how to use your ota channels to improve your hotels ... · • australian hotels only (expedia...
TRANSCRIPT
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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