OTA’s and mobile technology are two themes you see a lot on the ResortsandLodges.com Business Blog, and a recent interview with the company’s chief marketing officer regarding Priceline entering the on-property services market may be a signal of things to come throughout the travel industry.
Priceline’s goal is to play a larger roles throughout the travel experience, such as enabling hotel check-ins or on-site purchases, and views mobile as essential to realizing these goals.
The idea of mobile check-ins is not a new theory in the travel industry, but most of this discussion focused on individual brands like Starwood, Marriott and Loews leading the way with new mobile innovations.
Often times, once the initial booking of the hotel room through the OTA has been completed, these companies have played no further role in the travel experience. As Brett Keller, CMO of Priceline put it, “We are primarily a transaction service. We want to help you find and book that hotel as quickly as possible, but we have expanded beyond that a little bit.”
How is Priceline Expanding?
Newly-enhanced app features will now allow Priceline travelers the opportunity to explore the area to which they are traveling, in a map-based environment, to quickly find and explore where they can fly and purchase products at a discounted price.
Going forward, Priceline would like to have a hand in day-to-day tasks when a travelers arrives at their destination with features like checking in at a hotel, making purchases at the property, unlocking room doors and even unlocking rental car doors. This may seem futuristic, but these types of things are offered on a limited basis right now.
Why This Matters to You
Although this is a great opportunity for OTA’s to play a more impactful role on the travel industry, it could have a negative impact on these services at your property.
Expediting the check-in process continues to be an important improvement for any type of lodging, whether you are running a brand-name hotel, or a small boutique hotel. Travelers are happy to get away from long lines and waiting just to get a key to your room.
On-property services and purchases, however, are a priority revenue stream for hoteliers, and losing this money to OTA’s could create a more fragmented industry. Property managers/owners may have to consider price changes in order to keep their services attractive to travelers.
Ultimately, travelers are looking for the best value with the most convenience. Creating an easy-to-use marketplace these bundled packages and services can be found serves the traveler on a very personal level, but could lead to problems down the road between hoteliers and OTA’s.
To read the entire interview with Brett Keller, click here.