I recently read this blog from Trivago, and found it not only interesting, but very compelling. What I didn’t see – and where I have some difficulty finding information – is how does the corporate travel market capitalize on all this innovation? We all know there’s an issue with “leakage” in hotel spend in the corporate space.
Most data indicate about half of corporate hotel reservations are booked outside a managed program. Many think, including myself, a lot of this is driven by a poor online and/or mobile experience with online booking travel providers. Even more surprising: phone reservation hotel attachment rates hover around the 30%-40% range.
While some solutions exist to bring bookings back into the program, that drives additional costs for the ecosystem, and of course, doesn’t help the travel management company (TMC) earn commissions. So, I think we need something better that encourages more bookings through the managed channel, by providing a better user experience, personalized content, and financial incentives for the TMC.
We, at Deem, are piloting new solutions to do just that, through artificial intelligence and machine learning. The foundation of our initial offerings are possible through our acquisition of OLSET, a leading big data and machine learning technology company.
If you manage corporate travel for your company, and you are interested in driving adoption of hotel reservations across your entire program, I’d love to share some ideas with you. If you are a TMC, online travel agent, or a supplier, let’s calculate how much incremental revenue we can help you drive from your existing customers, and not just in the hotel segment. The technology can be applied to any segment, including airline products, car rentals, and other ground transportation services.