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.

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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“Hotels are leaving money on the table by relying on opaque and outdated traditional wholesale distribution channels.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:

1. 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. 
2. 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. 
3. 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.

SOURCE Agoda