Online Travel Agencies (OTAs) such as Expedia, Agoda or Booking.com have become a crucial source of hotel revenue. Independent hotels are particularly dependent on OTAs for their revenue. While this is not necessarily a negative trend, hoteliers should avoid relying too much on this channel for it may hurt the hotels’ profitability. OTAs usually demand around 10-20% in direct commissions. Additionally, the rate parity agreement with OTAs limits the hotels’ pricing options. Hotels, therefore, should work hard to boost direct bookings from their own websites & reduce the cost of acquisition.
. 2. Utilise OTAs to drive direct bookings You should consider OTAs much more than booking engines in your marketing strategy. A large number of travellers use OTAs as a tool to do research & plan their trips. 52% of them will eventually visit your website after seeing your hotel on an OTA, according to Google. Therefore, you need to make sure the information on your website & on the OTAs are consistent. Article Source: http://EzineArticles.com/9367107