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what is a hotel booking engine?

At olive, we’re an AI-powered booking engine, but it probably helps if we explain what that means. So we’ll start with what a general booking engine is and does, what it includes and then add on the more exciting part about what an AI-powered booking engine really means. A hotel booking engine is an essential tool for modern hospitality businesses. Essentially, it’s a software application that integrates with a hotel's website and allows guests to make online reservations.

What does a booking engine do for a hotel?

A hotel booking engine is for hotels what an e-commerce website is for a retailer. It allows someone to shop and book. A hotel booking engine displays real-time room availability, rates, and room types, allowing visitors to select their preferred options and complete their reservations instantly. As your website and booking engine are running 24/7, guests can book at any time, making your website your hardest-working salesperson.

Why does a hotel need a booking engine?

A booking engine is what makes it possible to make an online reservation on any hotel website. It’s forecasted that 75% of total revenue in the tourism and travel sector will be generated through online sales by 2029 (Statista), making it a critical channel for any hotel.

Direct bookings: It allows hotels to capture reservations directly, reducing reliance on online travel agencies (OTA) and their associated commissions.
Increased revenue: By booking directly, you avoid paying expensive OTA commissions and you have the opportunity to upsell during the purchase process.
Improved guest experience: Guests can easily browse options, compare prices, and book at their convenience with all the information they need in one place.
Data collection: Booking engines gather valuable guest information, giving you direct access to the guest so you can personalize their experience both on-property and through communications.

What functionality does a modern booking engine have?
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When shopping for a booking engine for your hotel, you can expect to find the following functionality:

Real-time availability: Syncs with your hotel's property management system (PMS) to show up-to-date room availability and pricing.
Upselling opportunities: Allows hotels to offer promotions, upgrades, or additional services during the booking process.
Secure payments: Processes transactions using safe and secure payment partner and gives guests the option to pay in their own currency.
Multiple language and currency support: Allows you to better accommodate international guests traveling to your property.
Integration capabilities: Connects with other hotel systems, especially the PMS, for seamless data flow.

User-Friendly Interface: Should be as easy to book as it is to shop on a retailer website, with a consistent brand experience and few clicks.
Mobile responsiveness: Ensures a smooth booking experience on all devices, especially important when 35% of bookings are made via mobile (Euromonitor International).

What is an AI-Powered Booking Engine?

An AI-powered booking engine with embedded e-commerce is the next revolution in guest experience. It uses artificial intelligence to deliver smart merchandising and guest communications from real-time booking data. This creates a highly personalized booking journey and results in dramatically higher conversion rates.

Here's how an AI-powered booking engine enhances the guest experience:

Intelligent merchandising: The AI analyzes guest data and booking engine engagement to offer relevant room types, amenities, pricing, or packages that align with their preferences. This can be done based on what your data shows is the right time in the booking journey.
Real-time optimization: Based on how the user engages with the AI-powered booking engine, the booking flow can swiftly change to accommodate.
Extended upselling: Beyond standard upsells, AI can be used to quickly populate custom pages for groups, offers, and experiences.
Personalized marketing automation: With detailed data, you can create highly-targeted prompts, target look-a-likes, and create specific pre-stay communications.
Predictive analytics: Unlike traditional booking engines, with an AI-powered booking engine you have access to all of the data in your booking engine. You can uncover attribution, track engagement and drop off, and learn where you need to make improvements to your website and booking journey.

A booking engine is core to the technology stack for modern hotels, with online bookings increasing year over year. By implementing an AI-powered booking engine, hotels can create a more intuitive, personalized, and enjoyable booking experience for their guests. This not only increases the likelihood of direct bookings but also sets the stage for a memorable stay from the very first interaction. Building a relationship with your guests shouldn’t wait until arrival.

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