The Secrets about Booking.com Hotels

We all know that the most important thing in traveling is to take care of all the crucial aspects of your accommodation, such as location, standard, facilities, etc. This is where Booking.com helps. If you plan to spend more than one day somewhere far from your place, you need your hotel to be trustworthy and proven. With the help of this invaluable online service, you can be sure that all the accommodation that you book is always checked beforehand by thousands of users and the owners of the site themselves.

What is Booking.com?

If we agree then that accommodation is a quite important aspect of our trip, we should think about the best way to book it. In fact, we could hope that the hotel we choose will have free rooms when we get there, but do we need that additional stress? Prior booking is a much safer option. Thanks to the newest technology, we can book a room without going outside. We don’t even have to call the hotel, because all we need is an internet browser or a mobile application.

Booking.com is an example of an Online Travel Agency (OTA) which differs from traditional travel agencies significantly. First of all, you don’t need to talk to a physical person who will present specific offers to you. Instead, you’ll be able to personalize offers according to the criteria chosen solely by yourself.

How does Booking.com work?

Booking.com is equipped with its own search engine that allows you to find the perfect accommodation for you. All you have to do is type specific criteria that will allow the engine to present offers adjusted to your preferences. When you type your destination, you’ll see a list of hotels in the vicinity of a chosen location. It’s much more convenient than looking for each offer separately, using Google. This way you can easily compare the results. When you look at the prepared list, you’ll be able to compare the offers according to prices and distance. You can also type the price bracket so that you can see only those accommodation offers that you can afford. Booking.com also allows you to specify what type of room you look for, which means that you don’t have to check detailed offers of each hotel.

When you choose the perfect room, you’ll be able to book it without the necessity to leave the website or application. Just follow the instruction and you’ll easily book a room and make a payment. Thanks to this, you don’t need to focus on bureaucracy so much because Booking.com will do much of the job for you. Once you’ve booked your room you can be sure that it will be ready for you on the day of arrival. But remember to make sure you’ve typed everything properly so that you don’t have to worry later.

Trivago

Where does Booking.com get its traffic from?

Booking.com gets a significant part of its traffic from referrals. One of its leading sources of referrals are TripAdvisor and Trivago. Such a tendency was noticed especially in Russia but of course, it may differ across countries. In the U.K., Germany and the United States, Booking.com doesn’t rely solely on external referrals because most of the traffic comes to it directly. But it doesn’t mean they are not useful. On the contrary, the second major source of Booking.com’s traffic are referrals from Trivago, TripAdvisor and Kayak. Although generally, OTAs compete with one another, a lot of them are incorporated by bigger companies. That’s why these brands cooperate when it comes to referrals. It allows them to get much bigger traffic which, in turn, leads to a bigger income. The biggest company that owns travel search engines is Booking Holdings. Apart from such giants as Booking.com and Kayak, it acquired many other companies including HotelsCombined and Venga. The only genuine rival of Booking Holdings is Google. The tool called Google Hotels is quite profitable but does it really pose a threat to Booking.com? The Google Hotels’ search results include external websites and of course such OTAs as Booking.com or Expedia belong to them. It means that instead of fighting against Google Hotels, Booking.com gets traffic from it.

How does Booking.com make money?

You probably used the services of such booking systems as Booking.com, Expedia or Trip Advisor, but have you ever wondered how they earn money? Of course, when you book a hotel, using Booking.com, you have to pay for the hotel room but you don’t pay Booking.com any fee. How is it possible that it can exist without any direct payments from its users?

Booking.com belongs to Booking Holdings, a company with annual revenues of about USD 11 billion. It makes it ten times more profitable than Tripadvisor. 74% of them come from agency business model. What is agency business model? Although OTAs differ from traditional travel agencies, there is one similarity, i.e. commissions. It’s all due to the contracts that Booking.com concludes with hotels. It means that whenever you book accommodation through Booking.com, Priceline Group gets 10%-30% of the booking value. As we can see, they don’t need to take money from you to earn.

Why is it profitable for any hotel to invest in this booking system? Booking.com is the unquestionable king of all OTAs, which means that most travelers know about it and use it. There are a lot of travelers who don’t visit official websites of hotels because using an OTA is much faster. That’s why it’s highly probable that when you run a hotel, you can attract much more guests by using Booking.com. Without it, you’d be able to rely only on your official website and social media. It may be not enough in modern times when people tend to choose fast and convenient options, whatever they do. Some hoteliers may be discouraged a bit when they find out that having a contract with OTAs is necessary for them to keep their business going. But on the other hand, that may be the key to run very effective marketing. Especially if you have attractive offers.

Online travel agencies and digital advertising

It goes without saying that when it comes to popularity no individual hotel can compete with such a giant as Booking.com. The reason is simple: no hotel can afford it. Hoteliers must balance their costs in a detailed way because they can’t afford a situation in which the cost of advertising is not adequate to the hotel’s income. In the modern world, digital advertising is the most important aspect of marketing. If a hotelier spends an exorbitant sum on a large campaign, it will surely bring some attention but they can’t be sure the results will be as satisfying as expected. Is Booking.com different in these terms? Yes, it is. Since this online travel agency cooperates with many hotels around the world, its owners don’t have t worry about stable income. They’ll get their money no matter what, simply because it’s the number one in the travel market. That’s why Priceline Group can afford to pay a lot of money for digital advertising. There is no doubt that it’ll pay out. The owners of individual hotels don’t have such a certainty, which is why they must be more cautious. Instead of trying to compete with the market giants, they should – and they do – cooperate with them.

It can be easily checked by a simple experiment. If you start googling names of random hotels, you’ll see that in most cases Booking.com links will be higher on the Google ads than those belonging to the hotel itself. Such a rank can’t be ignored by any business owner, including hoteliers. As a result, Booking.com deals much better with customer acquisition than any individual hotel. That’s why hoteliers don’t hesitate to sign a contract with Booking.com. Although it may seem expensive (10-30% of the value of online booking is a lot of money if we talk about the most popular hotels) it can result in a bigger number of guests and, of course, bigger income.

Can Booking.com be trusted?

Can Booking.com be trusted? It can, which of course doesn’t mean it’s one hundred percent safe because nothing is. Especially when we talk about something as popular as Booking.com. There are so many users that it would be impossible to guarantee total safety to all of them. But if we compare it to similar websites it really stands out. Why is booking.com better than the competition? In the market, you can find a lot of websites and applications designed by some random IT students who don’t want to rely on their pocket money anymore. There’s nothing wrong with it but the lack of experience and lack of professionalism may lead to some serious problems. That’s exactly what makes Booking.com stand out. It was designed by professionals and is operated by professionals. They can provide you with special packages that increase your safety. If some unfortunate event occurs they can compensate your costs.

Star rating and reviews at Booking.com

Another aspect that makes using Booking.com safer is the system of rating. Whenever you use the services of a given hotel you can rate it. How does rating works? When people rate a specific offer, Booking.com displays the average grade the hotel gets. Of course, it’s not entirely reliable because we can’t always verify if everybody rates justly. It’s the same with reviews. Many guests rank a hotel with the lowest star only because of one small problem that made them angry. On the other hand, there are those who give the maximum of stars simply because they want to be nice. However, it may still be helpful. When you see a hotel with a thousand of responses and 80% of them are negative, you can assume there is really some problem with it. Thanks to this, you can avoid shady offers and choose only those promising. Remember that when you already use the services of a chosen hotel, you can also rate them in order to help other travelers make a decision.

The Secrets about Trivago Hotel Deals

Trivago Hotels – In the 21st century, traveling is not as exclusive and uncommon as it was in the past. Almost everyone has a chance to plan a trip, but we still must remember about the right preparation. If you plan some-thing more serious than a one-day trip, then using an accommodation service is a must. Don’t put your comfort and life at risk and always remember to find the proper place to spend the night. But how to choose good accommodation? Don’t worry. You can always use a traveler-friendly type of software that will help you with planning the trip. Trivago is probably the most popular of the metasearch websites targeting hotel deals. But do we really know how it works and why it’s so effective? Here we present to you a couple of secrets behind Trivago that will make you realize what this portal is and how it works.

What is Trivago?

Trivago compare hotel prices worldwide, the aim of which is to make booking accommodation easier. What is a metasearch for hotels? It’s a platform that uses the content of various websites and displays it via its own interface. The same searching system may be used for segregating lists of restaurants or job advertise-ments. It’s natural that when you are hungry and you want to learn about a restaurant near you, you don’t feel like spending hours looking for it. It holds the same for looking for the right accommodation option. What Trivago does is facilitate this process.

How Trivago works?

Are you a tourist? Maybe you need to plan a business trip or there is a concert of your favorite rock star in another country. It doesn’t matter why you travel. You still need accommodation, so you decide to look for various offers to check what suits you most. You may be wondering which search engine you should use, Booking.com or Expedia? Maybe Agoda? Fortunately, you don’t have to choose, because thanks to Trivago you have access to listings from all of those platforms on one website. Its original mobile app is also waiting for you. Showing listings is not the only option that Trivago has in store. It also facilitates finding the right offer by allowing its users to filter their queries. It’s possible due to typing given criteria such as price range, hotel stars or ratings. When you need to attend some event, it’s more convenient for you to find a ho-tel near you, so reading offers of distant hotels is a serious waste of time. By filtering narrowly you can be sure to have a list of only those options that suit your needs.

Machine learning algorithms

Such metasearch engines as the one offered by Trivago utilize machine learning algorithms. Thanks to them, the system is capable of “learning” how to find the best li¬stings and then recommending them to those who look for them.¬¬ The purpose of machine learning is to collect data and then process them. Such a processed dataset is then subject to classification, which makes it possible to adjust the selec-tion of data to the user. A metasearch engine is an example of a system, where machine learning is ap-plied.
Time Out Hong Kong
Time Out Hong Kong
How is Trivago different from its competitors?

You know other service providers that offer you online booking such as KAYAK or Booking.com. In some way, they are similar, but there is one loud difference. While other companies diversify their busi-ness and invest into various branches, Trivago sticks to its essence – hotel deals. The competitors have chosen diversification because of such market giants as Google. Once the biggest search engine in the world found a way to start using their own listing systems, other engines began to lose their stability. That’s why they are constantly widening their offers to be still attractive on the mar-ket. Trivago, however, chose another strategy. Instead of diversifying, the company’s marketing experts decided to focus solely on one branch. Such a decision aims to learn as much as possible about the ho-tel industry and cope with all of its trends. They believe that it’s the best way to be strong enough to resist the domination of Google. Surprisingly, this idea was the key to success, because Trivago is far from retirement.

How does Trivago make money?

Using Trivago is free, so you don’t have to pay any extra fee to find the right accommodation service. If it doesn’t get money directly, then how does it make it? It uses the two main channels which are sub-scriptions and clicks. How do they work?

Subscriptions

This stream of income is related to what is offered by Trivago for hotel owners. The option for hoteliers is known as “Business Studio” and we may frankly say that the true aim of this PRO package is to domi-nate the competitors. The company offers functions that are unavailable in other portals, making the “Business Studio” package appeal to businessmen involved in the hotel industry. What functions are we talking about? After purchasing this premium package, hoteliers can upload their listings and manage them on their own later. They are also capable of tracking clicks and impres-sions on their listings as well as having an insight into guest ratings. What’s more, it provides an effec-tive tool for collecting and analyzing data regarding clients’ needs.

CPC – Cost Per Click

The system that allows Trivago to make money through clicks is known as Cost Per Click (CPC). To put it simply, whenever you click on a listing posted by an advertiser, Trivago earns. In the company’s finan-cial statements it’s listed as Referral Revenue, which constitutes most of its income. The amount of such earned money is based on the deal with an advertiser. When someone wants to post an adver-tisement, they must use their own listing and bid on chosen keywords. Such keywords are for example names of the travel destinations such as “New York” or “Madrid”. It works in the following way: a user is wondering where to stay during their trip to Madrid. They type the words “Madrid” and there is a high likelihood that on the top, there’ll be an advertiser’s listing. But how high is this likelihood exactly? It depends on how much the advertiser bade on the keyword. Now you know why advertiser’s listings are located on the top of searching results, but in what way does the money come to Trivago? The company who wants to advertise their listing sets an ad budget at the beginning, but Trivago doesn’t get this money immediately. Only when somebody clicks on the advertiser’s offer, its value is deducted from the set budget.

What are “our recommendations”?

If you use Trivago, you must have seen the section with recommendations, but do you know how they are chosen to suit your needs? The search engine collects the data that are used by special algorithms then. What data are these? Mostly your search criteria are taken into account. If you have some favor-ite parameters that you type when you book a hotel room (e.g. you look only for hotels with swimming pools), they are “learned” by the searching system. Other factors such as the average price of offers you browse are also important. Apart from typing, it matters what you click on. On the basis of these data, the algorithm tries to assess what your needs are and then recommend the offers that overlap with them.

How do alternative soft filters work?

It’s natural that comfort and safety are of great significance to you, that’s why you treat booking ac-commodation seriously. Sometimes typing your preferences or browsing through the list of recommen-dations may be not enough. If you don’t find it satisfying, Trivago offers alternative soft filters that al-low you to combine your preferences with recommendations created by algorithms. How does it work? Now you know that the searching engine collects your data and use it to make special lists exclusive for you. But did you know that you can take part in adjusting these lists for yourself as well? Once you see the “our recommendation” section, you’ll be able to combine it with your personal criteria. When you choose such combinations as “distance & recommended” or “rating & recommended”.

No more intrusive advertisements

It’s probable that you’ve experienced such a situation, in which you looked for one item or one specific option and even when you found it, you still saw an advertisement related to it. Such advertisements are based on similar algorithms to those used by Trivago, which is why the company’s programmers looked for the solution and found it. Thanks to alternative filters you don’t need to feel frustrated by unwanted recommendations offered to you automatically by the system. Instead, you can manipulate them to achieve the results that will really satisfy you.