To OTAs or not to OTAs

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  1. 1. Online vs Offline Bookings % : PhocusWright - worldwide stats
  2. 2. OTAs vs Direct Bookings % : PhocusWright
  3. 3. Is there an actual dilemma? Lets find out..
  4. 4. To OTAs Popularity Increased traffic Trusted services User-friendly Quick booking procedure User-friendly design Comparison Price & availability comparison Offers & packages
  5. 5. Or not to OTAs Commission Shared profit from 10% to 25% Information Not descriptive enough Terms & conditions Cancellation & pricing policy Rate parity
  6. 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. 7. Increased profit No commission Direct bookings Flexibility Prices & availability Promotions 100% Control Adjustments
  8. 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. 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. 10. Driving direct bookings 1 2 3 4 Hotel-optimized website Integrated booking engine Added value without compromising rate parity Digital marketing
  11. 11. 1. Hotel-optimized website Responsive web design Optimized Content Correct CTAs SEO-friendly Quick booking process Editable
  12. 12. 2. Integrated booking engine Responsive web design Comparison tables User-friendly design Quick booking process UX & UI standards Extra services
  13. 13. 3. Add value compared to OTAs Packages Loyalty programs Extra discounts Upgrades Cross-selling
  14. 14. 4. Digital marketing Email marketing Social media marketing Remarketing Online advertising Reputation management SEO
  15. 15. The end of line: It is not this or that, but both!
  16. 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. 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. 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.