What Is Internet Booking Engine (IBE): Definition, Meaning, Examples

Internet Booking Engine (IBE)

An Internet Booking Engine (IBE) is a complex software application that enables travel suppliers, hospitality providers, and agencies to sell their services directly to their customers on the Internet. It is an e-commerce component built into a travel website that processes real-time search queries for flights, hotels, car rentals, or tours and handles the secure booking/payment of those.

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How an Internet Booking Engine Operates

At its simplest, an Internet Booking Engine (IBE) is the central transaction processor of a travel website, the link between the customer-facing interface and back-end inventory systems. A user’s search query (e.g., dates, destination) sent to the IBE requests real-time availability and pricing from systems such as a Central Reservation System (CRS), Property Management System (PMS), or Global Distribution System (GDS).

It then clearly displays these options to the user. Once the user has made a selection, the IBE securely captures customer information and processes the payment through an integrated payment gateway. Finally, the engine confirms the booking, updates the inventory in the back-end system to avoid overbooking, and issues an automated confirmation or an e-ticket to the customer.

Key Components of a Modern IBE

A modern IBE (Internet Booking Engine) is not just a simple checkout form but a comprehensive sales tool. Its most critical components include real-time API integration to all relevant sources of inventory (CRS, GDS, etc.) and a  secure, PCI-compliant payment gateway that accepts multiple currencies and alternative methods of payment.

Beyond this, there are two features that are essential:

  • A responsive mobile-first design is essential, since a substantial proportion of travel bookings is done via mobile devices. This ensures a flawless experience for you as a user.
  • Ancillary and upselling modules enable the supplier to provide add-ons, such as baggage, insurance, room upgrades, or tours, so that the supplier gets maximum revenue per booking.

The fact that it can be “white-labeled” means that the engine can be tailored to create a perfect fit with the supplier’s brand identity.

The IBE’s Role in the Travel Tech Ecosystem

The IBE is the most significant B2C, i.e., business-to-consumer, sales tool, and this sets it apart from other systems. It is not the inventory source itself; rather, it is pulling data from inventory sources.

For example, a GDS is a massive B2B marketplace, while the Internet Booking Engine (IBE) is the B2C engine to sell inventory from the GDS. A hotel’s CRS is the central database for the hotel’s rates and inventory; the IBE is the “shop window” of the hotel’s website that queries the CRS. A PMS  is where the on-property operations are handled; the IBE sends the confirmed bookings to the PMS.

From a supplier perspective, the IBE is the single most important tool to drive direct bookings, increasing the supplier’s independence from high-commission OTAs and enabling the supplier to own the relationship with the customer.

Frequently Asked Questions

What is the primary difference between IBE and OTA?

An OTA such as Booking.com or Expedia is a third-party marketplace that markets inventory from a variety of different suppliers. An IBE is the software that a single supplier (such as a hotel or airline) is using on its own website to sell its own inventory directly to the public.

Is an IBE capable of handling complex travel itineraries?

Yes. Modern IBEs are designed to handle complex logic, such as multi-city flight planning, flexible date searches (“+/- 3 days”), and dynamic packaging (i.e., bundled flight and hotel for a single price).

What is a “white-label” IBE?

A white-label IBE (Internet Booking Engine) is a booking engine that is delivered by a B2B technology company. It can be fully branded and customized by a travel agency or supplier, which enables them to have a powerful booking engine that looks and feels like an unobtrusive part of their website.

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