The balance between otas and “direct bookings” is difficult!
Every hotel owner, shareholder or revenue or distribution director know that working on a commission based model is expensive. The last years the dependency of hotels from commission based booking sites got out of hand. The hotel reservation market is dominated by a few players. This dominance creates an imbalance in the hotel booking market.
Getting more “direct sales” is important for every single hotel or hotel chain!
Do you realize that 76% of online bookings happen via OTA’s and almost all hotels depends for 70% of their bookings on a commission based pricing model? As hotel owner, investor or shareholder this depency is a worst nightmare. Why? Not a single company wants its business to depend on third parties. The painful question could be; who actually runs the hotel you or the OTA’s?
The important challenge the coming years for hotel management and groups is figuring out a strategie how to use the ota’s and at the same time getting more direct sales! The hotel industry is constantly looking for ways to improve “direct sales” and grow business. We’re founded to help you with this challenge.
Our goal: Make hotels more independent and create a better market balance.
OTA’s were able to become big and powerful because there was nothing else there. Most hotels would love to have 100% of their bookings without having to pay commission to anyone. But at this moment that is just a dream and will probably never happen, besides that we don’t think it’s the best solution. In reality it happens that direct bookings occur after the guest found the hotel on an OTA. So OTA can help increase your direct bookings.
What will be the best strategie? There is no common answer. Exact percentages can vary from city to city but there is a guideline. We think the best balance is around 40% direct bookings and 30% OTA’s. The remaining 30% come from corporate, phone bookings, returning guests and some tour operators. These are not absolutes, but they are a good benchmark for a healthy split.
Optimising for direct bookings. This market is coming up and fast growing because most hotels realize that direct bookings are a lot better for their business. Don’t forget your profit margin on each “direct sale” may be 50% higher. In general the problem hotels have isn’t how to increase OTA bookings, but how to increase direct bookings. There are lots of challenges hotels face in pursuing this but we can help you overcome those.
We from StayAtUs.com like to be your business partner. More information email@example.com or call us at 0031 654788158 Edwin Onderstal Founder/CEO or Ferry Bouzidi Founder/CSO mob: 0031 627008152