Hotel Finder and the closed world of Hotel Distribution
Posted by HiRUM Software Solutions -03/10/2014
Wondering what’s in store next for Google when it comes to the travel industry? A recent article in tnooz written by Craig Stewart, a Director at Hotel Distribution Technology provider, “FreeToBook” lets us in on the future as he sees it, when it comes to current accommodation booking models.
He believes that Google has been “ experimenting with discounted rates behind the “logged in” Hotel-Finder closed platform.”
Here are the basic principles of what he is talking about:
There is no player anywhere near the size of Google in the world of Hotel Distribution
Currently, Google earns pay per click revenue from OTA’s, meta-searches and some direct advertisers
The proliferation of OTA’s has led to the invention of meta-searches, which combine availability results across multiple hotels and OTA’s.
Meta-searches actually expose rate parity, and ultimately have become “a waste of time” as all rates that appear are the same.
A small difference in price returns a disproportionate number of bookings
Closed platforms that require a log-in offer an opportunity to provide small discounts without discovery
A lower rate can be offered than the parity rate available in public searches
Google, Twitter and facebook are just a few examples of such closed platforms….yet another reason why Hotel Finder might have such a big impact on the industry as it ramps up.