How to get out of the OTA trap

As we have talked the last week about the hotels' strategies regarding the OTAs' performance, I have found a new artcile which deals with the new ways to increase the web presence of hotels.
According to a conference, HSMAI's Digital Strategy for Travel Marketing & Distribution which took place in Las Vegas, some experts have defined new strategies for hotels to limit the OTA habit:

• Hotels should have an attractive and dynamic website in order to encourage people to a purchase.
• Get affiliate programs: post ads on websites which are linking to the hotel: location, activities...
• Thanks to the affiliate programs, customers are directed to a bookable page of the hotel
• Spend money in the Price Per Click
• Create a sensational video and post it on youtube

I totally agree with these strategies, I think that hotels have the resources to attract customers on its websites without spending a lot money. Managers have to be innovative and take more risks.

Hotel Belle Epoque

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Hotel Belle Epoque

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Sources Reverse Travel Auction

http://en.wikipedia.org/wiki/Reverse_auction
http://budgettravel.about.com/cs/auctions/a/reveal_price_2.htm
http://www.priceline.com

Reverse Auction Sites

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Reverse Auction Sites

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Hotels need to rethink their OTA strategy

This article deals with the problem that hotels are facing on Internet. Indeed, lots of clients are booking on Internet but rather through the OTAs’ websites than through the hotels' websites.
OTAs attract web surfers because its offers are more diversified and it meets the expectations of clients. The main consequence is that hotels' websites are losing profits, because booking on these OTAs websites means to book at lower prices than the rack rate.

Now, most of hotels are offering packages and promotion in order to counterattack online retailers but it is not enough.
For individual hotels, it is harder to be visible on OTA’s, because generally, famous group hotels chains are in the forefront.

In my opinion, hotels should sell more products linking to the activities that customers could enjoy during its stay, for example hotels could make partnership with some theatres, and then propose clients to book it through hotels’ websites. This could attract more customers. Hotels have to offer more privilege to its customers than OTAs propose.

Another point is that hotels should target efficiently on each OTAs’ websites they want to appear. In fact, the choice is very wide and it is more strategic to appear on the most efficient websites (where hotels’ customers book the most).

http://www.hotelmarketing.com/index.php/content/article/hotels_need_to_rething_their_ota_strategy/

Characteristics of OTAs

Customer reach
- Single travellers, groups, business men, couples and families
- From 18 to 60 years old
- Look for good deals
- Customers who don't have a fix idea of their destinations/ hotels
- Different nationalities

Customer Communication Methods
- Newsletter
- Social media like twitter or facebook
- RSS
- Customer account on the website

Types of product sold
- Hotel rooms
- Flights
- Cars rental
- Cruises
- Activities
- Guides
- Packages
- Thalasso/Spa
- Presents
- Custom-made Travels

Special Promotion capabilities
- Last minute booking
- Refund if cheaper prices on other OTAs
- Booking in advance
- Special promotion for fairs
- Specific day for promotion

Online conditions + fees
- Insurances
- Additional fees for luggage
- Special conditions for cancellation

Affiliate program
- Yes

Affiliate program payment structure
-Remuneration according to the percentage of the turnover

Info for hoteliers
- Possibilities for a Partnership
- Video introducing the benefits of a partnership