Hotels vs OTAs
Research supports the view that Online Travel Agents (OTAs) are great tools for providing an overview of accommodation options available for a given destination. A large inventory combined with clear information, customer reviews and a range of payment options make them popular.
RevPAR in online distribution channels means that it will make little difference whether a guest books through an OTA or directly using the hotel website. However, for the hotel, it’s the difference between owning the customer, and paying out 15% to 20% in commission to the OTA per booking.
It’s not that hotels don’t understand marketing, it’s just they don’t have the time and in-house expertise to dedicate and exploit the online marketplace in the same way that the OTAs do.
The good news is that as people have become more web-savvy, so too have their research skills: they will now check a range of websites prior to making a booking, and that includes visiting the hotel website (in some cases historically buried under lots of affiliate broker websites).
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