How Hotels are related through Online Travel Agency ( O.T.A )? With general public access to the Internet, many airlines and other travel companies began to sell directly to passengers. As a consequence, airlines no longer needed to pay the commissions to travel agents on each ticketsold. Since 1997, travel agencies have gradually been disintermediated, bythe reduction in costs caused by removing layers from the package holiday distribution network.[ However, travel agents remain dominant in some areas such as cruise vacations where they represent 77% of bookings and 73% of packaged travel. In 2010, the market size for travel agenciesexperienced a sharp decline, dropping from $17 billion the previous year to $14.5 billion.
How hotels could sell their Rooms and provide their Services? Ex. K+K Hotel• They can sell their rooms directly from their Website. – This way is less expensive for the hotel and also for the customer because there are no intermediaries.• They can also sell their rooms and provide their services through Online Travel Agency. – Lets see which services OTA provide for the Customers.• Some Online Travel Agencies:
Why Choosing to sell through OTA?• It’s a way to get the best visibility to sell the rooms. – For example if we take K+K hotels which is located in Paris. If we go on www.google.fr the first webpage is not their own website, as you can see in this website• Extend their portofolio.• Actually, OTA take around 10-25% from the total cost of a stay for a customer. Prices are often more expensive because of their commission.• Boost their Occupancy Rate.
K+K hotels : Example of a stay in December.• Their Own Website: Through this example, the rate is the same because they want to attract people.
Conclusion• OTA is a very best way for the hotels to sell room. They give them more visibility, but in exchange they are paid by commission which correspond to a percentage of the total cost of the group• This is a Cost for Hotel Keepers so they’ve got other ways to communicate = SOCIAL NETWORK as Facebook, Twitter, Blogspot, google Earth.