Love them or hate them, let’s face it, the reality is travellers love using OTAs (online travel agencies). And why wouldn’t they? OTAs represent a one-stop-shop where usually ultra-competitive deals can be found, and the user-experience is second to none, offering consumers with a secure, straightforward booking process across a wide range of devices (from desktop to smartphones, tablets or mobile apps). HotelREZ points out some of the opportunities that small and independent hotels should explore when handling OTAs.
There are many reasons as to why online bookers are drawn to OTAs, but the most important of them all is they are everywhere! Unlike most independent and small hotels’ websites, OTAs are extremely easy to find in the world wide web – a well known fact are the colossal amounts of spent advertising from the likes of Priceline (owner of the very popular Booking.com) and Expedia.
So why shouldn’t hoteliers, particularly the smaller independent properties, take advantage of these compelling strengths? Although some OTAs will undoubtedly charge you for high commissions (usually from 15% up to 25% or more), they can still make a positive contribution by bringing substantial volume and revenues year on year.
Here are HotelREZ’s top 5 golden rules every hotelier should live by when handling OTAs.
1. Take advantage of the “Billboard” Effect
Studies have shown that hotels displaying on OTAs can benefit from an increment of 8% to 26% on direct bookings to their websites, simply as a consequence of being listed on the OTAs in the first place. And what’s more? Independent hotels seem to be the ones to benefit the most.
2. Once they book, don’t let them go!
Retain those new customers by offering them the opportunity to become part of your hotel’s loyalty programme or hand them a coupon for a discount or free upgrade on their next reservation – via your own website of course.
3. Make use of their market intel
Because they sell inventory at a global scale, OTAs have access to unique market intelligence. Ask your OTA market managers for reports on how you measure against a competitive set within your local area. This will give you better insight on how your competitors are doing and allow you to mimic some of their successful strategies.
4. Copy their Best Practices
OTAs invest a lot of money and resources on fine tuning their websites’ user experience, so why not copy some of their best practices on your own website? Keep your image and copy content flawless – OTAs know professional photos and great travel content are key to getting more bookings and capturing higher ADRs.
5. Participate on Package Programmes
OTA’s offer hotel and flight package options which can be a great way for hotels to build base and protect their retail rate, while sharing the discount with an airline partner. Expedia recently found that hotels that have higher than average participation in packages also have a higher ADR during all booking window periods, when compared to those that do not participate much in the package path.
Sources
Chris Anderson, Ph.D. for Cornell University – Search, OTAs, and Online Booking: An Expanded Analysis of the Billboard Effect. Frederic Gonzalo – Hotels and OTAs, from confrontation to collaboration. Tnooz – Five tips from Expedia on how hotels can convert OTA traffic into bookings.
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HotelREZ Hotels & Resorts is a hotel representation company providing distribution, sales and marketing consultancy and technology to independent hotels and small chains. We provide properties with GDS representation under our own HO chain code, and help market hotels to thousands of travel and MICE agents and partners worldwide. For more information on joining our portfolio of unique and independent hotels contact our Business Development team today or complete our hotel membership enquiry form.
