Strategy – Travel Tech Business
Supporting Accommodation Facilities’ Maximization of Revenue and Operational Efficiency
Masahiro Awa
Director
In charge of Travel Tech Business
Responding to the Continued Vitality of the Accommodation Industry and Changing Management Challenges
The travel & accommodation industry continues to grow strongly, supported by increasing demand for accommodations as the number of foreign visitors to Japan and average room rates increase.
While many accommodation facilities continue to maintain generally high occupancy rates, the increasingly severe labor shortage and operating costs, which are increasing due to inflation, have become major challenges. As a result, demand is growing for a digital transformation (DX) that not only attracts more customers but also improves operational efficiency and profitability.
New management challenges are also becoming apparent, including the burden of commissions associated with reliance on online travel agencies (OTAs) for customer acquisition and the need to provide multilingual support to inbound travelers.
We view these changes in the industry as growth opportunities and will continue to provide travel technology solutions that help accommodation facilities both maximize revenue and improve operational efficiency.
This business is operated under our travel technology brand Dynatech.
Realizing an Integrated Digital and AI Transformation Centered on Core Products
Rapid advances in AI technologies are making it possible to address issues that were previously difficult to resolve. The use of AI is also prompting businesses to go beyond improving efficiency through systemization and rethink their services and operations.
We provide “DYNA IBE”, an internet booking engine, and “DYNA PMS”, a property management system, as our core products. Building on these systems, we are leveraging AI and other new technologies to not only streamline front-desk operations but also enhance customer service and guest experiences. We are also working to strengthen an integrated DX platform that comprehensively supports accommodation facility operations, including back-office functions such as reservation and customer management, for which facilities have traditionally relied heavily on human resources.
Supporting the Increase in the Direct Booking Ratio Through Collaboration with Marketing Solutions
For accommodation facilities that depend on OTAs for customer acquisition, strengthening direct customer acquisition has become an important management priority from the perspective of improving profitability. Accordingly, we will strengthen initiatives to increase the direct booking ratio through collaboration with our Marketing Solutions Business, including “ValueCommerce Affiliate”, our founding business.
In the current era, travelers’ decision-making processes have been changing significantly. The influence of social media and influencers is growing, making influencer marketing initiatives increasingly important. By collaborating with subscription-based influencer matching service “BUZMA”, we will build an integrated customer acquisition model that spans awareness building, reservations, and repeat visits, supporting the creation of new direct customer acquisition channels.
We will continue to develop the travel technology business, primarily in the Japanese market. At the same time, amid the increase in the number of foreign visitors coming to Japan, we will also support accommodation facilities in capturing inbound demand through collaborations with overseas customer acquisition channels and marketing partners.
Working Toward Sustainable Growth
Our Travel Tech Business will combine our core products, AI, Web 3.0 and other new technologies, and marketing solutions to establish a distinctive travel technology model and contribute to the resolution of the management challenges faced by accommodation facilities.
We will further strengthen our competitive advantage in the travel technology market and drive the expansion of business by accurately identifying customer needs and swiftly developing and delivering services that address them.