operationsHotels Magazine··1 min·For: Owner, GM, Revenue, Marketing, Ops
Hotels Are Losing Group Bookings Due to Friction, Not Price
While OTAs charge high commissions, many group organizers choose them over direct booking to avoid lengthy sales negotiations and rigid attrition clauses. The industry faces a 'friction problem' where poor communication and outdated inquiry systems push business toward third-party platforms.
Key Takeaways
- 1Reduce booking friction by offering instant group reservations for smaller blocks rather than forcing sales inquiry forms.
- 2Audit sales team communication to ensure staff explain data gaps caused by OTA privacy policies when attempting to shift bookings direct.
- 3Review cancellation and attrition policies for group business to ensure they remain competitive with the flexible terms provided by third-party platforms.
Source: Hotels Magazine
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