• OTAs VS Brand | A love and hate relationship

     

    OTAs vs brand.com website; A love and hate relationship

     

    The controversial relationship of hotelier’s brand.com website and OTAs, was always critical. OTAs do understand very well that the real threat as regards price parity comes not from the other OTAs but from brand.com websites.

     

    Analytics show that guests who find a hotel on OTAs websites, then also visit the hotel’s direct website for comparing rates. If cheaper prices are available there, the guest would most likely book on this, leaving the OTA out of the game to pay marketing costs. After all they have the right to say that it is difficult to sell exactly the same room at a certain price, when it is available for a cheaper price elsewhere.

     

    However, having a price disparity up to 10 euros off hotelier’s brand.com website than on what advertised on OTAs websites, was really ok.

     

    But, what has now changed?

     

    OTAs are practicing something new.

     

    They are offering random discounts from the channeled hotel rates and they display the following message “You’re getting a reduced rate as X is paying part of the price” when the discount is applied.

     

    Due to this practice, discrepancies may appear in some cases on what you see on OTAs website, this because the discounts are done in a random way. However, this can always be checked on your channel manager’s parity check report, if applicable for your information and only.  After all, as previous said it is a love and hate thing.

  • Parity issues? Quick guide to crosscheck fast

    Parity issues? Quick guide to crosscheck fast

     

    Hotel parity is achieved when same rates are maintained across all selling channels.

    Firstly, let’s remember why this is important.

    • OTA rankings
    • Profit margins
    • Brand image
    • Direct bookings

    However, if somehow you decide that a certain OTA or hotelier’s brand.com website is bringing you more bookings than another one or you wish to drive them to a particular one, it is actually a good practice to have a small disparity.

    Now, have you detected a disparity?

    The following should be checked out:

    • Channel manager & OTA connection issues. Are your rooms mapped properly? Log in on your channel manager and check your connections. Then quickly check on your OTAs extranet on random date. Is the rate correct, as mapped? If necessary call your support team.
    • Incorrect promotion/offers. Check if a certain offer displayed on a channel is forgotten on or off. Always remember to run, the exact offer, on same time and on all channels.
    • OTA created discounts which they take from their commission. Yes, it is often as OTAs always want to improve their market share. So, you need to contact your market manager to solve this for you.
    • B2B partners selling your room rates to OTAs. Yes, it is often as well. Some OTAs will display B2B rates alongside your prices. This is not the right thing to do, however if you agreed to sell to another partner at a much lower rate, you should have been more careful while contracting by adding terms. Again, you will need to contact your market manager, hopefully will help.