Hotel meta-search is the future for bookings

Tourists are becoming more and more demanding regarding their travel bookings. Indeed, they need to easily have access to a sufficient database and they need to compare prices. However, the only way for internet users to do it was to find themselves their own resources through the search engine they used.

Recently a “new” tool has been used to make easier the booking process for tourists. This tool is known as meta-search engine.

What is a meta-search engine?

A meta-search engine is a tool that enables the Internet users to ask for one criteria and access several search engines’ databases simultaneously.   

Is it a new tool?

Absolutely not. Mamma.com was the first meta-search engine created by Herman Tumurcuoglu in Quebec and was commercialized in 1996.

But as many tools for tourism it took time for marketers and companies to understand the potential benefits. As a result, it is only since a few years that meta-search engines are used for tourism destinations.

What are the benefits?

This engine enables consumers to access a more accurate database for their research. They do not have to look for different websites in order to find the best price. The meta-search engine will have already gather the prices for different booking websites.

For hotel companies the meta-search engines can be considered as a new distribution partner. Indeed, once the customer is given the best possible information, the decision making process is fasten. The next step for the customer is the payment, which means the monetization of the booking process.

What are the trends and well-known actors?

Google launched in the end 2013 a new meta-search capability within Google Maps that enables consumers to get flight prices while looking for different routes. This is only the first step of a broader meta-search process. They will try to gather hotel information for the next step.

TripAdvisor gave its business an edge in hotel meta-search. While looking for a hotel on TripAdvisor, the customer is now given a price comparison sometimes between more than 10 booking websites! What does it mean? As we have said previously, it means that the customer does not have to lose time looking through 10 different websites – 5 of which he or she has never heard about – and feels like he or she has the most accurate information. Thus all the distribution channel is simplified and the monetization is accelerated. 

Sources: 

http://skift.com/2013/02/13/tripadvisor-shakes-up-business-with-aggressive-hotel-metasearch-integration/

http://www.tourism-review.com/hotel-marketers-top-three-metasearch-trends--news3758

http://www.eyefortravel.com/distribution-strategies/new-frontiers-how-meta-search-upping-its-game

http://citeseerx.ist.psu.edu/viewdoc/download?rep=rep1&type=pdf&doi=10.1.1.205.17

The giant Google investing into the e-tourism industry

Since its development, Internet has contributed a lot to the tourism sector. In fact it has never been so easy to plan a trip, get information about a destination or to share experiences. Many new companies, such as Kayak have emerged in the tourism industry to help travelers in their booking process.

Google, as the most famous search engine and multinational company link to Internet, is always trying to decrease the number of click between searches. Google has throughout the years developed tools such as Google Earth, Google Map or Google + that facilitate Internet users browsing. E-tourism being the most active sector on Internet, Google has naturally created its own services in this industry. To help the firm to be rapidly efficient, Google acquired several companies in the tourism sector such as ITA Software, Zagat and HomeAway. those acquisitions were born Google Hotel Finder (compares room rates and provides information) and Google Flight Search (compares the rate of flight tickets). However Google is continuing to expand in the e-tourism sector by developing a new service Google Travel that would centralize booking and optimize information sharing.

                                                                    Source: Travopia.com

The impacts on the tourism industry

The above graph shows that Google is now present at each stage of the travelling process, from dreaming, planning, booking and experiencing to sharing.

With the development of those new and varied tools, competition in the E-tourism industry is becoming stronger. Indeed, travel websites such as Expedia are in direct competition with Google. Travel comparators will most probably face hard times in the coming years because it is less costly for suppliers such as hotels to be on Google comparators than on online travel agencies.

However, Google Flight Search for example, is not as powerful as its competitors yet (Experian Hitwise study). Indeed, in September 2012, in the United States, it managed only 1.4% of the visits on all travel comparators websites whereas Kayak was managing 61%.

Moreover, search engines with a travel service such as Yahoo Travel and Bing Travel would suffer a lot from the launch of Google Travel. DMOs also would be impacted as they would have more difficulties to stand up from the others and be visible. Brazil Ministry of Tourism has been proactive and has created, in partnership with Google, the channel Visit Brazil on Youtube. Users can watch hundreds of videos and places of interest are automatically indicated on Google Maps . 

Besides, Google Panda & Penguin modified its algorithms which had terrible consequences for many travel websites. Finally, Douglas Anmuth, analyst from Barclays Capital stated that Google will launch soon the payment by click for airlines companies on Flight Search and for hotels on Hotel Finder. If this does happen, it would revolutionize the industry.

The professionals of the sectors view the evolution of Google in the tourism industry with suspicion and fear. Indeed it develops a strategy that includes tools which allow to obtain all the information needed to monitor, track, sell and predict the evolution of the touristic activities. Moreover Google strategy is not clearly displayed. We believe this is only the beginning. They are going to go much deeper in travel industry and might pose serious threat to existence of some travel companies. Even if the giant did not attack the online booking sites yet it appears that the American has all the tools to build a comprehensive travel site from the platform to booking. At the same time Google provides different applications and working tools, which could help the sector and enhance the visibility of some companies. Only time will tell but for now Google offers as many opportunities as potential threats.  

                                http://www.youtube.com/watch?v=OC2bUYVkjrY

Coralie DEGUERVILLE, Alyssa KIEFFER, Lou MICHEL

Articles from:

-  http://www.veilleinfotourisme.fr/un-article-du-jdn-explique-la-strategie-de-google-dans-le-tourisme-avec-hotel-finder-et-flight-search-europeen--103491.kjsp?RH=VEILLES

-          -  http://veilletourisme.ca/2013/03/04/comment-google-se-rend-indispensable-pour-le-voyageur-1re-partie/

-          - http://www.lechotouristique.com/article/google-est-il-une-menace-14-decembre-2012,53690

-       Pictures from:

-      - http://technorati.com/lifestyle/travel/article/googles-hotel-finder-brings-life-to/