The concept of Attribute Based Selling in hospitality technology
The concept of Attribute Based Selling (ABS) has gained various interpretations in the realm of hospitality technology. It has been at the core of many ideas applied in the development of retailing products at Sabre Hospitality. In this article, we delve into the essence of ABS and how it has transformed the way hotels engage with guests.
Guest-Centric Evolution
Traditionally, guests seeking accommodation online or through travel agents faced minimal options. They were limited to selecting a specific room type with corresponding price points. However, customer expectations have evolved beyond just the room type. Personalization has become prevalent across all industries. Modern travelers, accustomed to a plethora of choices and the ability to dictate preferences, now seek tailored experiences that directly meet their individual needs.
A study by PwC on Global Consumer Insights reveals that 87% of consumers prefer engaging with travel companies offering personalized experiences. Many are even willing to pay a premium of 10-15% for such customized offerings.
ABS (Attribute Based Sellin): A Game-Changer
Enter Attribute Based Selling (ABS)—a game-changer that allows guests to handpick specific attributes for their room. Whether it’s a balcony, a higher floor, or unique amenities like a connecting room or a mini kitchen, ABS empowers hotels to disassemble the guest’s room experience into monetizable elements. These elements transform into individual offers that consumers can selectively choose.
ABS goes beyond fixed bundles. It introduces flexibility, encouraging consumers to seamlessly include additional attributes. The result? Higher basket values and a fresh layer of customization for hotel guests.
Remember, ABS isn’t just about selling rooms; it’s about creating personalized experiences that resonate with today’s discerning travelers.
Evolution from Dynamic Packaging to Retail Studio
While the bundling of attributes with a room is not a novel concept, previous attempts typically involved the creation of pre-determined packages, such as a room paired with an ocean view, late check-out, or additional services like breakfast.
The introduction of Dynamic Packaging marked a significant step towards hospitality retailing. However, recognizing the evolving landscape, Sabre has further developed SynXis Retail Studio to address the limited challenges of its predecessor. This new and improved retail solution enables hoteliers to create unlimited choices with high levels of personalization by unbundling packages and presenting individual attributes separately.
Retail Studio transcends the traditional ABS models, providing guests with the freedom to meticulously select the attributes that align with their preferences. This innovative product emerged in direct response to industry feedback, particularly during challenging times, as revenue generation and the exploration of alternative revenue streams became imperative for hoteliers.
With Retail Studio, every facet of a traveler’s experience is redefined as an attribute. The platform has been designed to offer an infinite variety of room-related attributes, pushing the boundaries by further allowing anything outside the room to also be defined as an attribute. This groundbreaking approach provides unprecedented flexibility in inventory management, enabling hotels to define and offer a limitless array of options. By putting choice in the hands of customers, ABS becomes a powerful tool for both guests and hoteliers.
Endless Opportunities and Value Creation
From the perspective of a guest, hotels are no longer just a place to stay; they become providers of unique experiences extending beyond the room and property. Hoteliers, on the other hand, have already captured the connection with that guest and are uniquely positioned to participate in all the ancillary revenue streams and all trip-related spend.
The introduction of Retail Studio empowers hoteliers to curate a diverse range of experiences, services, and goods, thereby customizing the overall travel experience for their guests. Beyond traditional accommodation, hoteliers can now play a pivotal role in shaping and enhancing every aspect of a traveler’s journey.
Embracing the innovative concept that everything can be considered an attribute unleashes boundless opportunities, creating value that resonates with both guests and hoteliers. This approach fosters a seamless and enriched guest experience where convenience plays a pivotal role. Providing guests with awareness about ancillary offers at the time of booking and enabling effortless ancillary purchases significantly contributes to higher conversion rates.
Redefining the Guest Experience
Drawing from the valuable feedback gathered, it becomes evident that guests place significant importance on several factors when considering ancillary offers during the booking process. There is a high value placed on being able to make an ancillary purchase together with the room directly in the booking flow, and very importantly to have the offers conveniently presented to them and with sufficient detail.
While hoteliers gain incremental revenue streams through ABS, its value extends far beyond mere financial gains. The real strength lies in the profound impact of personalization, fostering a deeper connection between hotels and guests. This level of personalization empowers hoteliers to craft unique offers that resonate with guests on a meaningful level. Personalized offers go beyond transactional relationships, creating enduring connections that translate into increased guest satisfaction and loyalty. These connections, grounded in personalized experiences, lay the foundation for sustained revenue growth over time. As guest satisfaction elevates, so does loyalty, forming a continuous loop that contributes to the long-term success of the hotel.
The expansion of offers to include any possible attribute marks a transformative change for hoteliers. As hotels transition into dynamic hubs of experiences, Retail Studio becomes the catalyst for redefining the guest experience, ensuring that every element, from booking to ancillary services, aligns with the evolving expectations of modern travelers. It is only a matter of time before hoteliers universally embrace these transformative tools.