Imagine walking into a supermarket and picking up a box of cereal without knowing its ingredients, who made it, or how much sugar it contains. You’d be outraged, right?
Yet every day, travelers book hotel rooms based on vague labels like 'Standard Room' or 'Deluxe Suite'—terms that offer almost no insight into what you’re actually paying for.
It’s time for a change. Guests deserve to know what they’re booking: Does the room have a king bed or two twins? A view of the city or just a wall? A bathtub or only a shower? Every room has unique features—so why keep them hidden? When hotels obscure these details, it’s no different from misleading packaging in a grocery store.
In today’s era of AI-driven personalization, using generic room categories is outdated and fails to meet the expectations of modern guests. If we demand transparency in the products we buy, why should we settle for anything less when booking a hotel stay?
How Room Categorization Has Led to Commoditization and Loss of Control
The traditional practice of categorizing rooms under generic labels like 'Standard' or 'Superior' was initially introduced to simplify operations and streamline distribution. However, this approach has backfired, contributing to the commoditization of room products, which benefits large booking platforms and undermines direct selling strategies. By lumping unique rooms into broad categories, hotels lose the distinct features and value propositions of individual offerings, making rooms easily comparable and interchangeable.
As a result, hotels have become increasingly reliant on brand recognition and substantial marketing budgets instead of showcasing the true uniqueness of their rooms. What began as a necessary solution for managing online reservations in the early 2000s now limits a hotel’s ability to differentiate itself and meet the diverse preferences of today’s travelers.
The solution lies in moving beyond rigid categorization to an approach that highlights individual room features. This shift allows hotels to regain control over their distribution strategy, increase transparency, and enhance guest satisfaction.
Discover More in the New Release: Experience-Based Booking Report by Fraunhofer Institute
For a deeper look into the future of hotel distribution and how experience-driven booking strategies can help hotels overcome commoditization, check out the newly published Experience-Based Booking Report by the Fraunhofer Institute.
Press Release (English): Read Here
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GauVendi is an AI-driven sales platform with a product suite addressing the entire guest journey that captures prices and dynamically sells detailed room product information and matches personal wishes in an automated way.
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