/Tag: ota's


What the Hotel World Looks Like in 2020

Robert A. Rauch | April 3, 2019

Bob Rauch and Sarah Andersen Hotel Distribution is arguably the big topic of the near term. Expedia Group and Booking Holdings (previously Priceline) are the two big online travel agencies (OTAs), dominating well over 70% of OTA market share. Now this duopoly faces major disruption by Airbnb, Facebook, and Google. Airbnb just bought HotelTonight, an app-based company that sells last-minute, unused boutique and independent hotel inventory. Meanwhile, SiteMinder's "BookingButton" already integrate into Facebook business pages as a widget, eliminating the need to click away from the site to make a booking. Add in the possibility that Googl...

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...

How 5 Hotels Compete With OTAs by Showcasing Unique Local Experiences

Nancy Huang | October 25, 2018

By Nancy Huang Today's travelers are no longer content with merely visiting a destination and have the same experience as everyone else. They increasingly yearn for something unique and want to explore the places they visit through a local perspective. This emerging need represents a huge opportunity for hotels. By creating in-depth destination guides, or by hosting their own locally-led tours, hotels can make their properties more desirable to drive more direct bookings. The following post highlights five hotels that are promoting their destinations with engaging neighborhood guides and authentic local experiences. But before diving...

Beat the OTAs: Use Your Hotel Website to Tell a Unique Brand Story

Steffan Berelowitz | October 1, 2018

By Steffan Berelowitz Competing with OTAs for direct bookings continues to represent an uphill challenge for hotels. The likes of Expedia and Booking.com have become masters at conversion, investing millions to whisk shoppers from browsing to booking in the minimum amount of steps. However, the transactional nature of this experience is far from inspiring. It also makes it hard for hotels to stand out and showcase their unique personality. Deals and limited offers therefore become the means of differentiation, which clearly isn't good for business. To stand out from the crowd and drive more direct bookings, it's important to think of yo...

Another Move by the OTAs That Is Harmful to Hotel Profitability – What You Need to Know

HEBS Digital | August 22, 2018

By Max Starkov Background: Two recent events in hotel distribution created a mild media buzz, but unfortunately were ignored by some hoteliers and quickly forgotten by the industry: Expedia's Add-On Advantage and Booking.basic. Below we will discuss the issues with these two new initiatives by Expedia and Booking.com, reminiscent of the old Wild West times of hotel distribution and the early years of unruly OTAs, before rate parity and best rate guarantees. Both OTA initiatives use package or wholesale rates in clear violation of package and wholesale rates contract terms. We feel compelled to remind hoteliers how detrimental these new ...

Mid-Year 2018: Brands, OTAs, Marriott, Blockchain, Robotics and Sustainability

Robert A. Rauch | July 10, 2018

By Robert A. Rauch Online travel agencies (OTAs) outspend brands by a wide margin and continue to steal market share from brands. As Marriott is becoming more of a global brand with 30 brands and a home-sharing company in their portfolio, we see a new war developing. Airbnb, a behemoth home-sharing company, is regularly getting beat up by cities who are adding regulations quickly. They will become an OTA by 2020 and begin to compete with Expedia and Booking rather than Marriott, Hilton, and the hotel community. After all, they only charge three percent for their services and could get 10 as an OTA! At the Lodging Industry Investment Cou...

Hospitality Financial Leadership: Why Hotel Brands and Franchisers Secretly Love the OTAs

David Lund | July 9, 2018

By David Lund I know we all hear the battle cries every day in our industry, but what's really going on with hotel brands, franchisers, the online travel agents and their war over commissions and fees? In this piece, I am going to expose an angle that I think needs some light. It gets back to a fundamental understanding of how our industry functions based on its evolved structure, with brands and owners. I also believe this is a good lesson in hotel business strategy, to understand what underpins the relationship between the warring parties and what drives the business model with hotel franchisers and brands. The first thing to know abo...

Why Facebook Will Help Hotels Beat the OTAs

Marco Benvenuti | May 25, 2018

By Marco Benvenuti Honestly, I thought the war between hotels and online travel agencies would've died down by now. Clearly the battle rages on. Brands continue to attempt to woo travelers and franchisees with direct-booking strategies. And OTAs are punching back, with a recent report reiterating the strength of the Billboard Effect and claiming direct bookings are no less costly for hoteliers. At the same time, more "billboards" are cropping up. Hotels have at their disposal hundreds of shelves on which to place their product, including Airbnb. Higher up the funnel, companies like Google, Amazon and Facebook are starting to direct traf...

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