The hotel industry is set for a record year in 2024, with revenue projected to reach over $446 billion and grow to over half a trillion by 2028. Room demand and occupancy rates are expected to increase, along with average daily rates. However, there can be discrepancies between booking data and actual revenue confirmed by hotels. These gaps can lead to challenges for hotels and travel management companies (TMCs) in terms of commission payments and relationships with partners.
Gaps in hotel booking data can occur due to modifications made after the initial reservation, such as changes in room nights or upgrades that may not be communicated to TMCs. These modifications can lead to significant discrepancies in data, impacting revenue streams and relationships between hotels and partners. Understanding and addressing these gaps can lead to better forecasts, revenue management insights, optimized ADRs, and more accurate commission payments, benefiting both hotels and TMCs.
Data from Onyx CenterSource shows that the gaps between pre-stay and post-stay data are narrowing, with improvements in data handling and communication practices. Rather than canceling and rebooking reservations, hotels and agencies are now treating modifications as part of a single continuous transaction. Despite these advancements, a 10 to 15 percent discrepancy is still significant, potentially leading to lower revenues for TMCs and administrative challenges for hotels. Closing the gap between initial bookings and post-stay realities is crucial for the success of both parties.
Understanding the dynamics of the hotel booking landscape and adapting to changes is essential in the fast-paced travel industry. By merging agency-booked data with hotel-actualized data, hotels and TMCs can work more efficiently together and focus on providing better service to customers. Onyx Insights offers a comprehensive view of the industry, helping hotels and TMCs make data-driven decisions and strengthen their partnerships. With over 100 million transactions processed annually on behalf of agencies and hotels globally, Onyx CenterSource plays a key role in facilitating commission payments and improving data accuracy in the hotel booking ecosystem.
