In the dynamic hospitality landscape, Smartness, or the evolution of smartpricing, looms as a new challenge on the horizon for online booking giants (OTAs).
As European institutions intensify monitoring of their practices, a growing interest is emerging among hoteliers and property managers towards solutions that promise greater autonomy and reduced operating costs. In this evolving scenario, artificial intelligence is emerging as a strategic ally. Smartness, the innovative integrated Smartpricing platform, presents itself as a concrete response to this need, offering operators in the sector full control over crucial operations, with the primary objective of optimizing the efficiency and, consequently, the profitability of their accommodation facilities.
The hospitality sector welcomes Smartness, the evolution of Smartpricing
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In recent years, the Italian hospitality landscape has witnessed a radical transformation, pushing towards an unprecedented expansion.
This boom, fueled primarily by the proliferation of short-term rentals and a marked evolution in travellers’ booking habits – increasingly oriented towards “do-it-yourself” solutions in search of savings and tailor-made experiences – has profoundly reshaped the market.
As highlighted by Istat data, between 2010 and 2020 there was a 50,9% increase in the number of accommodation facilities, with a clear prevalence of non-hotel facilities, primarily apartments intended for short-term rentals. A trend that, moreover, is not limited to national borders: in 2023, the global supply of short-term rentals recorded a 24% growth compared to the previous year, representing a quarter of the total accommodation facilities currently present in the European Union.
The Central Role of OTAs
In this dynamic scenario, online travel agencies (OTAs) such as Booking.com, Airbnb and Expedia have assumed an increasingly central role, offering every operator, including the many non-professional private individuals, direct and immediate access to a global audience.
However, while OTAs have undoubtedly opened new frontiers, they have simultaneously consolidated their power as intermediaries, often to the detriment of operators by charging high commissions and not always optimal transparency. But over the course of 2024, signs of change have become increasingly evident.
Smartness, the evolution of Smartpricing as a response to the hegemony of OTAs
2024 marked a turning point in the relationship between Online Travel Agencies (OTA) and European institutions, with direct implications for the management of hotel operations.
The European Commission's designation of Booking.com as a gatekeeper under the Digital Markets Act (DMA) heralds an era of increased regulation aimed at combating unfair competition and promoting transparency. This significant step was followed by the €413 million fine imposed by the Spanish Antitrust Authority on the same platform for abuse of a dominant position.
In Italy, the AGCM concluded an investigation with the acceptance of the commitments proposed by the OTA for greater commercial autonomy of accommodation facilities, opening a window towards new balances in the market. However, as Luca Rodella, CEO and co-founder of Smartpricing, points out, “despite these interventions, accommodation facilities that define themselves as “independent” are in reality less and less so: OTAs generate up to 90% of bookings for small and medium-sized facilities, applying commissions that can reach 30% and reducing their margins by up to 50%”.
A complex picture, therefore, that requires hotel managers to reflect strategically on market dynamics and on the opportunities to regain greater autonomy. From this reflection, Smartness starts its evolution of Smarpricing.
Smartness represents a new model for independent and profitable hospitality
Hotel and property managers are constantly looking for effective strategies to reduce their dependence on Online Travel Agencies (OTA) and maximize revenue, which is why Smartpricing has established itself as the fastest growing SaaS in the hospitality sector in Europe.
With experience gained alongside over 4.000 clients, the company has intercepted a crucial need in the sector: to go beyond the confines of mere rate optimization to embrace a more autonomous, efficient and, consequently, more profitable hotel management model.
Here Smartpricing, Smartconnect and Smartfree join together in Smartness, with the aim of becoming a global leader. This strategic evolution uses artificial intelligence to maximize the revenues of accommodation facilities, reduce their dependence on OTAs and automate online operations.
The current platform includes tools for pricing optimization, guest management and direct marketing, with further developments planned in 2025 to establish Smartness as a leading global operations partner.
