Embracing The Role Of OTAs

Hotels Admit Steep Reliance on Online Travel Agencies - PhocusWire

Excerpt from PhocusWire

Hotels have a high dependency on online travel agencies to distribute their inventory, with almost every other channel deemed to be low on the same scale.

This is one of the top-line findings from a major study for hotel distribution association HEDNA's Hotel Analytics Work Group, prepared by accommodation technology companies Triometric and SnapShot.

The study spoke to chain hotels, independent properties and management companies.

Independents were found to have a "surprisingly balanced channel mix" and the cost of distribution was a key factor in their overall distribution strategy and use of data.

Chains, in contrast, had a "surprisingly high" impact on their channel share from OTAs, the study finds.

For example, almost 60% of chain properties used OTAs for between 10% and 50% of their inventory, and 32% relied on the same channel for more than half.

Management companies had only a slightly lower dependency, with 29% of respondents relying on OTAs for more than 50% of their inventory (59% in the 10%-50% range).

Indies, on the other hand, have a high dependence but the figures are much lower: 39% of properties rely on OTAs for 10%-50% and 37% in the 50%+ range.

Both chains and management companies have a medium dependency on global distribution systems, the report found.

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