How room and rate mapping increase profitability
Changes are happening fast in the travel industry. New technology enables OTAs and suppliers to streamline previously complicated processes in ways that allow them to simultaneously increase revenues. With the rolling out of various innovation for the industry, it can be difficult to determine how it actually works and what the true business impacts are. For example, did you know that automated room and rate mapping not only normalizes your room descriptions but also enables you to effectively control your profits and increase your revenue?
Room mapping enabled personalization drives revenue
In fact, accurate room and rate mapping can increase your conversions on average by 65%. Here’s how. First of all, room mapping takes the concept of hotel mapping a step further and ensures matching of rooms and rates not just at the hotel, but at the room level.
Until now, the status quo for suppliers is to provide varied, sometimes complex rate plans, without linking them to the actual room. With room mapping, OTAs can successfully make sense of the disparate room names and IDs between various suppliers, so they can display them in a normalized and organized manner to customers. A cleaner and more organized user experience alone can significantly increase customer retention and satisfaction, leading to more revenue potential.
When you’re able to accurately match up rooms, you can also more easily organize attributes and add-ons. This means that room mapping ensures the customer ends up with exactly the room he booked, along with the chosen attributes, such as breakfast or a preferred view.
This enables greater personalization and the ability to offer more tailored search results and advanced filtering options. Offering personalized choices drastically increases conversions, and coupled with a better overall user experience, also decreases look to books.
Rate mapping creates better margin control
Highly personalized offers can be difficult to price pre-booking, which leaves room for accruing unexpected costs. By the time the customer books a complex offer, the supplier price might lack some of the requested add-ons, such as flexible cancellation or an added breakfast. In this scenario, it’s the OTA that has to cover any potential extra charges, reducing profit earned from the booking.
This is where rate mapping steps in: it compares the different pricing components of the rooms in combination with the additions and clearly displays them to the OTA. This allows the OTA to compare the given supplier rates, know exactly what’s included, and then price competitively. This removes the potential for unexpected costs associated with the room selected.
Room and rate mapping can also enable OTAs to gain insights into their customers booking behavior as they are able to understand exactly what kind of rooms and offers customers are looking for. They can utilize this information to offer customers exactly what they want while making the most money, ultimately securing competitiveness in a fast paced industry.
Room and rate mapping solutions with this kind of advanced functionality are relatively new for the industry. If taken advantage of, travel businesses can easily reach their clients better and ultimately experience substantially more profitability.