Do we realize how inefficient the OTA guest acquisition model truly is, making not only the OTAs but also Big Tech laugh at our expense?.
Why are hoteliers operating their own websites still opting for rate parity or even higher rates on their direct channels?
- Assume that OTAs take an average of 25% from every booking.
- They acquire travelers mostly by advertising on Meta/Google, which effectively extracts 10% from Hospitality/Travel to Big Tech.
- Meanwhile, digital marketing experts advise hoteliers to compete with OTAs by spending even more on ads, making the property owners pay twice. 😯
How silly is this!
The Big Tech folks in advertising are secretly laughing in their boardrooms at this insanity.
👉 Can the hotel commercial experts please explain why rate parity and advertising more instead of less are helpful in this zero-sum game? Or is the assumption that with less advertising people would also travel less?
Is it time to rethink our strategies and put money where value is actually created for guests and owners?
Jan Popovic - Follow
10X hotel operations with gen AI | ex-Google 👋10X hotel operations with gen AI | ex-Google 👋
