A new report by Rocket Travel
by Agoda and Skift highlights critical challenges in wholesale
distribution, including rate integrity and lack of control, with
Rocket Travel by Agoda's innovative solution providing a clear path
forward for hoteliers to regain control and increase revenue.
SINGAPORE, Nov. 21,
2024 /PRNewswire/ -- Data-driven insights,
advanced technologies, and strategic partnerships are critical
puzzle pieces for today's hotel chains as they struggle to navigate
increasingly complex wholesale distribution channels, according to
a new report co-developed by Skift and Rocket Travel by Agoda – the
strategic partnerships arm of digital travel platform Agoda.
Titled The Wholesale Hotel Playbook: How
Technology and Data are Redefining Distribution, the report
details the critical challenges posed by complicated and opaque
wholesale distribution channels, including issues with aligning rates
across channels caused by a lack of visibility and control
for hotels over room pricing across multiple channels, and inflated
sales costs due to discounts and incentives given to middlemen such
as wholesalers or metasearch engines. It highlights the growing
need for improved transparency, control, and the adoption of
data-driven strategies to tackle these issues.
"Hotels are leaving money on the table by relying on opaque and
outdated traditional wholesale distribution channels. Based on
analyzing the performance of our partners and test bookings, we at
Rocket Travel by Agoda estimate that hotels could be losing 10
percent or more in revenue due to a lack of control of their
wholesale rate distribution," said Damien
Pfirsch, Head of Rocket Travel by Agoda. "This report shows
how hotel chains can regain control, reduce rate leakage, and
unlock significant revenue growth by harnessing data-driven
insights and adopting the right technologies."
The report addresses three distinct and unique areas where
Rocket Travel by Agoda's solution helps hoteliers regain control
and increase revenue. First, it ensures rate integrity by offering
transparency and detailed insights into rate distribution and
partner performance. Second, it provides enhanced control, allowing
hotel chains to selectively manage partnerships with defined terms
and conditions. Finally, its data-driven insights empower hotels to
align revenue management strategies with operational goals,
boosting revenue opportunities.
Rocket Travel by Agoda's platform has demonstrated its efficacy
through notable improvements in key metrics for partner hotels. For
instance, a partner chain achieved a rate parity score improvement
from 40% to 76% over an eight month period, confirming the
platform's effectiveness in aligning rates across channels. In
another case, a hotel chain previously relied heavily on a few
major, long-standing partners for bookings. This reliance
restricted its market reach and revenue potential. However, by
incorporating new partners, the hotel chain significantly boosted
total booking revenue, with the revenue share from new partners
increasing from 16% in the first quarter to 49% by the fourth
quarter.
Focusing on how hotels can effectively overcome these
challenges, the report puts forth actionable recommendations that
underscore the pivotal role of data, technologies, and
partnerships:
- Adopt a Data-Driven Approach: Compiling key data
insights from OTAs, wholesalers, and other business-to-business
channels allows hoteliers to track key metrics like booking volumes
and conversion rates. This empowers hoteliers with insights to
develop targeted and revenue-optimized strategies.
- Invest in Advanced Technologies: Implementing
specialized and scalable technology solutions that offer rate
parity monitoring and correction services, for instance, will
provide hoteliers with greater transparency and control over their
wholesale business.
- Establish Strategic Partnerships: Cultivating strong
relationships with key partners who align with hoteliers' brand
ethos and customer segments that the chain wants to target, can not
only extend their market reach but also facilitate the negotiation
of more favorable partnership terms and distribution.
Drawing on Rocket Travel by Agoda's experience in pioneering an
innovative wholesale distribution platform, the report addresses
the gaps and critical needs for hoteliers to optimize their
systems. The full report can be downloaded here.
About Rocket Travel by Agoda
Rocket Travel by Agoda is the strategic partnerships arm of
Agoda, part of Booking Holdings (NASDAQ: BKNG). Rocket Travel by
Agoda partners with global brands to bring their customers
rewarding and engaging travel experiences that deliver value,
maximize rewards, and build customer loyalty for partners' brands.
Learn more at rockettravel.com.
About Agoda
Agoda, a digital travel platform, helps anyone see the world for
less with its great value deals on a global network of over
4.5M hotels and holiday properties
worldwide, plus flights, activities, and more. Agoda.com and the
Agoda mobile app are available in 39 languages and supported by
24/7 customer support.
Headquartered in Singapore,
Agoda is part of Booking Holdings (NASDAQ: BKNG) and employs more
than 7,000 staff in 27 markets, dedicated to leveraging
best-in-class technology to make travel even easier.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/rocket-travel-by-agoda-shares-revealing-new-report-and-showcases-solution-to-transform-hotel-distribution-302310868.html
SOURCE Agoda