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Could Google become a dominant force in hospitality?

Google is almost omnipresent in our lives these days. We use it for all sorts of online searches, whether it’s trying to access arcane information or find our way from A to B.

So could Google become a dominant force in hospitality?

“They’re one of the best poised currently to do so because they have integration with flight data, hotel data, integration with Uber and many others, so they could essentially have the entire trip.” – said Martin Soler, Marketing Advisor and Partner with Dryven.co.

What then is Google’s view of the hospitality sector? At the International Hotel Investment Forum (#IHIF2017) in March, Terri Scriven, Google’s industry head for hospitality, emphasized how the tech giant works with hoteliers and others. She had plenty of practical advice for hoteliers about the need to hire data scientists and to integrate a hotel’s customer relationship management (CRM) system with the property management system or PMS. Asked about the ability of hotels to analyze and use data, Scriven replied: “It’s horrible, it’s kind of hitting my head against a brick wall on a day-to-day basis.  But there’s progress being made which is good.”

“Your websites are rich with so much data,” she said, adding hoteliers should use an analytics tool for insights into why customers visit their sites but then leave to book with an OTA.

She suggested that hotels should not chase the OTAs, but instead should try to make sure their messaging relevant to their target audiences. “And the more relevant the messages are, the more likely they are to book direct with you.”

 

“Hotel websites leave much to be desired. It’s the reason why OTAs are winning out. The focus has been very much on conversion and how to better convert that user who comes to the website. And instead of providing beautiful imagery – and videos are so important as you need to inspire them to come to stay focus on how you can better convert them and there’s a lot of data that can help that, and AI (artificial intelligence) is part of it, to understanding people when they’ve come back to your site, customizing the suggested hotels for them to stay at or the overall offer on the site.”

“Let’s get the basics right first. Let’s get those sites looking much better, get mobile sites in place and then you can evaluate AI but you need to start with the site that converts first.”

Google then is currently working with both the hotels, in terms of their online presence, and also the OTAs. Asked whether the war with the OTAs was over, Scriven replied that she disagreed. “The game is not lost because you have to optimize different channels, booking.com channels, etc. but there’s still a good percentage of traffic that comes direct.”

The game may not be lost – yet – but as the game continues to change rapidly, hotels may find it difficult to keep pace. Even OTAs like Expedia with significant budgets for marketing and tech spending may be a little wary about what’s on the horizon if Google does broaden the scope of its ambitions, despite the European Commission’s attempts to rein it in.

 

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So could Google become a dominant force in hospitality?