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HOTELS & OTAs
OTAs


• Online Travel Agencies

• Websites offering comprehensive travel
 shopping and reservation solutions to
 consumers.
OTAs’ names
• Expedia              • Onetravel

• Booking              • Hoteltravel

• Hotels.com           • LateRooms

• Travelocity Travel   • Venere

• Fareconnect          • Agoda

• Libertytravel        • Tablethotel

• Priceline            • Lastminute

                         …
Advantages for Hotels
•   Referenced on different websites
•   Increase room occupancy rate
•   Can give a good point of view for customers
•   Increase Search Engine Optimization (SEO)
•   Access to different type of customers
•   OTAs know travel profiles
•   Cover several countries
Disadvantages for Hotels

• Decrease Daily Room Rate (discount from OTAs )

• Decrease RevPar

• Must respect strict legal policies

• Costly commissions to pay

• Less control on websites where they appear
 (OTAs Affiliates)
Price comparisons: discount
• On Pullman Paris Bercy Hotel Website:

Deluxe Room Queen size: 265€



• Hotel.com: 215€

• Agoda: 204€

• Booking.com: 215€
Price comparisons: discount
• On Plaza Athénée Hotel Website

A superior room , king size, quiet corner: 750€

• On Tablethotels.com: 710,40 €

• On Grandluxuryhotels.com: 790€
Price comparisons




Prices from direct hotelier website and from OTA website are the same
 (when no discount applied), however there are 15% of commissions
                          retained by the OTA
Costs resellers channels Vs
      Hotel direct bookings
• Less control on price      • Development of a website
  due to the obligation to   • Website maintenance
  provide lowest             • SEO optimization
  available price.
                             • Cost of feeding website
• More hoteliers pay          contents
  comissions (between
  15 and 32%) better
  rank they get
Hotels well positioned in OTAs
                                               Example with 5 main cities
                   Paris                    New York                   London                      Sydney                   Hong Kong
                                        Soho Grand Hotel                                 Meriton serviced apartment
        Fraser suite Le Claridge                                   Langham Hotel                                        The Harbourview
                                       Gramercy Park hotel                               Meriton serviced apartment
        Concorde Montparnasse                                        Grand Plaza                                        The Royal Garden
                                          Thompson Les                                   Meriton serviced apartment
Booking      Radisson Blu                                           The Montcalm                                        Regal iClub Hotel
                                    Millenium UN Plaza Hotel                             Meriton serviced apartment
                Warwick                                         The Bloomsbury Hotel                                   Lan Kwai Fong Hotel
                                     Intercontinental Times                                   Sebel Surry Hills
        Wertern Premier Louvre                                    The Marylebone                                          Regal HK Hotel
                                             square
                                                                                                  Westin
            Westminster Opera                                                                                              Metropark
                                            Sheraton           London Elizabeth Hotel           Holiday Inn
             Yllen Eiffel Hotel                                                                                       Courtyard by Marriott
                                      NY Marriott Marqui       Millenium Hotel Mayfair           Marriott
          Marriott Champs Elysées                                                                                           Jj Hotel
Priceline                             The Waldorf Astoria            Renaissance               Median Grand
          Hotel Median Portes de                                                                                         Grand Hyatt HK
                                       Affinia Shelburne               Langham                 Russell Hotel
                 Versailles                                                                                                Metropark
                                       Doubletree Hotel          Glenhale Hyde Park
               Best Western
                  Novotel                  Hotel Lola               Grand Plaza                    Hilton              Cosmopolitain Hotel
            Le 20 Prieure Hotel       Roosevelt Hotel NY          Pestana Chelsea            Oaks Goldsbrough              Cosmo Hotel
Expedia        Hotel Ampere          Park Central NY Hotel      Copthorne Tara Hotel        Rydges Worls Square            Eaten Smart
           Les Jardins du Marais        Salisbury Hotel             The May Fair                Shangri-La            The Royal Pacific Hotel
              Hotel du Louvre        Broadway Plaza Hotel         The Rembrandt                  Swissotel               The Luxe Manor



                We can see that few international Hotel Brands are in the top 5 OTAs
                list, meanwhile most of hotels are independant, maybe OTAs are able
                to obtain important commissions from them.
Articles and acknowledges
• http://www.hotelnewsnow.com/Articles.aspx/4864/Hotel-
  OTA-relationship-not-wedded-bliss
• http://www.thebeat.travel/blog/node/3769
• http://www.travelweekly.com/print.aspx?id=231906
• http://webintravel.com/content.php?c=196
• http://www.ghotw.com/mediapage.aspx?id=12973
• http://www.hotelinteractive.com/article.aspx?articleid=19362
• http://www.hotelmarketingcoach.com/Growing%20Tension%
  20Between%20Hoteliers%20&%20OTA's.htm

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Relationships between Hotels and OTAs

  • 2. OTAs • Online Travel Agencies • Websites offering comprehensive travel shopping and reservation solutions to consumers.
  • 3. OTAs’ names • Expedia • Onetravel • Booking • Hoteltravel • Hotels.com • LateRooms • Travelocity Travel • Venere • Fareconnect • Agoda • Libertytravel • Tablethotel • Priceline • Lastminute …
  • 4. Advantages for Hotels • Referenced on different websites • Increase room occupancy rate • Can give a good point of view for customers • Increase Search Engine Optimization (SEO) • Access to different type of customers • OTAs know travel profiles • Cover several countries
  • 5. Disadvantages for Hotels • Decrease Daily Room Rate (discount from OTAs ) • Decrease RevPar • Must respect strict legal policies • Costly commissions to pay • Less control on websites where they appear (OTAs Affiliates)
  • 6. Price comparisons: discount • On Pullman Paris Bercy Hotel Website: Deluxe Room Queen size: 265€ • Hotel.com: 215€ • Agoda: 204€ • Booking.com: 215€
  • 7. Price comparisons: discount • On Plaza Athénée Hotel Website A superior room , king size, quiet corner: 750€ • On Tablethotels.com: 710,40 € • On Grandluxuryhotels.com: 790€
  • 8. Price comparisons Prices from direct hotelier website and from OTA website are the same (when no discount applied), however there are 15% of commissions retained by the OTA
  • 9. Costs resellers channels Vs Hotel direct bookings • Less control on price • Development of a website due to the obligation to • Website maintenance provide lowest • SEO optimization available price. • Cost of feeding website • More hoteliers pay contents comissions (between 15 and 32%) better rank they get
  • 10. Hotels well positioned in OTAs Example with 5 main cities Paris New York London Sydney Hong Kong Soho Grand Hotel Meriton serviced apartment Fraser suite Le Claridge Langham Hotel The Harbourview Gramercy Park hotel Meriton serviced apartment Concorde Montparnasse Grand Plaza The Royal Garden Thompson Les Meriton serviced apartment Booking Radisson Blu The Montcalm Regal iClub Hotel Millenium UN Plaza Hotel Meriton serviced apartment Warwick The Bloomsbury Hotel Lan Kwai Fong Hotel Intercontinental Times Sebel Surry Hills Wertern Premier Louvre The Marylebone Regal HK Hotel square Westin Westminster Opera Metropark Sheraton London Elizabeth Hotel Holiday Inn Yllen Eiffel Hotel Courtyard by Marriott NY Marriott Marqui Millenium Hotel Mayfair Marriott Marriott Champs Elysées Jj Hotel Priceline The Waldorf Astoria Renaissance Median Grand Hotel Median Portes de Grand Hyatt HK Affinia Shelburne Langham Russell Hotel Versailles Metropark Doubletree Hotel Glenhale Hyde Park Best Western Novotel Hotel Lola Grand Plaza Hilton Cosmopolitain Hotel Le 20 Prieure Hotel Roosevelt Hotel NY Pestana Chelsea Oaks Goldsbrough Cosmo Hotel Expedia Hotel Ampere Park Central NY Hotel Copthorne Tara Hotel Rydges Worls Square Eaten Smart Les Jardins du Marais Salisbury Hotel The May Fair Shangri-La The Royal Pacific Hotel Hotel du Louvre Broadway Plaza Hotel The Rembrandt Swissotel The Luxe Manor We can see that few international Hotel Brands are in the top 5 OTAs list, meanwhile most of hotels are independant, maybe OTAs are able to obtain important commissions from them.
  • 11. Articles and acknowledges • http://www.hotelnewsnow.com/Articles.aspx/4864/Hotel- OTA-relationship-not-wedded-bliss • http://www.thebeat.travel/blog/node/3769 • http://www.travelweekly.com/print.aspx?id=231906 • http://webintravel.com/content.php?c=196 • http://www.ghotw.com/mediapage.aspx?id=12973 • http://www.hotelinteractive.com/article.aspx?articleid=19362 • http://www.hotelmarketingcoach.com/Growing%20Tension% 20Between%20Hoteliers%20&%20OTA's.htm