A new wave of digital payment innovation is making transactions faster, safer, and more efficient for travel and hotels, virtual credit cards are leading the charge.

The financial systems that underpin travel and hospitality have always been intricate. Multiple layers of intermediaries, a global network of suppliers, and variable settlement terms create a payment environment where speed, security, and accuracy are difficult to achieve at the same time.

Over the past few years, digital payment innovations have emerged to address these challenges, and one in particular is now gaining critical momentum: the virtual credit card (VCC).Market forecasts point to significant growth. Vantage Market Research estimates the global virtual card market will triple by 2030. For an industry like travel—where payments move across borders, pass through multiple systems, and often involve fragmented reconciliation—this technology has the potential to reshape both operational workflows and financial strategies.

Defining Virtual Credit Cards in a B2B Travel Context

At their core, virtual credit cards work much like traditional corporate credit cards, with one defining difference: they exist only in digital form. A VCC is typically issued for a single transaction or for use within a limited time window. Each is assigned a unique number and can be configured with precise parameters such as a fixed spending limit, an expiration date, or merchant category restrictions.

This design offers two important advantages. First, it sharply limits the potential for fraud. If a number is compromised, it becomes useless after the specified transaction or timeframe. Second, it enables transaction-level control, allowing businesses to tie payments directly to specific invoices or bookings.

Traditional corporate cards, by comparison, usually have fixed credit limits, are reused for multiple purchases, and often circulate among multiple departments. This structure can make it more difficult to track individual transactions and increases exposure if card details are misused.

Why This Matters in Travel and Hospitality

Travel payments are particularly complex because they frequently involve:

• Cross-border transactions with currency conversions.
  
• Multiple intermediaries between the booking source and the hotel or travel provider.
  
• Variable settlement timelines depending on market, contract, and channel.
  
• Operational silos between reservation systems, payment platforms, and accounting tools.
  

This complexity increases the likelihood of delayed settlements, mismatched records, and exposure to fraud.

VCCs address these pain points by:

1. Enhancing security – Limiting a card to a single booking or a short validity period sharply reduces the window for fraudulent activity.
   
2. Providing transaction-level controls – Spending caps and usage rules can be tied to a specific reservation, reducing the risk of overpayment or misuse.
   
3. Automating reconciliation – Linking a VCC to a booking at the time of reservation creates a direct, verifiable connection between payment and service.
   
4. Aligning cash flow with bookings – Payments can be issued in real time as bookings are confirmed, rather than in batch cycles or after lengthy invoice processes.

The Adoption Curve and the Emerging Challenges

VCCs are increasingly being adopted across the hospitality sector as both distributors and hotels seek faster, more secure transactions. However, adoption is not without challenges.

Some hotels are experiencing high processing fees, with certain properties reporting charges of up to 4% for VCC transactions. Over time, these fees can significantly impact profit margins, particularly for high-volume properties.

Operational challenges are also common. Front desk teams are not always familiar with VCC procedures, leading to confusion during guest check-in. Inconsistent training and unclear processes can create inefficiencies, slow down service, and result in avoidable friction for guests.

These issues highlight the fact that while VCCs solve certain security and reconciliation problems, the benefits can be undermined without careful implementation and cost management.

Addressing the Operational and Cost Barriers

Industry providers are beginning to address these pain points with more integrated and cost-conscious solutions. DerbySoft, for example, has developed its Payment Connector to help distributors and hotels process VCCs with some of the lowest rates available in the market.

The platform also embeds VCC handling directly into the booking workflow, so payment details arrive pre-configured and easy for hotel staff to access, reducing front desk confusion and streamlining reconciliation. This kind of integration aims to balance the security and efficiency benefits of VCCs with the operational realities of running a hotel.

However, no single company can modernize the travel payment ecosystem alone. The value of VCCs is maximized when booking platforms, hotel property management systems, payment processors, and card issuers work together to create a unified data and payment flow.

DerbySoft’s approach reflects this reality, partnering with established payment technology providers like Conferma and Voxel Group to integrate VCC processing across multiple distribution channels. These collaborations help hotels and distributors operate with greater speed and accuracy, while also reducing disputes and fraud risk.

Moving Use to Standard Practice

Virtual credit cards have been present in the travel industry for years, often used by corporate travel agencies or OTAs for select bookings. Historically, their use was more common in high-risk or high-value transactions.

That’s changing. A combination of heightened fraud concerns, increasing cross-border transactions, and better integration capabilities has moved VCCs from being a specialized tool to becoming a routine part of supplier payments. The operational efficiencies and security gains are driving broader adoption across leisure, corporate, and wholesale segments.

The Strategic Implication for the Industry

The shift toward virtual credit cards is part of a wider push to modernize the financial infrastructure of travel. By embedding secure, automated payments into the booking lifecycle, the industry can reduce risk, accelerate cash flow, and strengthen trust between partners.

For many organizations, the decision is no longer whether to adopt VCCs, but how to integrate them into existing workflows without disrupting established processes. As adoption widens, the ability to issue and process VCCs seamlessly through platforms like DerbySoft’s Payment Connector will become an operational expectation rather than a competitive differentiator.

In a sector where margins are tight and transaction volumes are high, virtual credit cards are poised to become a baseline requirement for efficient, secure, and scalable travel commerce.

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation.

Learn More About DerbySoft

Managing multiple content sources effectively is becoming central to how suppliers and distributors protect rate integrity, reach target markets, and improve traveler experience.

For decades, global distribution systems (GDSs) have been the foundation of hotel distribution. They’ve provided reach, centralized inventory, and the ability to transact at scale. But as traveler expectations have shifted, the gaps in these systems have become increasingly apparent.

Today’s hotel distribution environment demands more than what a legacy GDS can deliver. Travelers expect rich content, transparent pricing, personalized offers, and a seamless booking experience. Distributors want to differentiate, manage rate plans in real time, and present the right offer to the right customer at the right time. And suppliers want to protect their commercial interests while broadening reach.This has led to the rise of multi-sourcing—pulling rates, content, and inventory from multiple channels: GDS, direct APIs, wholesalers, aggregators, and others. Done right, it’s a powerful way to offer more choice and better pricing. Done poorly, it creates operational headaches, erodes margins, and undermines commercial agreements.

Why Multi-Sourcing Exists—and Why It’s Complicated

GDSs still play a role, but they carry constraints that multi-sourcing was designed to overcome. Rich content is difficult to display on a GDS. Room descriptions are short, fields are rigid, and amenities often go unmentioned. Hotels can’t always highlight key differentiators such as whether they’re adult-only, all-inclusive, or wellness-focused. Distributors end up showing vague descriptions to travelers, creating friction at the point of decision.

Dynamic rate and inventory management is another challenge. GDSs were designed for static pricing. They’ve adapted over time, but real-time rate changes, geo-targeted promotions, and complex packages are still hard to represent accurately. That can lead to parity issues across channels and lost revenue opportunities.

Cost is also a factor. GDS participation is expensive, often pricing out smaller hotel groups and niche brands, reducing the variety available to distributors.

Multi-sourcing fixes many of these gaps—but it’s far from straightforward. Pulling from multiple sources means juggling different formats, business rules, and connection types. Hotels lose visibility over where their rates appear, distributors risk leakage to other platforms, and both sides face operational complexity that can strain relationships.

The Real-World Risks of Poorly Managed Multi-Sourcing

Consider a distributor that has an agreement to prioritize a specific hotel chain. The distributor also connects to multiple wholesalers. A traveler books through the distributor’s platform, but behind the scenes, the booking gets fulfilled via a wholesaler connected to another marketplace. The booking bypasses the preferred channel entirely.

In another case, a chain distributes inventory to a distributor through multiple intermediaries. One wholesaler passes rates to a secondary marketplace, which undercuts the hotel’s direct price. Not only does the hotel lose rate parity, but its marketing investment in the preferred partnership is diluted.

Both scenarios are common—and both can be avoided with the right technology infrastructure.

How Technology Changes the Equation

Modern technology providers are solving the structural issues that make multi-sourcing so challenging. The goal is simple: give hotels and distributors more control, better visibility, and a cleaner traveler experience.

DerbySoft, for example, works with global hotel brands and distribution partners to connect content and rates directly, bypassing intermediaries where it makes sense and preserving preferred relationships. This direct connectivity allows hotels to display complete, unabridged content—images, amenities, detailed room descriptions—without the character limits of a GDS. Distributors can present richer, more accurate data to travelers, making it easier to convert lookers into bookers.

Dynamic inventory management is another area where technology delivers tangible results. Rate changes, promotional offers, and policy updates flow in real time. If a hotel wants to target a specific market with a geo-promotion, that offer can be live across connected channels instantly. Cancellation policies are presented in structured, traveler-friendly formats, reducing booking disputes and improving satisfaction.

Use Case: Protecting Preferred Partnerships

A global distributor wanted to strengthen its partnerships with top hotel brands while still maintaining a broad multi-sourcing strategy. Using DerbySoft’s connectivity, the distributor could prioritize direct connections to preferred suppliers, ensuring that those bookings flowed through the most commercially beneficial path. At the same time, the platform flagged potential leakage, allowing the distributor to identify when a booking was being fulfilled through a less desirable channel. The result: higher margins for both parties, fewer conflicts over rate parity, and a better traveler experience.

Use Case: Unlocking Rich Content for Conversion

A regional hotel group struggled to differentiate its properties on GDS platforms due to strict content limits. Through DerbySoft’s technology, the group could supply high-resolution images, complete amenity lists, and detailed room descriptions to its distribution partners. Distributors could then display this information on their consumer-facing platforms, leading to higher engagement and conversion rates. For the hotels, this meant competing on experience and value—not just price.

Final Thought

The complexity of multi-sourcing isn’t going away. In fact, as the distribution ecosystem expands, the challenge will grow. The winners will be those who treat technology not just as a connector, but as a strategic asset—one that protects commercial relationships, delivers transparency, and keeps pace with traveler expectations.

Legacy systems like the GDS will remain part of the mix, but they can no longer carry the entire load. Multi-sourcing without the right controls leads to leakage, parity problems, and inefficiencies. Multi-sourcing with the right technology transforms distribution into a driver of growth.

For suppliers and distributors alike, the message is clear: if you want multi-sourcing to work for you—not against you—it’s time to invest in the infrastructure that makes it possible.

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation.

Learn More About DerbySoft

Business-led travel, generational shifts, evolving guest expectations, and smarter distribution are reshaping the competitive landscape

Short-term rentals (STRs) gained rapid traction during the pandemic, offering travelers an alternative to traditional hospitality. But as global travel normalizes and trip purposes become more complex, hotels are reasserting their role—particularly in urban markets and business-led segments.

This shift isn’t just anecdotal. According to the AHLA, In New York City, STR demand dropped by more than 50% over the 12 months ending November 2024, equating to 1.8 million fewer nights sold. Over that same period, hotel demand rose by 1.2 million nights.

While globally, STR demand still grew—from 14.6% of total lodging demand in 2023 to 15.4% in 2024 —this growth has not been evenly distributed. In high-demand cities, and among travelers blending business and leisure, hotels are gaining renewed traction.

This doesn’t indicate that STRs are in decline—it highlights where purpose-driven travel is reshaping demand, and where traditional hotel infrastructure is better equipped to meet it. And as guest expectations evolve and the purpose of travel becomes more complex, the limitations of many STRs are becoming more visible.

Why Travelers Are Returning to Hotels

The resurgence of hotel preference is not based solely on price or loyalty. It’s rooted in consistency, service infrastructure, and integration with business travel tools. These factors matter more when trips involve multiple stakeholders, mixed purposes, or unpredictable schedules.

Over 54% of business travelers in 2024 took at least two bleisure trips—blending business and leisure in a single journey. Marriott reports that business stays are now 20% longer on average than pre-pandemic, and 82% of bleisure travelers extend their stay at the same hotel used for work.

Meetings and events are a key driver: 67% of bleisure trips originate from conferences, and 30% from internal team gatherings. Hotels are uniquely positioned to accommodate these travelers—not only with meeting space, but with professional-grade amenities, food and beverage outlets, co-working areas, and spas.

Additionally, hotel operators are expanding their flexibility models. Many now accommodate day-use bookings, providing short-stay options for travelers needing a place to rest, work, or recharge between flights or meetings. These offerings allow hotels to monetize inventory that might otherwise sit empty during off-peak hours, while catering to a growing segment of same-day demand—something most short-term rental hosts are unable to support operationally.

Distribution and Technology: The Opportunity for STRs

The STR category is still expanding, but cracks are emerging beneath the surface. According to recent studies, 53% of non-profit-oriented hosts report that it’s harder to operate than it was a year ago. For Competition has intensified, and without a technology strategy, many are struggling to keep pace.

The STR ecosystem lacks deep connectivity with corporate travel platforms, loyalty programs, or multi-channel booking infrastructure. The Phocuswright B2B Technology and Distribution Landscape notes fragmentation in tech adoption and scalability—areas where hotels already have mature capabilities.

But this is also where tech providers like DerbySoft can create value across the ecosystem. Whether it’s helping STRs gain exposure to business travel demand, optimizing content for multiple booking platforms, or enabling smarter rate management, the right distribution strategy can unlock untapped potential in both lodging models.

Generation Drives Preference, Not Just Price

Generational trends also point to divergent expectations. Millennials are the most active bleisure segment, with 90% reporting they combine business and leisure on trips). Gen Z travelers are highly mobile and unpredictable: 74% bring guests on business trips, and 1 in 5 don’t disclose it to their employer).

Meanwhile, Gen X and Boomers continue to favor hotels for convenience and reliability—especially for trips involving meetings or structured itineraries. Hotels have built their platforms to accommodate this diversity in traveler needs. STRs can expand their reach if they adopt similar capabilities—especially around content distribution, standardized policies, and pricing consistency. As preferences evolve, the ability to provide flexible, bookable inventory across both short and extended stays becomes a strategic differentiator.

What This Means for Hotels, Travel Platforms, and Distribution

The recalibration between hotels and STRs isn’t a zero-sum game. Both play essential roles in the global lodging landscape. But to thrive in a multi-modal future, success will depend on delivering inventory that is accessible, flexible, and aligned with traveler intent.

For hotel brands, STR operators, travel platforms, and tech providers, the priority should be:

• Making flexible inventory bookable and visible—whether it’s a hotel day rate or a professionally managed apartment
• Unifying distribution strategies to serve both business and leisure segments
• Delivering rich, consistent content that resonates across generational lines

STRs are not going away. In fact, with the right tools and distribution connectivity, they are positioned to serve demand that hotels can’t always fulfill. But when trips are tied to purpose—meetings, connection, convenience, or corporate policy—hotels are continuing to demonstrate their strength.

In the end, it’s not about hotels versus STRs. It’s about creating a smarter, more connected lodging ecosystem where all types of inventory can thrive—enabled by the technology that brings them closer to the traveler.

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation.

Learn More About DerbySoft

It’s Monday morning, and your desk already tells a familiar story: unconfirmed hotel bookings piling up, payment issues needing urgent attention, and weekend requests spanning three time zones. Your phone won’t stop ringing, your team is buried in routine communications—and you haven’t even finished your first cup of coffee.

This scenario plays out in travel management companies (TMCs) worldwide, where operational bottlenecks have become the industry’s defining challenge. But a technological revolution is quietly transforming how forward-thinking TMCs approach these persistent pain points.

Now imagine handing over all of these routine communication tasks to an AI voice agent that can handle hotel calls in multiple languages, process booking confirmations around the clock, and provide real-time updates back to your systems—all while you drink that second cup of coffee and focus on your team’s long-term strategy.

The voice AI market is experiencing unprecedented growth, with speech recognition technology projected to reach $29.28 billion by 2026. AI voice agents are one sector driving this explosive growth as they evolve from basic command responders to advanced conversation partners capable of handling complex travel scenarios.

The $47.8 Billion TMC Market Faces a Scaling Crisis

The travel management industry is experiencing unprecedented growth pressures. The global TMC market is anticipated to grow to USD 47.8 billion by 2030, while the global Travel Management Company (TMC) market size is expected to reach $36.19 billion by 2030, rising at a market growth of 5.3% CAGR during the forecast period (2024-2030).

Yet beneath these impressive growth figures lies a troubling operational reality. Traditional operational models simply cannot keep pace with this explosive demand.

As TMCs grapple with scaling challenges, artificial intelligence has emerged as more than just a buzzword—it’s becoming an operational necessity. Sales and marketing are rapidly becoming a key source of AI value in sectors including software (31% of AI value generated), and travel and tourism (31%), according to recent BCG research.

Today’s AI voice agents represent a fundamental evolution from rigid, menu-driven systems. These sophisticated platforms combine real-time speech recognition, advanced natural language processing (NLP), and contextual understanding to handle the nuanced conversations that define travel operations.

Unlike the “Press 1 for reservations” systems of yesterday, modern AI voice agents bring contextual memory, multi-tasking capabilities, and human-like conversation flow to every interaction. They integrate seamlessly with existing technology stacks through APIs, working behind the scenes while delivering visible efficiency gains.

For TMCs, this translates into practical solutions for persistent operational challenges:

Automated Outbound Communications: AI voice agents can handle hotel confirmations, invoice requests, and payment follow-ups around the clock, in multiple languages, and across any time zone. This addresses the reality that manual outbound calls consume countless hours of valuable human resources.

Error Reduction Through Precision: Voice biometrics reduce authentication times by 40%, while automated data processing eliminates the human errors that lead to incorrect bookings and payment failures.

Scalability Without Compromise: During peak booking periods, call center automation software can automatically connect customers to the IVR menu or voice assistants. Specifically, conversational AI bots can understand simple customer issues and provide the required resolution. This means handling hundreds of simultaneous conversations without degrading service quality.

Pioneering AI Voice Solutions for TMCs

While the market has seen a proliferation of AI voice agents—both industry-agnostic platforms and travel-focused solutions—DerbySoft’s approach stands apart through its purpose-built design for TMC operations. Drawing from years of deep industry experience and an intimate understanding of B2B travel workflows, our advanced AI-powered voice agents combine multilingual support, direct API integration with existing TMC systems, and human-like conversational experiences that continuously learn and improve from every interaction.

Unlike generic voice solutions adapted for travel, DerbySoft’s AI Voice technology was architected from the ground up to address the unique complexities TMCs face—from multi-language hotel communications to complex booking modifications and payment reconciliations. This specialized foundation, built on decades of TMC partnership and workflow expertise, enables our systems to provide the scalability TMCs need while maintaining the accuracy and personal touch that travelers expect.

The integration process leverages our deep understanding of TMC operations, designed for minimal disruption and allowing travel management companies to gradually transition from manual to automated processes while maintaining full operational control. Complex scenarios are seamlessly escalated to human agents with comprehensive context summaries, ensuring no loss of service quality.

The Monday morning chaos described at the beginning of this article doesn’t have to be inevitable. AI voice agents represent more than incremental improvement—they offer a fundamental transformation of how TMCs operate.

For travel management companies ready to turn Monday morning chaos into operational excellence, the path forward is clear: embrace AI voice technology as a strategic enabler of scalable, efficient, and traveler-focused operations.

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation.

Learn More About DerbySoft

As the tours and attractions market explodes toward unprecedented growth, connectivity platforms are becoming critical infrastructure. They enable hotels, OTAs, and travel agencies to capture their share of this massive opportunity.

The tours, tickets, and attractions sector is experiencing a seismic shift that extends far beyond simple digitization. With the global ticket market poised to surge by $554.2 billion between 2025-2029 at a remarkable 29.7% compound annual growth rate, this isn’t just recovery—it’s a revolution.

The numbers tell a compelling story of transformation. The tours and activities reservations market, valued at $179 billion in 2024, is projected to reach $264.4 billion by 2030. This 6.7% CAGR reflects fundamental changes in how travelers discover, book, and experience destinations. For an industry that lost approximately $23 billion in 2020 alone, this trajectory signals not just resilience but a complete reimagining of the travel commerce ecosystem.

So, how can travel companies fully capitalize on the burgeoning attraction economy? Despite significant growth potential, a critical infrastructure gap persists. According to recent industry research, connectivity remains an ongoing challenge for large and enterprise visitor attractions, as well as for resellers. Approximately half of large and enterprise attractions still rely on manual management of third-party bookings. They use outdated extranets and email systems that create operational inefficiencies and limit revenue optimization.The data reveals a stark technology divide: while 44% of enterprise attractions use channel managers—API software that connects them to distribution partners—only 17% of attractions have adopted these essential tools. This connectivity gap represents millions in lost revenue opportunities as hotels struggle to offer seamless attraction booking experiences to their guests.

The Revenue Opportunity for Hotels and Travel Companies

The shift toward experiential travel has created substantial opportunities for revenue diversification across the travel ecosystem. Hotels, traditionally focused on accommodation revenue, are discovering that attraction partnerships and tour bookings can generate meaningful ancillary income streams while enhancing guest satisfaction and loyalty.

Consumer behavior has evolved significantly. Travelers increasingly seek personalized and unique experiences that provide authentic interactions with local culture and attractions. This demand creates perfect conditions for hotels and OTAs to position themselves as experience curators rather than simple accommodation providers.

The geographic distribution of growth reveals compelling opportunities. While the United States maintains a strong position at $46.7 billion in 2024, China emerges as a particularly dynamic market with an impressive 11.1% CAGR trajectory toward $64.7 billion by 2030. These regional variations create opportunities for sophisticated distribution strategies that leverage local market knowledge while maintaining global connectivity standards.

Technology Solutions Bridging the Gap

Several technology companies are working to address the connectivity challenges in the attractions space. DerbySoft, which provides connectivity services, AI-powered marketing, and content platforms, represents one approach to solving these distribution challenges for major hotel groups, independent properties, OTAs, and travel management companies.

Our connectivity solutions focus on simplifying ARI (Availability, Rates, and Inventory) management while enhancing communication between suppliers and distributors. For hotels and resellers, this provides access to attraction tickets, tours, and experiences through unified connection points, reducing integration costs while expanding inventory options for guests.

DerbySoft’s platform addresses the needs of various travel industry stakeholders through scalable connectivity architectures. We enable real-time booking updates, personalized recommendation engines, and analytics supporting revenue optimization strategies across multiple touchpoints.

Our integration of artificial intelligence represents a significant advancement in attraction distribution technology, supporting dynamic pricing strategies and personalized upselling opportunities that can significantly impact revenue per visitor. This enables pre-sales opportunities, targeted promotional campaigns, and sophisticated customer segmentation strategies previously impossible with traditional systems.

The Platform Approach

The success in the evolving attractions landscape requires more than point-to-point integrations. Comprehensive ecosystem approaches are becoming increasingly important. These enable real-time availability, rates, and inventory management while reducing operational overhead for both suppliers and distributors.

This ecosystem approach is particularly valuable for independent hotels seeking to compete with larger chains that may have more extensive concierge resources. Through integrated platforms, these properties can offer guests curated local experience packages that generate commission revenue while differentiating their service offerings.

Season pass programs and comprehensive experience packages that combine accommodation, dining, transportation, and attraction access can become more manageable through integrated platforms. This enables hotels and tour operators to capture greater wallet share while providing travelers with streamlined booking experiences.

The $554.2 Billion Future

As the tours, tickets, and attractions industry continues its trajectory toward digital-first operations, the companies that will capture disproportionate market share are those leveraging integrated platform solutions. Success requires a fundamental reimagining of how attractions, accommodations, and distribution partners collaborate to create seamless customer experiences.

Hotels that successfully integrate attraction partnerships through comprehensive connectivity platforms can expect meaningful improvements in guest satisfaction scores, average length of stay, and total revenue per available room. The key lies in selecting technology partners that provide ecosystem solutions rather than creating operational complexity through multiple point-to-point integrations.

The experience-centric economy represents not just market expansion but a fundamental restructuring of how travel commerce operates in an increasingly connected world. Companies positioned at the center of these emerging ecosystems—connecting major hotel groups, independent properties, OTAs, and travel management companies to the global attractions marketplace—stand to benefit from enhanced revenue streams, improved operational efficiency, and stronger customer relationships that drive long-term business success.For travel industry leaders, the message is clear: the attraction economy’s explosive growth will be captured by those who embrace comprehensive connectivity solutions that transform fragmented booking processes into seamless, AI-powered experience platforms. In this rapidly evolving landscape, the companies building the infrastructure for travel commerce connectivity will play an increasingly critical role in determining which travel businesses thrive in the digital marketplace. How is your business preparing to capitalize on this experience-centric future?

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation.

Learn More About DerbySoft

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

Given that hotels are consistently underutilized during daytime hours—along with many of their amenities and services—the business case for optimizing this segment is clear.

By monetizing rooms and facilities that would otherwise sit empty, hotels can unlock substantial incremental revenue. What was once viewed as lost opportunity becomes a new, profitable income stream. In fact, rooms sold for short daytime stays can earn 60% to 70% of the standard nightly rate, offering a strong financial incentive for hotel operators.

Moreover, daytime guests typically stay for 4 to 6 hours and frequently spend on additional services like the restaurant, bar, or spa—further boosting the property’s direct revenue.

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

The potential demand for day-use rooms and services is estimated to be currently 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 DayBreakHotels and Hotels By Day are already at the forefront of the day-use hospitality market, by providing a user-friendly booking platform for 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, 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.”

Simon Botto, CEO of DayBreakHotels, adds: “At DayBreakHotels, we have a unique and comprehensive view of the market, with direct contracts with over 6,000 hotels—including both international chains and independent properties—across 18 countries. For more than a decade, these hotels have trusted us to help them maximize occupancy, not just for rooms, but also for underutilized services, driving new and incremental revenue.”

In my view, there has never been a better time for this sector. Technology is rapidly advancing, allowing day bookings to seamlessly integrate with hotel systems like CRS and PMS. Demand is accelerating, and hotels are more eager than ever to unlock new revenue streams and reach additional customers. For hotels, joining this market—and partnering with DayBreakHotels—is an easy and strategic decision.”

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.

DayBreakHotels leverages a user-friendly platform that enables seamless short-term day use room bookings. It empowers guests to enjoy flexible accommodation options, as well as book hotel amenities like meeting rooms, spa, restaurants, pools, and gyms, which can be booked both independently or bundled with the room — enhancing the guest experience for local residents and business customers 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 DayBreakHotels 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.

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation.

Learn More About DerbySoft

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.

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation.

Learn More About DerbySoft