How to use your

OTA channels to

improve your

hotels

performance.

Part 2 – OTA’s.

Tamie Matthews from RevenYou

Is Direct Really Free?

OTA Commission Levels

Commission Fees

AirBnb 3-5% Direct debit

Agoda 15% VCC + HC

AOT 13% Billback

Booking.com 15% HC

Ctrip 10-15% VCC

Expedia 15% VCC + HC

Hotelbeds 20-30% Billback

Lido 13% Billback

GTA 20-30% Billback

GDS 10% Pass through fees

Direct

Don’t forget, these all incur costs as well …

What would you need to do if you didn’t have OTA’s?

• Google Ads = 10% commission

• Google Search Ads = 50c per click

• Retargeting Ads = 50c per click

• FROM PRICE, varies by location

• ROI varies per hotel

• You have to be taking part in Google Ads to get your website on the list!

Replacing OTA Business?

• Nett or commissionable rate

• Cheaper than your online rate

• Includes meals

• No add on spend

• High maintenance

• 20-30% commission on dynamic rates

• Nett rate that is below online rates

• Live availability or email overload

• Distributing your rates online

• Allotments

• Payment terms 30-60 days

We must stop the division among us. We must stop factionalism. We must embrace unity; we must embrace working together, because if we are divided, we will not be able to win in 2019.Cyril Ramaphosa

Plan for Success - Wholesale

• Airline holiday programmes

• Tour Operators such as FCTG, Helloworld

• Travel Agents

• Loyalty Schemes such as Flybuys & cards

• Average lead time is 55 days

• 40% of bookings are for 6 days or more

• 60% is static rates

• Allotments – be very careful!!!!

• Long lead offers

• Value adds

• Base business

• Book now, stay then

Plan for Success - Expedia

• Production levels are steadily increasing and in some locations overtaking Booking.com

• Expedia “white labels” and puts your hotel listing in front of travel agents, airline bookers and many more

• Split the commission with TMC’s

• Virtual Cards: reliable source of business

• Flash Sales: team up with local tourist boards for increased awareness / large database

• Value Add promotions: a nice variation on dropping rate all the time

• Members: collect points which in turn become discounts on future stays

• Mobile: very short lead

• Geo Targeting: can fence promotions to different URL’s

Plan for Success – Booking.com

• Market leader in volume of OTA business for

Australia but Expedia is rapidly catching up

• Issues with credit card fraud / no shows

• Customers are very price driven and like they

can pay on arrival

• Genius Programme: minimum 10% discount on

lead in room type

• Business Programme: 10-15% discount

• Deal of the Day: 40% discount

• Preferred Partner Programme: increased

commission levels

• Secret Deals: retargets lookers and converts to

bookers

• Great for filling off-peak at short notice

Plan for Success – Agoda

• Produces around a third of Booking.com

• Big in Asia

• Issues with Discount Coupons

• Distributing wholesale static rates

• Part of the Booking.com family

• Will distribute Booking.com rates if you turn

Agoda off

• Agoda Private Sale: 10% discount for members,

airlines, banks etc

• Opaque: 20% discount for B2B

• Mobile: variable discount

• China: Mainland, Hong Kong, Macau, Taiwan

• Value Adds: create a rate plan in Agoda

• Geo Target: yes

Plan for Success – Qantas Hotels

• Formerly Hooroo

• Australian hotels only (Expedia feeds

international hotels site)

• Commission 13.2%

• Members spend more and travel more, very

loyal to their points

• Members earn points on hotel stays only, not

always a package holiday

• Tends to sit outside parity checks

• Double points: commission to 16.5%

• Member deals: 10% discount or value add,

gives you inclusion in retargeting emails

• Value add or price discount

Plan for Success – CTrip

• China’s largest OTA

• 15% commission

• Distributes rates from Wholesalers

• Booking.com owns 10%

• Ranking = production and review score

• Photos taken from Booking.com

• Average lead: 25 days

• Average LOS: 2.5 days

• Australian Winter is peak travel season

• Average Age of traveller is under 45 years

• 70% of travellers prefer 4-5 star hotels

• Gold Programme: 10% rate discount

• Silver Programme: parity + value add

• Chinese Preferred Hotel Badge: Chinese breakfast + welcome letter in Chinese + Union Pay + 1 Chinese speaking member of staff

Plan for Success – Direct

• Present a price difference to OTA’s with value

add items

• Price comparison widgets

• Think seasonal, peak and off-peak

• Checkout – Per person

– Per room

– Per stay

– Per night

• Packages: what do like hotels offer, doesn’t

have to be geographically close but look at

similar properties

• Be adventurous and try different concepts– Food & Beverage

– Local attractions

– Complimentary inclusions

– Upgraded add ons

• Point of difference to the OTAs

Conclusions

• Speak to your Market Managers, they are there to help

• The OTAs are not the enemy, to replace the business they bring will take a lot of $ and time that you as a small hotelier cannot always afford

• Treat each OTA as a individual entity and create a plan according its niche speciality

• Do not stop fighting for direct bookings

• Use direct as a facility to try new ideas and experiment

• Vary your plan according to the time of year and demand

• Look outside your geographical area for inspiration

• Look at like hotels for inspiration

• Have a plan and review it often

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