Latin America Hotels Unit to launch direct booking tools and website

Argentina’s Hotel and Restaurant Federation is looking to level the playing field with the launch of an online booking website. Federación Empresaria Hotelera Gastronómica de la República Argentina (FEHGRA) has launched ReservAR AccommodationPromotes local, licensed establishments – whether or not they are affiliated with the association.

The move comes as Argentina’s hotel brands face collateral damage in online distribution wars. Companies such as Despegar, Google, Booking.com, Expedia, Kayak, Trivago, Tripadvisor and Ctrip are entering Latin America.

As consumers begin to embrace online bookings, many local travel companies stay behind in online sales.

A new project from Argentina’s hospitality leaders aims to bridge that digital divide. Free digital management and marketing for licensed hotels, hostels, resorts, cabins and vacation rentals.

“Through research, we have learned that 60 percent of the 17,000 companies in the sector will still not use digital tools by 2020,” said FEHGRA President Fernando Desbots.

Hotels demand direct booking

The project provides a reservation management system that evolves from relying on manual spreadsheets or legacy software systems. Reservations are made directly with the hotels. The Federation will not interfere.

The tools can give hotels an opportunity to increase their direct sales. In Latin America, according to the Argentine Association, direct sales are on average 25 percent of total subscriptions below the desired goal.

Direct booking for hotels is sought after as a cost-saving measure, eliminating middleman fees.

“Some of the smaller companies in our market can’t afford to lose 15 to 30 percent of commission on OTAs. [online travel agencies] They’re filling up, so consumers haven’t been in their preferred digital channels,” said FEHGRA Vice President Florencia Landivar.

Direct booking helps hoteliers retain guests who book for repeat visits because they have more digital engagement with the guests.

Harder than it looks

The association indicated that ReservAR’s aim is not to become the next Trivago or Booking.com. He says the project will not be a significant competitor to the big tech companies, but will still be viable.

“What we’re doing is intelligently leveling the technology playing field between small and large companies — and between major cities and other places,” Landivar said.

The other part of the project, trying to attract consumer registrations, can be difficult for associations.

For example, in 2018, the Canadian Hotel Association invented the National Look in Canada Price comparison tool. As a few tourism promotion partners Explore Edmonton Travelers has included a tool to check hotel availability for specific dates. But the project has a problem of lack of broad participation from the sector.

Argentina’s new ReservAR site may suffer from the same “first-come-first-served-by-the-chicken-or-the-egg” problem. If it is to be attractive to consumers, it needs to involve more hotels. However, some hoteliers may be slow to adopt it because it may not deliver many bookings in the early days before consumers find it in abundance.

In a hopeful sign, some big names are getting involved in ReservAR, including Spendor at Wyndham, Howard Johnson, DOT HotelsAnd Los Pinos Resort and Spa Thermal – The only five-star resort in the country.

To help promote the site, some local and state governments are in the process of including ReservAR on their tourism promotion sites. FEHGRA is holding talks and trainings for hoteliers in its 54 offices scattered throughout Argentina. In each, you leave someone responsible for helping owners learn how to use the management system and how to better market themselves online.

ReservAR’s lack of customer reviews or comments may also disappoint some early adopters. But adding reviews is a feature worth considering.

The association is working with contacts at Google on how to improve online performance on including ReservAR in their search results and on metasearch sites such as Trivago and Tripadvisor. The association is providing a way for regional travel agents to book through the system.

So far, the activities of the association have been paid from the funds. But the hosting team has a game plan to make the website self-sustaining.

“We are in the early stages of achieving critical mass and aim to reach around 4,000 institutions by the end of the year,” Landivar said. Although some private banks and credit card companies are interested, we try to get on the radar of consumers and increase traffic before looking for sponsors.

Photo credit: The Esplendor guest room at the Wyndham Hotel in Buenos Aires. Source: Wyndham