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Comment on Deborah's article - Four ways Groupon might work for travel businesses

I found this article very interesting for hoteliers in the sense that it reprensents a new opportunity to generate revenue. Just like Deborah pointed out, if hoteliers are ready to sell with zero margin, they can create income through additional revenue. Hoteliers tend to forget that anscilliary revenue is almost as much important as selling a room.


I agree with Deborah when she says that she would not recommend luxury hotels to work with Groupon. I would rather recommend it for 3* hotels when the demand is low.
 
 
Link to Deborah's article

How to reduce your hotel's dependency on OTAs

Online Travel Agencies are a real issue for hoteliers. Direct bookings are more beneficial for hoteliers than bookings through OTAs. However,  hotels needs them, but in the same time their level of commission is very high. They are positive for hoteliers in the sense that they boost hotel occupancy, they introduce new guests to hotels, and they offer dynamic packaging (combine hotel with car rental, airline tickets) to undecicdd consumers. However, hotels do not really know how to deal with them, as some of them apply rates without really analysing their strategy.

I found this article interesting as it gives advice on how to deal with OTAs. Experts suggest that hoteliers should spend as much of their budget as possible into obtaining direct bookings. Hoteliers just need to analyse which strategy to apply with OTAs in order to manipulate the availability and price of rooms, in order that OTAs don't take full advantage over the business. Hotels should enforce a few daily strategies:

• Forecasting - hotels should forecast the future demand to control the availability and rates to apply to OTAs.
• Practice rate parity - apply the same room rate on hotel website, travel agencies, third party websites, ect. Practicing rate parity helps avoinding discounting war between OTAs.
• Monitoring, managing channels - control and adjust rates and inventory across all channels to take advantage of distribution.

As the article points out, hoteliers must constantly adapt their strategies to the market in order to make the most out of OTAs, rather than these online agencies becoming a pain. You cannot apply a definite strategy with OTAs, it's a day to day adaptation. Hotels needs to play it smart!


Link to the article