This week, the picturesque island of Tenerife played host to the much-anticipated Tritech event, where industry leaders and innovators converged to discuss the latest trends and challenges in the hospitality and travel sector. BEONx, as a prominent player in the travel technology space, participated in this event alongside FidelTour and OTA Insight, and brought forward valuable insights during a spirited discussion on hotel distribution. The debate table featured Santi Migueles from BEONx, Sandra Herrera from GF Hoteles, Lorenza Tarascio from OTA Insight, Jo Robinson from Spring Hotels, and was skillfully moderated by Cristina Blaj from Open Revenue Consulting.
Here are some of the key takeaways from this engaging discussion:
Reassessing the Role of Tour Operators (TTOOs)
One striking consensus among the panelists was the resurgence of tour operators (TTOOs) in the post-pandemic landscape. These TTOOs have been regaining market share and strengthening their position. Some have already begun selling packages for Summer 2025. Panelists emphasized the importance of being able to manage the lead time of tour operators effectively and introduce revenue management strategies into this channel. This is particularly critical given the dependence on air connectivity in tour operations.
Individualized Account Analysis
The discussion highlighted the significance of conducting a comprehensive analysis of each account, taking into account all the associated costs. This includes factors such as marketing fees, commission percentages, rappel agreements, and more. Understanding the true cost of each account is essential for making informed decisions and optimizing revenue.
Direct Channel Control
Controlling the direct booking channel emerged as a crucial strategy for hotels. While this channel is often assumed to have lower costs, it’s essential to consider the cumulative impact of factors like booking engine costs, metasearch marketing expenses, and technology investments that aid conversion. Panelists stressed the importance of meticulously measuring the performance of the direct channel, experimenting with different strategies, and adapting based on data-driven insights.
Managing Flight Demand
Beyond tour operators, the discussion also highlighted the importance of monitoring flight demand. This entails not only working closely with tour operators to manage capacity and market share but also staying attuned to charter flight dynamics. Adjusting pricing strategies to align with the reality of charter flights can be instrumental in optimizing revenue in destinations like Tenerife, where air connectivity is a lifeline for tourism.
In conclusion, the Tritech event in Tenerife provided a platform for thought-provoking discussions and the exchange of valuable insights within the hospitality and travel industry. BEONx, alongside FidelTour and OTA Insight, contributed significantly to the discourse on hotel distribution and revenue management, shedding light on the evolving dynamics of the sector. As the industry continues to adapt to changing circumstances, these insights will undoubtedly prove invaluable for hoteliers and travel professionals seeking to navigate the road ahead.