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This scalability is especially valuable for hotels – as more information is collected about guest behavior, booking trends , and occupancy patterns the more precise rate adjustments, inventory management, and marketing strategies will be in the future. Why it’s important for hotels? Why it’s important for hotels?
Solid occupancy isnt enough anymore. While occupancy is still a core metric, relying on it too heavily can leave your property management business vulnerable to seasonal swings, economic uncertainty, and a volatile demand environment. Why You Cant Rely on Occupancy Alone First, lets state the obvious: you dont control demand.
The data covers key hotel performance indicators such as occupancy, RevPAR, booking lead time, length of stay, international and domestic travel, direct and OTA bookings, as well as upsell performance to forecast trends shaping the hotel industry in 2023. Some of the findings: Direct bookings are on the rise.
GDS and Niche OTA Power b. With consumer behaviours evolving, and the lines between tech platforms, marketing, and operations blurring, a modern strategy goes far beyond just listing rooms on online travel agents (OTAs). Pooled Inventory: Smart Inventory Distribution Forget manually allocating rooms to different OTAs.
Hotel management can often feel like youre spinning plates – online travel agents (OTAs) sending bookings, guests booking directly on your site, and your front desk needing real-time updates to avoid the dreaded overbooking. You can maximise occupancy and revenue without manual rate updates. Enter the channel manager.
With STAAHs Channel Manager , the team gained a single command centre to manage rates, inventory, and availability across all online travel agents (OTAs). The pooled inventory model ensures that every room is available to sell across all platforms simultaneously maximising occupancy and reducing spoilage.
The right sales tactics can help increase revenue, boost occupancy rates , and ensure guests have a positive experience. Maximize Direct Bookings to Reduce Dependence on OTAs When guests book through Online Travel Agents (OTAs) like Booking.com or Expedia, hotels often have to pay hefty commission fees, sometimes up to 20%.
But a lot of hoteliers have gotten stuck in a loop of constantly slashing prices, offering direct channel discounts, OTA promotions, and special rate packages to drive occupancy. Things like upselling, cross-selling ancillary services, and promoting on-site spend at restaurants, spas etc., can result in a stable revenue stream.
Revenue management tools are software and systems that help hotels optimize pricing, control cost , maximize occupancy, and increase profitability. Guest actions Who makes direct bookings versus through OTAs, and how can you influence them? It monitors guest reservations, room occupancy, and overall performance metrics.
It acts as a virtual concierge, answering common questions, sharing booking links, promoting special offers, and even upselling services without staff intervention. It can also share booking links, promote special offers, and upsell services all within the same conversation. How does Visito support guest messaging across platforms?
Hotel managers and revenue managers use data analysis and revenue management tools to determine the optimal price for each room based on various factors such as occupancy rates, booking trends, and competitor rates. On the contrary in low season, in order to ensure revenue, you can charge lower prices in order to increase occupancy.
Effective hotel distribution strategies enable hotels to target the right audience, optimise occupancy rates, and enhance revenue management. Hotels have worked with third parties such as airlines, travel agents, online travel agents (OTAs) and the Global Distribution System (GDS) for decades.
Direct bookings are reservations guests confirm directly with a property without using an online travel agency (OTA) or 3rd party intermediary. Direct bookings are beneficial because they connect lodging businesses directly with potential customers and increase hotel revenue through money saved from OTA commissions.
Some of the most impactful integrations include: Booking engines PMSs CRMs Communication channels Upselling tools With these integrations in place, every traveler interactionwhether it’s an inquiry, booking, update, or follow-up is automatically synchronized across systems. Are you in the know? Click here to talk to a specialist today!
For hoteliers, this translates to more room-nights, improved occupancy during off-peak periods, and reduced reliance on OTAs. Instead of paying high OTA commissions , you’re able to bring guests back through low-cost direct channels like emails or your mobile app.
Booking promotions serve multiple strategic purposes: Increasing occupancy rates: Promotions can help fill rooms during low-demand periods and help a hotel “piggyback” on subjects that are already front of mind for their audience. Here are just five examples of hotel promotions you can run to increase occupancy and revenue when needed.
From online travel agencies (OTAs) to direct booking engine , hotels must effectively manage distribution channels to maximize revenue and minimize distribution costs. This agile approach ensures that hotels can optimize revenue by maximizing occupancy levels and avoiding revenue losses due to underutilized inventory.
According to De Ponga, hotel software solutions such as channel managers and revenue management systems (RMSs) have democratised the practice, owing to the rise of online travel agencies (OTAs). “I I can’t imagine our job without a channel manager given all the OTAs out there. RMSs allowed us to go deeper in analysis,” De Ponga shares.
Many hoteliers question if it’s worthwhile investing in a direct booking strategy or if they can solely rely on online travel agencies (OTAs) like Airbnb, Booking.com, or Trip.com to fill occupancy. Upsells and add-ons. If you rely too heavily on OTAs, you risk giving away your profit in commissions. Deals and promotions.
How many direct bookings are you losing to OTAs due to poor integration? Double bookings , incorrect charges, and missed upsell opportunities can result in revenue loss and negative guest reviews. Integrates with global OTAs and channel managers —ensuring real-time rate updates. Manual processes lead to costly errors.
Simplify Bookings and Eliminate Errors Most B&Bs rely on a mix of OTA listings (like Booking.com or Airbnb), direct website traffic, and walk-in guests. It consolidates all reservation sources into one platform and syncs availability in real time across OTAs, your website, and the front desk. 👉 Read Also - Managing a Hotel?
For example, during peak travel periods, an efficient reservations manager using a modern property management system (PMS) can swiftly allocate room blocks for group bookings or special events, maximising occupancy without overbooking. Efficiently managing OTAs and direct bookings is key to maintaining high occupancy rates.
At a time when hotels are managing multiple booking channels, facing price wars on online travel agents (OTAs) , and dealing with fluctuating demand, the Revenue Manager becomes the nerve centre for strategy. Managing them efficiently across OTAs ensures maximum visibility and results. Why Is the Revenue Manager So Important?
Understanding future demand trends, their causes, and the guest segments driving them can help hotel revenue managers adjust room rates to boost occupancy and sales. The bold line represents the average occupancy rate for the competitive set. Each point on the chart shows a specific day’s occupancy for the hotel.
That said, one has to ask: why are so many hotels’ margins still being eroded away by OTAs ? The growth of metasearch OTAs often outperform individual hotels in metasearch positioning and cost-per-click (CPC) performance. Some OTAs still use cached pricing.
eCommerce sites include hotel websites and booking engines , online travel agencies (OTAs), metasearch engines , and other online platforms where hotels advertise and sell rooms. Metasearch advertising can be an effective way to reach these travelers, compete with OTAs, and generate direct bookings.
Rate parity restricts hotels from offering lower prices on their own website than on OTAs, limiting pricing control for independent and mid-scale properties. Diversify OTA Distribution Channels Relying too heavily on a single OTA increases operational risk if terms or visibility rankings change.
Of course, you must maintain rate parity (the same rate on your website as on the OTA) but try making booking direct a more attractive method by offering guests value-added services. You can use a tactic known as the Billboard Effect to link your website to your OTA profiles, convincing guests to check you out.
Train your staff to identify and capitalize on upselling opportunities. Sell via multiple OTAs and focus on selling via your hotel's website and social media pages for incremental direct bookings. Targeted marketing campaigns: Run campaigns during off-peak periods to boost occupancy.
Discount pricing is a revenue management strategy where prices are lowered temporarily or for certain conditions to attract guests and boost occupancy rates. Monitoring market demand and adjusting discount pricing accordingly can help maximise occupancy and revenue. OTAsOTAs are a double-edged sword.
Learn more Yield management vs revenue management The goal of yield management is not merely to increase room rates or occupancy; rather, it’s to maximise your hotel’s revenue by forecasting your room supply and demand across a variety of key factors. This strategy aims to ensure maximum occupancy.
For example, if your PMS is integrated with a channel manager , the interface will ensure that when a room is booked through an OTA, your PMS updates automatically. Your PMS should simplify day-to-day tasks by connecting all your systems—whether it’s handling guest check-ins, updating pricing in real-time, or syncing with OTAs.
Available in 50+ languages, it delivers fast, personalized responses that drive higher conversions , reduce booking abandon rates, and capture direct bookings that may otherwise go to OTAs. Anacoveâs integrations include: Smart Thermostats that go far beyond basic climate control.
Hotelogix Web Booking Engine Integration Hotelogix offers a robust web booking engine that can be seamlessly integrated with Google Ads to enhance your hotel’s online presence and booking capabilities: - Direct bookings : Hotelogix’s booking engine allows guests to book directly on your website, reducing commission costs from OTAs.
They can also be known as distribution channels and are crucial for ensuring your hotel maintains a healthy occupancy rate and revenue stream. Travellers are now predominantly booking their accommodation online, making it more crucial for hotels to focus on capturing bookings via their own website, OTAs, metasearch, and other online channels.
This decreases your overall number of third-party bookings and your reliance on OTAs to drive occupancy. Decrease the high commission bookings from OTAs and increase direct bookings, which come at a lower cost to you. This allows you to optimize rates and sell relevant deals to boost revenue and occupancy.
Promote and upsell activities easily with Little Hotelier Little Hotelier’s direct booking engine lets you sidestep OTA commission fees while increasing the value of every reservation. By upselling guests with paid activities as part of your custom booking process. Learn more Why are guest activities important in hotels?
By drawing in more visitors, raising occupancy rates and enhancing profitability, a thoughtful pricing strategy can help hotels maximize their revenue. Even if occupancy rates do not rise, this can help hotels raise their profit margins. A Rise in Profitability: Effective pricing strategies can also boost a hotel’s profitability.
Meanwhile, nationwide hotel occupancy reached 67.5% 👉 Read Also - Motel vs. A cloud-based PMS not only streamlines front desk operations but also integrates seamlessly with tools like a channel manager to ensure real-time room availability across OTAs, reducing overbookings and manual errors.
Independent hotels, despite having fewer guest rooms and less complex operations, are recognizing that these systems improve pricing strategies, occupancy rates, and Revenue Per Available Room (RevPAR). Conversational commerce More messaging options translate to more interactions with guests and more opportunities to upsell.
In the case of those hotels using multiple OTAs, the right booking engine should also synchronise these details across every other channel in use. Moreover, instant confirmation emails can serve as a platform for upselling additional services, further boosting revenue.
These sites may vary to include online travel agencies (OTAs) such as Booking.com , Expedia, Tripadvisor, or Agoda; travel metasearch engines such as Google, Kayak, and Trivago; GDSs such as Amadeus and Sabre; bed banks such as Hotelbeds, or online marketplaces such as Airbnb, Vrbo (former HomeAway), etc. The same happens with a cancellation.
Meanwhile, midweek occupancies aren’t looking as good as companies are loathed to give up the huge cost savings from the video-conferencing boom by returning to the days of overly generous corporate travel budgets. Or maybe your automated pre-arrival email-based upselling isn’t working, but SMS offers sent out three days prior are converting.
Here’s a list of 8 simple tactics you can try at your hotel to increase ADR: Focus on increasing the spend from high-value guests – Your OTA channel partners will have data on which guests deliver higher ADR on average, such as business travellers or couples travelling for leisure. You can then strategise how you target these segments.
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