Online Travel Agencies (OTAs)

OTAs Report Double the Profits of Hotel Websites - Tourism-Review

Excerpt from Tourism-Review

In the first four months of 2015, in the persistent rivalries between online travel agents (OTAs) and hotels, OTAs has achieved a lot. As of now, the channel for distribution which has players such as Hotels.com, Expedia, etc. went through the biggest increase in bookings yet.

As hotel sites experienced profits of 7.1% each year, OTAs attained more than a double of this figure with a rise of 15.1%, states Eye for Travel. While these giants go on consuming smaller rivalries via acquisitions and mergers, the marketing endeavors of hotel sites are fighting to catch up with  expenditure which worldwide Expedias’ can pay for.

Actually, a substantial quantity of revenue is being utilized personally by the OTAs on forceful marketing gimmicks so as to contend with one another. Information from STR Global states that following their merger with Orbitz, Expedia now boasts around 60% of the US market share.

In the U.S., different online travel sites are left with an extremely small share; but, US anti-trust controllers do not seem to be extremely concerned about personal markets instead of focusing more worldwide on areas which Priceline leads.

However, Booking.com which is one of Pricelines’ biggest subsidiaries, has been going through its own challenges as in Europe, the battle for rate parity rages on. It is not evident yet, but rate similarity might finally be eliminated forever, providing hotels with the capability of fixing their personal costs for whichever channel, portraying the price of commissions submitted.

In essence, this signifies that once more, travelers would study personal sites for brand as the most ideal place for booking, leaving an opening for a Renaissance of brand loyalty.

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