OTAs – Rise of the Giants

Rise of the giants

A huge amount of internet change is currently impacting independent accommodation providers.

Online travel agent (OTA) consolidation puts the vast majority of bookings into the hands of just 2 or 3 players. Together they dominate the online space through aggressive marketing and huge pay per click spends with Google and other high volume websites. This continues to make it increasingly challenging for independent accommodation owners trying to maintain the same volume of direct bookings.

If you find yourself in this situation the best strategy is to avoid over reliance on a single OTA as that level of dominance creates obvious business risks, no business wants all its eggs in one basket. So make sure you have a spread of booking sources and always be on the look out for new, more efficient ways to distribute. Don’t be afraid to invest in technology that improves your direct commission free bookings and also enables you to diversify your booking sources i.e. a channel manager and booking engine that connects to all three big players…Booking.com, Expedia and TripAdvisor.

Remaining fiercely independent and open to multiple sources of bookings becomes more crucial as the dominance of the biggest grows. In other words the most successful strategy will be diversified and independent – keep your eggs in baskets you can trust.

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