How can small and medium-sized hotels reduce the impact of interest rates?


Assessing equality is a term that always alarms hoteliers and can even be a barrier to growth for small and new players. Evaluation Equality: In all distribution channels րագր booking platforms in the same room practice in the same և stable rate practice, be it on the hotel’s own website or OTAs, regardless of the commissions earned by the OTA. The goal of this practice is to create an equal playing field for all players. Both hotels and OTAs are required to comply with the rules of equality when they sign OTA.

From time to time, this equalized field makes it difficult for new players to compete in this fierce competition and suffocates them, even before they can spread the numbers.

How should hotels view equality assessment?

Appraisal equality practice has come to protect the interests of OTAs from situations where hotels can lower the prices of their websites and reduce OTAs.

Why do hotels rely heavily on OTAs?

OTA provides a ready-made platform for any hotel that can order bookings from the very first day they enter the online booking world. They don’t have to spend a lot of money on marketing, they just have to make better deals with the right OTAs, and they’re going to make money. Hotels can easily view OTA commissions because of their marketing costs, but with a higher success rate. Consequently, the advantage that OTA offers to hotels to some extent confirms the disadvantage of percentage equality for hotels.

What are the issues of interest rate equalization for budding and small hotels?

In small and new hotels, every reservation is very important! It is already very difficult for hotels to pay huge commissions to OTA from thin margins. This is despite the fact that live fixes can prove to be a game changer. However, just getting a book can be a key step forward in advertising and price manipulation. Many times, OTAs will ask hotels to keep themselves in the loop when they run an advertising campaign or discounted prices on their websites. To prevent any breach of the Normity Parity clause, sometimes small hotels exclude the entire category of rooms from OTAs and sell it on their own site at their own prices.

It is difficult for small hotels to compete with OTA, as OTAs are known to lower prices below agreed prices by lowering their commissions. We do not live in a perfect world.

It requires hotels to check the prices of different OTAs to keep their prices competitive. When OTA TV channels are not directly connected to the hotel through the channel manager PMS, it is even more difficult to manage exchange rate equality. Then the hoteliers have to access many systems to update their tariffs. However, it is much easier and faster if the hotel uses hotel technology tools to manage all this.

Few people think that in this situation, small hotels are stuck in a rock, “heavy environment” as the saying goes, because on the one hand, they do not have the marketing budget to achieve the kind that OTA provides. On the other hand, it is difficult for them to pay a large oil commission to OTAs. Moreover, OTA brings them business. Therefore, hotels want to make more direct reservations. However, this course requires more dollars to spend on marketing. They are in this vicious circle.

Here are some tactics that hotels can use to address the challenge of equality

Creating unified packages

Hotels can increase their offerings by keeping the price the same as the OTA price by adding windows: free parking, Wi-Fi, wine tasting sessions, complementary breakfast, sightseeing, free collection, etc. This practice will help them to have clear edges. Against OTA, without violating the equality of interest rates, because at the same price the hotel offers a better deal than OTAs.

Lower your rates to a limited audience.

Hotels can lower prices for users of age group, category, Closed user group (CUG) or mobile applications. Launch e-mail advertising offers for booking MCC members or mobile apps. This can help them make direct reservations on their website and mobile app without compromising the interest rate equation.

Loyalty program: customer engagement

Loyalty programs are another way to boost bookings. Loyalty programs offer multiple benefits, except for saving OTA commissions. Getting a double reservation from a loyal customer is much cheaper than getting a new one. In addition, hotels are aware of their choices and preferences, which allow them to serve even better. This spreads the positive mouth of the brand for the brand and paves the way for more direct bookings.

Use meta search engines

TripAdvisor և Travelogue-like meta search engines can be considered the savior of small hotels. Smaller hotels may even display at the top of the list in TripConnect, as it works on the PPC model, unlike commissions, as in the case of OTAs. Metasearch engines are quite popular with consumers, as they not only compare different features, but also allow them to choose the cheapest channel to buy at the hotel. Consumers are often told to turn to direct books if the difference is not huge, as direct orders are considered more reliable.

User-friendly website and booking process

To promote bookings directly, hoteliers need to ensure that they have the necessary infrastructure that encourages direct bookings, such as a comprehensive user-friendly website with a clean interface, providing all the necessary information without having to search for it. In addition, hotel owners need to make sure that the booking process is very simple and not complicated, so that the prospects do not fall behind. OTA has clear boundaries in this department, but hotels have no choice but to equate their online infrastructure with OTAs.

From the above discussion, we can assume that before the Rate Parity contracts can weaken the direct bookings of any hotel. There are many factors that prove that OTAs are actually good partners with hotels. Hotels can adopt several bypass strategies to mitigate Parity’s flaws and at the same time enjoy the large number of OTA bookings.