How can travel industry companies compete with the lower prices of OTAs? By being travel advisors, and not falling into the trap of playing the OTAs’ game.

1. A Race to the Bottom:
OTAs and the Travel Industry

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Companies in the travel industry must feel as if they are in a zero-sum business.
As if the only thing a traveler cares about anymore is how much they’re going to pay.

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Companies in the travel industry must feel as if they are in a zero-sum business.
As if the only thing a traveler cares about anymore is how much they’re going to pay.
Consumers say it. Businesses say it.
But worst of all, it’s a race to the bottom that gives the Online Travel Agencies (OTAs) –
who don’t have physical locations to pay for and manage – an obvious advantage.

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It’s no wonder, then, that hotels and other travel industry players have been
trying to drive direct bookings and avoid OTAs altogether.

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It’s no wonder, then, that hotels and other travel industry players have been
trying to drive direct bookings and avoid OTAs altogether.
Setting aside for a moment whether or not OTAs are, in a sense, the enemy, the
very way they function makes it impossible for brands to distinguish
themselves amongst their own competition.

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Unfortunately, it looks as if despite the importance of this strategy being
successful for hotels, it wasn’t working, as a recent report suggests.

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Unfortunately, it looks as if despite the importance of this strategy being
successful for hotels, it wasn’t working, as a recent report suggests.
Among other things, the data indicates that OTAs actually accelerated their share
of online bookings AND their share of nights booked, while the data on
occupancy rates as a result of direct hotel booking did not show any clear
improvement.

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And when they show up on an OTA, brands end up looking like just so many cans on a
shelf at the supermarket, without about as much appeal and allure.
Photo by Fancycrave on Unsplash

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So what’s a travel brand to do?
They should remember this: Consumers and businesses have always said that every
decision they have ever made was about price. In every industry.
Photo by Artem Bali on Unsplash

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Which means it’s also true that for those who are creative, there still remains an
extremely valuable position which can outflank the competition – just as there has
always been.

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Which means it’s also true that for those who are creative, there
still remains an extremely valuable position which can outflank
the competition – just as there has always been.
To do that, let’s look more closely at the actual role of price in
the equation in the travel industry…

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Vacation planners and business travelers generally have very prescribed budgets.
And these budgets provide the starting point for any planning.

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They are the gateway through which all the rest of the decisions must pass.
And why not - price creates the illusion of a decision that is tangible and clear.

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This hotel is cheaper than that one. This flight is cheaper than that one.
Price yourself too high – or too low – and you are not even a part of the selection
set as they move forward.

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But price is only the gateway of qualification; it is not the final arbiter.

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But price is only the gateway of qualification; it is not the final arbiter.
Because no vacation traveler looks back over photographs and thinks “yeah, that wasn’t
very fun, but boy, did we get a great price.”
People plan vacations for memories. That’s the real goal.
Photo by Adam Sherez on Unsplash

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No business traveler wants to tell his boss “I don’t know if I closed the deal or
not, but at least I saved fifty bucks on the room.”
Business people plan trips to meet business objectives. That’s why they do them.
Photo by Sebastian Herrmann on Unsplash

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Help each get what they really want, and you will have a competitive advantage –
against OTAs and your industry rivals.

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How? By positioning yourself as experts on
the destinations in ways that OTAs haven’t.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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How? By positioning yourself as experts on
the destinations in ways that OTAs haven’t.
By becoming something of a travel guide to
the place your potential customer is
interested in, savvy hotels and vacation
rental brands can create the perception –
indeed, the reality – that they are helping
planners and travelers actually get more out
of their money than they would otherwise.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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How? By positioning yourself as experts on
the destinations in ways that OTAs haven’t.
By becoming something of a travel guide to
the place your potential customer is
interested in, savvy hotels and vacation
rental brands can create the perception –
indeed, the reality – that they are helping
planners and travelers actually get more out
of their money than they would otherwise.
Because, in fact, they are. Because that
knowledge is actually perceived as currency.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary
Or think of it this way; a hotel in a place
that is new to you and your family simply
meets the most basic needs of shelter.

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Or think of it this way; a hotel in a place
that is new to you and your family simply
meets the most basic needs of shelter.
But a hotel that comes with the kinds of
insider information, the kinds of
knowledge about the location that is
uniquely important to you and your family,
that transforms that visit into a memory
that will last a lifetime – that is ultimately
more valuable to you.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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Or think of it this way; a hotel in a place
that is new to you and your family simply
meets the most basic needs of shelter.
But a hotel that comes with the kinds of
insider information, the kinds of
knowledge about the location that is
uniquely important to you and your family,
that transforms that visit into a memory
that will last a lifetime – that is ultimately
more valuable to you.
Because it meets your real goal.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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And in this way, information, knowledge
and expertise, have a sort of multiplier
effect for consumers. TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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And in this way, information, knowledge
and expertise, have a sort of multiplier
effect for consumers.
The more they believe they can rely on you
for making their destination travel better –
be they vacationers or business travelers -
the more often they will turn to you to
provide it to them.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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And in this way, information, knowledge
and expertise, have a sort of multiplier
effect for consumers.
The more they believe they can rely on you
for making their destination travel better –
be they vacationers or business travelers -
the more often they will turn to you to
provide it to them.
Increasing the value of their travel for them,
and increasing revenue from those
customers for travel industry companies.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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Which in turn, gives them a reason to
direct book on your site, instead of
going through OTAs – moving you away
from your competition, and training
them to check you first in future.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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Which in turn, gives them a reason to
direct book on your site, instead of
going through OTAs – moving you away
from your competition, and training
them to check you first in future.
The question is, of course, how? How
can hotel and vacation rental brands
provide this information.
TRAVEL BRAND
CHECK OUT OUR DESTINATION GUIDES
click HERE for your personalized trip itinerary

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We help travel industry brands transform
into travel advisors for potential destination
travel customers.
With the power of Mass Local, we can put
highly localized, highly specific, highly
relevant information at the fingertips of your
potential customers.

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All the kinds of things that insiders and locals
would know, and that tourists and visitors aspire to:

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All the kinds of things that insiders and locals
would know, and that tourists and visitors aspire to:
- What festivals and events are happening and
when.

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All the kinds of things that insiders and locals
would know, and that tourists and visitors aspire to:
- What festivals and events are happening and
when.
- Who’s in town and how to get around.

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All the kinds of things that insiders and locals
would know, and that tourists and visitors aspire to:
- What festivals and events are happening and
when.
- Who’s in town and how to get around.
- Where the cool club is that everyone will be
talking about in six months.

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All the kinds of things that insiders and locals
would know, and that tourists and visitors aspire to:
- What festivals and events are happening and
when.
- Who’s in town and how to get around.
- Where the cool club is that everyone will be
talking about in six months.
- Which restaurant just opened that will be
impossible to get into before you know it.

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All the kinds of things that insiders and locals
would know, and that tourists and visitors aspire to:
- What festivals and events are happening and
when.
- Who’s in town and how to get around.
- Where the cool club is that everyone will be
talking about in six months.
- Which restaurant just opened that will be
impossible to get into before you know it.
District by district, neighborhood by neighborhood,
block by block.

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Information that most OTAs don't deliver, and that you can’t deliver if you’re just one
more can on their shelf.
Information that fundamentally changes everything. Because you can’t beat someone
when you’re fighting their game by their rules.
And they can’t beat you when they’re fighting by yours.

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Thank You!