Last week we reviewed the pros and cons of cooperating with OTAs. In this article, I’d like to share opportunities and tips to help turn partnerships with OTAs to your hotel’s benefit.
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OTAs are often called thieves or monsters by many hoteliers because of their market penetration and high commission rates. They became inevitable when it comes to sales and bookings, but before completely condemning them, think about what they offer in return for the commission invoiced:
Many people believe that the ranking of an OTA depends only on guest reviews and the amount of commission paid to them. These are significant factors, but not the only ones. Let's see what else you can do to get the most out of your money paid to OTAs:
Using OTAs is well worth the money if it gets you new guests. The key to an optimal sales balance, however, is for the guest to reserve their next stay directly at your hotel.
Optimizing and increasing the number of direct bookings is essential for a healthy balance of collaboration with OTAs. However, under an OTA fee agreement, your prices on your website may not be lower than the prices uploaded to their pages. Then what can you do? How can you make direct bookings ‘tempting’ for guests? Here are some suggestions:
The secret to success lies in the balance. Partnerships with OTAs don’t have to be bittersweet. Use their power for your own benefit, but don't rely entirely on them. Find alternative sales channels and creatively increase your direct bookings. Work with your OTA partners to raise awareness of your hotel, but do everything you can to ensure that your guests book their next stay directly on your website. I hope that my suggestions will help you find the optimal balance in working with your OTA partners.
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