Relationships between Hotels and OTAs

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Relationships between Hotels and OTAs

  1. 1. HOTELS & OTAs
  2. 2. OTAs• Online Travel Agencies• Websites offering comprehensive travel shopping and reservation solutions to consumers.
  3. 3. OTAs’ names• Expedia • Onetravel• Booking • Hoteltravel• Hotels.com • LateRooms• Travelocity Travel • Venere• Fareconnect • Agoda• Libertytravel • Tablethotel• Priceline • Lastminute …
  4. 4. Advantages for Hotels• Referenced on different websites• Increase room occupancy rate• Can give a good point of view for customers• Increase Search Engine Optimization (SEO)• Access to different type of customers• OTAs know travel profiles• Cover several countries
  5. 5. Disadvantages for Hotels• Decrease Daily Room Rate (discount from OTAs )• Decrease RevPar• Must respect strict legal policies• Costly commissions to pay• Less control on websites where they appear (OTAs Affiliates)
  6. 6. Price comparisons: discount• On Pullman Paris Bercy Hotel Website:Deluxe Room Queen size: 265€• Hotel.com: 215€• Agoda: 204€• Booking.com: 215€
  7. 7. Price comparisons: discount• On Plaza Athénée Hotel WebsiteA superior room , king size, quiet corner: 750€• On Tablethotels.com: 710,40 €• On Grandluxuryhotels.com: 790€
  8. 8. Price comparisonsPrices from direct hotelier website and from OTA website are the same (when no discount applied), however there are 15% of commissions retained by the OTA
  9. 9. Costs resellers channels Vs Hotel direct bookings• Less control on price • Development of a website due to the obligation to • Website maintenance provide lowest • SEO optimization available price. • Cost of feeding website• More hoteliers pay contents comissions (between 15 and 32%) better rank they get
  10. 10. Hotels well positioned in OTAs Example with 5 main cities Paris New York London Sydney Hong Kong Soho Grand Hotel Meriton serviced apartment Fraser suite Le Claridge Langham Hotel The Harbourview Gramercy Park hotel Meriton serviced apartment Concorde Montparnasse Grand Plaza The Royal Garden Thompson Les Meriton serviced apartmentBooking Radisson Blu The Montcalm Regal iClub Hotel Millenium UN Plaza Hotel Meriton serviced apartment Warwick The Bloomsbury Hotel Lan Kwai Fong Hotel Intercontinental Times Sebel Surry Hills Wertern Premier Louvre The Marylebone Regal HK Hotel square Westin Westminster Opera Metropark Sheraton London Elizabeth Hotel Holiday Inn Yllen Eiffel Hotel Courtyard by Marriott NY Marriott Marqui Millenium Hotel Mayfair Marriott Marriott Champs Elysées Jj HotelPriceline The Waldorf Astoria Renaissance Median Grand Hotel Median Portes de Grand Hyatt HK Affinia Shelburne Langham Russell Hotel Versailles Metropark Doubletree Hotel Glenhale Hyde Park Best Western Novotel Hotel Lola Grand Plaza Hilton Cosmopolitain Hotel Le 20 Prieure Hotel Roosevelt Hotel NY Pestana Chelsea Oaks Goldsbrough Cosmo HotelExpedia Hotel Ampere Park Central NY Hotel Copthorne Tara Hotel Rydges Worls Square Eaten Smart Les Jardins du Marais Salisbury Hotel The May Fair Shangri-La The Royal Pacific Hotel Hotel du Louvre Broadway Plaza Hotel The Rembrandt Swissotel The Luxe Manor We can see that few international Hotel Brands are in the top 5 OTAs list, meanwhile most of hotels are independant, maybe OTAs are able to obtain important commissions from them.
  11. 11. Articles and acknowledges• http://www.hotelnewsnow.com/Articles.aspx/4864/Hotel- OTA-relationship-not-wedded-bliss• http://www.thebeat.travel/blog/node/3769• http://www.travelweekly.com/print.aspx?id=231906• http://webintravel.com/content.php?c=196• http://www.ghotw.com/mediapage.aspx?id=12973• http://www.hotelinteractive.com/article.aspx?articleid=19362• http://www.hotelmarketingcoach.com/Growing%20Tension% 20Between%20Hoteliers%20&%20OTAs.htm

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