency
Typically, on online booking platforms, a customer can find genuine reviews as well as a price to decide if they both justify each other or not, and that too in less than a minute. Some of the reasons why this facility matters to them are:
- Side-by-side visible pricing across hotels
- A view into taxes and additional fees that make up the total charges
- Available promotional offers and discount codes
- Authentic reviews and ratings
2. Instant Booking and Confirmation
In case of customers travelling in an emergency or at the last minute for any purpose, the online method of booking is a very convenient method, as platforms provide:
- Immediate booking confirmation
- Secure digital payment processing
- Automated email/SMS reminders
- Flexible cancellation policies
3. Mobile Accessibility
For a massive segment of travelers, the mobile-first booking behavior has led to the rise of smartphone apps that offer:
- Geographically targeted deals
- Location-based hotel suggestions
- App-exclusive discounts
How do Online Booking Platforms Help Hotels?
In today’s time, online booking platforms are considered among the greatest pieces of hotel management technology as they present benefits in the form of market reach, high occupancy, and provide operational insights that help hotels make better decisions in the future. The many benefits that hotels get, which you should know for a successful career in hotel management, include:
1. Increased Market Visibility
Many new, independent, or small hotel bodies depend on listing themselves on online hotel booking platforms to gain traction from their target base of customers without spending too much on marketing. This step benefits them in the form of:
- Access to domestic and international travelers
- Multi-language listing support
- Global marketing exposure
- Integration with meta-search engines
2. Improved Occupancy Management
In peak customer engagement seasons, managing occupancy and reservations, along with making their own business stand out from their competitors, can be tough for hotels. Digital platforms erase this problem as they allow hotels to:
- Fill last-minute vacant rooms
- Offer time-bound discounts
- Introduce sales or discounts
- Adjust availability based on predictions
3. Enhanced Reputation Management
The OTA hotel booking trends for a particular body depend heavily on its reputation or its public reviews that are visible to customers right next to its name. As per reports, 81% of travelers online read the reviews of a hotel carefully before booking it. Additionally, just 1 point of rating can lead to a justified increase in prices by up to 11%. This feature that is useful for customers is also used by hotels to:
- Respond publicly to reviews that lead to an increase in their occupancy rate
- Monitor trends regarding customers and competitors
- Identify gaps in the service they are providing
- Build credibility through transparency
4. Operational Efficiency
A popularly beneficial practice that leads to the growth of a hotel is training its staff in technology adoption for the business to sustain, which they are also typically taught at a hotel management institute. It leads to several operational advantages such as:
- Automated check-in data
- Centralized booking dashboards
- Low physical workload for front-desk employees
- Better accuracy of business predictions
Best Online Hotel Booking Sites in India
The digital booking systems for hotels that run online include several top players that highlight and influence the dynamics of their space. The following are some of the best online hotel booking sites in India:
- MakeMyTrip
- Goibibo
- Booking.com
- Agoda
- OYO
- Expedia
What Should Hotels Check Before Choosing an Online Platform?
Most of the OTAs get commission from hotels listed on their platform for every successful booking, which does not sit right with several business structures. Hence, before listing your hotel on an online platform, you should evaluate:
- Commission structure
- Target customer demographics
- Marketing support
- Integration compatibility with the existing PMS
- Cancellation and refund policies
Conclusion
The introduction and constant growth of digital booking platforms have reshaped the hotel industry, as well as added a new subject in a hotel management course that one can pursue in a hotel management institute in Kolkata. Digital platforms influence pricing strategy, market reach, operational efficiency, and customer engagement, all of which, when smartly used by hotels, help them thrive.
If you wish to learn more about the present trends of hotel management and operations for a successful career in the field, enroll in an international hotel and tourism management course at Krystal School of Excellence, Kolkata.
Frequently Asked Questions (FAQs)
Q. How does digitalization affect hotel industry development?
Digitalization helps hotels interact better with guests and manage their operations, occupancy, and pricing better, along with getting better brand visibility.
Q. What is the difference between OTA Booking and direct Booking?
OTA booking typically charges a commission of 10 to 30% from a hotel listed on their platform, while direct booking on a hotel’s own app or website lets them keep 100% of what the customers pay.
Q. What is a channel manager in the hotel industry?
A hotel software technology that connects your hotel to OTAs and other online distribution channels is called a channel manager.