Generating direct business is an essential part of an optimized hotel distribution strategy, one that relies less on intermediaries to consistently deliver profitable bookings. A handful of technology companies are introducing or upgrading booking engines as part of a broader effort to transform hotel websites into more effective e-commerce channels.
“Technology is driving a monumental shift in how hotels secure and process bookings and manage their revenue generation systems,” said Robert Habeeb, CEO of Maverick Hotels & Restaurants, which operates 50 hotels nationally, adding that the industry’s way forward is through an AI-driven interconnected ecosystem.
Marriott International CEO Anthony Capuano would agree with Habeeb’s assessment. He told an audience at a recent Bank of America investor conference that the biggest impact of AI on the hospitality industry will be how customers search and book travel.
Added Habeeb, “Operators need to be on the ground floor of this shift or face being left behind.”
ON CUE
Technology companies are taking note. Marketing technology firm Tambourine launched Tambourine One, which it refers to as a website with a built-in booking engine. It blends website design and booking engine to form a single e-commerce platform. “One of the greatest impacts on direct booking profitability is the gap between the website and the booking engine,” said Rafael Cardozo, founder and CEO of Tambourine.
Cardozo suggested that the disconnect between hotel websites and booking engines not only impacts conversion rates, but it also drives up direct booking costs. “Because hotel websites are typically purchased from one vendor and the booking engine from another, hoteliers are forced to pay two separate fees for what should be a single e-commerce experience.”
Tambourine One combines the two functions within a single platform. According to Cardozo, the approach is intended to streamline the booking process while reducing technology costs. The unified experience is yielding tangible results, according to the company. In a study of more than 50 hotels, Tambourine One saw desktop conversion rates double, while mobile conversion rates nearly tripled.
Frisco, Texas-based Aven Hospitality, formerly Sabre Hospitality Solutions, has expanded its SynXis CRS platform with a new booking engine designed to modernize the guest-facing reservation experience. Rather than replacing the underlying booking infrastructure, Aven introduced a new booking layer that is embedded directly within a hotel’s website. The booking engine operates on a shared orchestration layer powered by GraphQL.
“The new booking engine provides a strong foundation for the future—combining performance, flexibility and AI readiness in a way that helps hotels drive more value from their direct channel,” said Ken MacLeod, principal and product manager at Aven Hospitality.
MacLeod said the company sought to address the booking experience while maintaining the existing CRS infrastructure. According to the company, page load times are more than three times faster than those of previous-generation solutions, which can help reduce abandonment and keep guests engaged longer during the booking process.
Navarino Services, which provides technology solutions to independent hotels, was among the platform’s first pilot partners. According to Aven, the company reported revenue growth of more than 30% during its first month using the new booking engine without additional demand generation activity.
Aven plans to expand the platform’s capabilities with additional retailing functions, stand-alone offers, an in-context booking experience that includes checkout, multi-property search and deeper payment integrations, according to MacLeod.
Oracle Hospitality’s investment in booking technology is part of a broader strategy to connect hotel technology functions within its cloud platform. The Austin, Texas-based company views booking as one component of an ecosystem that includes property management, guest profiles, payments, loyalty and hotel operations.
Tanya Pratt, global VP of strategy and product management for Oracle Hospitality, said the OPERA Cloud booking engine was developed in response to customer feedback. The booking engine is currently in the early adopter stage and is primarily targeting independent hotels, which Pratt said are “mostly underserved.”
Pratt said the system is designed to use a single source of rates and inventory, allowing hotels to merchandise and distribute products through the booking channel while maintaining the same information available through the property management system.
“This means that the hotels can merchandise, distribute and monetize everything that they could as if a guest were to walk up to the front desk,” she said. Pratt also pointed to the integration with Oracle’s existing technology infrastructure as a key element of the product’s development. “It’s like decorating the house, because the foundation is solid,” she said.
The foundation of direct booking platforms, meanwhile, continues to be reinforced. As providers increasingly integrate booking engines with websites, CRS and PMS platforms, hotels will have more options to consolidate technology while improving the direct-booking experience.
Story contributed by Dennis Nessler.
