Hotels and OTAs collaboration: A bond beyond bookings

It was in the late 2000s that the collaboration between Indian top hotels and Online Travel Agencies (OTAs) began to gain significant traction. Ever since, it has evolved into a critical aspect of the hospitality industry in the country. It’s a win-win situation for both, with the OTAs leveraging their extensive user base and digital expertise to connect the discerning travellers with the unparalleled experiences offered by India’s most prestigious hotels.

Highlighting the benefits of these alliances, Philip Logan, COO, Royal Orchid Hotel Ltd, says, “Leveraging OTA platforms like EaseMyTrip and Booking.com have expanded our reach to a broader audience of travellers seeking quality accommodations. These collaborations allow us to leverage their extensive platforms to attract a wider audience and streamline the booking process. We benefit from their advanced technology, marketing expertise and vast customer base, ensuring competitive visibility and ease of access for travellers.”

Seasonal booking patterns
Seasonal booking patterns have a substantial impact on hotel demand, especially during peak periods like summer and major holidays when the demand goes up. Conversely, mid-week winter periods typically witness a decline in demand. Sabina Chopra, co-founder of Yatra.com, explains their approach to influencing these patterns, “We use data analytics to forecast peak travel times and implement targetted promotions, which significantly affect seasonal booking behaviours. Our platform also employs dynamic pricing models to help hotels maximise occupancy rates throughout both busy and quieter seasons.”

OTAs have also reshaped booking patterns for Royal Orchid Hotels. “OTAs have significantly influenced booking patterns by providing a convenient platform for travellers to discover and book accommodations,” explains Logan.

EaseMyTrip, shares CEO Nishant Pitti, offers year-round deals. “We balance demand through strategic sales and promotions. This approach benefits travellers with affordable options and ensures steady occupancy for hotel partners.” Adds Logan, “The dynamic pricing and promotional opportunities offered by OTAs have optimised revenue management, ensuring high occupancy rates even during off-peak seasons. Additionally, the review and rating systems on these platforms have bolstered consumer trust and transparency, which further strengthens the brand reputation.”

AI integration
AI integration is transforming every aspect of contemporary work, but its impact is most profound for OTAs. Beyond serving as intermediaries, OTAs are pivotal innovators within the travel industry. For example, Yatra.com harnesses AI to tailor customer experiences, refine pricing strategies and elevate operational efficiency. “We integrate AI to personalise customer experiences, optimise pricing strategies and enhance operational efficiency. By using algorithms such as Collaborative Filtering and Hierarchical Recurrent Neural Networks (HRNN), we display the properties most likely to be booked on the first page of search results,” explains Chopra.

Echoing the same sentiments is Pitti. “We leverage AI to analyse booking trends, predict travel patterns and personalise travel recommendations. This technology helps us offer tailored travel packages, improve customer service through chat bots and streamline booking processes,” he says. These innovations can surely lead to increased customer satisfaction, higher conversion rates and improved resource management for the hotels.

Challenges
Despite the promising growth, the collaboration between OTAs and the hotels faces several challenges. “Maintaining market share amidst the rise of online travel platforms presents several challenges. This includes the need for continuous optimisation of pricing and promotional strategies, ensuring consistent visibility and managing positive reviews across multiple platforms,” adds Logan.

Traditional travel partners, corporate travellers and event planners remain crucial for sustaining a balanced business model. However, the strategic partnerships with OTAs are essential for meeting the demands of today’s digital-savvy travellers.

Future strategies for growth
Looking ahead, OTAs have ambitious plans to further enhance hotel and resort booking revenue. Yatra.com plans to implement key strategies such as customising the user interface base. “We plan to customise the user interface based on specific requirements and past booking patterns. We will also continue to provide theme-based options such as wildlife, romantic and adventure, aligning hotels with these themes according to booking patterns and traveller profiles,” Chopra outlines Yatra’s strategies.

Sharing his vision, Pitti says, “Growing the non-air business vertical is our prime focus. Our acquisition of a 55 per cent stake in CheQin has strengthened our reputation in the hotel segment. We expect traction for hotel bookings from Tier II and Tier III cities, and our franchise retail stores are helping us cater to their demands effectively.”

So, what began as a symbiotic relationship, harnessing the digital prowess of OTAs and the luxury of premier hotels, has grown into a cornerstone of how travellers experience India’s diverse accommodations. However, amidst the successes lie significant challenges. The need to balance market share, optimise pricing strategies and maintain positive reviews across platforms remains a constant struggle. Traditional travel partners and corporate clients must coexist with the demands of today’s digitally empowered travellers who seek convenience and transparency.

Moving ahead, OTAs are poised to deepen their integration of AI, personalising customer experiences and refining operational efficiencies. In essence, as technology reshapes booking patterns and customer expectations, the journey of hospitality in India continues to evolve. It’s a narrative of adaptation, where the fusion of traditional hospitality values with cutting-edge digital solutions defines a new era of guest satisfaction and operational excellence.