The newsletters of hit the mark everytime. Not least the title of a recent headline which stated “why OTA hotel customers are not your customers”. immediately followed up with “the power of their marketing programs can outgun even the largest hotel chain”.
Have OTA’s simply become virtual supermarkets squeezing the margins of their hardworking suppliers to the bone? This is, in effect, our conclusion from an article by Toronto based LMA Communications entitled ‘No Defense for the OTA’s.
River Arno in Florence
In their own words ‘ No matter what numerical data is presented, it doesn’t refute the simple fact that the OTAs are converting your customers into theirs’.
Here are 5 points hoteliers should be aware of according to the author. Do :
- OTA customers are NOT your customers.
- OTA commissions are high.
- OTAs level the playing field.
- OTAs’ primary goal is to secure reservations.
- OTAs are still all about price.
The solution is for hotels to do what they have always done – develop personal relationships with guests and build long term loyalty based on services and reputation – all for a fair price for everyone of course.
Let’s not forget that hotels are in the hospitality business – OTA’s are in the large scale volume business.
We believe it was once called ’pile it high sell it cheap‘ now wrapped in a wonderfully executed marketing plan. But at who’s expense?