Online Travel Update: More Platforms Turning to Fintech Products to Drive Growth | Foster Garvey PC
This week’s update features stories about fintech’s continued growth and rumors about Sabre’s possible future. I hope you enjoy.
More platforms using Fintech products to drive growth
(“Ixigo, Amadeus Latest to Add New Fintech and Payment Options,” Sep 16, 2022 via Phocus Wire)
Indian travel app Ixigo and Amadeus both recently announced plans to bring new payment tools to their booking platforms. Travelers who book flights on Ixigo will now have the option to buy “flexible” tickets that allow travelers to change their flight (travel date, airline and destination) and only pay the difference in prices. This new tool, Ixigo Flex, will complement Ixigo’s current offering, Ixigo Assured, which allows travelers to cancel a flight for any or no reason at any time. Amadeus announced plans to work with fintech providers Uplift and Fly Now Pay Later to offer vendor partners and agencies the ability to provide travelers with a new buy now pay later option.
What if Saber sold its hotel software business?
(“What If Saber Put Its Hotel Software Unit in Play,” Sep 15, 2022 via Skift (subscription may be required)
Skift recently reported on internal discussions earlier this year at Saber regarding a possible sale of part or all of its hotel software business to Oracle. While neither side would confirm the report, it is notable that Oracle Hospitality’s current executive, Alex Alt, was the former president of Saber Hospitality Solutions, and Oracle Hospitality’s former executive, Greg Webb, was a former vice president at Sabre. Would such a sale make sense for both companies? Perhaps, especially for a formerly cash-strapped Saber operating in an increasingly competitive market. Oracle will also benefit from the addition of Sabre’s widely respected central reservation system and booking engine. While commentators believe a sale is now unlikely, it raises interesting questions for hoteliers considering or renewing agreements with Saber (ie, time to review those terms of reference again), especially those who have worked with Oracle in the past. One thing is always certain in the hospitality system/solution provider world – change is inevitable.
Hoteliers provided an early glimpse of attribute-based shopping in action
(“An early look at new attribute-based shopping for hotels,” Sep 14, 2022 via Phocus Wire)
While the industry waits for the major CRS providers to launch their attribute-based shopping (ABS) platforms, a recent study from a small German PMS provider may provide insight into the benefits ABS may ultimately provide – for travelers and hoteliers alike. Although the supplier’s sample size was incredibly small (only 14 independent hotels in Europe were surveyed from April – August 2022), some highlights from the study include:
- 97 percent of users had some interest in the ABS offers (with 20 percent extremely interested)
- 18 percent of orders processed over the five-month period came from the ABS order route (as opposed to more traditional routes – best price, most popular, etc.)
- A majority (63 percent) of travelers paying more than $251 per night are willing to pay more for a room with preferred features and amenities
Other news:
Airbnb CEO Brian Chesky says competitors have the travel marketing funnel all wrong
14 September 2022 via Skift (subscription may be required)
The so-called travel marketing funnel for Booking Holdings and Expedia has really been a sieve. Domestic travel and remote work have pushed accommodation to a higher position in travel plans.
