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Google Represents Ongoing Threat to Online Travel Agencies, Says GlobalData

GlobalData | January 13, 2022

COVID-19 had a serious impact on online travel agencies (OTAs), according to GlobalData, which notes that the OTA market value decreased by a gruesome 60.4% year-on-year (YoY) in 2020. The leading data and analytics company reveals that this strain has amplified OTA’s existing concerns around the growing presence of Google in the market, and how the tech giant’s control could impact competitivity and, therefore, consumer choice.   Ralph Hollister, Travel and Tourism Analyst at GlobalData, comments:  “Google’s growing presence in online travel will be ominous for OTAs that have no choice but to rely on the search engine fo...

Content Matters as Much as Rate on the OTAs

Larry and Adam Mogelonsky | June 16, 2021

By Larry and Adam Mogelonsky With the pandemic subsiding, hotels are gearing up for another summer of largely domestic guests, with many of these customers finding their accommodations through an OTA. With this in mind, one pain point we’ve found from working with revenue managers throughout the pandemic is that it is a slog to constantly update each channel with new rates as each property yields to growing demand. The problem here is that with so much focus on the rates, we’re often missing how much influence the content on these websites has in driving bookings. For clarity, with the banner term of ‘content’, we’re referring...

Maximizing Your Relationship With OTAs

Tim Lee | January 13, 2020

By Tim Lee The relationship between hotels (particularly major international brands) and Online Travel Agencies (OTAs) may sometimes seem an uneasy alliance. Major hotel companies, such as Hilton, Marriott and IHG, are adding policies on price match guarantees to encourage direct bookings and detract from the perceived value of OTAs. Meanwhile, OTAs push even harder for competitive pricing and invest hundreds of millions of dollars in Search Engine Marketing (SEM) to increase their market share. Due to acquisitions and mergers over the last two decades, most OTA brands are a part of, or work with the two largest players in the space: Bo...

Redefining The Value Chain in Tourism: Lessons From Thomas Cook’s Demise

Achim Schmitt | October 25, 2019

By Achim Schmitt Thomas Cook: An Industry Perspective On September 23rd, 2019, Thomas Cook – one of the world’s oldest travel companies – declared bankruptcy. The 178-year old travel firm was forced to indefinitely suspend its operations after failing to secure £200 million in emergency funding, despite having already reached an agreement for a £900 million rescue deal. But this wasn’t the first time that Thomas Cook rifled with financial struggles. The company almost went under in 2011 when its debt reached £1.24 billion – but narrowly avoided it by securing an emergency loan of £100 million. Now, 8 years later,...

New Research Shows Fraudulent, Misleading Hotel Bookings Rob Consumers of $5.7 Billion Annually

AHLA | October 7, 2019

WASHINGTON (October 7, 2019) – The American Hotel & Lodging Association (AHLA) released new research that reveals online booking scams and dishonest marketing practices by fraudulent and misleading travel websites continue to deceive and confuse consumers. In fact, 23 percent of consumers report being misled by third-party traveler resellers on the phone or online, which amounted to $5.7 billion in fraudulent and misleading hotel booking transactions in 2018 alone. “The numbers we saw in this research are completely unacceptable. Consumers are being robbed of billions of dollars every year by bad actors,” said Chip Rogers,...

5 Reasons Why Agoda’s Mix and Save Feature Could Be Disastrous for Hotel Operations

HotStats | October 2, 2019

By Laura Resco Online travel agencies are digging their fingers further into the hotel industry. One of the latest disrupting features comes from Booking Holdings-owned Agoda and its Mix and Save option, which it hails as a win for budget-conscious travelers. It could also be a loss for hotel operators. The premise is simple: Customers can split their reservation into multiple bookings, across multiple room types, in order to secure the best overall deal. In other words, a guest can book, for instance, a weeklong stay at a hotel, but move their room once, twice or more to optimize the best rate available. It’s a novel idea to be sure ...

Hospitality Financial Leadership: Why OTA’s Are Uber Successful

David Lund | November 5, 2018

By David Lund Have you ever wondered why we all hear so much complaining and downright all-around annoyance being expressed from hotels about the on-line travel agents? You would naturally think that because there is so much protest being made that hotels would simply not use the service and opt for something else? Right? Well – not so fast as hotels are reportedly using OTA's more than ever. There are three key reasons why OTA's are so successful and, in turn, why hotels and customers all flock to use them. One. Hotels, brands and franchisers all benefit from using OTA's and they do so without making a single dollar of investment...

Hospitality Financial Leadership: Why Your Average Joe Should Never Use an OTA – And… Why He Will Never Stop Using Them!

David Lund | August 13, 2018

With two large shortcomings I can't see why the average person who has a basic understanding of how the travel world works would ever use an online travel agency. In making this statement it occurs to me that—obviously—most people don't know the basics. If they did know the two things I'm going to talk about here, the OTA world would be dead on its feet. The real question is why hoteliers do not get together and create a presence in the online world and inform people so many more customers can make a favorable decision. Then hotels in turn could increase their own traffic and reduce commission costs. This is the $64,000 ques...

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