6. Online Travel Agents (OTA)
❖
more offers than any traditional travel agency!
❖
transparent pricing / cheaper rates!
❖
easy selection of hotels with filters!
❖
objective reviews by travelers!
❖
less need to plan ahead
7. 2
race to scale!
—> M&A
1
best product!
—> IT
How to become a
successful OTA
best prices!
—> price pressure
4
stay top of mind!
—> marketing
3
8. 4. Price Pressure
❖
more transparency!
❖
little differentiation!
❖
pressure on hotel margins
calls for.. PROTECTION
9. Introduction of
Rate Parity Agreements
❖
protects hotel margins from OTA price war!
❖
enables everyone to offer the best price!
❖
differentiation by service rather than price advantages
12. Our older siblings..
3 weeks
Trip
Reading reviews on
TripAdvisor, browsing blogs
t
Flight & hotel confirmed
…dominance by OTAs
6 weeks
13. pre .com
❖
Hotels in driver seat!
❖
Pricing dependent on production of travel agent
post .com
❖
OTAs in driver seat!
❖
Price fixing due to rate parity agreements