How to reduce OTAS commissions in your hotel
It is a fact that a large percentage of tourists like to book through online portals and agencies that help them get the best accommodations. This service is provided by the OTAS that charge tourist accommodations a commission for the reservations managed, which are growing every year and that in the end could become an unprofitable business.
In these cases, it is important to be able to determine strategies that help to reduce the costs generated by this concept. Surely you are thinking that maybe you can negotiate or pay less rate, but let me tell you that no, the rates and fees imposed by the OTAS most of the time are fixed for all types of accommodations and if you do not pay them they simply interrupt the service. So instead of thinking about lowering our rates, let’s try to promote other channels or direct booking, which will give us even better results.
But, the million dollar question, how did you manage to boost direct bookings over booking channels? It is not easy, but it is not impossible either, here are some tips that Mews has published to help you increase your direct bookings:
- Diversify your booking channels – One sure way to protect yourself from the voodoo of algorithms and other tricks of third-party sites outside of your control is to increase your direct booking numbers. That means your own hotel booking engine , plus encouraging guests to book through channels like social media and live chat.
- Optimize your website: Your website is your calling card, if it’s not optimized, runs fast, intuitive and easy to manage, your customers will go elsewhere. SEO optimization is also very important. If you have not yet set up a Google My Business page, do it now. Without it, you won’t show up in Google hotel search.
- Adjust your page or your platform to a mobile version: 80% of travelers use a mobile app during the search phase of a trip, leading to 50% of searches and bookings being made from mobile. All OTAs have been optimized for mobile because they know it pays off and you are losing direct bookings if you don’t make the same effort.
- Offer something that tourists won’t get from OTAs: First, make sure your rate is not higher than the OTA rate. That goes without saying. Next, sweeten the deal to encourage a guest to book directly. Small offers, such as a free drink at the bar or a later check-out time, won’t have much effect on your bottom line, but they are reason enough for a customer to choose you over another site offering the same price but without any of the extras.
- Elevate your advertising: Your website, your social media and your marketing and advertising is where you need to highlight what makes you special. Images, content and tone of voice are important. If you can capture a guest’s imagination and connect emotionally with them through your messaging, they are much more likely to book with you.
Lean on tools that make the guest’s journey more enjoyable: This is very important, we are in the age of contactless technology, where everything is done on mobile, where tasks need to be done in the shortest time possible. Having tools that make the guest’s trip more pleasant is a super plus. Online check-in, online payments, remote check-in, etc, are always a good option to position your accommodation in front of others.
Try to follow each and every one of these tips and increase your exposure to achieve higher direct bookings.
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