The power of data and AI for effective distribution and digital marketing in hospitality

The fact that many hoteliers have an ambivalent relationship with online travel agencies is nothing new. The push and pull of appreciating the OTAs for their ability to capture bookings while also begrudging the fact they control access to those guests’ data and also may employ tactics that inhibit the hotels’ commercial efforts are ongoing sources of frustration. 

News out of Spain this week put a spotlight on these issues when a regulatory agency there imposed a more than €413 million fine on Booking.com for actions it said have imposed “unfair commercial conditions” on hotels in that country.

But today hoteliers have a myriad of options for their distribution strategies, and by effectively using technology to capture, connect and analyze guest data they can take action to create a great experience for guests and more revenue for their properties. 

That was one of the key messages in a discussion with Cloudbeds vice president of strategic partnerships Sebastien Leitner and Javier Delgado, managing partner and EMEA CEO at Mirai, in the PhocusWire studio at the Phocuswright Europe event in June.

“Distribution costs are a significant chunk of any hotel cost these days. It’s the right time to sharpen the pencil if you will,” Delgado said.

“ADRs [average daily rates] are very high, but if you can reduce your costs and more importantly your dependency from third parties that are keeping the consumers and travelers for themselves and they are only sending you a reservation, that’s the wise thing to do now. … The hotels need to own the conversation … and understand who the traveler is so they can address them in a better way, build a relationship – that’s the whole point.”

Delgado also spoke of the European Union’s Digital Markets Act and why it may bring some “tectonic changes” to distribution and digital marketing. 

A fundamental challenge for hoteliers is the legacy technology that may keep data in silos, inhibiting their ability to have an accurate, holistic view of their guests. But Leitner is optimistic.

“We’ve been working on it for decades – exchanging data between platforms, finding connectivity … contextual information … that’s what we’re all working on,” he said. 

“Are we finished? No, and we continually have to invest in it.”

The two also shared their views on artificial intelligence, machine learning and automation – and why the ultimate value of technology is its ability to free hoteliers to create great experiences that not only satisfy guests but keep them coming back again and again. 

Watch the full discussion below.