Executive Series: Johannes Thomas on trivago Acquiring Base7booking

It’s a pleasure to announce the acquisition of Base7booking and share the strategic background behind this decision. Joining forces makes us richer in talent and knowledge and gives us the opportunity to fuel the urgently-needed change towards cutting-edge technology in the hotel industry. With this move, we are strengthening our commitment to empower hoteliers to compete online and drive direct bookings with just a few clicks.

Base7booking’s cloud-based property management system gives hoteliers access to competitive hotel technology, while trivago is their connection to millions of travelers worldwide. An integration of both platforms will enable hoteliers to easily connect with these millions of travelers and drive direct bookings through their own websites.

We are aiming to unveil significant synergies and to unlock enormous opportunities for hoteliers and travelers. Together with Base7booking, we envision hoteliers moving from pen-and-paper operations to digital property management, competitive direct booking capabilities, and rates on trivago with just a few clicks.

Base7booking, a pioneer in cloud-based technology for hotels, was built by innovative Swiss hoteliers who were dissatisfied with the technology available on the market. The team created a platform with a rich set of tailored functionalities that help hoteliers manage their properties efficiently. Online accessibility via the cloud enables unparalleled flexibility – hoteliers can operate and communicate with their hotels regardless of where they are, whether out shopping or sitting in their own living rooms. The platform is available in 17 languages, and hoteliers from more than 40 countries are currently operating their properties with Base7booking.

We believe that hoteliers are missing out on significant opportunities. Joining forces with Base7booking will enable them to keep control over their bookings and retain their entrepreneurial freedom. A recent Phocuswright report* shows that two-thirds of hoteliers are planning to increase their efforts in the direct booking channel. Together with Base7booking, we want to leverage this momentum and ensure their success.

Key will be easy access to cutting-edge technology, which will make hoteliers competitive online and simplify direct marketing. We envision a deep integration of our trivago Direct Connect functionalities into the Base7booking platform, so hoteliers only need one system to manage both their properties and marketing activities. It will enable them to publish their direct rates on trivago straight from the Cloud-PMS. In fact, it will be the easiest way to drive direct bookings to a hotel.

The challenges hoteliers face being competitive in the digital age

The role of technology is becoming increasingly important, and hoteliers must embrace this new era in order to ensure strong online visibility, drive direct bookings. and improve guest satisfaction. In the long run, this will boost loyalty and decrease costs-per-booking. The dramatic underdevelopment of technology in the hotel industry is reflected in the hoteliers’ resistance to adopt it. The latest Phocuswright report* on the independent hotel market confirms this. Just a minority of hotels take advantage of PMS technology and consider marketing channels effective.

So what are the root causes for the lack of competitiveness?

Available booking engines (IBEs) are not competitive

They are not user-friendly. Paramount to success is a fast, user-friendly, optimized booking engine that turns as many travelers into guests as possible (high conversion rate). Hoteliers and technology providers are failing at setting up IBEs that encourage travelers to make a booking.

They are filled with poor content and unattractive rates. Travelers are attracted to websites with excellent content and attractive rates. IBEs which are not set up to support in-depth hotel information, attractive images and competitive rates hold the traveler back from booking directly.

Available hotel technology is difficult to access

It’s too expensive. Operating and maintaining a property is investment-heavy, and budgets are a particular constraint for hoteliers. They have to manage their expenses wisely. Traditional systems are expensive and are often coupled with costly hardware and installation fees. This is an especially big hurdle for small and medium sized properties that cannot compensate the costs easily.

It’s not intuitive. Hotel technology is not often user-friendly.The systems are very complex and don’t solve hoteliers’ pains to the degree they should. From selecting technology to actively using it within a property can take months, or even years. Installation, set-up and extensive training are big obstacles to making use of its efficiency.

Direct Marketing platforms are too complex

They are not tailored to hoteliers’ capabilities. The majority of online marketing platforms are built for companies that have dedicated marketing teams. These companies have the knowledge and budgets to run successful marketing campaigns. For hoteliers, most marketing tools are difficult to manage at a desired ROI, making them unattractive.

Hoteliers lack resources and marketing expertise. They are busy enough managing their properties, handling day-to-day tasks, supporting staff, and keeping their guests happy. They lack the resources that would allow them to invest necessary time, money and effort to making complex marketing campaigns a success.Hoteliers are not incentivized to invest in technology and not empowered to run direct marketing campaigns successfully. The evolution of the Cloud-PMS is a great opportunity for them to take control over their own bookings and retain independence and entrepreneurial freedom.

Unveiling enormous opportunities for hoteliers

trivago acquiring Base7booking is the direct result of trying to find a solution for the challenges mentioned above. We are committed to accelerating the shift to cutting-edge technology and fuel a new renaissance in the hotel industry.

In 2016, we envision fully integrating trivago Direct Connect functionalities into Base7booking, enabling hoteliers to publish their rates with just a few clicks. This will make it extremely simple for hoteliers to kick-off, monitor. and manage their trivago marketing campaigns. It will give them more visibility online and the opportunity to lower their costs-per-booking.

Base7booking’s cloud-based property management platform makes cutting-edge technology accessible, solving key challenges of hoteliers. Cloud technology makes the platform affordable, even for small hotels, and hoteliers have the flexibility to operate their hotels on-the-go. A customer-centric design, focused on the hoteliers’ needs, ensures that the product is easy to use and helps them cope with the challenges they face today. Both will drive adoption rates, and the hoteliers will have more time to work on improving guest satisfaction and learn about direct marketing.

Frank Martin, Hotelier and founder of Base7booking emphasizes: “We are passionate hoteliers, dedicated to improving the increasingly demanding lives of other hoteliers.  Our cloud platform makes technology accessible and saves them plenty of time and money. We are very excited to join trivago as it will give Base7booking hoteliers access to their 120 million travelers.” He continued: “I am convinced that access to affordable and intuitive technology will be a game changer for every one of us, and hoteliers have to take advantage of this big opportunity. Together with trivago, we will be able to embrace and fuel this change.”

*Phocuswright October 2015 report: “Independent Lodging Market: Marketing, Distribution and Technology Strategies for NonBranded Properties”

Get in touch with Base7booking: www.base7booking.com

Leave A Reply