The use of artificial intelligence to parse traveler data to
provide more personalized booking choices has been on the upswing. Proponents
tout better selections, increased time and cost savings and higher program
compliance.
At the same time, there is a movement toward attribute-based
shopping, or the unbundling of hotel rooms, not unlike the airline sector’s
embrace of ancillary-based displays, which continues with New Distribution
Capability. (The backlash against unpopular resort fees is partially leading
this charge on the hotel front.)
Sure, there’s already been pricing segregation based on room
type: king-sized versus queen-sized bed; standard room versus suite; a room on
the corporate floor, complete with lounge perks. But now technology could allow
for differentiated pricing on whether the room is near the ice machine, what
kind of linens are used, whether bottled water is included, pillow selection,
fitness center access, pool access, breakfast, parking, carbon offsetting,
in-room eco-products and room cleaning. (Folks have gotten used to paying a
separate cleaning fee on Airbnb.) You name it.
What then would be defined as a “standard” room for a travel
program? All these a la carte options could be offered as individual rooms in
an online booking tool, making the choices seem endless. To make this the
perfect storm, most OBTs now include content from online travel agencies and
Airbnb—in order to make the corporate booking experience more like the consumer
experience and to try to lower leakage.
But do travelers really trust their corporate booking tools,
or do they still go outside the program to double-check availability and
prices? Won’t all these additional options just push them further in that
direction, to outside sites to make sure they’re getting what they want at the
best price?
Or, the use of data and AI could take a traveler’s past
selections and bundle together a hotel room “package” that offers the
traveler’s preferences from past stays all in one option. That sounds great,
right? Get what you want and pay only for what you want. Plus, it’s served up
as one of the top choices in the OBT.
That is the direction the market is heading, but
it will take time to capture enough data to make the technology and algorithms
accurate and comprehensive enough to ensure trust and loyalty on the part of
travelers. If and when that is achieved, then companies could begin to see
increased time and cost savings and program compliance. In the meantime,
though, travelers are likely to get even more choices that could lead to
delayed decisions. And once the OBTs are able to offer preference bundles, what
if they actually end up costing more than if they were priced out individually?
There’s nothing to stop the set-up of the system from offering a premium price
for giving a traveler exactly what they want. So, cost savings at least in 2020
still could be up in the air.