hotel companies relationships with otas

KATIA LEJEUNE - MBA 2A

The marketing and pricing strategies with consequences on bookings

HOTEL COMPANIES RELATIONSHIPS WITH OTAS


OTAS ONLINE TRAVEL AGENTS• Resellers of Tourism & hotels products

• From the most famous ones:

Expedia.com

hotels.com

priceline.com

booking.com

etc…

• As well as a New platforms, Google hotel finder


CUSTOMER ARE MORE DIGITAL ORIENTED

• Community, social media, online distribution: the dialogue with customers had changed

• People seeking to buy travel and tourism product now goes on internet rather that in a travel agency

• Hoteliers try to keep their online bookings higher on their own website than the bookings they get via OTAs


OTAS USE: POSITIVES ASPECTS• Attractive packages are created

• The customers usually find it easier to book through a room those website

• Small structure do not have a well developed digital marketing knowledge to increase their website online booking in that is why they rely on OTAs, as they bring a lot of bookings for them.

• Hotels appears better on the Google search list

A good aspect for customers? If the OTAs did not existed, the room rates would be considerably higher!


OTAS USE: NEGATIVE ASPECTS• Hotels need to respect the rate parity

• Hotels loose control on pricing and marketing strategies

• OTAs demand share increased considerably the past 4 years, especially for independent groups and hotels.

• If OTAs did not existed, occupancy would be slightly lower.


OTAs behavior

• Should preserve rate parity

• Should preserve price erosion

• Restore pricing control to hotels

• Lower their margins till the recovering of the financial crisis

Hoteliers behavior

• Select the right OTAs for them to use, according to the segment they are targeting

• Respect the rate parity

• Manage good relationship with OTAs

• Negotiate lower margins

MAINTAIN A GOOD RELATIONSHIP BETWEEN OTAS AND HOTELIERS


CONCLUSION• Hotels need to be aware of the importance of their online marketing strategy, and

keep on developing their own website to enhance direct bookings. Customers need to be attracted to the hotel website and start thinking that it is the most efficient and interesting way to book a room.

• Customers needs to be persuaded that OTAs does not necessarily offer the best rates. They need to have the reflex of contacting the hotel directly so that hoteliers can start managing and controlling their pricing strategy.

• Hotels need to promote their own packages, being creative, and using their own website and social medias platforms.

hotel companies relationships with otas

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