A Necessary Evil: A Look at The OTAs - Hotelier Magazine - 0 views
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So, what’s the issue? For one, the whopping commissions the massive web-based entities take, routinely in the 20- to 30-per-cent range
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Hotels won’t give them any parameters at all, he points out, and a different pricing model will have to emerge. “They won’t necessarily take commission or such, but they might charge you just to drive people to your site. It’s a scary idea.
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The net result, says Estis Green, whose company conducts hotel data analytics, is that hotels can’t really compete on price alone anymore. It’s why, in today’s new reality, competition is a game played with other factors, including value-added services, rates based on multiple nights’ occupancy or other inspired — even desperate — offers devised by hoteliers.
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