Connectivity: the future of booking engines

Booking engines must be quicker than the hotel itself at finding solutions.

We are in the midst of continual progress towards digitalisation and fewer processes, so that we can spend our time analysing data and making decisions.

What I want to talk about is the duplication of work we deal with every day, using information we already have in our channel manager. Most channel managers handle allotments, rates, promotions, cancellation policies and room names, and sometimes even descriptions and photos. Yet channels such as Booking.com and Expedia make us enter that information again in their own extranets. Sometimes we have to find workarounds: entering percentage penalties instead of euros, choosing a promotion name that best matches one already available on the channel, or adapting room names. These are external distribution channels that have developed their own model, and we have no choice but to adapt to the way they collect information. But should the same thing happen with booking engines?

“Hotels are constantly duplicating work with their booking engines.” #RevenueManagement

I have recently attended several booking engine presentations. I do not change engines all the time, but I like to keep up with the latest developments and options on the market so I know what is happening in this field. Most providers still follow the Booking.com and Expedia approach: they develop their own extranet without taking into account that some hotels are trying to eliminate duplicate tasks. They should put more effort into using information already loaded into the channel manager. I do not mean rates alone; this should also include cancellation policies, promotion names and descriptions, and more.

“For a hotel, choosing a channel manager with its own booking engine may seem like the easiest option.” #RevenueManagement

Some channel managers have recognised this need and are developing their own booking engines. At first, you might think that a channel manager’s booking engine could not be as powerful as one built by a specialist that has been developing its product from the start. But complementary sales tools are now appearing on the market: booking recovery processes, guest feedback, price matchers, pop-ups and more. Add the fact that these engines can make use of all the information already loaded into the channel manager, and they become a compelling option worth considering.

This could be a business model that fits the hotel environment and its needs very well.

Are we seeing a change in direction? Will channel managers keep developing their own booking engines, or will unexpected partnerships emerge? Are channel managers holding back this option because they can see where the business is heading?