Payment service providers help unlock Asian hoteliers growth potential
2017/11/27 16:28:03
The travel industry lies at the forefront of such change, with the region expected to surpass North America in digital travel sales, largely driven by China. In this sector, Asia is leading the field in global online travel shopping growth, but along with it the rise of online travel agents (OTAs) is presenting a robust set of challenges and opportunities for hoteliers in the region.
Recent figures released by Phocuswright at Web in Travel, indicate OTAs in Asia currently enjoy a 70 percent share of online hotel bookings, with reservations made directly on hotel groups websites accounting for less than half of the remaining figure.
It’s estimated that hotels receive an average of 75-85 percent of the revenue per booking from an OTA, sometimes even less. And despite their stay on the property, that guest then becomes a customer of the OTA where they booked.
As Phocuswright also points out, consumers are by and large looking for security, convenience and (especially with millennials) the best deals. They therefore look for: i) The ability to lock in their price and pay in local currency; ii) the ability to check out using a preferred local payment method; iii) competitive pricing (this includes pre-paid rates offered on the hotel website in order to lock in the same room at a better price).
Hotels are being challenged to meet the growing demands of customers on their own websites, particularly when it comes to an easy quick and seamless payment processing solution.