marketingHospitalityNet··1 min·For: Owner, GM, Revenue, Marketing
The Independent Hotelier's Playbook for Reducing OTA Fees
Independent hotels can regain control over their distribution costs by auditing hidden OTA fees and shifting more volume toward higher-margin direct booking channels.
Key Takeaways
- 1Calculate the 'value gap' to see how direct bookings generate approximately 9-10% more profit than OTA reservations at identical rates.
- 2Audit your 'real' commission rate by including hidden costs such as high cancellation rates, payment processing fees, and mandatory promotional discounts.
- 3Leverage regional shifts in rate parity rules, particularly in EMEA, to offer lower prices on direct channels than on third-party sites.
Source: HospitalityNet
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