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Travel TechLab by Hotelbeds is the innovation lab of Hotelbeds, powered by Wayra. The lab seeks to constantly re-imagine the world of travel by finding new ways to help our customers succeed, and to enable our business partners to achieve their goals.

As part of our ongoing mission to co-innovate with startup partners to deliver impactful, customer-focused experiences, products and platforms which reshape the travel industry, the Lab hosted a Pitch Day Challenge. Startups from around the world were invited to showcase the forward-looking ways in which their products and services are providing solutions to real-life challenges currently being faced within the industry.

In this ‘Spotlight On’ blog series, we’ll be shining a light on each of the four start-ups that were shortlisted during this Pitch Day Challenge, to bring their work to the forefront of the travel industry’s focus.

This first ‘Spotlight On’ will explore the journey of Smartvel, a B2B SaaS company working within the travel industry to improve customer experience and SEO through the use of AI-powered digital solutions and high-quality content that resonates with their clients’ audiences, to ultimately drive increased sales and brand awareness.

We spoke to founders Iñigo Valenzuela and Esperanza Zarauz about the company, their mission, and the solutions they’re bringing to the industry.

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Can you describe the genesis of Smartvel as a startup, including the idea that sparked its creation?

Smartvel was founded by Iñigo Valenzuela and Esperanza Zarauz. Both with C-level experience, we thought it was the right time to start our own adventure. Iñigo worked for many years in companies such as Marsans and CWT, and Esperanza in the media industry at Prisa and WPP. The beginnings were a rollercoaster, with ups and downs that involved discovering just how difficult it is to create a B2B solution in the travel industry, whilst always looking for technological advantages that would make our company stand out from the rest.

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We started Smartvel because we wanted to start our own company, and we thought it was the perfect dynamic for both of us. The genesis of the idea was that, as an industry, we had not solved the problem of how to properly inform the end traveller and provide real consulting added value in one part of the travel journey: information about the destination. 

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Companies were focused on their own products instead of adding value in this area. We thought that inspiration drives sales and value, and that there was an opportunity to build a global trusted solution for that.

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Can you articulate Smartvel’s mission as a company and its long-term vision, outlining the problems it seeks to solve, and the opportunities it presents?

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Our mission is to improve our clients' customer experience and SEO through AI-powered digital solutions and meaningful content, resulting in increased sales and brand awareness across the entire customer journey.

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We’re present at the top of the funnel, or the ‘inspiration’ phase; in the pre-departure phase, or in pre-departure emails; and also at the destination, with different solutions for each interaction.

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We offer the unique blend of a technology company and a content company, using technology to create content in a more targeted and efficient way. But at the same time, we have a relevant team of copywriters who create content at scale using technology as a critical tool.

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How does Smartvel fit into the larger industry landscape, and what is its growth potential?

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We want to be the reference in the industry when it comes to travel content, understood as information for the traveller. The market is huge, and we are very happy to partner with Hotelbeds as we think it is the perfect fit for us to support our growth in different verticals like hotels, travel agencies and DMOs.&nbsp; 

We have customers on every continent, although we have been focusing more on the airline industry lately, so we think that hotels offer the best opportunity for global growth.

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What is your unique value proposition, and how does it set you apart from the competition?

We offer the best content with a mature travel tech company that provides customisation in content and products, detail, expertise, and a range of solutions that fit with the overall strategy of the industry. 

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Tell us about the innovative solutions that Smartvel offers!

First, there are our Destination Content solutions, with everything there is to do in a destination, with POIs, restaurants, events like music, sports and culture, and any layer of content that our customers want to integrate, such as tours and activities, their own products, et cetera.

Second, we have our ‘EntryDocs’ solution, where we provide all the information needed to make a trip from A to B, taking into account nationality and residence.&nbsp; We provide health documents and visa requirements to take the stress out of travelling, and use technology to detect changes in these requirements. We read the official websites every hour to see if anything has changed.

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Who is your target audience, and what are the specific needs or pain points that your offerings address? 

As a B2B SaaS company in the travel industry, we work with all players, from the suppliers of the final product, such as airlines, hotels, car rentals; to the classic intermediaries, like travel agencies, tour operators and bed banks; and all the different technology players around them, such as GDSs and tech providers. We also work with DMOs and other segments such as insurance or F&amp;B.

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Tell us about Smartvel’s accomplishments and milestones. What are your current significant achievements to date?

If we had to name our most important milestones, we would be remiss not to talk about how we achieved a positive EBITDA and operating cash flow, which is very important for any company – but for a startup, this is the difference between ‘life’ and ‘death’. We have also achieved significant global MkShare in some of our products. For example, with EntryDocs, we’ve reached a total global MkShare of international travellers of 30%.&nbsp; 

As a company, we believe one of our biggest achievements is that we have, and continue to maintain, a strong culture in times of uncertainty and change, such as COVID or remote working, where innovation, and product change mindsets are key. That we also have a positive churn figure – which means that upsells from current customers exceed losses of portfolio – &nbsp;means a healthy portfolio of customers.

Another of our biggest achievements is being able to work with some of the most respected and biggest brands in the industry as a relatively small company (50 FTE). We always say that having demanding customers makes us a better company. Not to mention completing our first M&amp;A, by buying a direct competitor! 

How do you foster innovation, as a company?

Innovation is a challenge for any company, and it is exactly the same for a startup. We have some advantages, especially size and agility, but there are many risks: we can't fail too often to be generous; cash is king and can easily shut down your company; and the trade-off between talent and salary is complex to manage.

Our key to success, if you can call it success, has been to look for the best team, create a culture of transparency and excellence, and always look for new opportunities. What was a disruptive solution at a certain moment will become a difficult market over time. The only solution is to generate change, to be really open to it, and to create new solutions together with our customers.

We use the classic agile approach, so we are not very original. Of course, we do quarterly reviews of our strategic plan, reviewing and updating the mid- and long-term priorities.

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Meet the team at Smartvel



Pictured left to right - Iñigo Valenzuela, CEO; María Liniers, CCO; Belén Romero, COO; Esperanza Zarauz, CFO; Miguel Camacho, CTO

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TRAVELTECH LAB BY HOTELBEDS

We explore the intersection of emerging technology and travel, to build innovative products and consumer experiences all whilst engineering solutions that advance Hotelbeds’ innovation agenda, and better the lives of our customers.

We’re firm believers that in a collaborative environment, it’s all about exploring new horizons to future-proof our business and drive digital transformation.

Learn more about our work here.


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Spotlight on Smartvel

Travel TechLab by Hotelbeds is the innovation lab of Hotelbeds, powered by Wayra, which seeks to constantly re-imagine the world of travel by finding new ways to help our customers succeed, and our business partners achieve their goals.

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As part of our ongoing mission to co-innovate with startup partners in order to deliver impactful, customer-focused experiences, products and platforms which reshape the travel industry, earlier this year TravelTech Lab by Hotelbeds hosted a Pitch Day Challenge, where startups from around the world were invited to showcase the myriad, forward-looking ways their products and services are providing solutions to real-life challenges currently being faced within the industry.

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In this ‘Spotlight On’ blog series, we’ll be shining the light of attention on each of the start-ups that were shortlisted during this Pitch Day Challenge, to bring their work to the forefront of the travel industry’s focus.

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The second in this series, this ‘Spotlight On’ will focus on the development of Grain from its beginning to fully formed start-up, which captured our attention thanks to its embedded cross-currency solution that protects travel platforms and their customers from FX volatility.

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We spoke to founders Dor Golan, Michal Beinisch, Aharon Navon and Nir Galon, all entrepreneurs with previous experience at Barclays, Deutsche Bank and other prominent fintech start-ups, to get some insight into their journey, their mission, and how they’re working to bring smarter fintech solutions to the industry.

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Can you describe the genesis of the start-up, including the idea that sparked its creation?&nbsp;

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The genesis of the startup Grain can be traced back to the challenges posed by the volatile nature of foreign exchange (FX) rates, especially during times of geopolitical conflicts, political instability, and economic downturns. This volatility significantly impacts global transactions, creating a substantial risk of value changes between the initiation of a deal and the completion of its payment.&nbsp;

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Recognising the growing need for effective hedging solutions to minimise this financial risk, Grain was conceptualised. The startup's mission is to empower B2B software platforms and marketplaces by providing them with the tools to offer cross-currency hedging at attractive prices. A key feature of Grain's innovation lies in its fully automated risk assessment process, which delivers optimised custom pricing. This approach ensures that businesses can safeguard their transactions against the unpredictability of FX rates, thereby securing their financial stability.



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Can you articulate for us Grain’s mission and long-term vision, outlining the problems that it seeks to solve?&nbsp;

Our mission at Grain is to empower businesses with technology and financial solutions that were previously inaccessible to them. We provide newfound financial certainty, ensuring that enterprises can navigate cross-border challenges with confidence. Through the solution of automated hedging tools, we eliminate currency risk efficiently and effectively, catering to businesses of all sizes.

As we look ahead, we're committed to pioneering tailored solutions for diverse industries, catering to the unique needs of sectors such as travel, supply chains, e-commerce, and accounting platforms. It was important to us that at Grain, our customers’ journey to financial empowerment is underpinned by innovation and precision.

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How does Grain align with the larger industry landscape and what is its potential for growth?

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Grain provides comprehensive FX solutions to enhance travel platforms. We understand that within the travel sector, grappling with slim profit margins and elevated cancellation rates is commonplace. In response, Grain presents a pragmatic resolution through its embedded cross-currency framework.

One prominent industry practice involves hedging net amounts after accounting for cancellations. However, this strategy often falls short in providing comprehensive financial protection for travel platforms. Herein lies the differentiating factor of Grain – offering holistic hedging across all transactions, cancellations included.

Our approach not only fortifies travel platforms against FX risks but extends this safeguard to encompass their clients as well. This dual protective shield allows for the secure locking of currency rates, bolstering business stability for both parties.

Moreover, by leveraging Grain's FX proficiency, travel platforms can forego the need for supplementary price markups, fostering a heightened competitive edge.

Central to our offering is the Grain FX solution, enhanced by Machine Learning capabilities. This automated technology enables businesses to minimise the operational burden of tailoring, executing and managing&nbsp; hedging strategies. Grain’s solution fully offloads the entire FX hedging risk away from our customers. Grain provides full visibility of execution prices, via a user friendly dashboard, a transparent and comprehensive view of transaction currency exposure.

By revolutionising established norms for travel platforms, Grain envisions a landscape where attainable profitability coexists with mitigated currency fluctuations. Moreover, by addressing the intricacies of cancellations, we ensure that the financial resilience of both travel platforms and clients remains intact.

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What is your unique value proposition, and how does it set you apart from the competition?

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We differentiate ourselves from our competitors through various key factors which are central to our offering:

Hedging 100% of transactions - Conventional practices of hedging net amounts post-cancellations offer limited financial protection for travel platforms. In contrast, Grain provides complete hedging for all transactions, including cancellations, ensuring enhanced risk coverage.

Reduced Hedging Costs - Grain's automated platform empowers cost-efficient hedging compared to existing solutions, resulting in lower overall hedging expenses.

Localised Currency Charging - By locking in exchange rates at booking time, Grain enables travel platforms to bill end-consumers in their local currency, facilitating ease of transactions.

Pricing Optimisation - Leveraging extensive data analysis, Grain's API tailors hedge pricing based on individual customer profiles. This approach, informed by factors like historical currency trends and past cancellations, optimises pricing accuracy.

Zero setup costs, no hidden fees - Grain boasts a zero-cost setup and maintains a fee-free subscription model, ensuring transparency and cost-effectiveness from the outset.

Charge in local currencies. Get paid in functional currencies - Empowering software platforms and marketplaces, Grain allows them to charge customers in their preferred currency while receiving payments in their functional currency.&nbsp;

Risk-Free Assurance - Grain assumes the role of the principal risk taker, providing transactional rate guarantees for complete risk mitigation.

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Tell us about the innovative solutions that Grain offers!

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Grain’s Embedded Cross Currency Solution introduces a robust approach to FX risk management tailored for travel platforms. This solution is designed to address the challenges of FX volatility by providing a mechanism for travel platforms and their clients to lock in currency rates.

Powered by advanced Machine Learning technology, our solution offers an adaptive approach that considers historical trends and market dynamics. This ensures that travel platforms can implement effective hedging strategies that align with evolving financial landscapes.

Moreover, the solution incorporates a valuable side functionality known as Exposure Analysis. This tool offers a dashboard presenting transaction volatility, providing travel platforms with insights to make informed decisions about risk management.

The Embedded Cross Currency Solution is a pragmatic response to the complexities of currency fluctuations. By merging automated processes with intelligent analysis, it equips travel platforms with the means to confidently navigate FX volatility, offering stability and control in an unpredictable environment.

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Who is your target audience, and what are the specific needs or pain points that your offerings address? &nbsp;

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We have several target audiences, all with unique pain points which Grain seeks to resolve with its comprehensive technology and financial solutions.

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1. CFOs of Travel Platforms

Pain Points: CFOs of travel platforms wrestle with the persistent spectre of financial uncertainty propelled by FX volatility, a challenge compounded by the industry's slender profit margins. The imperative to secure revenue streams amid currency fluctuations remains a top priority.

How Our Solution Helps:&nbsp;

Enter our Embedded Cross Currency Solution, equipped with an automated hedging mechanism that empowers CFOs to lock in currency rates. This infusion of stability not only counters risk but amplifies financial assurance in the face of dynamic FX markets. Moreover, our Exposure Analysis tool further fortifies their position by delivering unparalleled transparency into FX volatility across all transactions.

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2. Heads of Product

Pain Points: Heads of Product grapple with the intricate choreography of optimising user experiences within multifaceted cross-currency transactions. The uphill task lies in orchestrating seamless booking and payment journeys harmonised with diverse currencies.

How Our Solution Helps:

Our offering, while indirectly assisting Heads of Product, empowers travel platforms to bill end-consumers in local currency through secure, locked-in exchange rates. This augmentation in user-friendliness and clarity significantly enhances the booking process, ensuring positive experiences.

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Tell us about Grain’s accomplishments and milestones. What are your current significant achievements to date?

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At Grain, our dedication to fintech innovation has earned us a position of distinction. We proudly stand as pioneers in the travel industry, and our journey has been marked by a remarkable achievement.&nbsp;

Out of a competitive pool of over 60 companies, we were selected as the sole fintech startup in the groundbreaking TravelTech Lab by Hotelbeds challenge. This recognition not only validates our unwavering commitment but also emphasises our role as leaders in reshaping the travel industry through cutting-edge fintech solutions.

We have forged strong partnerships with renowned global bed banks, empowering them with our embedded FX solution to safeguard both their operations and their clients from FX risk.

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Give us some insight into your company culture and brand values. How do you foster innovation, as a company?

Our brand values:

You Come First - We care about our customers. We are focused on providing value and helping our customers succeed.&nbsp;

You’re in Good Hands - We are experts in our field, we are passionate about what we do, and we are committed to protecting your interests.&nbsp;

We Dare to Do the Right Thing - We challenge the status quo in the pursuit of excellence to always provide the best solutions.&nbsp;

We Get Things Done - We are efficient and effective on our mission to simplify an overly complex world.

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A closer look at Grain’s unique solutions:

Discover more about Grain’s cross-currency solutions in this quick video.

https://www.youtube.com/watch?v=L-CiQ2DTxqc&nbsp;

&nbsp;



&nbsp;

TRAVELTECH LAB BY HOTELBEDS

We explore the intersection of emerging technology and travel, to build innovative products and consumer experiences all whilst engineering solutions that advance Hotelbeds’ innovation agenda, and better the lives of our customers.

We’re firm believers that in a collaborative environment, it’s all about exploring new horizons to future-proof our business and drive digital transformation.

Learn more about our work here.

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Spotlight On Grain

Travel TechLab by Hotelbeds is the innovation lab of Hotelbeds, part of HBX Group, and powered by Wayra, which seeks to constantly re-imagine the world of travel by finding new ways to help our customers succeed and our business partners achieve their goals.

As part of our ongoing mission to co-innovate with startup partners in order to deliver impactful, customer-focused experiences, products and platforms which reshape the travel industry, earlier this year TravelTech Lab by Hotelbeds hosted a Pitch Day Challenge, where startups from around the world were invited to showcase the myriad, forward-looking ways their products and services are providing solutions to real-life challenges currently being faced within the industry.

In this ‘Spotlight On’ blog series, we’ll be shining the light of attention on each of the four start-ups that were shortlisted during this Pitch Day Challenge, to bring their work to the forefront of the travel industry’s focus.

This time, we’re diving into the journey of Chekin, a promising start-up that has captured our attention thanks to its unique technological solutions which help professionals and hosts to optimise the entire process of vacation rental management, covering crucial stages such as: online guest registration, OCR scanner for guest ID, identity verification, sending data to authorities, customised rental contracts and digital signatures, upselling, tourist taxes, customised communications with guests, online payments, damage protection, remote access and much more. 

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Can you describe the genesis of the start-up, including the idea that sparked its creation?

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Chekin, a Sevilla-based startup founded in 2017, started on a mission to streamline the guest registration process within tourist accommodations. Its founder and CEO, Carlos Lagares, created Chekin from his years of property management experience with a clear objective: eradicate manual check-in procedures. 

The first version, named the "chekin app," allowed guests to complete online forms prior to arrival and simplified the creation of guest's registration report and mandatory legal documents. In line with Chekin's expansion, the company's portfolio grew to cover full automation of the entire process. The company started with a basic product, but surprisingly managed to attract more than 600 establishments in a short period of time. 

Despite its humble beginnings, the derivation of the word "check-in" to "chekin" resulted in a brand that strongly resonated in the global hospitality industry. Today, Chekin stands as a leading company, fundamentally reshaping how the hospitality industry navigates the complexities of guest check-in. Its innovative approach has enhanced guest experiences while empowering hosts to channel their efforts into exceptional service delivery and revenue maximisation. 

Driven by a bold vision to establish global dominance in all aspects of the check-in process, Chekin continues to make giant strides in the lodging sector. 

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Can you articulate for us Chekin’s mission and long-term vision, outlining the problems it seeks to solve and opportunities it presents?

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Mission:

At Chekin, our mission is to redefine and streamline the check-in experience for the lodging industry through our innovative online check-in solution. We are dedicated to enhancing guest satisfaction and operational efficiency for lodging businesses of all sizes. By offering a user-friendly platform that simplifies the check-in process, we aim to empower both guests and property owners, ensuring a seamless and personalised arrival experience that sets the tone for a delightful stay.

Vision:

Our vision at Chekin is to be the foremost provider of online check-in solutions tailored for the lodging sector, recognised for our commitment to excellence and technological innovation. We envision a future where every lodging establishment, from boutique hotels to large resorts, seamlessly integrates our platform to offer guests a contactless and efficient check-in process. By continuously evolving our technology and collaborating closely with our partners, we strive to shape the future of guest experiences in the lodging industry, setting new benchmarks for convenience, accessibility, and guest satisfaction.

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How does Chekin align with the larger industry landscape, and what is its potential for growth?

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Chekin meets the rising demand for automated check-ins in hospitality. With its versatile solution and a focus on guest satisfaction, time-saving, and legal compliance, Chekin has substantial growth potential in a thriving global hospitality market. Its comprehensive approach and automation align well with the evolving lodging landscape, positioning Chekin to shape the future of guest experiences in the industry.

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What is your unique value proposition, and how does it set your start-up apart from competitors?

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There is no standard solution that provides the enabling technology to automate the entire guest registration process, from booking confirmation till check-out. 

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Tell us about the innovative solutions or products that your start-up offers!

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- Check-in online: Once the reservation is confirmed, guests will receive a link that will lead them to online check-in, where they will complete the registration process. Easy, fast and simple. 

- Check-in onsite: Capture your guests’ data instantly through our OCR ID scanner. - Identity Verification: We offer you the most advanced biometric match technology, which will allow businesses to verify the identity of their guests remotely at any time. 

- Remote Access: Businesses will save hundreds of hours by not having to move to the property to deliver or collect the keys. 

- Legal: Once your guests have completed the online check-in, we generate the guest's registration slips and automatically send them to the competent authorities within 24 hours of the check-in date, as required by law. Chekin is the only one addressing the fragmented regulations of different countries. 

- Rental contracts and digital sign: We offer customisable leases for each property, allowing the addition of as many clauses as required. During online check-in, guests will be able to digitally sign the contract, which will be saved in the dashboard in the “Documents” section. 

- Upselling: Revolutionise the experience of each guest, increase the benefits of each reservation, get better reviews and get more direct reservations. 

- Tourist taxes: The calculation of tourist taxes is a complex and tedious process, and many parameters are involved that vary between regions and countries. Our software calculates them automatically. 

- Customised guest communications: Customise and create templates with all the information to be sent to guests. Choose when guests should receive these communications, and we will send them automatically.

- Online Payments: Manage and automate all guest payments from the Chekin dashboard.

- Damage Protection: The damage protection program provides peace of mind for businesses and their guests, while generating more income from each reservation. Chekin is the only one to address all check-in stages! 

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Who is your target audience and describe the specific needs or pain points that your offering addresses? 

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Our solutions can assist businesses within the lodging sector, from smaller to large-scale vacation rentals, hotels, camps, and other tourist accommodations worldwide. 

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Tell us about Chekin’s accomplishments and milestones. What are your current significant achievements to date? 

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* +22.000 properties that use us. 

* + 6.000.000 check-ins completed. 

* +20 implemented countries. 

* + 50 PMS and Smart lock solutions integrated. 



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Can you provide metrics or data to demonstrate the company's progress and impact? 

We achieved significant growth, from less than 50k to almost 80k MRR in one year, and despite the summer low season, our MRR continues to grow. Over less than a year we have increased the number of active properties in Chekin from 16K to 31K. 



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Give us some insight into your company culture and brand values. How do you fister innovation, as a company? 

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At Chekin, our approach to fostering innovation is deeply ingrained in our company culture. We recognise that innovation is not just about developing groundbreaking products and solutions but also about cultivating an environment where creativity thrives, and every team member feels empowered to contribute their ideas. 

Here's a glimpse into our strategy for fostering innovation: 

1. Encouraging Open Communication: We believe that great ideas can come from anyone, regardless of their position within the company. We encourage open communication across all levels, ensuring that every team member's voice is heard. Regular brainstorming sessions, idea-sharing platforms, and cross-functional meetings are a few ways we promote a culture of open dialogue. 

2. Embracing Diversity: We understand that diverse perspectives fuel innovation. Our team is composed of individuals from various backgrounds, cultures, and experiences. This diversity not only enriches our workplace but also leads to a broader range of ideas and solutions. 

3. Fail Forward Philosophy: Innovation inherently involves risk-taking and experimentation. We foster a "fail forward" philosophy, where failures are viewed as learning opportunities. This mindset encourages individuals to step outside their comfort zones, knowing that their contributions are valued even if they don't always lead to immediate success. 

4. Cross-Functional Collaboration: We break down silos and encourage collaboration between different departments. The synergy between teams with diverse expertise often sparks innovative solutions that wouldn't have been possible in isolation. 

5. External Partnerships: We actively seek partnerships with external organisations, startups, and research institutions to tap into a broader network of ideas and expertise. These collaborations help us stay at the forefront of innovation in our industry. 

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At Chekin, innovation is more than just a buzzword – it's a way of life. By fostering a culture that values creativity, collaboration, and continuous improvement, we empower our team to push boundaries, create meaningful solutions, and drive the company's success to new heights. 

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Meet the team at Chekin!: 

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&nbsp;

TRAVELTECH LAB BY HOTELBEDS

We explore the intersection of emerging technology and travel, to build innovative products and consumer experiences all whilst engineering solutions that advance Hotelbeds’ innovation agenda, and better the lives of our customers.

We’re firm believers that in a collaborative environment, it’s all about exploring new horizons to future-proof our business and drive digital transformation.

Learn more about our work here.

&nbsp;

&nbsp;


Spotlight On Chekin

Travel TechLab by Hotelbeds is the innovation lab of Hotelbeds, powered by Wayra, which seeks to constantly re-imagine the world of travel by finding new ways to help our customers succeed, and our business partners achieve their goals.

As part of our ongoing mission to co-innovate with startup partners in order to deliver impactful, customer-focused experiences, products and platforms which reshape the travel industry, earlier this year TravelTech Lab by Hotelbeds hosted a Pitch Day Challenge, where startups from around the world were invited to showcase the myriad, forward-looking ways their products and services are providing solutions to real-life challenges currently being faced within the industry.

In this ‘Spotlight On’ blog series, we’ll be shining the light of attention on each of the four start-ups that were shortlisted during this Pitch Day Challenge, to bring their work to the forefront of the travel industry’s focus.

As the third in the series we will consider the journey of BotsLovers, a promising start-up whose Conversational AI SaaS Platform caught our attention. We will explore their development from the nexus of their idea through to how they enable any company to implement AI-powered virtual assistants across any channel, using their user-friendly No-Code SaaS Platform, and therefore enhance business profitability and operational efficiency.

Founders Andrés Pulgarin and Simón Garcia walk us through the beginning of BotsLovers, their mission, and how they’re working to bring their solutions into the world of travel.

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Can you describe the genesis of the start-up, including the idea that sparked its creation?&nbsp; 

BotsLovers started as a result of a simple idea: ‘Freeing humans from boring tasks.’

In 2017, founders Andrés Pulgarin and Simón Garcia dedicated themselves to recruiting technological personnel, and soon noticed that during interviews, they were repeatedly asking the same questions to candidates. This realisation led them to explore the emerging AI technologies gaining prominence in the US, with the goal of automating parts of their interview process.

As they gained a deeper understanding of these technologies and recognised their vast potential, they also observed that many companies were engaged in repetitive and monotonous conversations with their users. Motivated by this insight, they embarked on the BotsLovers project, aimed at automating conversations. Their mission was to assist companies in streamlining their customer service operations, ultimately achieving a remarkable 90% reduction in customer service workload. 

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Can you articulate for us BotsLovers’ mission and long-term vision, outlining the problems that it seeks to solve?&nbsp; 

Simply put, as stated above, BotsLovers’ mission is ‘freeing humans from boring tasks’, and we do this with our Conversational AI Platform.

Our long-term vision is to become the global leader in Conversational AI for Customer Service. Revolutionising and transforming customer support into "Customer Love” and spearheading the new era of Generative Artificial Intelligence applications in the sector. Our impact will extend to any business which requires automated customer service and business operations.

The headline “Businesses Lose $75 Billion Due To Poor Customer Service” in Forbes galvanised our intent, and made it clear that the industry at large needed a solution like ours.

The main problem we are seeking to solve is the need for extensive human support in Customer Service. Fueled by Digitalisation &amp; eCommerce customers now expect quick and personalised multi-channel and multi-language interactions with businesses.

This problem stems from the rapid and substantial global growth of customer-business interactions across all digital channels: web, applications, and social. Companies struggle to address customer requests promptly, accurately, and 24/7, due to resource limitations, impacting customer satisfaction and brand reputation. 

By automating routine tasks, businesses can reduce the need for extensive human support, leading to cost savings and the reallocation of resources towards more strategic initiatives.

This problem was not solved earlier because companies relied on legacy Chatbots. On one hand, end-users struggled with chatbots because responses lacked context and appeared unnatural. 

On the other hand, companies (B2B Customers) struggled with chatbots for three reasons:


	Chatbots are tricky to install: It takes several weeks to set up and integrate a chatbot to any system and learn all its functionalities.
	Frequent optimisation and maintenance are necessary for chatbots' proper functioning, requiring constant manual updates to align with company changes. 
	Technical expertise in programming languages, NLP, and ML is essential for chatbot deployment, creating a barrier for businesses lacking in-house resources or budget for external experts.


We work to enable any company to effortlessly establish and deploy AI-powered virtual assistants across any channel (including web, apps, social media) and language. This can be accomplished without this technical expertise, which was previously holding some companies back, thanks to BotsLovers’ user-friendly No-Code SaaS Platform.

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How does BotsLovers align with the larger industry landscape and what is its potential for growth?

By leveraging Generative Artificial Intelligence, we are revolutionising the traditional and impersonal customer support landscape, ushering in a new paradigm we call: "Customer Love". This transformation will lead to cost savings, increased customer satisfaction, and higher employee engagement

We face a huge potential for growth. Markets &amp; Markets Research has valued the World Wide Virtual Assistant/Chatbot market to be USD 5,4 billion in 2023.&nbsp; With a CAGR of 23,3% this market will reach USD 15,5 billion by 2028.

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What is your unique value proposition, and how does it set you apart from the competition?

What sets BotsLovers apart from competitors is our AI-first approach. Our Conversational AI platform is No-Code, multichannel and multi-language. Additionally, BotsLovers has a unique Large Language Models balancer for GPT-related cost management plus advanced specific industry data models.

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Tell us about the innovative solutions that BotsLovers offers!

Our core product is a Conversational AI SaaS No-Code Platform that:


	Addresses customer requests quickly, accurately, and 24/7 - in any language or digital channel.
	Allows any company to easily setup &amp; deploy AI-powered virtual assistants without tech knowledge.
	Respond to customer requests using Generative AI fine-tuned with companies' own data, sourced from websites, PDFs, images, audio and more.
	Drastically reduces the cost per response.


To demonstrate the potential of our technology, we have developed lovi.ai a demo site enabling the creation of a customised virtual assistant in under 30 seconds, using a company's own data.

&nbsp;

Who is your target audience, and what are the specific needs or pain points that your offerings address? &nbsp;&nbsp;

There are a number of target audiences who we believe find the solutions that BotsLovers provide inherently valuable:

Small to Large Businesses

We consider this audience to include small businesses that lack the resources or technical expertise to develop their own AI-powered virtual assistants; medium-sized enterprises looking to scale their customer support without significantly increasing costs; and large corporations aiming to streamline and automate customer interactions across various digital channels.

Customer Support and Service Departments

For example, customer support teams seeking to enhance their efficiency and responsiveness, and companies looking to reduce the workload of their customer support staff and allocate resources more effectively.

E-Commerce Companies

Including the likes of E-Commerce businesses dealing with high volumes of customer inquiries, especially during peak seasons, and companies needing to provide 24/7 customer support to a global customer base in multiple languages.

Multinational Corporations

These could be large enterprises with a global presence that require multilingual support and consistency in customer service across regions.

Startups and Innovators

Such as tech startups looking to incorporate AI-powered virtual assistants into their products and services without the need for extensive technical knowledge.

&nbsp;

In terms of specific pain points, we feel that BotsLovers addresses these unique needs in several ways.

24/7 Customer Support: Our platform enables businesses to provide round-the-clock customer support, addressing the pain point of customers needing assistance outside regular business hours.

Multilingual Support: Companies operating in diverse regions can efficiently communicate with customers in their preferred languages, eliminating language barriers.

No-Code Setup: For businesses without technical expertise, our No-Code platform allows them to easily set up AI-powered virtual assistants, reducing the need for costly development resources.

Cost Reduction: By automating responses and handling a significant portion of customer inquiries, our platform helps companies cut down on the cost per response, making customer support more cost-effective.

Data Utilisation: Leveraging companies' own data, as well as data from various sources, our Generative AI provides accurate and context-aware responses, addressing the challenge of personalised customer interactions.

Efficiency and Scalability: Companies can enhance the efficiency of their customer support teams by automating repetitive tasks, allowing them to scale without significantly increasing staff.

Accuracy and Consistency: Industries with complex information benefit from accurate responses, ensuring compliance, and consistency in communication, which can be challenging when relying solely on human agents.

Digital Channel Support: Our platform allows businesses to engage with customers on various digital channels (e.g., websites, social media, messaging apps), meeting customers where they are most comfortable.

Overall, our Conversational AI SaaS No-Code Platform addresses the growing need for efficient, cost-effective, and personalised customer support solutions across diverse industries and business sizes.

&nbsp;

Tell us about BotsLovers’ accomplishments and milestones. What are your current significant achievements to date?

We consider our accomplishments to be multi-faceted, and on many differing levels, though a few of our most significant and impactful achievements are as follows: 

Customer Base:

Our early users and customer base started with 10 paying customers by the end of 2019. From there, we grew to 15 customers in 2020, 40 customers in 2021, and 45 customers by the end of 2022

Nowadays, 80% of our actual revenue comes from enterprise customers such as Carrefour, Auchan Group, and Mercadona. Moreover, prestigious companies like Siemens AG, Porsche, Volvo, Telefonica, Cabify, Netflix, and Meta's Facebook have also become BotsLovers customers

Pilots: 

We developed pilot projects with Telefonica in Spain and Airbus in France and we are about to develop a pilot with Hotelbeds, a global travel industry leader.

Partnerships:

We have acquired a number of prestigious partnerships including Meta Creative Labs Partner, Telefónica Open Future Partner, and Google for Startups.

Awards:

BotsLovers has been recognised several times, most notably as SeedRocket Start-up of the Year and for the Airbus Biz Lab Accelerated Start-up award.

&nbsp;

Give us some insight into your company culture and brand values. How do you foster innovation, as a company?

At BotsLovers, fostering innovation is at the heart of our mission. We believe in a multi-faceted approach that encourages creativity, collaboration, and continuous learning. Our innovation strategy begins with a culture that values and rewards creative thinking, empowering our talented team to explore new ideas fearlessly.

We actively engage in ongoing research and development, staying at the forefront of Conversational AI and emerging technologies. Collaboration is key; we cultivate partnerships with industry leaders, universities, and startups to leverage diverse perspectives and expertise. Lastly, we foster a customer-centric mindset, closely listening to our clients' needs and feedback to drive innovation that delivers real value to their businesses.

&nbsp;

&nbsp;

TRAVELTECH LAB BY HOTELBEDS

We explore the intersection of emerging technology and travel, to build innovative products and consumer experiences all whilst engineering solutions that advance Hotelbeds’ innovation agenda, and better the lives of our customers.

We’re firm believers that in a collaborative environment, it’s all about exploring new horizons to future-proof our business and drive digital transformation.

Learn more about our work here.

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Spotlight On BotsLovers

Here at Hotelbeds, we believe that we can transform travel into a force for good.

We want to ensure that the travel industry continues to thrive, without compromising the travellers of the future, and ensuring a positive impact on society and the environment. That is why today, on World Tourism Day, we want to remember the responsibility we each share: as travellers, companies, public institutions and so forth, it is our duty to take care of our planet and society. We fully support the United Nations World Tourism Organisation’s (UNWTO) themes for 2023 ­– Tourism and Green Investments, and Investing in People, Planet and Prosperity.

Sustainable travel is growing worldwide – we saw a 30% increase in the year to April versus the previous 12 months – and we all want to keep exploring: to see nature, enjoy clean beaches, and explore the vibrant colours of our world both on land and under water. From visiting temples and ancient cities, to enjoying gastronomy, watching wildlife and meeting happy people in the countries we visit, travel can be a truly enriching experience for all parties involved.

With travel and tourism accounting for more than 8.5% of global GDP in 2022, it’s an important, and growing, economic driver. On World Tourism Day, we want to remember the responsibility of every company, public institution, and traveller to be more sustainable. And although we have much more to do, we’re making many positive steps to ensure we look after the planet for generations to come. Our small acts have a much greater impact when combined, with the ability to make a profound and positive impact on our world. 

As companies, we have the power to transform faster. We must harness our loudspeaker, our entire value chain, to drive change towards becoming a more sustainable sector. Tourism offers very good things to our society, to the economy, and to the improvement and development of local communities. It also helps to give value to the culture of each country, and to its nature and heritage. But at the same time, this can be a double-edged sword if sustainable growth is not ensured. 

Companies must change their approach and be more aware of the risks in the long term. It is the responsibility of all us in the travel industry to contribute towards shaping a better world, particularly in terms of green investments and prosperity. With a roadmap in place, we will continue to deliver against our commitments, whilst also supporting the ambitions of our clients and partners. Together, our impact can be long-lasting, far-reaching, and sustainable for all.


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World Tourism Day 2023: Embracing Sustainable Travel

With the theme for Earth Day this year being ‘Invest in our planet’, I couldn’t imagine a more important message for my first Earth Day as part of the Hotelbeds team.

Here we take our Environmental, Social and Governance (ESG) commitments seriously, and for me, being tasked with heading up the ESG Team is a real honour and one that I am excited to take forward in the organisation.

World Earth Day is an opportunity for us to shout loudly about the important, and mandatory, role that sustainability plays in both our business, and the industry as a whole. We have a privileged position as a company in that we do not have a very high direct environmental impact, but we do have a strong capacity to influence and work with our sector to reduce its impact in terms of pollution.

Our ESG commitments, efforts and purpose as a leader in the TravelTech space mean that we intend to continue to collaborate with our partners to improve the impact of tourism on the environment and local communities, and create a sustainable future.

With 81% of travellers surveyed by Statista confirming that sustainable travel is important, we want to take advantage of being at the heart of relationships with hotels, and travel agencies to really influence their commitments to this cause.

There is no doubt in my mind that you can’t commit well to a role like mine without the subject being important to you personally. I started out professionally in the world of communications, but my true passion lies within the world of sustainability. Communications goes hand in hand with raising awareness and delivering the message of the importance of committing to sustainable growth so it’s a great match really.

From the early stages of my career at a Spanish refreshments company, doors were opened for me into a world of corporate social responsibility and sustainability, and then open innovation and digital logic.

I went on to another couple of companies where I was able to develop further. I worked with incredible teams who I learned from every day and I had the opportunity to see sustainability from a more technical and scientific perspective and also how to measure the impact of our social and environmental actions.

Now, at Hotelbeds, I can honestly say it is incredible to be able to work in sustainability for a company that mixes three of my passions; sustainability, travel and technology. We are focusing our strategy on three key areas, environmental, social and governance.


	Protecting our planet today to make it possible for future generations to enjoy travel tomorrow.
	Creating a diverse, engaged and healthy work force that contributes to developing a healthy society and supporting local communities in key destinations to thrive and progress.
	Ensuring compliance with laws and regulations in every market, conducting our business with integrity and respect and championing human rights with all of our partners.
	Using our strategic position in the TravelTech space to influence, create alliances and support our stakeholders in their own ESG path.


I enjoy creating projects that can help to improve society and our environment, as our challenges in this area have not changed, but how we approach them must evolve. At the heart of it lies the need to invest in our planet, to #MakeADifference and to make travel a force for good.


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Don’t believe in global warming? It would be a lot cooler if you did!

As International Women’s Day comes around again this year, I always have mixed feelings about it. On one hand it’s great to celebrate the contribution and value of women in the world however it´s also sad that we have to make this a big thing as it’s still not ‘normal’ to value women’s contributions equally.

This year, seeing the United Nations get behind innovation and technological change speaks volumes to the need to focus on diversity in tech, and championing education in the digital age to empower all women and girls is a necessary move towards equality in endeavour and opportunity.

I've spent my 30+-year career in the technology field and have seen huge strides being made to reform this traditionally male-dominated world, but we’re not going far or fast enough, nor with enough imagination or vision.

Data from the Boston Consulting Group reports that 20% of people studying technical subjects are women, while just 20-25% of tech leaders are women. That’s a huge amount of undiscovered and wasted talent.

Being a female leader in the technology and digital space should be about working hard, achieving results and being the best person for the job when promotion opportunities arise, yet it’s been shown that this is not always the case. I have been lucky to work with open-minded and supportive leaders which, sadly, is not the case for many. McKinsey and LeanIn.org’s&nbsp;‘Women in the Workplace’ 2021 report found that, across all industries and roles, 86 women are promoted to manager for every 100 men at the same level. The gender gap for women in technical roles is even greater, with just 52&nbsp;women promoted to manager for every 100 men.&nbsp;

So how do we encourage more women into STEM (science, technology, engineering and maths) careers? There is huge talent out there – if we know where to look – but what we need to address now are the barriers to entry. Does every data scientist need a degree? Do they all have to be in the office 9-5, Monday-Friday? In my experience, the answer to both is no – so is it time to remove these requirements and focus more on the skills we can't teach, such as a desire to learn, attitude and enthusiasm?

Here at Hotelbeds, changing our recruitment strategy has paid off – not just in tech, but across the board too. Some 57% of our global workforce are women and they hold 47% of leadership positions across the company.

Flexibility, support and sponsorship are essential for women but also for many across our employee base (present and future), so let’s embrace this for the benefit of the company and the organisation. After all, a truly diverse workforce brings wider conversations, better decisions, innovation and opportunities for all.


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Increasing diversity in tech brings benefits for everyone

In the modern world the many paths of travel all ultimately converge on one very important point: technology.

At Hotelbeds we are committed to continually pushing forward the boundaries of travel technology and recently we have adopted a new technique for achieving this: Nexus Agile Framework.

What does that involve? To understand the Nexus framework, you must first understand something called ‘Agile’. This is a framework for iterative and incremental value delivery that bases its way of working on frequent feedback and collaborative decision making. This differs from traditional methods by getting teams to work in ‘sprints’ (you can learn more in this YouTube video).

The Nexus Agile Framework takes this one step further, working across multiple teams to help them come together to deliver services or features to multiple stakeholders.

Already we have finished our third Nexus four week ‘sprint’, with the first one taking place only a few months ago.

We aimed to improve collaboration between platform groups within our Technology department – which is made up of seven different teams covering Operations, IT Architecture and IT Technology Delivery – to establish common priorities and focus on the end destination in our journey to become Agile.

Thanks to the efforts of all those involved our teams are now better aligned and delivering enhanced value to the business – for example optimizing cloud services and also reducing cloud costs. Just as importantly, stakeholders are interacted with via a single contact point and we are improving transparency on value delivery.&nbsp;

An additional huge benefit is the fact that transparency, alignment and focus help teams become more engaged and committed. This is a really big deal: the more an employee is driven by purpose and passion, the more positive the impact will be for the organization’s results.

So it is clear what Nexus does for us, but what does that mean for our supplier and customer network? The framework enables us to deliver more products and services faster, with greater surety and predictability.

This means we can keep suppliers and clients at the leading edge of product definition, give them a faster ‘MTTM’ (mean time to market) and an experience that is both significantly more consistent and reliable. Given the current environment, this is more important than ever before.

I´d just like to say to all my colleagues involved how enormously proud I am of our success in delivering Nexus Agile Framework. That´s because there are hardly any cases of pure technology teams implementing scrum in platform teams. We really have had to draw our own roadmap and that makes the achievement both remarkable and rewarding.

Keen to find out more about how you could use Nexus Agile Framework in your work environment? Whilst clearly this is not a Hotelbeds service, we´d still be pleased to offer advice on how your business could benefit from this approach to project management. Drop me an email today on smatthews@hotelbeds.com and let´s compare notes on where our respective journeys converge.


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Our journey to find travel’s nexus  

When was cloud computing invented? This is a hotly disputed subject amongst my fellow geeks, with the answers brokered spanning from 1963 through to 1993 – and across those three decades the years that have the strongest backing are 1983 and 1989 (I´m a 1983 guy).

As we charge through the 21st century the discussion has moved on to become ´who has genuinely deployed a practical cost conscious cloud strategy? ´, accompanied by similarly high levels of debate.

Like so many other businesses our cloud journey at Hotelbeds has been made up of an initial technical push with a single cloud provider tightly coupled – and deliberately&nbsp;so – with our legacy on-premise infrastructure.

Unfortunately this is not economical in the long-term. &nbsp;In the short term it works, but then the costs grow and the single partner route takes a big bite out of the advantages of a distributed architecture.

The credible cloud provider landscape has really matured in recent years and the challenge for us now is not which providers to go with, but instead how we effectively deploy our services amongst those providers.

We have accelerated our outcomes through our partnership with Rancher, the software stack that enables businesses to deliver Kubernetes-as-a-service.

I can proudly confirm that this summer we started running Kubernetes clusters in our production environments on GCP (Google Cloud Platform) and AWS (Amazon Web Services), using Rancher to deploy and distribute our work loads.

So what does this mean for our 180,000 hotel and 60,000 B2B travel buyer partners? The greater flexibility we now have means we can offer a more reliable, more robust, and more performant availability service. These are core components in our customer experience and in transaction terms this heaviest platform element.

Meanwhile an added bonus for us is the time reduction of 90% in cloud migration and 80% in deployment. This allows us to scale and deploy our workloads in minutes – literally – that in turn delivers a substantial operating efficiency and the all-important greater surety of service.

Whilst multi-cloud is far from a new strategy for us or our sector, I´d like to make clear that this is not just some theoretical exercise: we have fully deployed a multi-cluster, multi-cloud, hybrid cloud/on premise architecture to give us complete flexibility. It is an enormous achievement.

This outstanding work reflects the professionalism and commitment to innovation of our colleagues, who did all this work long before I arrived – &nbsp;while I bask in the glory of their hard work!

I am already working with the teams on the next phase of our cloud journey with additional core components in our platform, and also leaning&nbsp;on some amazing new business service technology that will enable seamless real-time performance optimization…more on that soon.

If you would like to know more about our cloud journey or the Hotelbeds product and technology community please reach out to us.

Want to find out more about how our Rancher partnership can benefit your business? Read the full case study on Rancher’s website here.


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Finally…a real hybrid multi-cloud success story

During the first quarter of this year we have learned that the future is not quite what it used to be. In fact, right now that future we all predicted – of a continued growth year – couldn´t be further away.

Relative to Europe and North America, here in China we are now in the position of essentially already living in the future of travel.&nbsp;

Even in the Hubei province – where COVID-19 was first identified – travel restrictions have now been lifted and tourist sites across the nation are opening. This has been accompanied by a modest but encouraging return in hotel bookings at a domestic level here in China.

So what are the lessons for all of you in travel industry?&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Firstly, domestic will recover first before international and in the next few months leisure travelers will choose destinations away from dense crowded spaces. Fresh air, green mountains and rivers, blue sky and the sea will be preferred by many people. &nbsp;Business travelers will prefer chain brand hotels at the mid-price level because of concern for both safety and budget.&nbsp;&nbsp;

And note that it is very likely that Chinese travellers will be the first to venture abroad for holidays once international restrictions are lifted. In fact just this week a survey by the China Tourism Academy and Trip.com showed that from around the end of May and June onwards it is likely that Chinese outbound travel will gradually pick up once the pandemic is controlled, border controls are lifted, and destinations open again. &nbsp;This most likely will start with neighbouring countries such Thailand, Japan and South East Asian countries generally, depending on the travel policy of each destination. Travel demand will gradually resume but clearly the destinations will be changed post COVID-19.

Given that Chinese travellers were already the biggest international travel segment before COVID-19 struck, when travel restrictions are eased and the recovery comes outbound Chinese tourists will present a significant opportunity to hoteliers around the globe keen to lift occupancy rates. Will your hotel be ready for that?

Secondly, we are seeing that concerns about safety are a focus for many travelers. Travelers will tend to be more cautious in selecting their travel agent, travel destination, airline or hotel. And those who responded professionally during the COVID-19 outbreak and who how have a compelling safety process in place will be strongly positioned. Will that feature in your sales, marketing and operations processes?

This is not just about the end traveller too, but about support for your partners right across the whole travel distribution chain. For example, our clients were eager to get&nbsp; up-to-date information and assistance during this unprecedented time, so we developed a dedicated COVID-19 website.

Many small travel agents, travel operators and B2B resellers operating a low profit model will disappear or be change substantially after this crisis.&nbsp; That is because bigger players who have more stable finances and solid performance in the past can attract more capital to survive during this crisis. &nbsp;Will this change your choice and decision of partners afterwards?

Thirdly we expect that online travel, in the future may see a boost given that most people over the last few months have now learned how to purchase anything and everything online. This ‘purchase online’ behavior will gradually turn into a permanent habit, so we believe that it will further accelerate the digitalization of the industry overall for the long term.&nbsp;

If you didn’t have time to think about transformation your business model previously, now is a good time to focus on it! Especially for those ‘Bricks-and-Mortar’ travel agencies, who need to restructure their business practices to meet the changing demands and transaction into a ‘Clicks-and-Mortar’ business.

Last but not least, we are anticipating a significant increase in the number of travellers looking to take out comprehensive insurance before travelling. For travel agents and other intermediaries searching for extra ways to boost revenues, this could prove a rewarding cross-selling opportunity that your consumer customers will be truly grateful for.

In the film Back to the Future Part II, Marty ‘returns’ to the year 2015. Whilst 2015 may well be in the past for us, the reality is that many would welcome a return to the sales performance of that year. My view from China suggests that we may gradually return to–but that the travel landscape will look quite different.


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Back to the future: lessons for the travel sector from China

Next week we welcome a new year and, more importantly, a new decade. Chris Branagan, our Director of Technology, gives us some insights about how the year has been for the industry from a technology perspective and explains what to expect for 2020 in hospitality and tourism.

Are there any non-travel industry technology companies that will have a big impact on the travel industry during 2020?

Out of all the tech giants Salesforce is now the fastest growing and we saw this in 2019. For example this year they bought Tableau and they´ve been very busy taking over many other companies. They are working their way towards offering a full service solution, including both customer acquisition, marketing, analytics and CRM.

Already they are now present in many parts of the travel technology eco-system and this looks set to increase. In 2020 I see more and more travel businesses turning to them to be their technology partner. Watch this space.

As more people book travel online, how is search demand evolving and how many searches does your business now handle daily?

The travel industry ‘look-to-book-ratio’ – the ratio of how many travel offers a consumer sees Vs making a purchase – has been exponentially growing for a long time now. I´d say that it has more or less doubled every nine months or so consistently for several years.

As a result we are seeing from clients more and more demand for search capacity and now that we are in the cloud we are able to support any level of demand – and now see regularly peaks of up to 4 billion searches a day.

What currently is driving the exponential increase in ‘look-to-book-ratios’ and demand for search power?

Historically this has been driven simply by the growth in online purchases of travel. But in recent years this has been driven more specifically by the growth in ‘hyper-connectivity’: everyone is connected to everyone.

Is there a better way to manage the insatiable demand for search data from travel sellers?

As technology improves the cost per search falls, of course, but currently the demand for increased search results means that the travel industry is not benefiting from this cost saving – in fact overall the cost per booking is probably increasing.

At Hotelbeds we are trialing methods of using machine learning to reduce the number of search results required for each request. How does this work? Right now the industry has a ‘one-size-fits-all-approach’: a search can returns all potential booking options, even though the vast majority of those results are not needed. Our aim is instead to give our clients a ‘curated feed’ based on their needs, using machine learning tools that look at their prior booking patterns and so on.

We hope to be able to announce more details about this next year and are very excited about this. Not only will this make us more competitive, clients will benefit significantly because processing search results costs them time, money and resources. In other words clients will see a reduction in costs, quicker search results, and content more relevant too for their end-consumer customers.

How is technology revolutionizing the retail travel agent selling experience?

I think that the Thomas Cook collapse really drove home to many both inside and outside of the travel industry that the high-street retailer still has an important and big part to play in selling holidays – but that there is a very clear dividing line between those doing it well, such as TUI, and those that have failed, with Thomas Cook being the most high-profile example.

What are the successful travel agents and tour operators doing? Embracing technology explains a signifi­cant part of their success. In many respects on the surface there is nothing radical about what they are do­ing. In fact they´re really just using modern techniques for selling, such as using large and multiple screens to help people visualize the experience. It’s been a radical change for many though, when you consider that only a few years back many still had the ‘green-and-black-terminals’ behind the desk (that they wouldn´t let you look at!).

More interestingly though from a technology perspective is what has happened behind the scenes here. The consumer can´t see this, but the technology innovations that have occurred to make sure that the trav­el agent is able to find the right content at the right price, easily and quickly, have been considerable.

I´m talking about search and filtering options, group booking/payment functions, issuing vouchers, refunds and cancellations, itinerary print-offs, multiple payments, digital after sales service, customer data bases, upselling ancillary services like a transfer, and much more. It’s not as glamourous as ‘instant bookings via Instagram’ or talking about using Alexa as your customer service solution, but these kind of iterative chang­es will continue to help high-street travel agents differentiate themselves from the big OTAs in 2020.

A few years ago ‘cloud’ was the buzz word in travel technology circles. Is there much more to say about cloud nowadays?

Many companies perhaps touted their ‘cloud’ capabilities long before they were really actually in the cloud, so it is still only very recently that many companies really switched to the cloud – and many still have that ahead of them, particularly in the travel sector where many relied on legacy data centre solutions.

This year there has been one big change worth noting though. More and more competitors have matured and this is driving down prices. Cloud costs for travel technology companies can take up a significant part of the IT budget, or even the overall budget, and so reduced costs are good news for everyone – not least for smaller travel technology companies, travel start-ups and, ultimately, for the end-traveller.

And finally, did blockchain realise its full potential for the travel sector during 2019?

Blockchain has once again disappointed in 2019 by failing to gain any kind of significant traction in the trav­el sector. Why? The simple answer is that whilst its potential uses are clear, no one is finding a cost-effective was to employ those uses yet.

Nonetheless we shouldn´t write it off yet. For decades we laughed at the failure of video phones to become widespread, but look how quickly they have become the choice for so many of us communicating over long-distances.

For example, there could be a very strong case for hotels to use blockchain to be able to confidently man­age the distribution of their rates and avoid OTAs using their opaque rates intended for offline channels. At this stage it is not a cost effective solution, but who knows maybe one day it will be?

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End-of-year industry outlook

The closure of Amoma last month generated a lot of news. Within that you may have seen debate about what role bedbanks play in providing B2C sellers such as Amoma with discounted rates, originally meant for offline channels such as retail travel agents or tour operators?

Therefore we at Hotelbeds want to set the record straight on this issue. As we are the biggest bedbank in the world and sell over 50 million room nights a year, I would like to update you on how our place in the travel distribution eco-system has evolved over the last few years.

As we integrated both Tourico Holidays and GTA into our business over the last two years, we have been busy listening to our hotel partners to greater understand their needs. Two particular areas of feedback stood out and we have responded to those.

Firstly the need for hoteliers to be able to more efficiently and accurately segment their distribution across various channels.

And secondly, the need to access incremental bookings from high-value guests, in particular long-haul travellers.

This is why over the last two years we have been evolving our business to offer our hotel partners access to reservations from hard-to-reach channels such as retail travel agents, tour operators, points redemption schemes and airlines. These channels provide travellers who book further in advance, cancel less, stay for longer, pay more per night, spend more in-destination, and come back more often.

As a direct result of this, we had been steadily reducing our sales via Amoma over the last few years and at the time of its collapse it represented less than 1% (and falling) of our sales.

Equally we have been reducing sales with other similar players and in the last year alone have forfeited approximately 250 million euros worth of similar business – as we did not see these bookings as in the interest of our hotel partners.

Additionally we have increased our investment and resources focused on this area to create enlarged teams and improved technology solutions that help identify any issues quickly for our hotel partners.

And for those B2C buyers that are not adhering to our clear distribution management rules, we have also introduced a ‘three strikes and you are out’ policy. Any online travel agent that distributes content intended for offline in an online B2C sales channel, just three times, will find themselves cut-off from distributing that hotel via Hotelbeds.

As a result of these efforts we are now seeing our hotel partners report close to zero percent of instances of problems – from a room night production basis – and this figure keeps falling.&nbsp;&nbsp;

Currently around 75% of the sales we gain for our hotel partners are either from non-domestic source markets – in particular China, which is now our fourth biggest source market globally – or from off-line channels such as tour operators, airlines (via their booking process and call centres), retail travel agents or points redemption and loyalty schemes.

Retail travel agents in particular provide hoteliers with hard-to-reach and very high-value guests. That’s why over the next three years we plan to increase by 14,000 the number of retail travel agents we work with, taking our total travel agency portfolio to 64,000 – all served and managed by our Bedsonline brand.

Perhaps you now begin to see why our business with Amoma had steadily reduced? This is why in the coming months and years we anticipate that the Amomas of the world will become more and more insignificant. Not only does their business model impact negatively on all of our hotel partners, whether independent or chain, but in the long term it is not sustainable for the industry. &nbsp;

To learn more about the issue of rate integrity – and bedbanks in general - read our White Paper published last week,&nbsp;Reach, Growth and Occupancy:&nbsp;The real value of the bedbank distribution model&nbsp;https://www.phocuswire.com/Hotelbeds-value-of-bedbanks-report

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Amomas closure creates an important question for hoteliers: how to stop OTAs abusing discounted rates?

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