2021 Trends and Challenges for Hospitality Operators - A guest-centric strategy plus a fully integrated intuitive technology stack is key to ...
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RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 1
2021 Trends and
Challenges for
Hospitality Operators
A guest-centric strategy plus a fully integrated intuitive technology stack is key to navigating travel in 2021
Report compiled by RMS Cloud
RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 2
Introduction
2020 was a year like no other, with a global crisis that Taking this global state of flux into consideration, we have
impacted heavily on the hospitality industry and reshaped created this report to provide guidance and help property
people’s travel mindset. operators plan, prepare and react to the anticipated 2021
travel and accommodation market.
2021 certainly isn’t without its challenges either, with the
pandemic still prevalent in many countries around the With you at the forefront of hospitality technology.
world. What might have worked for hospitality operators
in pre-COVID days now needs a rethink, as we adapt
our strategies in response to this shifting landscape and Peter Ferris
changes in consumer behaviour. Chief Sales & Marketing Officer
RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 3
Contents
Guests are evolving, are you? Accelerated adoption of technology Rethinking marketing and revenue
Safety and cleanliness are high priorities Cloud-based software to become the standard management
Domestic travel will be the top choice in 2021 Demand for contactless guest-facing tech Repositioning to meet demand
Local experiences matter Accelerating operational efficiency and collaboration Shift in marketing spend and strategy
Travelling shorter but staying longer Thinking ahead with fluid inventory operations Social media more significant than ever
A shift in travel demographics Turning to online staff training Personalisation fosters deeper relationships
Evolution of business travel Bridging the gap between ADR and guest needs Ability to handle constant disruption is essential
Direct bookings on the rise Automated pricing no longer just ‘nice to have’
Last-minute bookings still high A change in approach for pricing optimisation
Challenging the revenue strategy ‘mantra’RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 4
Guests are
evolving, are you?
Last year, we saw a whole new era of travellers emerge, Although the industry is slowly recovering, many of the
battling travel quarantines, pandemic safety concerns, pandemic-induced sentiments are expected to stick around
barriers to the freedom of movement and the impacts of for a while longer. Along with some other trends that will
the induced recession. As a result, last-minute bookings influence how guests will react and behave in 2021:
have soared, business travel has plummeted, and in-country
holidays have become the norm.RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 5
Safety and cleanliness are high priorities Domestic travel will be the top choice in 2021
The repercussions of COVID will continue impacting For many in 2020, international travel was impossible, which
hospitality businesses for the foreseeable, which means led to a steep rise in staying local. Although some borders
health, safety and cleanliness remain top priorities for have reopened or are planning to open later in the year,
travellers. local tourism boards and accommodation providers have
shifted their strategies to encourage domestic travel; this
As seen in the New York Times, the word ‘clean’ is dominating has led to many travellers choosing to ride the staycation
the hospitality industry, for operators and guests alike. To wave and explore their home country.
deliver maximum assurance, properties are expected to go
above and beyond to maintain the highest levels of virus-
free cleanliness in both public areas and private rooms.
Staycation
search term
DEC JULY
2016 Google Trends search for ‘staycation’ worldwide over the past five years shows a steep incline from July 2020 2020RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 6
Insights into Europe’s market trends show recent demand In countries such as Singapore, operators are crafting new
is fuelled by domestic and regional travel within driving ways to satisfy the domestic travel demand and taking
distance, particularly in areas surrounded by nature. This is the opportunity to reassert themselves as a desirable
a drastic change to the traditional city seeker, with more experience.
people opting for rural spaces away from bustling crowds.
“We’ve seen a rising trend in locals looking at alternative
“In the 2020 staycation boom, many UK accommodation experiences and accommodation such as farm stays which
providers reported nearly 100% occupancies for August, are gaining popularity in Singapore,” says Jasmine Leong,
with those close to nature and beaches performing VP of Sales & Marketing for Asia at RMS Cloud. “Changi
exceptionally well,” says Zen Valli, VP of Sales & Marketing Airport even added an indoor glamping getaway to its
for UK/EU at RMS Cloud. “Hospitality operators are adapting annual Changi Festive Village as a unique alternative to the
their marketing strategies to encourage repeat business more traditional hotel staycation.”
and preparing for what will surely be a 2021 staycation
boom, with many holiday makers feeling safer exploring
locally than travelling abroad.”RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 7
Local experiences matter Travelling shorter but staying longer
With accommodation options in abundance, those that We’ve seen a shift from traditional tourism to a hybrid of
showcase the lesser-known attractions in their local area living, working and exploring, with long-term stays in regional
are scoring extra points with researchers. Millennials, for areas and small cities increasing in popularity, particularly
example, crave authentic experiences and are keen to explore in furnished accommodations that offer a home away from
the places they visit. With 86% travelling for experience home.
and culture, local attractions such as educational events,
historical sites, cultural festivals and off-the-beaten-path Locations requiring mandatory quarantine upon arrival is
hikes appeal to them much more than areas saturated with also boosting length of stay; with many people opting to
tourists. isolate in self-contained accommodation, some operators
have started offering tailored packages, enticing travellers
“Never underestimate the power of local experiences and with quarantine comforts, including unlimited streaming
the millennial generation combined with the smartphone,” services, food deliveries and game consoles.
says Zen. “These three components are essentially free
128%
advertising for your business, area and brand. One instagram Some people have taken the opportunity to use their remote
post, a TikTok video or a Facebook story exposes your freedom to relocate, but instead of uprooting abruptly, they
local attractions and brand to hundreds if not thousands are staying a while in nearby accommodation to get a feel
of your guests’ connections who are looking to share for the area before committing to the move. According to
increase in guest reviews citing
similar experiences. Hoteliers we speak to who are actively Airbnb, there was a 128% increase in guest reviews citing
“relocation” and “remote work”
promoting these local experiences have observed increases “relocation”, “relocate”, “remote work” and “trying a new
according to Airbnb
in direct business through recommendations.” neighborhood” from July to September 2020, compared to
the same time in 2019.RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 8
A shift in travel demographics domestically for a change of scenery or a coworking retreat.
While millennials are eager to pick up where they left off when Key essentials for their ‘workation’ include stable internet,
it comes to international travel, their elderly counterparts quiet rooms and desk space, with many also seeking
will need increased reassurances to regain their confidence information on local sights that they can explore in their
levels pre-pandemic. Because of their vulnerability to the downtime.
“Never underestimate the virus, research in the UK shows that the initial sentiments
of the elderly indicate that they intend to make fewer air Where traditional corporate travel involved roundtable
power of local experiences trips than before the coronavirus pandemic. For the at-risk meetings, high-level conferences and the closing of deals,
and the millennial groups, the perception of risk in contracting COVID-19
during various stages of their journey is a sizable travel
the rebound of travel in 2021 means business travel is more
likely to focus on re-establishing connections through small
generation combined with deterrent. social events, such as dinner or drinks.
the smartphone” Evolution of business travel Direct bookings on the rise
Last year, many businesses moved to telecommunication, Although OTAs retain online booking dominance, many
replacing both the office and corporate travel with online have experienced gradual negative growth over the years,
chat platforms and video conferencing. In 2021, corporate with direct web bookings claiming their portion of the
travel is unlikely to return to normal, but it is gaining market share. This was particularly noticeable in 2020 and
momentum, albeit in a different way. is expected to continue in 2021, due to more properties
implementing internet booking engines and because
The rise of remote working is inspiring home-based apprehensive guests prefer to be in direct contact with their
employees to make the most of their office liberty, travelling accommodation provider during times of unpredictability.RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 9
Market Share of Distribution Channels
Percentage of reservation revenue after cancellations by channel in Europe and Asia-Pacific (excl. Mainland China)
2017 2018 2019 2020 Change
Booking Group EUROPE 51.8% 48.2% 45.5% 48.0% -3.8
APAC
32.4% 40.2% 38.5% 35.9% 3.5
Website Direct EUROPE 18.3% 19.3% 20.7% 28.4% 10.1
APAC
23.9% 26.8% 28.1% 35.8% 11.9
Expedia Group EUROPE 17.0% 18.5% 18.7% 10.4% -6.6
APAC
15.8% 16.2% 15.9% 9.1% -6.7
Wholesalers EUROPE 5.5% 5.9% 5.8% 4.4% -1.1
APAC
2.7% 3.7% 2.9% 2.1% -0.6
Other OTAs EUROPE 4.3% 4.5% 4.8% 4.9% 0.6
APAC
23.6% 10.8% 12.1% 15.6% -8.0
Other Sources EUROPE 3.2% 3.7% 4.3% 4.0% 0.8
APAC
1.6% 2.4% 2.5% 1.5% -0.1RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 10
Website Direct Share 36
a comparison of direct bookings by year
Last-minute bookings still high
30%
28 28 Although the industry is showing positive signs of recovery,
27 travellers are likely to remain cautious in how far they
book in advance. According to Airbnb, the percentage of
last-minute bookings has doubled since the arrival of the
pandemic, and this is unlikely to fluctuate much until global
21
uncertainty settles. Guests also want to be prepared in
20%
19 2018
case of any rapidly-changing regulations. “Those who are
thinking about travelling are understandably wanting more
2019 flexibility to rebook or cancel reservations,” says Caroline
Robbins, Connectivity Partnerships Manager for Airbnb.
2020 This is echoed in a survey by Booking.com, where 74% of
travellers want booking platforms to be more transparent
10% about cancellation policies, refund processes and trip
insurance options.
0%
Hotels in Europe Hotels in Asia
(excl. Mainland China)RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 11
Key takeaways
Revisit your guest journey “With our Hospitality Recovery Tracker, we’ve seen strong
While contactless technology became a buzzword in 2020, on staycations and include your safety protocols, local growth from brand.com in many markets, particularly in
it is now the basic expectation in 2021 and beyond. Consider attractions (highlighting those that are crowd-free), on- Australia and New Zealand in recent months,” says Duncan
how guests will be making their way to your property and site activities and any other benefits that will help you Waterman, Country Manager for AU/NZ at D-EDGE
identify touch-free ways to alleviate concerns and reinstall stand out among competitors and attract guests to stay. Hospitality Solutions. “During this crucial period, it is
confidence. essential for property owners to continue focusing on their
Uplevel your hospitality services direct distribution channel. In the most simple terms, the
Activate PMS integrations that will complement your guests’ Is your in-house guest experience geared towards the type direct booking provides you with the guest’s email and
overall experience (such as access control), and consider of guests that you’re trying to attract? Consider providing phone number, which are essential for communications for
business-facing integrations such as a CRM, which is crucial on-trend services such as local guide information, streaming pre-arrival, cancellation and the check-in process which is
for understanding guest habits and booking behaviour. This platforms, contactless food delivery options and spaces to different today for many hotels compared to pre-COVID
will help you drive revenue by offering services or products gather in a socially responsible manner. Dig into your PMS times.”
you may have overlooked and changing those that aren’t guest data to identify opportunities that will enhance your
working to something more attuned to your guests’ needs. offering. Dynamic pricing strategy
With last-minute bookings on the rise, ensure your rate
Consider growing segments such as staycation travellers Faultless booking experience manager is configured to react to the dynamic supply and
If you can cater to staycation ideals, ensure that you’re With direct bookings on the rise, it is increasingly important demand. This puts you in a better position and helps you
communicating that to your guests. Spark interest for consumers to easily find the information that matters to get the most out of every last-minute booking. Shortening
among locals and spread the word about your property them, and have a seamless booking experience. Ensure that the booking funnel with last-minute and mobile deals is
by segmenting guest data in your PMS to target those your website and booking engine is up to date to make the also a good way to encourage guests to follow through with
within driving distance. Create email campaigns focused most of the captive intent of these potential guests. their booking.RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 12
Accelerated
adoption of tech
While the circumstances around travel have drastically The following trends show no sign of slowing and will help
shifted, guest expectations and property operating goals you maintain efficiency and deliver exceptional guest
remain the same; we just have to take a slightly different satisfaction, even without the face-to-face interactions.
approach in order to reach them. By embracing the right
technology stack, operators can effortlessly meet the
evolving needs of guests and staff alike.RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 13
Cloud-based software to become the standard
Cloud hosting was already popular pre-pandemic, but
following the surge in remote working and the need to
rapidly adapt, it has become an essential foundation for
many hospitality businesses.
“Integration between
Compared to on-premise systems, cloud-based software
systems will play a bigger is resilient, scalable and fully accessible via an online
part than ever before, server. Provided they have internet access, front desk
staff can oversee bookings, revenue managers can view
allowing operators to reports to make pricing decisions, and owners can compare
manage their entire
multi-property performance, remotely or on-site. After the
unpredictability of 2020, having the capabilities to switch
solutions with minimal to a remote working environment at short notice is a rising
trend that causes minimum disruption to staff and guests.
input”
Luke Weuffen, Chief Operating Officer - RMS Cloud “True cloud enterprise technology creates a unified
operational experience,” says Luke. “Not only does it enable
greater flexibility, but it also drastically lowers operating
costs, which is front of mind for many operators in 2021.”RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 14
Demand for contactless guest-facing tech
Self-service is being more widely adopted due to the
pandemic and is a trend that is set to accelerate throughout
2021 and beyond.
Many hoteliers are opting for app-based technology, which
guests can easily access from their mobile and also cuts
down costs as you don’t need to invest in expensive on-site
kiosks. This form of technology can also be used to notify “From a 2021 perspective, this will
guests (such as asking them to sign terms and conditions)
and communicate with them via a messaging system. This revolve primarily around promoting a
is a good substitute for the warm welcome and personal
touch of face-to-face conversations which will remain safe, touch-free experience for actions
limited in hospitality settings.
like checking-in and out, making
“Hotels have been forced to speed up digitalisation due to
guest preference for less contact,” says Jasmine. “From a
contactless payments, requesting
2021 perspective, this will revolve primarily around promoting amenities and accessing rooms with
a safe, touch-free experience for actions like checking-
in and out, making contactless payments, requesting phone-enabled entry.”
amenities and accessing rooms with phone-enabled entry.”RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 15
Accelerating operational efficiency and collaboration
Traditionally, housekeepers would complete their assigned
tasks using manual, paper-based reports generated out of
their PMS system. Not only is this method outdated, time-
consuming and insecure, with the risk of sensitive reports
being left on housekeeping trolleys in full sight of guests,
it’s also unsanitary, especially in light of social distancing.
A digital communication tool allows teams to collaborate
virtually and promotes safety by limiting face-to-face
interactions. It also increases operational efficiency by
streamlining tasks, including general housekeeping, deep
cleaning and inventory control. Although the emergence
of COVID accelerated digital technology for staff, the
productivity-boosting capabilities mean it will certainly
stick around post-pandemic.RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 16
Thinking ahead with fluid inventory operations Turning to online staff training Bridging the gap between ADR and guest needs
Many operators are looking at fluid inventory in the wake Managing a remote workforce became the norm for many As personalisation is a key driver for guest satisfaction in
of the pandemic to better assist them with any future businesses in 2020, and with it came a need to adjust their 2021, many property managers are turning to technological
downturn. This implementation allows you to quickly staff training strategy. Technology, like in most other areas, enhancements in their PMS to create a deeper guest
reconfigure your accommodation inventory to long term in was fully embraced and has proven to be an effective and understanding. For example, they are studying guests’ stay
the event of another short-term market collapse. efficient way to onboard and upskill employees. This will history to see if they made any special requests, added
continue in 2021, especially in places where remote working extras to their booking or stayed during a specific time to
Becoming a long-term accommodation provider on- is still required/preferred, or in the event of furloughs. Even draw a clearer picture of their motives and desires. Operators
demand helps property managers target a different market, when staff are back on-site, a tech-based training program that effectively use the data-driven tools available in their
such as students, remote workers and residents (providing will free up staff trainers and can be completed at a time PMS are in a strong position to increase their revenue per
short-term letting and government housing, for example). that suits each employee. available guests, grow their ADR (average daily rate) and
This ability to pivot the business model is forward-thinking, create tailored upsell opportunities to encourage extended
allowing operators to plan ahead for possible global market stays.
shifts.RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 17
Key takeaways
Upgrade your game by switching to cloud Switch to a staff portal to foster more effective Customise your PMS to reflect your business strategy
Cloud-based PMS providers offer remote access, collaboration Create your perfect hospitality ecosystem to suit your
operational collaboration and real-time upgrades when Adopting interactive tools for back-of-house staff helps business strategy and operations. The ideal PMS solution
new features are released. With innovation at its peak in you run a tighter ship by taking advantage of forward- should help you implement fluid inventory management,
response to rapidly changing consumer needs, these are thinking tech. Utilise staff portals to enable real-time task integrate with other tech solutions and automate a range
crucial benefits that keep you at the forefront of best-in- tracking, boost productivity, and help staff maintain a safe of processes to get the very best out of your tech stack,
class hospitality technology. distance. freeing up your time to spend on guests.
Implement a contactless strategy Reap the rewards of your powerful PMS
Mobile check-in functionality will be highly desired, if not Intuitive PMS software will help you identify hidden pockets
demanded by guests in 2021. Make sure your offering of revenue and smart ways to trim costs. Features like
includes this, as well as an online messaging service so native channel managers and internet booking engines
guests can reach out with any questions. You should also help you extend reach and drive direct bookings, without
be able to digitally capture guest declarations for contact needing to invest in third-party products. As most PMS
tracing purposes, storing completed forms in your PMS for features are bundled in a subscription fee, you’ll be able to
60 days in case your government requires copies. easily demonstrate a tangible ROI, achieved from increased
reservation numbers, improved ADR and labour cost
reduction.RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 18
Rethinking
marketing and revenue
management
Marketing and revenue management are tied closer than need to combine their strategies and the intelligence of
ever, however both functions are likely to undergo shifts in their tools to optimise revenue performance.
the way they approach their efforts. Marketing strategies
are expected to be agile, catering to the fluctuating con- Here are a handful of trends that marketers and revenue
ditions and reduced budgets, while revenue managers will managers should be on top of in 2021:RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 19 Marketing Repositioning to meet demand teams exploring more digital-centric channels, focused Remote working and ‘workations’ are starting to replace on tailored, relevant and disruptive marketing. People have traditional ‘bleisure’ (blend of business and leisure) trips. grown even more accustomed to fast technology, online Marketing to these traveller types draw attention to communication and rapid responses, particularly during appealing features, such as work/home comforts, spacious long stints of lockdowns, which means you’ll need to keep outdoor areas and window views, with price points aligned your finger on the pulse to deliver at the pace they now with duration as many are looking to stay awhile (2+ weeks expect. according to Airbnb). Shift in marketing spend and strategy With consumer foot traffic and outdoor activity redefined in 2020, brands have pivoted from traditional media to a more digital/hybrid approach. Investment in out-of-home media is expected to stay at reduced capacity, with marketing
RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 20
“Now more than ever, consumers crave a
sense of connection and belonging,” says
Michelle McCarthy, Global Marketing
Manager at RMS. “In addition to agile
marketing strategies, brands need to
focus on nurturing these relationships
and consistently build connections.
Social media more significant than ever The fastest and most engaging way to
To replace physical connection, consumers are increasingly said they trust online reviews as much as they trust do that is through short video bites to
turning to social media as an outlet to escape, explore recommendations from family or friends, and 82% said keep your brand front-of-mind while
and dream. Social media channels, therefore, remain key positive reviews make them more likely to use a business. still satisfying people’s short attention
research hubs as well as densely-populated platforms that spans.”
are great for hyper-targeted advertising. But your content
has to stand out, as fingers scroll the equivalent of 300 feet
per day with the average attention span lasting only eight
seconds.
From a marketing perspective, social media success
doesn’t just come from regular posting and engagement;
good old fashioned reputation management is creating
lasting benefits too. In a recent survey, 79% of intervieweesRMS CLOUD TRENDS & CHALLENGES 2021 PAGE 21 Personalisation fosters deeper relationships A high proportion of travellers are desensitised to generic promotions, expecting to see offers much more tailored to their interests and budget. This is particularly true with Gen Z, who according to Netimperitive, wish email marketing was more catered to them, with 25% claiming they would show more loyalty to a travel service who sent relevant marketing emails understanding their needs. For example, they don’t want to receive vacation offers for a season they wouldn’t travel in or for a holiday type they’ve never shown interest in.
RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 22 Revenue management Ability to handle constant disruption is essential Automated pricing no longer just ‘nice to have’ Faced with the challenges carried over from 2020, properties Following last year’s unpredictability, revenue management must be smarter, more integrated and adaptive to sudden must be treated as a core business element, with a data- landscape changes. driven system that is constantly evaluating and adjusting “With reduced lead times and stop/start travel movements, your rates multiple times a day. businesses must find better ways to adapt to the surges and changes in booking patterns,” says Murtaza Rangwala “Serious accommodation owners are seeing the value of of Pace Revenue. “As we’ve seen in ANZ, operators have switching from manual to automated pricing,” says Marvin responded in near real-time to domestic booking pattern Speh from Room Price Genie. “One key change you notice fluctuations, executing surgical changes to pricing at a is the immediate reaction to demand, never allowing your granular level for each unit, 24/7, over 365 days. This has rooms to undersell. As algorithms are truly rational, they led to significant rate- and volume-driven RevPar growth easily adapt your business to any pandemic or high-season during high demand.” environment.”
RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 23
A change in approach for pricing optimisation Challenging the revenue strategy ‘mantra’
In the past, historical data and booking patterns were key A successful pricing strategy traditionally focused on
drivers in delivering an accurate pricing strategy. However, targeting the right prospects, on the right channels at the
since the pandemic, these factors are proving less reliable right time for the right price. This is still important but the
in times of travel uncertainty. difference now is how we accumulate the data. The focus
is shifting from historical stats to more real-time data to
“The pandemic is serving as a catalyst to escalate business account for the current unpredictable nature of travel.
transformation,” says Murtaza. “Early adopters of innovation
pre-COVID have now experienced the strategic advantage “Operators need to understand how to deal with the shifts
of automation that has helped them pivot nimbly to the in business mix, consumer expectations and distribution
volatile changes in demand patterns.” Forecasts, therefore, patterns in near real time,” says Murtaza. “Forecasting
need to focus on real-time data supported by AI (artificial with the help of real-time analytics and diagnostics aid
intelligence) rather than relying heavily on historical data. businesses in being agile with their marketing and operations
based on the most current data and buying behaviour.”RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 24
Key takeaways
Make your brand matter positive impression on prospective guests and boost your Adopt dynamic rate strategies
With travellers faced with more choices than ever, you need ranking, bringing more traffic to your page. With a little time The effects of the pandemic has disrupted the status quo,
to make sure you’re capturing their attention in the right and patience, this free marketing tool can help you and your leaving many people extra price-sensitive, but that’s not
places. property prosper. to say that your rates need to drop across the board to
achieve full occupancy. Instead, you need to implement a
“Marketing leaders have to be masterful in making reduced Explore conversational marketing with an AI chatbot dynamic revenue optimisation strategy that can intuitively
budgets stretch,” says Mitchell Nunis, Global Marketing integration adapt prices to maximise profit at every opportunity.
Strategist at RMS Cloud. “The challenge is not only about Consider high-tech chatbots to not only personalise the
showing up where consumers are now spending their time, moment, but to also elevate your guest’s experience by Make timely and informed decisions with an integrated
but trying to stand out from the barrage of advertising and instantly answering their questions. Guests that have to tech stack
marketing. For brand building, now is the time to explore wait hours for simple answers will just go elsewhere. Revenue management enables operators to forecast
new channels such as streaming music, digital video or demand and refine rates in order to yield maximum profit.
co-marketing efforts. If you’re looking at direct response “Matching your guests’ new digital expectations is crucial Integrating a revenue management platform, therefore,
initiatives, it’s about showing up when travellers are for your business,” says Tracy Patterson, Australian Market ingests your PMS data in high volume and frequency,
searching. Understand your target segments, and how you Manager for AI chatbot, Book Me Bob. “They want to stay allowing you to effectively forecast with the help of real-
pivot your marketing spend will be clearer.” in properties that cater to their needs instantly and unless time analytics and data.
you want to answer their questions within 30 seconds, day
Nurture relationships on social media or night, you need to understand that your guests no longer
Engaging with guests and showcasing the faces behind need to talk to you, they just need an answer.”
your brand builds trust and helps create meaningful
relationships. Social media engagement can help improve
guest satisfaction (e.g. responding to reviews), make aRMS CLOUD TRENDS & CHALLENGES 2021 PAGE 25 Conclusion The state of travel in 2021 is not as linear as it has been in previous years. The demand for touch-free tech, personalised offerings, work/travel destinations and instant communication is dominating the minds of travellers and is something properties will be expected to deliver. As we continue on the road to recovery, it is crucial to stay on top of hospitality trends, so you can ensure your offering coincides with industry standards and meets your guests’ ever-evolving needs.
RMS CLOUD TRENDS & CHALLENGES 2021 PAGE 26
Market Share of Distribution Channels
Percentage of reservation revenue after cancellations by channel in Europe and Asia-Pacific (excl. Mainland China)
Direct bookings on the rise
Although OTAs retain online booking dominance, many 2017 2018 2019 2020 Change
have experienced gradual negative growth over the years, Booking Group EUROPE 51.8% 48.2% 45.5% 48.0% -3.8
with direct web bookings claiming their portion of the APAC 32.4% 40.2% 38.5% 35.9% 3.5
market share. This was particularly noticeable in 2020 and Website Direct EUROPE 18.3% 19.3% 20.7% 28.4% 10.1
APAC 23.9% 26.8% 28.1% 35.8% 11.9
is expected to continue in 2021, due to more properties
Expedia Group EUROPE 17.0% 18.5% 18.7% 10.4% -6.6
implementing internet booking engines and because
APAC 15.8% 16.2% 15.9% 9.1% -6.7
apprehensive guests prefer to be in direct contact with their Wholesalers EUROPE 4.4% -1.1
5.5% 5.9% 5.8%
accommodation provider during times of unpredictability. APAC 2.7% 3.7% 2.9% 2.1% -0.6
Other OTAs EUROPE 4.3% 4.5% 4.8% 4.9% 0.6
APAC 23.6% 10.8% 12.1% 15.6% -8.0
Other Sources EUROPE 3.2% 3.7% 4.3% 4.0% 0.8
APAC 1.6% 2.4% 2.5% 1.5% -0.1You can also read
