Attribute Based Shopping - A blessing or a bane?
— 11 experts shared their view
While attribute based shopping has been discussed for over 10 years, the level of noise about its application for the hotel industry has significantly increased in the last 18 months. After significant investment in new systems and technology, companies like IHG are tipping their toes in the ABS waters. While some tout the great benefits (and revenues) expected by offering customers more choice, others take a more cautious approach, questioning the expected benefits and ROI. What is your take on ABS, will it do what it did for the Airline industry - boost ancillary revenues, or will it be the "3D TV" of Hotel Technology.
Partner at Soler & Associates
Where ABS could be a game changer is in search, recommendations and in pricing. Too many are focused at how this can be a method to sell ancillary revenue, like the airlines did. But the application in hotels could be totally different. Pricing intelligently based on features would be mainly an RMS level use of ABS. Guests would still see and book a final price, but the room price would be build by pricing the features within the rooms.
Recommendations algorithms need more attributes to improve the results, current models are too limited. And automatic attribute assignment doesn't take into account that some attributes have limits and thus would inventory needs to be distributed.
The deployment however will require that either Google or a major OTA move first to push the various tech levels of the industry to build the APIs and inventory and price management for these.
I don't think it is a question of if it happens but more when it happens.