Examples and good practices to enhance hotel revenue

HOW TO WORK WITH AN OTA ?

ENSURING RATE PARITY AMONG ALL OTAS

• Be sure to always offer the same prices to all your partners.

• Be sure to always offer the same availability to all your partners.

• Be sure not to favor one OTA among another one, you must stay in good terms with all of them otherwise your bookings will drop.

ENSURE THE SAME RATE POLICY BETWEEN YOUR WEBSITE AND YOUR PARTNERS

• Be sure that your website’s best available rate is the same than your partner’s best available rate.

• Offering a lower price on you website will upset your partners and bookings will drop.

• Instead, use other methods to make your clients book on your website like packages.

USE PACKAGES TO ATTRACT YOUR CUSTOMERS ON YOUR WEBSITE

• Offer these packages on your website only, this will attract your clients here without upsetting your partners.

• Use simple packages like romantic stays (2 nights BB + bottle of champagne)

• Do not get confused between promotions and packages. Promotions have to be offered to your partners as well to ensure rate integrity.

ENSURE RATE INTEGRITY

• Be sure to justify your promotions (20% off on early bookings, stay 3 pay 2 on the week end etc…)

• Be sure to offer those very same promotions to your partners as well.

• Do not necessarily drop your prices to match your competitors. Instead, offer a superior service (buffet breakfast, airport transfer…) to justify your

high prices.

DO NOT FORGET OTHER MEANS OF DISTRIBUTION

• Social media bookings are the future of online bookings. Facebook and Twitter are great ways to sell your hotel at a cheaper price.

• Stay in touch to get the latest news on new channels of distribution (Google hotel finder)

• There are 800 millions users on Facebook…

DO’S…

• Choose well you OTAS according to your clientele

• Always ensure rate parity and rate integrity in your hotel. This is a guarantee of good business

• Be sure to benchmark a lot to see what your competitors have to offer (and not only in terms of prices)

& DON’TS !

• Never favor an OTA other your own website. Remember, OTAs bookings are commissionable (around 23%) whereas direct booking are free

of charge !

• Never favor one OTA over another one just because it brings you more bookings. Instead, make a shortlist of OTAs that fit your business

• If your are part of a brand (Relais & Chateaux, Chateaux & Hotels Collection…) be sure to apply that same rate parity to this brand as well.

EXAMPLE OF HOTELS DOING GREAT ON ONLINE BOOKINGS

The Observatoire Luxembourg ensures rate parity over all its

partners and its brand !

The Dar Rhizlane offers exclusive packages on its

website !

The hotel du Louvre offers booking on its Facebook page