Event Planner Spain, organisation d'événements en Espagne et Maroc Idées et ressources pour événements et réunions en Espagne et Maroc
Over 1,750,000 page views in November
Newsletter (15,000+ abonnés) Event Planner Spain mobile version RSS Event Planner Spain
Demande de devis gratuit | Annoncez-vous Inscription
 Recherche d'Hôtels
 et lieux de réunion
 Recherche d’Agences
 Évènementielles
 Prestataires
 Événementiels
   Services
Event Planner Spain, organisation d'événements en Espagne
Catégories prestataires
BCN Event Planners. Agence d’événements spécialisée en organisation d’événements et célébrations d’entreprise en Espagne et à l’étranger
Fitur 2015

International Tourism Fair in Spain, Madrid (IFEMA) 28 January - 1 February
Madrid (IFEMA) 28 Jan - 1 Feb

Articles intéressants
Ten Transformative Meetings Technology Trends for 2015 Ten Transformative Meetings Technology Trends for 2015 ...
The Two New Google Updates Every Hotelier Should Know About The Two New Google Updates Every Hotelier Should ...
Stand Up and Roar Stand Up and Roar ...
Entrepreneurial Success: What Does it Really Take? Entrepreneurial Success: What Does it Really Take? ...

Growing Tension Between Hoteliers and OTAs… NONSENSE! - An Alternative Viewpoint

Envoyer cette nouvelle a un ami
Share to Facebook Share to Twitter Share to Digg Share to Delicious More...
Growing Tension Between Hoteliers and OTAs… NONSENSE! - An Alternative ViewpointI just got through reading an article titled "Growing Tension Between Hoteliers and OTAs". There are so many of things in this article with which I don’t agree, I don’t know where to begin. Either the author is attempting to sidle-up to Choice Hotels or he just doesn’t get it. I won’t go through every detail here; I would need to write a mini-novel. Let’s just say I would urge other hotels to consider some facts before acquiescing to the article’s implications.

The article states that Choice Hotels has cut-off negotiations with Expedia and have subsequently been removed from Expedia owned sites. This is sad news, but this is free enterprise at work, Max. Expedia and Choice Hotels can make their own decision with whom they do business, but those decisions should be well informed and, hopefully, beneficial.

If Choice honestly believes that they were being "snookered" by Expedia, so be it. Personally, I feel that their decision to drop Expedia was an error and that their naiveté is incredible. I just don’t understand what they are afraid of. Of course, I don’t know the details of their negotiations, but I do know hotel marketing and the persistent antagonism between some quarters of the hotel industry and OTAs is troublesome to me and promulgating this notion is dangerous.

The Stockholm Syndrome?
The article compares the Stockholm Syndrome with the after-effects of 9/11. We must have been in two different places, Max. The way I saw it, OTAs saved many hotels, with rooms they had a hard time getting on their own, and by boosting travel through the Internet, while our industry was asleep at the helm and allowed OTAs to take over Internet travel marketing. The hotel/travel aggregator war of 2002 to 2004 is well documented.

In many articles beginning in 2003, I urged hotels to get-smart about the Internet and play a quick game of catch-up with the OTAs. It was a matter of marketing and during those days, OTAs were way ahead in mastering this "new" medium. In the following years, the hotel industry did just that with the help of many smart Internet-savvy hotel people.

The hotel industry made significant gains on the Net since then and they leveled the playing field by improving their websites and concentrating on Internet marketing. They became believers. Hoteliers took back their share of the Internet and negotiated with OTAs to work co-operatively with them. Blaming OTAs for smarter marketing at the outset of Internet popularity is a silly notion.

Who Cares How OTAs Make Their Money?
Like any other business, OTAs are in business to make money. In this country, Max, free enterprise is still at work. Every business, including hotels and OTAs, make their own decisions with whom they wish to do business and their decision is generally based upon how much each will benefit from the partnership.

How Hotels Make Money
Hotels make money by taking in more revenue than they spend. Many hotels today are having a tough time doing that. I would be the first person to agree that any hotel, doing business with OTAs, which is experiencing consistent displacement of regular higher rate rooms with rooms from OTAs should re-think their OTA relationships.

The fact is that most hotels do not have this problem. In my opinion, this subject would be mute if more hotels employed revenue management in their operation. The process of RM calls for mixing a variety of rates, and profit levels, to achieve maximum occupancy and average rate.

Smart hoteliers consider OTA business as a base which allows them to build occupancy and, through good management of rates, to build average rate as well.

It would seem to me that our disagreement is based upon the false belief that hotels are in competition with OTAs for the same business. This belief fosters the notion that the big bad OTAs are stealing business which would normally book your hotel directly through your franchise website or your own website. Fat chance.

I hate to be the one who breaks this to you, but Expedia and other OTAs have earned loyalty from many travelers, especially those using air travel, through their own hard work, millions of advertising dollars, and some pretty innovative marketing. The OTAs have the ability to touch travelers who wouldn’t even know your hotel exists if they didn’t see it on an OTA website.

Even the very best of hotel websites cannot compete with OTA sites. They don’t have hotels to operate and therefore the marketing dollars they spend cannot be duplicated by hotels, large or small.

The fact is that Expedia commands the OTA market. Your decision to partner with them, or any other OTAs for that matter, should be based upon whether or not you feel you can benefit from the relationship and not because someone feels that their rules are prohibitive ,thinks they make too much money or thinks they are "the rate police".

History Repeats Itself
Years ago, I was vice president in charge of sales & marketing for Frenchman’s Reef in St. Thomas, USVI. A long time before the Internet, we dealt with travel wholesalers with commissions of 25 and 30% and rules that were tough. In those days this hotel was flagged by Holiday Inn, with the most powerful reservation system in existence at that time.

We had choices. We had a powerful reservation system which we could solely rely upon but chose to partner with these aggressive wholesalers to provide us with the exposure we needed and to tap into their huge travel agent market. In those days, travelers wanted the security of booking with someone they already knew; their favorite travel agent. At the peak of our relationship, we paid wholesalers more than $9.5M. Frenchman’s Reef, in the 70’s, had become one of the most successful hotels in the Caribbean.

Next Steps
The article’s suggestion to "invigorate the push in the direct online channel" is not a factor in this discussion because every hotel should do this in any event. No hotel should be totally reliant upon OTAs. But discard the notion that this will have any impact on OTAs; they are not going away anytime soon. Either you need and want their business or you don’t.

Stop worrying about how and how much Expedia earns, look at your individual situation. Attempting to demonize Expedia because someone resents the size of their commissions or their rules of partnership is plain wrong. I know of many hotels which are thankful for the business they receive from Expedia and other OTAs while using that business to build their own profits.

Contact:
Neil Salerno, CHME, CHA
Hotel Marketing Coach
Email: NeilS@hotelmarketingcoach.com
Comment on this news item
Name     Email

Tags, event suppliers: Advertising  Hotels  Marketing  Rooms  Security  Tags, news section: Advertising  Booking  Business  Competition  Course  Franchise  Free  Holiday  Hotel  Hoteliers  Internet  IT  Loyalty  Management  Marketing  Sales  Stockholm 

Glossary, news section: CHME  Event  Online  OTA  Revenue management  Travel agent 

Number of views of this article: 11,040

Rechercher tout
Loading
Newsletter
Prestataires
Accès Membres
nom d'utilisateur
mot de passe
AEROBROKER. Broker aérien, gestion de vols charters, transport aérien d’entreprise ou pour événements en Espagne
SmartWorks. Production et création de tout type d’événements en Espagne et au Maroc
Azafatas y Modelos Alhambra. Organisation d'événements et congrès, hôtesses d'accueil, mannequins, interprètes, Grenade, Andalousie
Audiovisuales Assis. Production audiovisuelle pour événements corporatifs Madrid
EXTRAVAGANZA! Eventos, Team Building e Incentivos. Événements d'entreprise, incentives, team building, outdoor training, DMC Espagne

 
À propos de nous | Annoncez-vous | Contacter | Légal | Glossaire | Plan du site
Si vous planifiez un événement en Espagne ou au Maroc, prenez contact avec nous ou directement avec les
500 prestataires de qualité sur notre portail pour des devis gratuits, sans obligations et sans commissions.

Avec plus de 1,500,000 de pages vues et 1,000 demandes de devis par mois, Event Planner Spain est actuellement le portail le
plus visité pour l'organisation événementielle en Espagne, disponible en huit langues et avec des visites de plus de 160 pays.
Si vous offrez des services pour événements en Espagne ou au Maroc, inscrivez-vous et profitez de nos promotions actuelles.
Si vous souhaitez annoncer sur notre portail, contactez-nous pour une proposition intéressante.

Event Planner Spain, S.L.
Paseo de la Sierra, 38-20, 29018 Málaga, Espagne
© Copyright Event Planner Spain 2006-2014
Tel. +34 952 294 327

Sibaritas Events. Planification et organisation d

Dernière prestataire

Sibaritas Events. Planification et organisation d'événements professionnels à ...
Meetings and Banqueting Rooms at the Medplaya Hotel Pez Espada

Dernière promotion

Meetings and Banqueting Rooms at the Medplaya Hotel ...
Azavista’s Future Event Tendencies

Dernière actualité

Azavista’s Future Event Tendencies ...
Difa Tours. Organisation de voyages incentives, réunions de golf et événements personalisés au Maroc

Prestataire aléatoire

Difa Tours. Organisation de voyages incentives, réunions de ...
In Some Places Business Is a Pleasure

Promotion aléatoire

In Some Places Business Is a Pleasure ...
Seville to Host Next Edition of MITM Euromed

Actualité aléatoire

Seville to Host Next Edition of MITM Euromed ...

Málaga Convention Bureau Member MPI Member, Meeting Professionals International CO2 Neutral Website Exhibiting at EIBTM, global event for meetings and incentives IMEX 2015 – Frankfurt 19-21 May. The essential worldwide exhibition for incentive travel, meetings and events ICCA Iberian Chapter