OTA role in the distribution of hotels and revenue model

As in all other areas, the profit of the tourism industry is not out of & # 39 is alienation. With the development of the tourism industry increases jump, profits began to study science, research and innovation. Since online booking replaced the usual reservations, the role of OTA and online distribution to maximize revenues acquired unprecedented importance. In recent years, the hotel began to implement formal guidelines profit management, trying to grow and to focus on the processes of generating income and improving their profitability. Hotels using the advanced travel technology for the treatment of income from the property.

ATS have become one of the most famous online distribution channels among the various sales channels to generate revenue, but the hotel must share GRT money in the form of commissions. About 60% of tourists compared to compare room before booking, making OTA popular place to do business. Indeed, the industry is clear that the OTAs and hotels exist in simbiotychnyh relationships that support and support each other for mutual growth. Such as OTA, have a much larger advertising budget, access to more information about travel and greater success in attracting Internet traffic – is the main reason to choose which hotel OTA as by sending Internet partners.

OTAs and Online Distribution – this is good for the hotel many ways:

OTAs and Internet dissemination provides global exposure – ATS provides each hotel new or old, big or small, to have its share of the online presence and attract bookings from relevant audiences around the world due to the exponential growth trends in online hotel reservations. In accordance with World Tourism Council and tourism growth in the travel and tourism expenditures in 2016 exceeded overall economic growth in the same period of about 3.1% compared with the general economic growth of just 2.1%.

The new hotel, which is beginning its work, can spend the high cost of marketing and advertising to sell their inventory, and a new member, it seems a daunting task is to create its trail. The hotel can perhaps become an age to ultimately build brand value and make their name to be able to sell the main inventory through the website of the brand and customers. However, OTA may help the new hotel start to receive income from the very first day, when he introduced OTA sites.

travel booking market in the Internet around the world from 2014 to 2017 increased by 25% and is expected to have risen to almost 818 billion dollars by 2020, which will grow by 74% over 6 years.

Apply to established and popular platform before the start of operations – OTAs allow rapid business scaling using a reputable online platform in which the hotel should just list the name and inventory for distribution, and the rest will be invested efforts OTA. OTA make both ends of the end of the meeting, to sell the client's inventory instead of beautiful commissions. That is why the hotels shed their inertia and began to squeeze the muscles to increase direct bookings, but the effort is too weak to challenge the dominance of the OTA. To it also has a positive side, the hotel PBX saves costs on marketing and all year on advertising dollars that might have to be spent on export stocks. For each new hotel impossible to afford such huge expenses even before they begin to get some income. OTAs – this is an obvious lifesaver in this respect, as they begin to instantly book and give strength to each Gutter to simultaneously compete in the online market.

OTAs; diversification strategy – Distribution of rooms through the OTA, common geography, helps hotels to diversify their inventory and thus risky. Thus, the OTA with the & # 39 is part of the hotel's diversification strategy to increase profits and reduce risks. Hotels can share and distribute their rooms to different PBXs, depending on the regional demand and profits. Thus, such a plan helps to increase the maximum revenue through proper distribution of reserves.

Get customer demographic data for targeted marketing – In the majority of D. However, you can get valuable information on the demographics and preferences of the client in your property as soon as the customer get to the hotel cases, the PBX does not provide contact information to the clients, and so.. That's not bad, if you look at it from the point of view of payment ATS lump fee for customer acquisition and further their education. Collection of this information may just change the way hotel to achieve revenue. The leaders of income can use this data to establish promotions and packages according to the needs, sometimes a period of stay of the client. Thus, the exchange not only help hotels to be competitive in the market, but will also encourage leaders to find innovative ways to focus on customers and revenue.

Nevertheless, there are plenty of the OTA, facing the wind, but their position in the industry can not be ignored. It is possible that something very interesting on the cards, but the OTA role in the tourism industry while there is no doubt, and they will continue to play a crucial role in the online distribution channels and the overall return on hotels in subsequent times. In fact, when we were working reasonably, OTAs – the best hotel satellite to generate revenue.