Let’s imagine you’re planning to open a brick-and-mortar business in the heart of the Upper East Side in New York City. Rent—whether commercial or residential—is high. After all, for many, New York is the epicenter of action. A tangible energy thrums through the streets at all hours of the day, as people from all walks of life hustle to and from subway terminals, sky-high office buildings, cozy corner cafes, and trendy bars and restaurants teeming with patrons and delicious food. In a city like New York, the stakes are high, but so is the potential reward if you play your cards right.

Now, let’s imagine you’ve found the perfect space for your business, but there’s a catch. If you select this location, you can only operate between the hours of 5 PM and 9 AM, meaning your business will be left to sit empty (and unprofitable) during the day. Depending on the nature of your business and the costs associated with maintaining and operating it, this could be a dealbreaker. Yet, this is precisely how hotels have traditionally operated. 

With fixed check-in and check-out times (usually around 3 PM) and many guests checking out early and checking in late, hotels are often 30-40% empty during the hours of 9 AM to 5 PM. Perhaps, you could chalk this up to the cost of doing business. But in the world of hospitality, a key indicator of success is utilization, so why should any hotel brand allow their property and its sought-after amenities to remain so underutilized?

Hotels — especially in today’s “on-demand,” tech-enabled landscape—should be viewed as so much more than a “nighttime” product. With the right technology and the right approach, properties can truly maximize their inventory and open their amenities to delight an emerging guest segment and meaningfully boost their bottom line.

Who Really Books a Hotel by the Hour?

The term “day use” or “hourly hotels” has historically invited some questionable associations. So, to understand this segment and shift how it’s perceived by the market, it’s important to first define who the modern “day use” guest actually is. 

First, you have local residents of a city who crave a temporary escape in an environment that feels removed from home and their normal day-to-day experience. Even if travel is a priority, many individuals and families might not be able to get away for an extended trip more than once or twice a year. However, with the inclusion of “mini getaways” comfortably within city limits, monthly hospitality experiences suddenly become possible. You might see someone unwinding by the pool before heading home to pick up the kids, or a couple celebrating an anniversary in the middle of a work week.

Of course, we also have the modern business traveler, especially those who frequently find themselves on quick day trips to attend meetings, events, or collaborate with colleagues in unfamiliar cities. Traditionally, these guests have had little option other than to “squat” in hotel lobbies or local coffee shops, with no real amenities at their disposal. So what if, instead, they could rent a quiet room to reset between calls, host a client in an elevated setting, or simply shower and change before their next meeting or dinner invite? For this guest, it’s not just about convenience; it’s about professionalism, well-being, and reclaiming space in a crowded city.

Finally, we have the “in-betweeners”—the layover guests caught in that liminal space between flights or their next destination, with enough time to need a place to go but not enough time for a traditional, overnight hotel stay. After all, most people would trade a stiff plastic chair or hours languishing in a terminal restaurant or coffee shop for a few hours in a comfortable bed, a shower, or the convenience of a well-equipped hotel gym any day. In this scenario, day-use hotels turn otherwise wasted hours into productive, restful, even restorative moments of reprieve. 

Each of these archetypes represents a different kind of untapped value for hotels—unrealized bookings captured, experiences reimagined, and new guest relationships formed.

It’s Time to Transform Losses into Profits

If we know that hotels are chronically underutilized during daytime hours, along with their suite of amenities and offerings, it’s not hard to make the business case for optimizing this segment. 

By tapping into rooms and amenities that would otherwise remain unsold or underutilized, hotels can generate significant incremental revenue, turning what was once considered a “loss” into a new stream of income. In fact, the revenue from short stays can range from 60% to 70% of the night price, creating a compelling financial incentive for hotel operators.

This shift is particularly impactful in a popular urban hub like New York, where the demand for flexible, on-demand services is rising to suit the evolving needs of modern guests. 

That means, the potential market for day-use services is estimated to be around $6 billion annually—a figure that lends context not only to the existing demand for day-use hospitality offerings but also to the future growth potential of this sector. 

By providing flexibility and a range of services that private hosts like Airbnb simply cannot match, hotels can recapture guests who might otherwise choose alternative accommodations. Innovative partners like DayBreak Hotels and Hotels By Day are already at the forefront of the day-use hospitality market, by providing a user-friendly booking platform for facilitating flexible stays at hotels throughout popular urban markets, like New York, Los Angeles, Chicago, San Francisco, and Miami. 

Yannis Moati, CEO explains,“Our team at HotelsByDay is very bullish on the prospects of this sector as it is estimated to be a $6Bn market by this decade and so far market actors have registered just about 10% market penetration. Combined with a modern guest that requires more flexibility than ever, a challenging economic environment which forces us to adopt new models, and now DerbySoft making this technological connection seamless, the Day-Use sector will experience strong growth, in turn making a substantial impact in hotel PnLs. This is the perfect time for hotels to join us on this innovative model and beat their comp-set”

By connecting hotels with a diverse array of customers – from business travelers looking for a reprieve between meetings to local residents looking for a mini-escape – both companies play an integral role in helping hotels effectively tap into this lucrative market.

DayBreak Hotels leverages a user-friendly platform that enables seamless short-term bookings, empowering guests to enjoy flexible accommodation options and access to hotel amenities like pools, gyms, and lounges—enhancing the overall guest experience for local residents and business travelers alike. Meanwhile, Hotels By Day, also located in the U.S., focuses on offering flexible stays for travelers in transit or those needing temporary workspaces, ensuring that hotels can monetize their rooms during the day. Both companies are committed to transforming the hospitality landscape by connecting hotels with a diverse array of customers, driving significant revenue growth, and responding to the increasing demand for convenience and flexibility. Travel agencies can greatly benefit from partnering with DayBreak Hotels and Hotels By Day, as they provide valuable options for clients seeking unique travel experiences, making them indispensable partners in today’s dynamic travel market.

The Long-Awaited Technology Revolution in Day Use Hospitality Is Here

Traditionally, technology has been a barrier to non-traditional utilization strategies. Legacy hospitality solutions are notorious for their rigid structure, which limits a hotel’s ability to adapt appropriately to the evolving needs of modern guests. 

To this effect, it has been difficult—if not impossible—for hotels to capitalize on the burgeoning day-use market because available technology could not distribute or offer a zero rate code. That is, until now.

Today, we find ourselves within a period of significant innovation, which grants hotels the opportunity to discard the shackles of legacy tech in favor of more flexible, dynamic platforms better suited to the current and future landscape.

DerbySoft has been at the forefront of this technological revolution, developing the critical connectivity infrastructure that enables these day-use bookings to become a reality. By solving the previously insurmountable challenge of distributing zero rate codes, DerbySoft’s advanced distribution technology now allows hotels to seamlessly offer and manage these non-traditional booking options. 

This breakthrough connectivity solution bridges the gap between hotels’ existing systems and innovative day-use platforms, making what was once impossible not only possible but highly profitable.

With the help of advanced connectivity solutions, hotels can seamlessly integrate day-use bookings into their existing systems to overcome previous operational limitations and offer services that cater to various customer demands.

The availability and integration of more advanced booking systems allow for real-time availability and pricing adjustments, which not only enhance operational efficiency but also elevate the guest experience, making it seamless for customers to enjoy the amenities they desire without the constraints of traditional check-in and check-out times.

The key theme here? Adaptability. With better tech comes better agility in a market that demands constant adaptation to delight travelers who increasingly expect tailored experiences that fit their busy lifestyles.

In essence, the emergence of day-use hotels is a reflection of the evolving hospitality landscape—one that prioritizes flexibility, convenience, and, of course, the guest experience. Moving forward, the ability to capture same-day bookings and cater to a diverse range of guest needs is not just an operational adjustment; it’s a business imperative that gives hotels a distinct advantage in an increasingly competitive and crowded marketplace.

Imagine a world where hotel distribution operates with seamless efficiency, effortlessly connecting properties with the right partners in real-time. This isn’t just an aspiration; it’s the direction the industry is heading. As travel continues to evolve at an unprecedented pace, hotels—whether independent or part of global chains—must rethink how they engage with distribution networks to stay competitive. Traditional models, built on direct contracts and negotiated agreements, have long been reliable methods for securing distribution. However, these approaches can also introduce significant complexity, require extensive resources to manage, and add costs that reduce flexibility.

For years, securing and maintaining distribution agreements has been an essential aspect of hotel operations. These agreements provide stability and structure but can also create logistical hurdles, making it difficult to efficiently manage relationships with multiple partners, each with their own requirements and pricing structures. One 2024 study found that direct booking channels, including hotel websites, still account for 50.9% of overnight stays in Europe, but electronic distribution channels such as OTAs and internet booking engines now make up 45.1%. This shift signals an increasing reliance on digital distribution, emphasizing the need for more seamless, adaptable approaches.

A new distribution model is emerging—one that simplifies the connection process between hotels and their partners while maintaining the advantages of strong partnerships. By shifting toward seamless integration, hotels can access a global network without the administrative burdens of direct contracts, allowing them to focus on what truly matters: optimizing revenue and delivering exceptional guest experiences. According to a recent report, digital channels now account for 60% of global distribution revenue, underscoring the growing dominance of digital solutions in the hospitality industry.

This evolution in distribution isn’t just about streamlining operations; it’s about creating a more dynamic and collaborative ecosystem. Reducing contractual complexities allows hotels to respond more quickly to market changes. Distributors, in turn, benefit from simplified supplier management, eliminating time-consuming negotiations and accelerating access to inventory. This refined approach fosters greater transparency, enabling both parties to build stronger, more flexible partnerships.

Beyond cost efficiency, this shift empowers hoteliers with greater control and visibility. Transparent pricing structures and real-time performance insights allow for more informed decision-making without constraints. Skift Research projects that by 2030, direct digital channels will surpass OTAs, generating over $400 billion in global hotel gross bookings, further reinforcing the need for hotels to adopt more adaptable and transparent distribution strategies.

The hospitality industry is at a turning point. Hotels that embrace this shift toward simplicity, transparency, and seamless collaboration will not only position themselves ahead of the competition but will also unlock new growth opportunities. What happens when we strip away the layers of complexity and redefine distribution? The answer may very well shape the future of hospitality in the digital age.

Distribution Simplified: The DerbySoft Exchange Advantage

In today’s complex hospitality landscape, time has become the ultimate luxury. The most successful hotels aren’t necessarily those with the most resources, but those who deploy them most strategically.

DerbySoft Exchange offers a more straightforward approach to distribution. By eliminating traditional contracting processes through zero-cost connectivity, hotels can redirect valuable time and attention toward revenue-generating activities and guest experience enhancements.

The real advantage lies in the control it returns to hoteliers. With the ability to instantly manage distributors affecting rate parity or block status, teams gain the agility needed in today’s dynamic marketplace. This combination of simplicity and control creates ideal conditions for innovation and growth.

Seamless integration with existing payment systems reduces operational friction, while intuitive dashboards provide the real-time insights needed for informed decision-making.

In an industry where complexity can often be often misconstrued as innovation, sometimes the most powerful strategy is simplification itself.

What if the biggest breakthrough in travel wasn’t a new destination, but a new way of operating entirely? While the world focuses on consumer-facing innovations, a quiet revolution is happening behind the scenes—one that’s redefining how the entire travel ecosystem functions.

For decades, travel’s backend operations have resembled a complex game of telephone—manual processes, miscommunications between agencies and hotels, and financial reconciliations that drift into administrative black holes. This inefficiency wasn’t just accepted; it was institutionalized. But now, artificial intelligence is silently restructuring these foundations.

When executives examine operational inefficiencies in travel, they’re often startled by what they find. Booking miscommunications, manual verification processes, and commission disputes create business pain points that ripple throughout the ecosystem. It would not be surprising for a global hotel chain to discover that manual commission reconciliation was costing them millions annually in administrative overhead and missed payments—essentially throwing money into an accounting abyss. Meanwhile, a regional TMC may find that their agents are spending thousands of hours yearly on booking verification calls—time that could have been directed toward consultative selling and relationship management.

The most powerful innovations often happen not through disruption, but through transformation of existing systems. In travel management, AI is enabling this transformation across critical domains, starting with financial precision and transparency. Traditional commission management resembles archaeology more than accounting—digging through disparate systems to reconstruct transaction histories. AI-enabled platforms are creating unified, transparent records that eliminate this archaeological expedition. For a mid-sized European TMC, implementing automated reconciliation dramatically reduced payment cycle times, improving cash flow predictability.

Remember when we thought automation would replace human jobs? The reality is more nuanced. The most successful implementations pair AI with human expertise. Agents aren’t making fewer calls—they’re making different calls. Instead of verification calls, they’re having strategic conversations about optimizing travel programs and enhancing traveler experience. This shift represents the true potential of human-machine collaboration.

When booking details fall through communication gaps, travelers suffer the consequences. AI is closing these gaps before they affect the traveler. The best travel technology is invisible. Travelers don’t care about the automation—they just notice that their rooms are ready, their preferences are honored, and their experience is seamless. This seamless experience is the ultimate goal of all technological advancement in the travel space..

As brands start to  master the basics of automation, they’re discovering unexpected opportunities for innovation. By analyzing patterns in booking behaviors, commission structures, and operational workflows, AI is uncovering insights that were previously invisible. For example, a hotel group  could identify optimal commission structures that increase TMC bookings while maintaining profitability—a win-win that conventional analysis had missed.

Perhaps the most profound shift is happening in how travel professionals view their roles. As routine tasks become automated, the emphasis shifts to uniquely human capabilities: relationship building, complex problem solving, and creative strategy. Automation isn’t making teams smaller—it’s making conversations bigger. Organizations are spending less time on transactions and more time on transformations.

The companies leading this evolution share a common approach: they view AI not as a technical implementation but as a business transformation. They’re asking fundamental questions about how work should be organized in a world where machines handle routine processes with greater speed and accuracy than humans ever could. For travel executives, the critical question isn’t whether to adopt these technologies, but how to reimagine their organizations around new capabilities. 

As you consider your own operation, what hidden inefficiencies might be masquerading as “just the way things are done”? In those gaps between expectation and execution lies the opportunity for transformation. The future belongs to those who recognize that the greatest competitive advantage isn’t in doing things differently, but in doing different things entirely.

This transformation is now accelerating through strategic industry moves. DerbySoft’s recent acquisition of Arise—an AI platform focused on travel agent-hotel communication and commission reconciliation— illustrates how the market is evolving. Such consolidation represents more than business strategy; it signals a fundamental shift in how we are approaching long standing challenges. Bringing specialized AI capabilities into our established ecosystem creates new possibilities for addressing friction points that have persisted for decades. The industry is moving beyond isolated innovations toward comprehensive solutions that transform multiple processes simultaneously.

What will you do differently tomorrow that you’ve been doing the same way for years? The travel organizations that thrive won’t just adopt new technologies—they’ll reimagine their entire approach to creating value in a world where the invisible work of management becomes increasingly automated, leaving humans free to focus on what we do best: creating exceptional experiences.

In a luxury suite overlooking Hong Kong’s vibrant skyline, a senior banking executive concludes her quarterly board meeting on Thursday afternoon. By Friday morning, she’s exploring local markets with her partner, who flew in specifically for the weekend. Once an exception, this scenario now represents a powerful trend reshaping the travel industry.

The distinction between business and leisure travel isn’t merely blurring—it’s fundamentally transforming. What began as tentative weekend extensions has evolved into strategic trip planning that maximizes both professional obligations and personal experiences.

Industry analysts project that global spending on blended travel will reach $360 billion by 2027, creating unprecedented challenges and opportunities for hotels, Travel Management Companies (TMCs), and corporate travel departments. This isn’t a passing trend but a structural shift in how business travel functions.

Why Bleisure Is Booming Now

The surge in bleisure travel stems from converging forces that make this moment particularly significant:

Demographic transformation is accelerating this shift. By 2030, Millennials and Gen Z will comprise 75% of the global workforce. These professionals approach travel differently than previous generations, viewing it as an opportunity for enrichment rather than simply a work requirement.

Remote work capabilities have permanently altered how professionals think about location and travel. When teams already collaborate across time zones, extending a business trip becomes logistically simpler and professionally justifiable.

For companies, the benefits extend far beyond employee satisfaction. Organizations embracing bleisure travel report measurable improvements in talent retention, productivity, and program compliance. Perhaps most surprisingly, well-structured bleisure programs often reduce overall travel costs as employees consolidate multiple business purposes into single trips and travel during optimal periods.

However, a critical consideration for multinational organizations: bleisure adoption varies dramatically by region, requiring nuanced approaches to program design and implementation.

Business travelers from India typically allocate 40% more time to leisure activities during trips than their counterparts from China. European travelers show strong preferences for extending weekend business trips but resist adding leisure days to midweek journeys. North American travelers prioritize destination experiences over accommodations, while Asian travelers place greater emphasis on hotel amenities during leisure extensions.

These regional variations necessitate culturally-attuned frameworks rather than standardized global policies. Organizations implementing regionally-customized bleisure programs consistently achieve adoption rates 30% higher than those applying uniform approaches across markets.

The Business Case for Bleisure

For hospitality providers, the bleisure revolution demands a strategic recalibration of spaces, services, and pricing models.

Forward-thinking hotels are redesigning properties to serve dual purposes. Lobbies transform from formal business centers during daytime hours into vibrant social hubs in the evening. Guest rooms increasingly feature adaptable furniture that transitions easily between workspace and relaxation zone. Fitness facilities offer both efficient workout options for time-pressed executives and immersive wellness experiences for leisure extensions. 

Properties that have embraced this flexible design philosophy report significantly higher occupancy rates and superior RevPAR performance compared to hotels maintaining rigid business/leisure distinctions.

The traditional resistance to extending corporate rates for leisure portions of trips creates unnecessary friction in the booking process. Innovative properties are implementing dynamic pricing models that consider total trip value rather than rigidly categorizing days as “business” or “leisure.” Hotels offering these flexible approaches report 23% higher conversion rates for extended stays and 18% increases in ancillary revenue. The competitive advantage is clear and measurable.

Bleisure travelers have distinct needs at different phases of their stay. Leading hospitality providers have developed modular service packages that seamlessly transition between high-touch business support and personalized leisure experiences. Properties offering these adaptable service models consistently outperform competitors on guest satisfaction metrics, with data showing significantly higher loyalty program engagement and repeat bookings among bleisure guests.

For Travel Management Companies, the bleisure revolution represents an opportunity to elevate their strategic importance to corporate clients while expanding service offerings.

The friction point that most frequently derails bleisure adoption is the complexity of separating business and personal expenses. Forward-thinking TMCs have developed sophisticated systems that automatically categorize expenses based on timing, location, and merchant type. These platforms eliminate the administrative burden that historically made bleisure travel impractical at scale, driving higher adoption rates and improved client satisfaction.

Leading TMCs have moved beyond basic booking tools to develop integrated platforms that manage the entire bleisure journey. These systems handle transitions between business and leisure segments while maintaining itinerary continuity, and proactively suggest extension opportunities based on meeting schedules and destination attributes. TMCs implementing these platforms report substantially higher attachment rates for leisure extensions and increased overall booking volumes.

The most effective TMCs have mastered the delicate balance between maintaining corporate policy compliance and accommodating bleisure flexibility. This often involves developing tiered policy frameworks specifically designed for blended travel, establishing clear boundaries while providing appropriate flexibility for leisure components. This structured approach significantly reduces policy exceptions while improving traveler satisfaction—a winning combination for corporate clients.

As trips become more complex, comprehensive support becomes increasingly critical. Progressive TMCs have expanded their service models to address the unique needs of bleisure travelers, offering specialized assistance for leisure components and ensuring seamless transitions between business and personal segments. This enhanced support drives measurable improvements in client retention and program adoption.

TMCs have developed specialized supplier agreements that address bleisure requirements. These partnerships secure preferential rates for extended stays while guaranteeing suppliers the longer average stays and increased ancillary revenue that bleisure travelers typically generate. These arrangements create sustainable value for all parties in the travel ecosystem.

Technology as the Great Enabler

ITechnology is transforming the way hotels and travel management companies facilitate bleisure travel, streamlining operations while enhancing the traveler experience. From automated expense tracking to AI-driven personalization, innovative digital solutions ensure seamless integration of business and leisure travel components.

Advanced expense management platforms simplify financial reporting by distinguishing between corporate and personal expenses, reducing manual errors and administrative overhead. Integrated split-payment solutions further enhance efficiency, allowing travelers to seamlessly manage business and leisure costs within a single transaction. Meanwhile, mobile apps provide real-time itinerary updates, safety alerts, and instant access to support services, ensuring a smooth and connected travel experience.

AI-powered analytics play a crucial role in tailoring bleisure travel offerings, using traveler data to deliver personalized recommendations and predictive insights. Machine learning models anticipate disruptions, optimize pricing strategies, and support dynamic policy adjustments to improve overall efficiency. Blockchain technology enhances security and transparency in transactions, with smart contracts automating payment reconciliation and policy compliance.

Comprehensive travel management systems unify booking, policy enforcement, and traveler support into a single platform, making it easier for travel companies to provide customized, compliant, and efficient bleisure travel solutions. With 24/7 virtual assistance, enhanced communication tools, and robust data protection measures, technology ensures that both travelers and organizations can maximize the benefits of blended business and leisure travel with confidence.

Hotels, TMCs, and corporate clients leveraging these technologies consistently achieve superior program performance compared to those relying on traditional systems and processes.

Takeaways

For executives across the travel ecosystem—whether in hospitality, travel management, or corporate travel programs—the bleisure revolution presents a fundamental choice: embrace this transformation as a strategic opportunity or risk becoming increasingly irrelevant as the market evolves.

The evidence overwhelmingly favors the former approach. Organizations that have strategically positioned for bleisure report stronger performance across all key metrics, from occupancy rates to client retention to traveler satisfaction scores.

The question isn’t whether your organization will adapt to the bleisure revolution—it’s how quickly you’ll recognize it as a strategic advantage rather than an operational challenge. The future belongs to organizations that don’t merely permit bleisure travel, but purposefully design for it—transforming what was once seen as a complex exception into a cornerstone of their business strategy.

In today’s hyper-connected travel landscape, hoteliers everywhere are seeking ways to cut through the noise, capture the attention of prospective guests, and turn those interactions into truly profitable reservations. The challenge has intensified with global competition, fast-shifting guest expectations, and rapidly evolving technology. Yet, these very forces can become powerful catalysts for growth when harnessed with the right strategy and the right tools.

At DerbySoft, we’ve spent years helping hotels navigate the complexities of distribution and revenue management through technology solutions that enable clear, demonstrable returns on investment. In this article, I’d like to share some thoughts on how robust hotel commerce technology can become the engine of sustainable profitability, brand recognition, and lasting success for properties of all sizes.

Embracing a Shifting Hospitality Landscape

Over the last decade, the hospitality industry has transformed dramatically. Many hotels have moved away from purely traditional distribution models—such as offline travel agencies and direct phone bookings—and toward a world dominated by online travel agencies (OTAs), metasearch platforms, and a wealth of digital touchpoints. On one hand, this shift has granted greater visibility to a worldwide market; on the other, it has introduced new layers of complexity: managing rate parity, crafting pricing strategies, and optimizing inventory.

As competition grows fiercer, hoteliers must juggle multiple sales channels, each with unique requirements around pricing, marketing, and target audiences. While traditional revenue management (RM) systems have historically helped forecast demand, some struggle to react quickly to real-time market changes. To succeed in this environment, hotels need commerce technology that not only assimilates historical data but also integrates with on-property systems to support ongoing, dynamic adjustments in pricing and distribution.

At DerbySoft, we recognized that hotels often encounter a gap between high-level revenue strategies and the daily realities of on-property execution. Sophisticated forecasting or dynamic pricing methods are beneficial, but only if they can be deployed swiftly to every distribution channel and operational platform. Bridging that gap—between strategy and action—can be the difference between merely being present in the market and actively shaping demand.

The Importance of System Integration

It’s common for hotels to rely on an array of technology platforms—the challenge is making these platforms collaborate effectively, rather than functioning in silos. In an ideal setup, revenue management, distribution and property-level systems are interconnected so that rate and inventory updates can flow automatically—informing and enabling faster decision-making. When such a connection is established, hoteliers benefit in several critical ways:

Operational Efficiency: With automation handling routine updates, front-desk, reservations, and sales teams can focus on strategic objectives, such as strengthening guest relationships and customizing offers, rather than on repetitive data entry.

Real-Time Pricing: Agility in pricing is vital. Instead of waiting for teams to manually update rates, automated adjustments can mirror shifts in demand throughout the day. When your rates accurately match market conditions, you increase the odds of maximizing both occupancy and revenue per available room (RevPAR).

Streamlined Inventory Distribution: Changes in room availability—whether from group bookings, maintenance blocks, or unexpected cancellations—are instantly communicated to every relevant channel. This decreases the risk of overbooking and ensures that all listings accurately reflect real-time availability.

Data Consistency: Hoteliers can’t afford data mismatches across platforms. When systems are fully integrated, all channels display the same rates and availability, reflecting an honest “single source of truth.” This consistency eliminates confusion for guests and upholds brand integrity.

Dynamic, Targeted Strategies for Higher Profitability

If we boil down modern revenue management, it’s really about deploying dynamic, targeted approaches to pricing and availability. In earlier days, hotels largely set rates based on seasonal patterns and a general sense of how competitors were pricing. Today, the power of data analytics and machine learning can pinpoint more nuanced guest segments, identify micro trends, and align rates accordingly, sometimes changing strategies multiple times in a single day.

By using integrated travel commerce  and RM systems, hotels can take advantage of:

• Segment-Specific Pricing: Through advanced analysis, you might discover that leisure travelers from a particular region are more inclined to book premium room types when offered a small discount or value-added perk. With a real-time connection between your revenue management solution and on-property systems, you can automate these unique offers for that specific segment, improving yield without overextending discounts to other demographics.
• Time-Sensitive Restrictions: In periods of high demand—such as during large conferences or local events—automatic restrictions like minimum-length-of-stay requirements can be applied. This ensures you’re optimizing both occupancy and rate, effectively capitalizing on peak demand windows.
• Rapid Reaction to Market Changes: If demand suddenly spikes due to favorable market conditions, integrated systems can nimbly increase rates. Conversely, when a big event gets canceled or demand drops, you can adjust rates downward to capture new bookings and mitigate the slow period. This balance of proactive and reactive pricing safeguards your top line against volatility.

When revenue management is divorced from real-time on-property insights, the potential benefits of dynamic strategies can be diminished. A seamless link between your RM platform, marketing,  distribution, and the day-to-day operational environment closes that gap—allowing hotels to adopt proactive, data-driven, and profitable approaches.

Cutting Through Distribution Complexity

Distribution could be described as the “lifeblood” of today’s hospitality business, but it also brings its own set of challenges. Too many distribution channels create administrative headaches and opportunities for error; too few limit a hotel’s exposure to potential guests. Achieving the ideal distribution mix and guaranteeing all channels remain in sync often requires advanced tools that can handle real-time updates.

One of DerbySoft’s core missions is to help hoteliers simplify and optimize this landscape so the guest journey remains front and center. When you have a well-orchestrated system feeding accurate rates and availability to every channel, you reduce common pain points—like discrepancies in posted rates or booking confirmations that arrive too late. A strong, integrated approach to distribution management delivers:

• Consistent Guest Experience: No matter where guests research or book, they receive uniform, up-to-date information. This consistency helps to build trust and brand loyalty.
• Channel Profitability Analysis: With reliable data flowing into your revenue management solution, you can identify which channels yield the most profitable bookings. If you discover that certain OTAs or metasearch sites bring in higher acquisition costs or less favorable booking windows, you can recalibrate your distribution approach accordingly.
• Increased Direct Bookings: Integrations with your direct booking platform allow you to highlight promotions or loyalty benefits that might not be available through third parties. By automating these updates, you encourage more guests to book directly.

Personalization and Profitability

Room rates and occupancy levels are only part of the profitability equation. Today’s guests want more than a bed for the night; they crave meaningful experiences that feel tailored to their preferences. Hotels that deliver personalized touches—from room upgrades for returning guests to curated local recommendations—tend to earn stronger reviews and repeat business.

Technology is a critical ally in this quest for personalization. As guest data accumulates through booking histories, loyalty programs, and CRM platforms, hotels can identify recurring patterns and preferences. Integrating these insights with your RM tools and on-property systems ensures that every guest interaction, whether digital or in person, can reflect a deeper understanding of individual likes and needs.

For instance, an integrated setup might surface data about a guest’s prior preference for higher-floor rooms and late check-out. Armed with that knowledge, your staff can proactively offer those features during the booking process or upon check-in. Not only does this encourage upselling or cross-selling opportunities, but it also forges a more meaningful connection between guest and property. Over time, positive experiences—amplified by social media and word-of-mouth—translate into improved reputation, stronger brand loyalty, and more profitable reservations.

Making an Impact Where It Matters

For many hoteliers, the true value of travel commerce technology lies in its ability to remove friction and reveal overlooked opportunities. By automating updates, standardizing data, and opening up lines of visibility across the organization, an integrated approach to revenue, marketing and distribution management results in:

Consistent Brand Experience: When your online presence, on-property experience, and post-stay communication align seamlessly, guests build a positive, cohesive picture of who you are and why they should return.

Improved Profit Margins: When you set the right rate for the right guest at the right time, you reduce missed revenue opportunities and avoid unnecessary discounting.

Reduced Manual Work: Eliminating repetitive tasks and errors frees your team to focus on high-touch services that differentiate your property—whether that’s a more welcoming check-in process or personalized in-room amenities.

Better Informed Decision-Making: Having a robust data repository and real-time visibility equips you to tweak your strategies quickly if external conditions change. It’s one thing to have a forecast; it’s another to adapt that forecast on the fly with confidence.

Conclusion

In a marketplace where travelers often encounter dozens of properties and booking options before making a final decision, the hotels that consistently stand out are those that optimize every stage of the guest journey—from the initial rate search to the post-stay follow-up. Achieving this level of excellence requires a fusion of strategy, data, and technology.

We at DerbySoft believe this continued push toward greater connectivity and smarter analytics will help hotels craft even more nuanced, profitable approaches to commerce. By leveraging every piece of relevant data—be it forecasted demand, real-time booking pace, or emerging travel trends—hoteliers can adapt to a volatile market far faster than ever before. That speed and accuracy, in turn, create competitive advantages: capturing more bookings at optimal rates, targeting new guest segments with tailored offers, and elevating overall guest satisfaction. Our mission has always been to support hotels in simplifying distribution and maximizing profitability through advanced but user-friendly solutions.

Moving forward, success will be measured by how effectively we blend personalized, human-centric service with cutting-edge technology, ensuring that every reservation is not just a transaction but a step toward deeper guest relationships and more profitable outcomes.

The global business travel sector is entering a pivotal phase, poised for transformative growth that combines heightened demand, technological advancements, and a strategic focus on sustainability. Recent forecasts and industry surveys suggest that 2025 will mark not just a full recovery of pre-2019 levels but also a fundamental reshaping of how business travel operates, as budgets rise, travel patterns evolve, and companies prioritize innovative solutions. As a leader in travel technology, DerbySoft recognizes that this resurgence offers unparalleled opportunities. By leveraging advanced connectivity, data analytics, and sustainable practices, we help travel brands navigate this dynamic environment. Here’s an in-depth analysis of the trends shaping 2025, supported by statistics and insights from GBTA and other authoritative sources.

Global Business Travel Spending: A Surge in Growth

According to the Global Business Travel Association (GBTA), global business travel spending is expected to reach $1.48 trillion by the end of 2024, exceeding the previous record of $1.43 trillion in 2019. This trajectory continues upward, with spending forecasted to hit $2 trillion by 2028. Deloitte’s Corporate Travel Outlook aligns with these figures, noting that 58% of travel managers expect budgets to increase in 2025, reflecting rising demand for face-to-face interactions in client meetings, conferences, and internal collaborations.

• Regional Highlights:
  • Asia-Pacific: This region leads the resurgence, with a projected compound annual growth rate (CAGR) of 6-7%. China and India are driving this growth, supported by expanding economies and increased corporate activities.
  • North America: Business travel spending in the United States is forecasted to hit $350 billion by 2025, driven by the return of large-scale events and domestic travel demand.
  • Europe: While rebounding at a slower pace, Europe’s business travel market is growing at a CAGR of 4-5%, with Germany, the UK, and France leading the recovery.

The Evolving Profile of Business Travelers

Business travel is no longer limited to executives or sales representatives. By 2025, the volume of trips taken by employees across all roles will rival 2019’s highs, driven by the growing need for company-wide retreats, team-building events, and in-person collaborations among distributed workforces. Skift’s 2025 Megatrends forecast notes that work trips for all employees, fueled by hybrid work models, will account for a significant portion of corporate travel. According to the AMEX GBTA forecast, meeting budgets are anticipated to increase by 1-5%, with 60% of meetings expected to be held in person—signaling a significant rise in travel for small group gatherings. When it comes to spending, the report reveals that 74% are optimistic about the health of the industry.

• Gen Z and Millennial Travelers: Younger employees are shaping the future of business travel with their demand for flexibility, seamless digital experiences, and environmentally conscious options. This demographic is also more likely to blend business with leisure (“bleisure” travel), with GBTA reporting that 46% of travel buyers observed a rise in such trips in 2024.
• Linked and Extended Trips: More than 53% of buyers noted an increase in “linked trips,” where multiple meetings or stops are combined into a single itinerary. Simultaneously, 36% reported that trip durations are getting longer, reflecting the need to maximize travel efficiency.

Technology: The Cornerstone of Growth and Efficiency

Technology is at the forefront of reshaping the business travel ecosystem. While GBTA reports that 88% of travel management companies (TMCs) and 74% of suppliers believe their organizations are performing well in terms of technology, significant opportunities remain to integrate advanced tools such as artificial intelligence (AI), blockchain, and real-time analytics.

• AI in Business Travel: Adoption of AI is on the rise, with 44% of travel professionals expressing excitement about its potential, up from 32% the previous year. AI-powered tools offer personalized travel recommendations, automate booking processes, and provide real-time expense tracking. Yet, adoption remains limited, with only 14% of buyers actively using AI in their programs—a clear indicator of untapped potential.
• Attribute Based Selling:   Data-driven Attribute-Based Selling (ABS) enhances this approach by dynamically pricing individual room attributes based on factors like availability, guest persona, and attribute combinations. This allows guests to select the features they value most, creating a personalized booking experience and a seamless journey from start to finish.
• Real-Time Data Analytics: Companies are increasingly using analytics to identify cost-saving opportunities, optimize travel patterns, and enhance traveler satisfaction. This data-driven approach allows for dynamic policy adjustments based on real-time market conditions.

Sustainability: A Strategic Imperative for the Future

Sustainability has moved from a “nice-to-have” to a critical focus for the business travel industry. GBTA reports that 46% of travel programs prioritized sustainability in 2024, with 44% actively integrating green initiatives into their policies. However, obstacles such as higher costs, complexity, and inconsistent standards remain significant barriers.

• Regional Leadership in Sustainability:
  • In Europe, 60% of travel buyers have integrated sustainability initiatives into their programs, compared to 36% in North America. European markets also lead in adopting multimodal travel options such as rail and public transport.
  • The Asia-Pacific region is increasingly incorporating sustainable practices, driven by government policies and corporate mandates.
• Eco-Friendly Travel Choices: The shift toward lower-emission travel options is gaining momentum. GBTA found that 38% of buyers reported an increase in rail travel, while 33% observed more multimodal trips.

At DerbySoft, we are committed to enabling sustainability through tools that can help travel providers align with corporate social responsibility goals while maintaining operational efficiency.

Balancing Growth with Cost Efficiency

While the business travel market is poised for expansion, managing rising travel costs remains a top concern. GBTA’s survey reveals that 78% of travel buyers cite cost control as a strategic priority for 2025. Key strategies include:

• Dynamic Travel Policies: Flexible policies allow employees to make cost-conscious decisions, such as choosing budget-friendly accommodations or off-peak travel times.
• Partnerships with TMCs: By leveraging the expertise of TMCs, businesses can negotiate better rates, streamline itineraries, and gain valuable insights into travel trends.
• Virtual Meetings as a Supplement: Companies continue to invest in hybrid meeting technologies, balancing the benefits of in-person interactions with the cost and sustainability advantages of virtual solutions.

2025: A Turning Point for Business Travel

As the business travel sector approaches the new year, it is clear that the industry is entering a new era—one defined by innovation, sustainability, and a deeper understanding of traveler needs. This transformation is not without its challenges, but it is precisely these challenges that present opportunities for companies willing to embrace change.

DerbySoft’s Business Travel Suite (BTS) simplifies collaboration between Travel Management Companies (TMCs) and suppliers, improving efficiency and reducing costs. With advanced features like dynamic pricing and real-time analytics, BTS streamlines workflows and ensures accurate booking and commission reconciliation through partnerships with providers like Arise.

A single connection to BTS gives TMCs direct access to a wide range of rates—corporate, rack, negotiated, and loyalty—without the hassle of managing multiple APIs. It connects suppliers of all sizes, from independent hotels to alternative accommodations, enabling unique product offerings and better service. BTS empowers hoteliers and travel companies to cut costs, expand market reach, and maintain a competitive edge in the evolving travel industry.

Together, let’s redefine the possibilities for 2025 and beyond.

The business travel industry’s evolution demands more efficient, dynamic, and customer-focused travel distribution systems. Advanced distribution capabilities, often referred to as New Distribution Capability (NDC), present a transformative opportunity for stakeholders—from travel management companies (TMCs) to hoteliers—to address persistent challenges and unlock new potential. These innovations are reshaping the travel distribution landscape, enabling greater efficiency, personalization, and flexibility across the ecosystem.

The Demand for Seamless Travel Distribution

Corporate travelers today expect a frictionless booking experience, characterized by extensive inventory access, dynamic pricing options, and tailored customizations. Whether it’s loyalty-based promotions, specific room attributes, or diverse payment options, corporate buyers and travelers alike demand a comprehensive and intuitive platform.

For travel management companies, addressing these expectations is critical. Leakage—bookings made outside preferred channels—remains a significant issue, with some programs reporting rates as high as 50%. Common causes include insufficient inventory, poor booking experiences, and limited payment options. Reducing these friction points is essential for TMCs to enhance traveler trust and compliance with corporate policies.

The Role of Advanced Distribution Capabilities

Modern distribution capabilities redefine how inventory is accessed and utilized throughout the business travel ecosystem. Through direct connections to hotel central reservation systems (CRS) and enhanced content aggregation platforms, TMCs can now provide a streamlined shopping experience that overcomes traditional limitations.

1. Expanded Inventory Access

Advanced systems allow TMCs to display comprehensive inventory, from standard corporate rates to promotional and loyalty-based rates, all within a single platform. This ensures travelers can access the full range of options without resorting to external consumer platforms, reinforcing trust in preferred booking channels.

2. Enhanced Personalization

Travelers increasingly expect tailored booking options, such as preferred room types, add-ons like breakfast, and loyalty-based benefits. Attribute-based shopping empowers hoteliers to offer these personalized experiences at the booking stage, boosting satisfaction and revenue.

3. Seamless Payment Solutions

Payment remains a pain point in business travel. New distribution systems incorporate virtual payment options and global strategies, simplifying transactions and minimizing administrative burdens for travelers and TMCs alike.

4. Centralized Multi-Sourcing

By aggregating content from GDS, OTAs, and direct hotel connections, advanced systems provide corporate buyers with a single source of truth for rates and availability. This not only streamlines reporting and compliance but also reduces booking fragmentation.

Opportunities for Hoteliers

For hoteliers, these advancements create pathways to optimize revenue and enhance competitiveness.

Revenue Optimization Through Attribute-Based Selling

Dynamic pricing for room attributes and bundled services enables hotels to drive incremental revenue. Whether offering specific room types or loyalty-based promotions, these features create a more engaging booking experience while boosting profitability.

Reduced Distribution Costs

By connecting directly to intermediaries like DerbySoft, hotels can reduce reliance on costly third-party distribution channels, maintain control over inventory, and strategically manage rate strategies.

Loyalty Integration

Modern distribution tools allow hotels to engage travelers earlier in the booking process, extending loyalty benefits at the point of sale. This strengthens customer relationships and enhances loyalty program enrollment.

Challenges and Lessons from Other Industries

While the potential of advanced distribution capabilities is significant, the path to full adoption requires navigating industry-specific hurdles.

Fragmented Hotel Technology

The fragmented nature of the hotel industry’s technology stack poses challenges. Many property management systems (PMS) and CRSs lack the capabilities to support modern distribution requirements, leading to inconsistencies in the booking experience.

The Need for Standardization

Unlike the airline industry, where NDC has progressed through standardization, the hotel sector remains highly fragmented. Achieving consensus on implementation strategies and definitions will require industry-wide collaboration.

Insights from Airlines

The airline industry’s adoption of NDC highlights the importance of simplicity and partnership. Hotels can leverage these insights to prioritize streamlined technology solutions and partnerships that deliver clear benefits for all stakeholders.

Collaboration as the Path Forward

The future of business travel distribution lies in partnership. Stakeholders across the ecosystem—TMCs, hoteliers, and technology providers—must work together to prioritize traveler-centric experiences, optimize operations, and reduce costs.

Key Priorities for Success:

1. Traveler-Centric Design: Deliver seamless booking experiences with dynamic pricing, personalization, and transparency.
2. Technology Investments: Embrace platforms that support multi-sourcing, attribute-based selling, and robust data reporting.
3. Collaborative Frameworks: Develop partnerships that align operational goals with traveler needs and streamline content delivery.
4. Sustainability and Duty of Care: Integrate sustainability initiatives and ensure compliance with corporate safety standards and tracking needs.

Advanced distribution capabilities offer the business travel industry a unique opportunity to address long-standing inefficiencies and deliver unparalleled value. By adopting these innovations, stakeholders can redefine the traveler experience, optimize revenue, and navigate the challenges of an ever-evolving market.

DerbySoft is proud to support this evolution by providing cutting-edge solutions that empower travel brands to thrive. Together, we can shape the future of travel distribution and unlock its full potential.