Protect your hotel from the negative impacts of OTA-funded discounts
Protecting your hotel from the potential negative impacts of OTA-funded discounts involves a mix of strategic pricing, direct booking incentives, and careful management of your relationship with OTAs. Here are some strategies you can use:
- Boost Direct Bookings:
- Best Rate Guarantee: Ensure your website offers the lowest rate.
- Exclusive Perks: Offer incentives like free breakfast, free transfer or room upgrades for direct bookings.
- Loyalty Programs: Reward guests for booking directly.
- Promotions for Repeat Guests: Offer discounts for future direct bookings.
- Negotiate with OTAs:
- Flexible Agreements: Negotiate to relax rate parity clauses or limit OTA discounting.
- Volume-based Contracts: Link commission rates to booking volume to encourage quality over discounting.
- Use Dynamic Pricing:
- Revenue Management Systems: Adjust rates in real-time based on demand.
- Segmented Offers: Tailor pricing and packages for specific customer groups.
- Differentiate Your Brand:
- Enhance Guest Experience: Build loyalty through superior service.
- Digital Marketing: Invest in promoting your hotel directly to consumers.
- Content Creation: Use engaging content to attract direct traffic.
- Monitor OTAs:
- Regular Audits: Check OTA listings for unauthorized discounts.
- Price Parity Tools: Use software to ensure your rates are consistent across channels.
By implementing these strategies, your hotel can protect its revenue and maintain control over its pricing and distribution channels, while also fostering stronger relationships with customers and reducing dependency on OTAs. RevitUp can help you in all these areas, providing expert guidance and tools to optimize your pricing strategy, enhance direct bookings, and strengthen your overall market position.
