This week's Update includes two stories detailed Booking Holdings' recent earnings release and a surprise story regarding Google's hotel booking platform. Enjoy.
Google Shutters Book on
Google
("Book on Google for hotels to shut after low
take-up," February 25, 2022 via Phocus Wire)
Citing low usage by both suppliers and users, last week, Google
announced that it was shutting down its "Book on Google"
feature on May 25. The facilitated meta search platform (my phrase)
allowed users to begin the booking process on Google (reservations
and payment details) and then complete the booking on the
supplier's (hotelier or OTA) website. The announced changes
should have no effect on Google's hotel search products,
including the free booking links implemented last year.
Takeaways from Booking Holdings'
Earnings Release
("Booking Holdings Looks to Pull Away from Airbnb on
Profit Margins," February 24, 2022 via Skift Travel News)
(subscription may be required)
While much of last week's news regarding Booking Holdings'
fourth quarter earnings release focused on Booking's improving
financial metrics, I was particularly interested in Skift's
story detailing Booking's plans for improving its profit
margins (particularly in comparison to its rental platform
competitor, Airbnb). According to Booking's CEO, Glenn Fogel,
and CFO, David Goulden, achieving the desired profit margins will
depend largely on Bookings' success in pursuing its
well-publicized "connected trip" strategy. The strategy
involves several components, including building out Booking's
verticals (airline and activities), improving customer loyalty and
making payments easier (note that use of Booking.com's lauded
payment platform remained relatively flat over the fourth quarter),
among others. Interestingly, Booking also suggested that it was in
a position to convince its partners (including hoteliers) to
provide substantial discounts and other benefits to drive
incremental bookings. I'll be anxious to watch suppliers'
response to this ongoing effort, particularly around adoption of
Booking.com's payment platform, use of the anticipated
wholesale distribution platform (via Priceline) and now, the
response to these so-called "discounts and benefits."
Should Global Distribution Systems Worry
About Airlines' Direct Connectivity Push?
("Amadeus Waves Off Concerns About Airlines' Direct
Distribution Push," February 25, 2022 via Skift Travel News)
(subscription may be required)
Amadeus says no. Will that change as airlines continue to explore
and adopt new forms of connectivity, like new distribution
capability (NDC)? Amadeus still says no. When compared to its other
GDS competitors, Sabre and Travelport, both of whom appear to lag
behind in the development and distribution of new airline focused
technology, Amadeus may be right.
Other news:
Wego Acquisition of Cleartrip Middle East Would Create
Online Travel Group
February 23, 2022 via Skift Travel News (subscription may
be required)
Singapore-headquartered Wego has traditionally been a regional
metasearch business, where travelers search for trips and book them
elsewhere, but the pending acquisition it announced this week of
Cleartrip's Middle East business from India e-commerce giant
Flipkart Group would create a more diversified online travel
group.
Bookings Still Far Below Pre-Pandemic
Levels: New Travel Health Index
February 23, 2022 via Skift Travel News (subscription may
be required)
The travel industry in its prime has a healthy balance between
demand and supply, with travel players looking to find that
equilibrium between rates for airline seats, hotel rooms or any
other travel commodity, and the amount of bookings coming in. Data
from our improved Skift Travel Health Index (formerly the Skift
Recovery Index) shows that the industry is far from this
equilibrium as it continues to recover from the Covid-19
pandemic.
Tripadvisor Plus Is Case Study in Online
Travel Hype
February 23, 2022 via Skift Travel News (subscription may
be required)
It was only a little more than a year ago that Tripadvisor
Co-Founder and CEO Steve Kaufer touted the company's fledgling
— and since all but obliterated — Tripadvisor Plus
subscription membership program for discounted hotel rooms as
potentially a billion-dollar business.
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