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OTAs or Direct Bookings, finding the right balance
WIHP Academy • ParisSimone Puorto – Director of Global Accounts
#WIHPACADEMY
HOW DID IT GET HERE?
WIHPHOTELS.COM
76% of online bookings happen viaOTAs
Source: STR, HSMAI
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
HOW DID IT GET HERE?
WIHPHOTELS.COM
Wholesaler
Tour Operators
Travel Agents
Guests
Hotel
markup
markup
markup
Onl
ine
Trav
el A
gent
s
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
HOW DID IT GET HERE?
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
AdWords
Apple
Booking
#WIHPACADEMY
USER EXPERIENCE
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
USER EXPERIENCE
WIHPHOTELS.COM
Make list
Search
Re-search
Individual
Chose
Search
Select
Buy
OTAs
Select
Re-Select
Buy
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
THE VERTICAL SEARCH PROBLEM
WIHPHOTELS.COM
33% of lucrative shopping searches start on Amazon versus only 13% on general search engines
Source: NYTimes
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
THE VERTICAL SEARCH PROBLEM
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
A good distribution strategy uses the power of OTAs to
increase Direct Bookings and brings 20% of your direct
bookings#wihpacademy
#WIHPACADEMY WIHPHOTELS.COM
#WIHPACADEMY
A BILLBOARD EFFECT?
WIHPHOTELS.COM
58%Source: Google Travel Study
of leisure travelers rely on hotel websites for travel information.vs. 47% on OTAs
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
A BILLBOARD EFFECT?
OTAS OR DIRECT BOOKINGS, FINDING THE RIGHT BALANCE
WIHPHOTELS.COM
20%Source: WIHP study
of your direct bookings come from people who discovered your hotel on an OTA
9
#WIHPACADEMY WIHPHOTELS.COM
GREAT DESIGN
OTAS OR DIRECT BOOKINGS, FINDING THE RIGHT BALANCE
9
#WIHPACADEMY WIHPHOTELS.COM
GREAT DESIGN
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
GREAT DESIGN
WIHPHOTELS.COM
“Good design emphasizes the usefulness of a product whilst disregarding anything that could possibly detract from it.”
- Dieter Rams
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY WIHPHOTELS.COM
GREAT DESIGN
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY WIHPHOTELS.COM
GREAT DESIGN
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
RATE STRUCTURE
WIHPHOTELS.COM
“Simplicity is an exact medium between too little and too much.”
- Sir Joshua Reynolds
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
#WIHPACADEMY
RATE STRUCTURE
WIHPHOTELS.COM
3 Rate types is more than enough for your guests.
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
The optimum balance between OTAs and Direct
Bookings is somewhere near 30% OTA and 30% direct
#wihpacademy
#WIHPACADEMY WIHPHOTELS.COM
#WIHPACADEMY
1. GENERAL 2. PRESENTATION 3. OFFERS
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Target the languages on your website and marketing based who is buying the most.
#WIHPACADEMY
1. GENERAL 2. PRESENTATION 3. OFFERS
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Publishes the site in 40 languages to capture the widest audience possible.
#WIHPACADEMY
1. GENERAL 2. PRESENTATION 3. OFFERS
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
PAYS VENTES
ETATS-UNIS 19%
FRANCE 19%
ROYAUME-UNI 10%
ITALIE 5%
ALLEMAGNE 4%
JAPON 4%
CANADA 3%
AUSTRALIE 3%
SUISSE 3%
ESPAGNE 3%
BRESIL 3%
BELGIQUE 3%
PAYS-BAS 2%EMIRATS ARABES UNIS 1%
IRLANDE 1%
#WIHPACADEMY
1. GENERAL 2. PRESENTATION 3. OFFERS
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Don’t forget the “little things”
#WIHPACADEMY
1. GENERAL 2. PRESENTATION 3. OFFERS
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Interconnect your PMS, Channel Manager, OTAs and Booking Engine increases your availability by 30%
PMS ChannelManager
OTAs
Hotel Website
Clean presentation, in the guest’s language plus
interconnection is the key to multi-channel and direct
success.#wihpacademy
#WIHPACADEMY WIHPHOTELS.COM
#WIHPACADEMY
1. GENERAL 2. PRESENTATION 3. OFFERS
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Availability on OTA versus hotel website.
#WIHPACADEMY WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Parity also in the room names
1. GENERAL 2. PRESENTATION 3. OFFERS
#WIHPACADEMY WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Parity also in the room names
1. GENERAL 2. PRESENTATION 3. OFFERS
#WIHPACADEMY
1. GENERAL
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Parity for rate types
1. GENERAL 2. PRESENTATION 3. OFFERS
#WIHPACADEMY WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Simplicity increases conversion
1. GENERAL 2. PRESENTATION 3. OFFERS
The success of OTA and Direct is parity. But not
necessarily rates.#wihpacademy
#WIHPACADEMY WIHPHOTELS.COM
#WIHPACADEMY
1. GENERAL 2. PRESENTATION 3. OFFERS
WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Market your rate descriptions
#WIHPACADEMY WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Cheaper on OTAs?
1. GENERAL 2. PRESENTATION 3. OFFERS
#WIHPACADEMY WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Make your offers easy to understand
1. GENERAL 2. PRESENTATION 3. OFFERS
#WIHPACADEMY WIHPHOTELS.COM
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
Same services than OTAs
1. GENERAL 2. PRESENTATION 3. OFFERS
Simplify your offers and make them positive, ensure guests immediately relate
OTAs to website.#wihpacademy
#WIHPACADEMY WIHPHOTELS.COM
KEY TAKEAWAYS
WIHPHOTELS.COM #WIHPACADEMY
Use the OTAs to create a billboard effect« Over half of OTA customers will check your site for more info. »
Keep descriptions in parity with OTAs« Simplicity is part of the OTA success, duplicate it on your site. »
OTAs should drive 30% of your revenues« If OTAs are doing too much, find out where your site isn’t optimized, don’t complain about their success. »
Protect your brand to limit OTAs eating it all« Legal protection is the first thing to do, the rest is paid traffic. »
LES 4 PILIERS DU MARKETING HÔTELIER
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