We all know that the buyer’s journey is long when it comes to travel. Travelers are going to do weeks or months of research and planning across multiple devices before finally booking a trip. Your business wants to generate bookings, but at what cost? When OTAs made their way into the limelight, properties of all sizes started using them to get those last minute bookings even if they weren’t direct on their site. Some businesses have come to rely heavily on OTAs, while others have had a few rooms and deals up occasionally.

Structure Changes

The problem is that these businesses are now being transitioned into paying commissions on every booking generated, when before, they were only paying flat fees to be listed. Although properties are seeing higher occupancy rates, they’re losing revenue to OTAs from commissions taken for the booking. After coming to this realization, hotels have started to find ways to move away from OTAs.

No matter the size of the marketing budget, properties are taking their dollars spent on advertising with third party sites and putting them into aggressive marketing campaigns to get travelers to land directly on their website. Dollars being spent to generate direct bookings rather than going to commissions can be seen as win-win for your business.

Digital Marketing Strategies for the Independent Property is a great place to start when looking to reframe your business and get away from paying commissions on bookings.