Hotels

OTAs serve up even bigger trouble for hotels

Clare Hutchison

Online travel agents have captured a huge portion of the online hotel market in Asia-Pacific — Phocuswright puts it at a massive 70 per cent — and a new report lays bare the impact on hotels.

Across the region, OTAs on average undercut prices on hotel websites by an average of 11.4 per cent or US$12.06, according to data from Triptease, the company behind the Direct Booking Platform, released in its Spotlight on… Direct Bookings: Asia-Pacific whitepaper.

A breakdown of undercutting rates, based on Triptease’s clients in the region, shows that the scale of undercutting is far worse in certain countries, including Vietnam, China, Thailand and Malaysia, with some seeing a rate as high as 30 per cent.

As a result, many hoteliers in APAC are turning to direct bookings to alleviate the problem. With insight from industry insiders and Triptease’s experience working with 17,000 clients worldwide, Spotlight on… Direct Bookings: Asia-Pacific suggests eight strategies for boosting revenue from hotel websites.

Number one on the list is perfecting the mobile experience. It’s crucial that hotels offer great service and are highly visible on mobile as consumers in the area want to use the channel. In fact, mobile bookings made up an estimated 37 per cent of the total online travel market in APAC in 2017.

The report recommends boosting performance on mobile with paid search, seamless user experience and search engine marketing in the local area.

For hotels looking to attract the growing number of Chinese customers travelling within APAC, the report suggests operating website from within China. That would require a different IT architecture and potentially significant investment, but luring more of the world’s highest spending tourists could be well worth the effort.

The report also covers Agoda’s pricing strategy — something that has left many hoteliers puzzled — online guest experience, customer relationship management, social media, metasearch and ending rogue distribution.

The Direct Booking Movement is in full swing in Asia-Pacific and this report describes how hotels can join it and work towards a more profitable future.

As Web In Travel (WIT) founder Siew Hoon Yeoh, who provided her insight for the report, stated, “There’s huge upside for growth coming from new markets in Asia-Pacific, secondary cities, for instance, and new customers, so there’s greater room for innovation.

“These are exciting times for those willing to experiment and innovate.”


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Destinations

ScoMo says Australia-Singapore travel bubble to form “within the next week or so”

Our editor is loving this bubble talk so much that he’s decided to celebrate by having a bubble bath while enjoying a bubble tea.

Share

CommentComments

Aviation

Qantas to launch Sydney-Dehli route, moves start date forward for select overseas flights

The national carrier also said it plans to bring back around 11,000 stood-down workers a whopping six months earlier than expected.

Share

CommentComments

Cruise

Golden Horizon, the world’s biggest sailing ship, cancels its Aussie debut

Tradewind Voyages is the latest cruise line to axe its Aussie sailings after growing tired of waiting for the federal government to get its sh*t together.

Share

CommentComments

Wholesalers

Flight Centre-owned DMC Discova recruits new global marketing manager

The destination management company has Discova-d its new global marketing manager. Get it? (Sorry, that was a pretty cringeworthy effort).

Share

CommentComments

Destinations

Four must-dos in Flanders

With charming cities, a rich history and artistic masterpieces (not to mention an unparalleled beer culture), there’s a lot to love about the northern Belgium region.

Share

CommentComments

Destinations

WA lets slip plan to mandate COVID-19 jabs for all interstate travellers

Mark McGowan has been forced to do a bit of explaining after WA’s health department appeared to accidentally release details of its mandatory vaccine plan for all interstate visitors.

Share

CommentComments

Hotels

W Brisbane appoints new hotel manager, marketing boss and chef de cuisine

As the saying goes, all good things come in threes. Unless, of course, we’re talking about baseball strikes.

Share

CommentComments

Travel Agents

Travel agents left out of NSW’s $530m plan to revive tourism and events

The plan includes vouchers to encourage domestic travel and a fund to lure international airlines back to Australia, but AFTA’s chief argues a crucial element of the industry has been left out.

Share

CommentComments

Tourism

New marketing and PR agency launches with sustainable travel focus

Two senior names in the tourism marketing space have joined forces to launch a new purpose-led player, and you can probably guess its name from the accompanying pic.

Share

CommentComments

Destinations

Victoria reopens to fully-vaxxed travellers from Sydney, WA to allow quarantine-free travel for Queenslanders

Here are a couple more positive signs that domestic travel is getting back to the good old days.

Share

CommentComments

Events

Sunrise’s David “Kochie” Koch to host sustainable tourism webinar featuring industry heavyweights

Do you generally start your mornings with Kochie on TV? Well, you’ll be able to enjoy a double dose of him tomorrow.

Share

CommentComments

Aviation

Qantas introduces automatic ticket revalidation enhancement for agents

Are you sick of flight schedule changes messing with your clients’ travel plans? Well, hopefully this new update by Qantas will help you contain your rage.

Share

CommentComments