How to reduce your dependence on OTAs
That’s it, the hotel industry is picking up again and we are once again seeing all nationalities strolling through our hotels. As we have seen, OTAs have been essential in lean times to allow us to have incredible visibility around the world by paying a commission of between 10 and 30%. Nevertheless, the objective remains to control its distribution and keep control of its hotel and its customers who constitute its business.
This article gives some notions of yield management and distribution and explains how not to have your customers cannibalized by Booking and Expedia, since they now represent 90% of the online hotel distribution market.
First of all, since the Macron law of August 2015, platforms cannot require you to practice price parity on your site. OTAs have tried to circumvent this by offering you a whole bunch of “Preferred”, “Genius” type programs which are supposed to give you more visibility. This is not the case, the business of these various OTAs remains the marketing of hotel rooms and they cannot afford to downgrade a well-placed establishment and lose sales to the benefit of a competitor. The idea for you is therefore to offer a “discount” compared to OTAs or other advantages (such as free breakfast). The customer, when he visits your website, will see the advantages you provide him and will be encouraged to book directly on your website.
Obviously for this to work, your offer must be as readable as possible so that the customer can compare it easily. Many hotels offer dozens of rooms for sale with dozens of prices so that the customer gets lost and no longer knows what he is buying.
The second track concerns the creation of distribution channels by your channel manager. Basically, this will allow you to block OTAs on certain “hot” dates or you will sell your rooms in any case and therefore save you the commission paid.
The goal of this whole process is to downgrade OTA offers and make you more interesting and attractive. OTAs control your visibility on their platforms, but you control the offers you make to them. Here is the key to everything.
Do not hesitate to contact us for more information on our hotel management service offers.
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