Hotelier concerns due to increased costs of reservations through third parties

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Hotelier concerns due to increased costs of reservations through third parties
January 15, 2019

A report shows the concern of independent hotels for the increase in the costs of reservations through third parties and the confidence in metabuscadores as a possible solution

According to Phocuswright's Independent Lodging Properties and the Online Marketplace 2019 report, advances in the industry, including the development of meta-search engines and the shift towards digital marketing activities, have helped independent housing to recover part of the land lost in the online market. Almost two thirds of independent establishments now receive direct reservations from metasearch engines, and almost 90% intend to continue using meta-search engines to obtain visibility and reservations, or even increase their use. However, OTAs continue to play a key role in most online markets, with revenue shares of 39% for the United States and 45% for Europe (according to forecasts for 2018). The study indicates that hoteliers' understanding of the complexity of the current online marketplace, and the use of technology that could help balance the situation remain limited.
In the words of Johannes Thomas, member of the management team and director of Revenue at trivago NV: "There have been fundamental changes in hotel marketing and the technological landscape over the last few years, and we are pleased to see that meta search engines are a direct marketing channel. increasingly attractive to hotels and have helped hoteliers to diversify their marketing and distribution strategies. "
He also stated the following: "Some independent hotels have adapted slowly and with competitiveness problems to the digitalization of the industry.This study throws a different perspective of the problem and provides essential data to understand the challenges and difficulties to adopt the appropriate technology that They prevent hoteliers from obtaining good results online Understanding the obstacles they face will help us provide hoteliers with better advice and more effective marketing tools Our goal is to give hoteliers the opportunity to immerse themselves in the digital world Reduce your dependence on third parties and reach guests efficiently in the future. "

The report, Independent Lodging Properties and the Online Marketplace 2019, is available in English at: //

Other results of the study
Most of the independent accommodations that participated in the survey claim to generate the majority of their income through online channels: 79% and 69% in the United States and in Europe, respectively, in clear increase if compared with the 59% and 63% of 2015. Meta search engines have become an important digital channel that allows independent hotels to receive direct bookings, generating an important part (13% in the United States and 12% in Europe) of the total your income for online room. Sixty percent of hoteliers surveyed consider meta search engines to be a very effective or the most effective marketing channel, and 42% say they intend to use it more in the future for distribution.
Despite the improvement of online results in the sector, the dependence on sales through third parties is still very high, especially in the UK market, where sales from OTA account for more than 50% of revenues per room online. The study indicates that the main concern of hoteliers in relation to marketing and distribution is the increase in the costs of reservations through third parties, and that a more efficient use of technology to increase the number of direct bookings can help to mitigate this threat. However, 46% of respondents say that the systems are too expensive, 40% say they do not have time to analyze the tools and 35% admit that they are not aware of the available options, so the technology adoption continues being a challenge


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