Skip to main content

B2B Markets In Hospitality Software – Plenty Of Haggle But No Bargain

There’s been plenty of excitement in recent months about the expansion of B2C and B2B marketplaces – some of it justified.
The rise of B2C marketplaces is well-documented with success stories like Amazon, Apple, Google Play and Spotify.
For B2B the picture is less clear. A select few – like Apple, Alibaba and Microsoft – are doing well, but many others are struggling.
This isn’t surprising given how difficult it is to set up a B2B marketplace. To make it work you need a centralised hub, a very broad spectrum of products, and a vast number of vendors and suppliers to trade those products.
But what about B2B marketplaces in hospitality software? Several large software vendors are banking their future on those marketplaces becoming an important driver for technological innovations in the hospitality sector.
Given how asymmetrical the relationship is between buyers and vendors when it comes to software solutions, this seems like a poor strategy.
Larger buyers want deeper partnerships
Most software innovations in the hospitality industry have been driven by a small number of technically-minded buyers and start-ups.
Their CIOs are highly clued-up on latest developments. When it comes to making high-value purchases, they either work directly with trusted partners or indeed build their own solutions.
A B2B marketplace in software brings no benefit to these buyers, because it lacks the personalised customer service and the problem resolution they’ve come to expect from a traditional buyer/seller relationship.
Smaller buyers want fewer partnerships
Some of the smaller buyers may well be tempted by the one-stop-shop promise of a hospitality B2B marketplace – at least initially.
These buyers might be smaller-scale, less digitally-minded, family-owned companies. Or they might be corporates whose executives are too busy managing an already wide enough range of existing delivery partners.
A marketplace won’t serve them either. Not only do they lack the necessary expertise required to make an informed product choice in a marketplace, they’re often also short on the extra bandwidth needed to manage an additional partnership with a new vendor.
Travel/Hotel APIs
Travel APIs and hospitality APIs (including MakCorps’s own review, rating and price comparison data API) are much better tools when it comes to accelerating technological innovation.

This is why they’re one of the driving forces behind the current growth in the travel industry.
They allow vendors to leverage their existing knowledge of a client’s needs and infrastructure by building a customised solution – one that’s very different (and usually way better) than the generic products on offer in a marketplace.
It’s a win-win situation, where vendors can deepen their relationship with existing clients.
At the same time, buyers get an additional set of customised modules without the hassle of having to manage a new relationship with yet another supplier, as would be the case if they purchased in a marketplace.
Doing business with people
It’s worth remembering the old mantra that ‘people do business with people’. That’s why the one-size-fits-all solution offered by a B2B marketplace in hospitality software will never work.
APIs on the other hand offer an integrated ecosystem that allows buyers to focus on what they do best – providing a seamless travel experience – while vendors can use their expertise in hospitality APIs to help them deliver just that.
Learn more about why and how our data and solutions can help you improve your business and how you can test this. Schedule a discovery or visit MakCorps.


Popular posts from this blog

Warren Buffett: “Really Successful People Say No To Almost Everything”

When I tell people that Warren Buffett follows the 5-Hour Rule and spends 80% of his time reading and thinking, they have an immediate and predictable reaction: “Well, he can do that because he’s Warren Buffett, one of the richest people in the world. I could never do that.” While this response may help people feel better about themselves, it certainly won’t make them smarter. Because the reality is: Buffett has spent most of his time reading and thinking since he was in grade school. Having more money or managing a large company doesn’t magically give you free time. Having free time is never the default. People don’t just fall into huge blocks of free time unless they retire. Rather, free time is the result of strategy. It’s the result of looking at time differently. Curious about Buffett’s unique strategies, I’ve read several books about him, read most of his annual letters to stockholders, and watched nearly all of his interviews. And make no mistake about it… behind Buffett’s jovia…

This Is Exactly How You Should Train Yourself To Be Smarter [Infographic]

Design inspired by the Cognitive Bias Codex
View the high resolution version of the infographic by clicking here. Out of all the interventions we can do to make smarter decisions in our life and career, mastering the most useful and universal mental models is arguably the most important. Over the last few months, I’ve written about how many of the most successful self-made billionaire entrepreneurs like Ray Dalio, Elon Musk, and Charlie Munger swear by mental models… “Developing the habit of mastering the multiple models which underlie reality is the best thing you can do. “ — Charlie Munger “Those who understand more of them and understand them well [principles / mental models] know how to interact with the world more effectively than those who know fewer of them or know them less well. “ — Ray Dalio “It is important to view knowledge as sort of a semantic tree — make sure you understand the fundamental principles, i.e. the trunk and big branches, before you get into the leav…

If you want to be massively successful, do NOT set ambitious goals, according to studies

The conventional model to having great success in your career is setting and ardently pursuing big, hairy, audacious goals (BHAGs), even if you have no idea how you’re going to achieve them when you start. Want to build a billion dollar company? Set the goal and work backward from long-term goals to medium-term goals to short-term goals to today’s to-do list. Then take action, measure your progress along the way, and constantly course correct so you’re always on the most direct path (that you’re aware of) toward your ultimate goal. Want to cure cancer? Set the goal and work backward. Measure your progress. Want to find the love of your life or be happy? Set the goal. Rinse and repeat. This goals model is so obvious in our culture, it goes without saying. It’s central to our collective success recipe. Goals give motivation, meaning, and focus when we feel lazy or distracted — at least so we’re told. However, recent research from the field of artificial intelligence is putting a nail in t…