Since 2005, the travel industry has been our sole focus. We have experience providing various services like renting out holiday accommodations and vehicles and arranging travel tours in Germany and South Africa.
At the same time, working in an ICT & Business Consultancy, we had the rare chance to follow closely the development of booking engines and online travel marketing. In our role as a travel service provider, we always chose to pay higher and higher commissions for securing our bookings. But the new trends on the market inspired us to think about the alternatives the industry was facing. Our strong business hunch led us into exploring how to avoid the high commissions that guests and service providers were being charged, but more importantly we recognized the need to reinstate direct contact with guests.
In reality, answering the seemingly simple question of how one avoids commission charges of up to 30% is very complex.
After months of intensive research, we realized that just two conglomerates ruled over 90% of the travel industry. So investing hours and searching for the best deal becomes pointless, unless you know in advance which of the roughly 200 booking sites belongs to which of the global players.
Another important finding was that most booking systems used by hotels and guesthouses rely on Channel Managers. Their job entails entering the property or tour price into the booking portals and usually the same price is provided to every single portal. And just like that, price differentiation becomes the exception rather than the rule. The result? A guest, surfing one booking site after another, surfing one booking site after another ends up finding the same price.