Download - To OTAs or not to OTAs
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.