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.

connect to freetobook channel manager

 

More bookings for Elgin B&B via Freetobook channel manager

Case Study: Freetobook’s channel manager brings more bookings to Ardgye House B&B in Elgin.

In the current economy, many independent accommodation providers know all too well the importance of getting new business. It’s a challenge, especially if you can’t afford expensive campaigns or newspaper advertising. Freetobook now offers some help: an easy-to-manage connection to LateRooms and Booking.com, which allows you to update your availability on both those site quickly and easily via your Freetobook diary.

It’s true that some property owners are still wary of LateRooms and Booking.com, concerned that the commission charged by these Online Travel Agents will erase their profit margin. But experience has shown that many accommodation owners who take the plunge really benefit from the increased exposure. The internet is just so big and managing to get your property in front of the customer at the right time is no easy task.

One Freetobook customer who has definitely benefited from the extra exposure is Carol McInnes, who, with her husband Alistair and daughter Kerry, runs the 4-star Ardgye House in Elgin. A beautiful 5-room Edwardian property, built in 1904, the Ardgye has been welcoming guests for over 20 years. It boasts sumptuous Family, Twin and King Rooms and is rated #1 on TripAdvisor for Elgin B&Bs/Inns. None the less, Carol had noticed that it was becoming harder and harder to compete for attention in an online world where paid results dominate the first page of any accommodation search.

Already offering online booking with Freetobook software, Carol decided to integrate with LateRooms via company’s channel manager.

“We’ve always been successful and we have a great reputation. We get a lot of bookings from the RAF at Lossiemouth and the Royal Engineers at Kinloss. We’re also very popular with German tourists visiting Scotland. But as with a lot of properties these days, it has become harder and harder for us to be ‘found,’” says Carol. “The main thing that attracted us to LateRooms was their huge advertising spend. We realised that we could piggyback on that to become much more visible to potential guests. The Freetobook system’s channel manager allowed the integration to be done quickly and easily. It really couldn’t have been simpler.”

Carol is well aware that some accommodation owners feel they’ll lose money on booking by going down this route, but she doesn’t share that view.

“I don’t see a LateRooms booking as 15% lost in commission, I see it as 85% gained on a booking I wouldn’t otherwise have got,” she points out. “I’m also noticing that guests who book through LateRooms the first time are becoming repeat customers who book with us direct on subsequent occasions, now that they know we exist.”

And although Carol has only been offering LateRooms availability for a short time, she has already seen the benefits: “LateRooms bookings are up by a third since we integrated via Freetobook. We’re much busier than we were before and we are starting to see a pick-up in direct bookings too. Pretty soon we’re looking to integrate with Booking.com via Freetobook as well.”

Connect Booking.com and LateRooms

Update Booking.com & LateRooms in one place

We all know that in the current economy every extra booking is precious. We also know that an accommodation owner’s time is valuable. There are always a million things to do and not nearly enough time to do them in. With that in mind, freetobook now offers you a channel manager that allows you to connect to Booking.com and LateRooms and update them direct from your freetobook diary.

Thanks to this new functionality, you’ll no longer have to update lots of different systems. One diary will automatically update them all so you can never go over-booked. It’ll also allow you to alter room rates across different sales channels from one place. And each time a booking is made, it will go straight into your diary with all the customer details (phone, email, and prices) captured.

Not only will this new functionality save you time and increase room sales, it will also increase your exposure via the world’s leading booking websites and eliminate the worry of double bookings.

To find out more about how our new channel manager works and all the benefits it can bring you, go here.