By now you might have heard that ADR has been on the rise in recent years, however, profit has been stagnant. Even the most sophisticated and educated team can’t avoid finger pointing, and usually the elephant in the room takes the blame: OTA commissions. In an extreme case, I have heard of a hotel exceeding its budget for commissions by a few hundred thousand dollars for the year.
So shall we talk about reducing the number of bookings on OTA and increase the number of Direct Booking? Let’s create attractive promotions and packages on the website with greater value, and create qualified discounts offering lower rate than all unqualified rates such as those published on the OTAs. These tactics certainly do work, however, you probably have noticed that they did not do much to deter the growing volume of business through OTAs. [Read more…]