Infographic designed by Catalina Cosoiu
Most hotels depend on OTA’s to some degree. The challenge faced by hoteliers is how to increase revenue while having a limited number of rooms per day. A room which remains unoccupied for a day triggers a financial loss which cannot be covered. Once an occupancy strategy has been established, hoteliers still confront themselves with a dilemma: how to lower the OTA’s market share while increasing the number of reservations made through direct booking.
According to a study carried out by american agency L2, the cost of conversion through OTA’s is between 40-120 $, through the hotel’s site it’s 2-6 $ and with GDS: 25-60 $.