HOTEL & OTA relationship not wedded blissThe situation between hotels and OTAs is aprecarious one.An Expedia official denies that the companyforces hotels to provide a certain rate.TravelClick advises clients to get no more than10% of annual occupancy from OTAs. F.N.E
Online distribution strategies and competition: are theglobal hotel companies getting it right?The internet has significantly changed the ways hotelsdistribute and price their products.The imminent success of online intermediaries causedfinancial problems for hotel chains since online travelagencies offered better prices than the hotel brandwebsites.The existing literature on hotel online distribution hasfocused on pricing strategies and room availability issuesfor different segments of hotels.
OTA WHAT IS IT?An online travel agency (OTA) specializes in offering planningsources and booking capabilities.OTA have got everybody so scared, because they’re soaggressive about their tactics.Being a big company hotel, we rarely get bullied by the OTAs inregards to pricing or running promotions. Where the bullyingreally occurred was when I was with independent or smallercompany hotels that were more dependent on the OTAs.The OTAs are no more or no less than what we have madethem. …We have no one to blame but ourselves.
THE BIGGEST OTAs OF THE MARKET:Voyages-sncf.comExpedia, including Expedia.com, Hotels.com, Hotwire.comSabre Holdings, including Travelocity, lastminute.comOpodoPriceline.comOrbitz Worldwide, Inc., including Orbitz.com, CheapTickets, ebookers
OTA &HOTEL RELATIONSHIPTHE POSITIVE:- Optimization for hotel in communication andmarketing with the partnership of OTAs.- Increase revenues by OTAs-viewing customers.- Packages and promotions to attract thecustomers.
OTA &HOTEL RELATIONSHIPTHE NEGATIVE:-Expensive commission rates are really a problem.(OTAsbooking can be >20%!)- « The big fish eats the little fish »: the biggest hotelscan easily compete and are in a strong position.- By the amount of hotels on OTAs, customers are in aforest of informations.- Difficult control and high competition.