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Why hoteliers should consider transportation partnerships

August 28, 2019 Headline News No Comments Email Email

With millions of travellers turning to transportation platforms and rideshare apps such as DiDi, Uber and Ola, it’s no wonder hoteliers around the world are looking into forming partnerships with the transport industry. According to recent data by IbisWorld* the ridesharing industry has grown significantly over the past five years with apps such as DiDi currently boasting over 550 million users worldwide. This is evidence that the demand for convenient and cost-effective transport is surging, especially in urban cities, where visitors are seeking out the easiest way to travel to and from their accommodation. It’s a smart strategy for any hotel business to leverage the growth of these new platforms and their impact on consumer behaviour.

After enjoying huge success in Melbourne, Geelong, Newcastle and internationally, ride-hailing platform, DiDi launched in Brisbane in July 2019, and announced its exclusive partnership with Oaks Hotels, Resorts & Suites. This partnership is a strong and mutually-beneficial collaboration as it allows both rapidly-expanding parties with parallal guest-centric goals, to enhance the travel experience for guests. This will be achieved through value-based rates and exclusive offerings such as 15 per cent discount on one-night stays at any Oaks property, or receiving two $10 DiDi vouchers to use on the rideshare service, for both travellers and local residents that will allow them to experience more while paying less.

Chief Operating Officer of Minor Hotels

Providing added services and offers is one way that hoteliers can influence the purchasing decision of potential guests. If a consumer finds value in a hotel, they are more likely to make a booking, return to make a similar booking in the future, or at the very least make a recommendation to family or friends who are looking into accommodation options in the region.

As travellers get smarter about the way they move around cities, especially in fast-growing and dynamic cities such as Melbourne and Brisbane, where the receptiveness to transport such as ridesharing and new technology is at an all-time high, hoteliers need to structure connections with transport providers and adapt to this cultural shift in order to have an advantage over competitors.

It’s no secret that ridesharing platforms are shaping the future of transportation in Australian urban cities, with recent predictions from PwC** that the five main sharing economy sectors, with transport being one of the largest, will generate global revenues of $335 billion by 2025.

For the green traveller, sustainability is becoming an increasingly strong motivator when considering accommodation and transportation options. It’s estimated that transportation such as ridesharing helps reduce car emissions between 34 per cent and 41 per cent per year***. Hoteliers should be looking into how they can best adapt an eco-friendly strategy into their business.

While hotel teams must ultimately decide what partnerships are best for their businesses and guests, the strategy to partner with transportation services and platforms look likely to become increasingly popular as the year progresses and as mobile commerce prospects such as those offered by DiDi broaden.

All Brisbane-based Oaks Hotels, Resorts & Suites receive $10 DiDi vouchers to use on the rideshare service. DiDi users can also enjoy a 15 per cent discount on one-night stays at any Oaks property, or 25% off the best flexible rate when staying for two nights. The partnership offer is available to all DiDi and Oaks Hotels, Resorts & Suites customers from August, 2019. For more information visit https://www.oakshotels.com/en 

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