To OTAs or not to OTAs
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- 1. Online vs Offline Bookings % : PhocusWright - worldwide stats
- 2. OTAs vs Direct Bookings % : PhocusWright
- 3. Is there an actual dilemma? Lets find out..
- 4. To OTAs Popularity Increased traffic Trusted services User-friendly Quick booking procedure User-friendly design Comparison Price & availability comparison Offers & packages
- 5. Or not to OTAs Commission Shared profit from 10% to 25% Information Not descriptive enough Terms & conditions Cancellation & pricing policy Rate parity
- 6. Is it so? And what happens with direct bookings? So, does the discussion stop there? Its quite obvious that there are many reasons that can make hoteliers be either for or against OTAs.
- 7. Increased profit No commission Direct bookings Flexibility Prices & availability Promotions 100% Control Adjustments
- 8. Direct bookings Branding - new businesses Low traffic Low engagement Cost of Sales Build new web channels Marketing & Advertising Marketing Need for tools Need for experts in the field
- 9. The way to fight direct bookings ones is to build a strong sales channel & abide by the 4 points that follow. Beat the disadvantages!
- 10. Driving direct bookings 1 2 3 4 Hotel-optimized website Integrated booking engine Added value without compromising rate parity Digital marketing
- 11. 1. Hotel-optimized website Responsive web design Optimized Content Correct CTAs SEO-friendly Quick booking process Editable
- 12. 2. Integrated booking engine Responsive web design Comparison tables User-friendly design Quick booking process UX & UI standards Extra services
- 13. 3. Add value compared to OTAs Packages Loyalty programs Extra discounts Upgrades Cross-selling
- 14. 4. Digital marketing Email marketing Social media marketing Remarketing Online advertising Reputation management SEO
- 15. The end of line: It is not this or that, but both!
- 16. Things to remember! #1: Keep the Right Balance Manage your average spend per channel to achieve the optimal outcome. Increase revenue from direct bookings with add-ons but without breaking parity. Create a win-win situation by equally distributing your rooms between all online channels.
- 17. Things to remember! #2: OTAs act as a marketing tool (The Billboard effect) OTAs boost non-OTA reservation volume. Your hotel gets increased traffic thanks to OTAs visibility! When listed on OTAs, hotels get bookings from other channels as well.
- 18. Things to remember! #3: Consider cost of sales. Your ROI will define the best practices for both options. Initially, building your own sales channel looks expensive but in the long-term you will get a lot more back. Be Genius and reduce Cost of Sales for your own channel. OTAs commissions are discouraging, but the traffic and sales volume you get back worth it.