8 Predictions for the Hotel Industry in 2016


The hotel industry is consolidating as multi-product businesses incorporate and acquire single-solution based companies; hotel chains continue to merge to grab a wider share of the market, while hoteliers focus on building marketing strategies for customer acquisition and direct bookings.

These are among the eight predictions for the hotel industry from Oral Yigitkus, CEO of BookLogic, a hotel technology and marketing services company that delivers bookings and revenue management support.

He also analysed the market challenges ahead, looked at the changes for OTAs, and what hotels should expect.

Technology and digital marketing developments are not the only factors that caused hotels to look at their strategies and approach the markets differently. Social-political events around the world are forcing hotels to develop plans to manage loss of markets and sudden drop in demand, he added.“Hotels will begin to see channels mature and the market consolidate. Hoteliers will need to look at their technology and services to improve performance and reduce operation time to be more agile in the market in order to increase bookings and revenue,” said Yigitkus

“Hotels need to further prepare for the inevitable and ensure rates for the long-view and short-view support the overall operation of the hotel, while also ensuring to support its guests and customers.”

The predictions

  1. Market will be more consolidated and monopolised. There will be more acquisitions and mergers in 2016 and 2017, especially within the mid-market.
  2. Channel management companies will begin to struggle during 2016. Central Reservation Systems (CRS) will consolidate the market and begin to focus on CRS offering to stay alive. Channel manager business will be more self-service; hotels will do more of their own mappings to have more control, especially with changes to rate parity.
  3. Companies selling “whole package” technology and services will be better off; those who offer stand-alone products will begin to diminish.
  4. GDS-only companies will continue to struggle financially, and will likely go bankrupt. Hoteliers need to seek services that integrate GDS as part of an offering.
  5. Booking engines will need channel managers incorporated in their system and company, without which the market potentially is significantly reduced.
  6. Property Management Systems (PMS) will begin losing touch with the market, especially online booking engine and channel management business, because the first requires online sales expertise and the latter requires a lot of support.
  7. Google is expected to launch a new product, which will rock the market. A likely move from CPC (Cost Per Click) to CPA (Cost Per Action), like TripAdvisor moved from tripconnect (CPC) to instant booking (CPA). This is going to filter throughout the market.
  8. What is the future of metasearch engines as business significantly grows and diversifies? We are likely to see a watering down of big international chains, so heavily influencing the results.

Read the detailed report here.

See original article at http://www.webintravel.com/predictions-and-challenges-for-the-hotel-industry-an-analysis-from-booklogic/


“Companies selling ‘whole package’ technology and services will be better off; those who offer stand-alone products will begin to diminish.” That’s us! To find out more about our comprehensive suite of hotel technology solutions, visit www.represent.asia or email us on hello@representasia.com


About Author

Founded by two travel and technology professionals with years of experience in Asia, Representasia specialises in sales & marketing representation throughout Southeast Asia for travel/hospitality technology providers and travel-related startups, as well as providing marketing consultancy services for hotels and travel businesses in the region.

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