Online vs Offline Bookings %

Πηγή: PhocusWright - worldwide stats

OTAs vs Direct Bookings %

Πηγή: PhocusWright

Is there an actual dilemma? Let’s find out..

To OTAs…

Popularity

● Increased traffic

● Trusted services

User-friendly

● Quick booking procedure

● User-friendly design

Comparison

● Price & availability comparison

● Offers & packages

Or not to OTAs…

Commission

● Shared profit from 10% to 25%

Information

● Not descriptive enough

Terms & conditions

● Cancellation & pricing policy

● Rate parity

Is it so?

And what happens

with direct bookings?

So, does the discussion stop there?

It’s quite obvious that there

are many reasons that can

make hoteliers be either for

or against OTAs.

Increased profit

● No commission

Direct bookings

Flexibility

● Prices & availability

● Promotions

100% Control

● Adjustments

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

The way to fight direct bookings’ ones is to build a strong sales channel & abide by the 4 points that

follow.

Beat the disadvantages!

Driving direct bookings…

1 2 3 4

Hotel-optimized

websiteIntegrated

booking engine

Added value without

compromising rate

parity

Digital marketing

1. Hotel-optimized website

Responsive web design

Optimized Content

Correct CTAs

SEO-friendly

Quick booking process

Editable

2. Integrated booking engine

Responsive web design

Comparison tables

User-friendly design

Quick booking process

UX & UI standards

Extra services

3. Add value compared to OTAs

Packages

Loyalty programs

Extra discounts

Upgrades

Cross-selling

4. Digital marketing

Email marketing

Social media marketing

Remarketing

Online advertising

Reputation management

SEO

The end of line: It is not this or that, but both!

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.

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.

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.