The Downside of OTAs for Independent Hoteliers

We’ve spent this month explaining why OTA profiles are so important for independent hoteliers. We’ve discussed first steps in establishing your profile on OTAs, and provided tips and tricks to help increase visibility and bookings for existing profiles. While all this information is helpful for independent hoteliers, there is one important factor that we haven’t yet touched upon. While the benefits of OTAs may seem clear to most independent hoteliers, you may not have considered that they have a downside. Don’t worry, innRoad is here to help!

The Downside

There are three main components that make up the downside of OTAs.  The first component is the extra fees. Each OTA charges a founder fee: a certain percentage of the room that your guest just booked. These fees are standard and are based on the price and size of your property. This fee forces independent hoteliers to reconsider the price of their rooms, which might deter guests from staying at your hotel. While OTAs can be great for exposure, it’s also important to consider at what cost. The second component is the increased probability of over or double bookings. With your inventory being listed on different platforms, it can be stressful to trust that OTAs are updating their sites in live time to ensure you don’t have to deal with double or over bookings. While OTAs will try to help resolve the issues, it is ultimately up to you to help the guests. The third and potentially most dangerous component is assuming that OTAs do all the selling for you. It can also be easy to assume that once you’ve set up your OTA profiles, you don’t need to do any more marketing for your property.

The Fix

innRoad’s PMS is a perfect solution to eliminate the negatives of OTAs for independent hoteliers.  innRoad provides independent hoteliers with a customizable booking engine for their websites, allowing guests to book directly through their site. Having guest book directly on your site helps save some of the OTA fees. Just make sure to include a link to your website, so guests have that option. innRoad also keeps all your reservations in one place, which ensures your inventory is correct on all your channels, helping to prevent over or double bookings. Finally, innRoad’s all-in-one PMS helps independent hoteliers save time by keeping all their operations in one place. With all the time you save, you can spend more time finding other marketing and sales channels that work for your independent property.  Ultimately, OTAs are a great resource and channel for independent hoteliers, but they require a bit more forethought than you may have considered! Let innRoad help you get the most from your OTA connection. Click here to speak with an innRoad property advisor today!

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