Distribution: Difference between revisions
Vinkesteijn (talk | contribs) No edit summary |
Vinkesteijn (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{General header}} | {{General header}} | ||
== Which distribution channels? == | == Which distribution channels? == | ||
At the moment, the hotel mainly relies on its own sales, in their distribution (so getting customers and occupancy in the hotel) . So, in the [[Operating review|variable costs]] you will see no costs for this at all. <br> | At the moment, the hotel mainly relies on its own sales, in their distribution (so getting customers and occupancy in the hotel). So, in the [[Operating review|variable costs]] you will see no costs for this at all. <br> | ||
This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have: | This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have: | ||
* 30% directly from the own reservation system (CRS), royal customers, website etc. | * 30% directly from the own reservation system (CRS), royal customers, website etc. | ||
* 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on | * 20% via agents (OTA, travel companies, partners etc), who would get 10-15% commission on average:, mega partners like [https://www.expedia.com/ Expedia.com] | ||
* 30% via [[aggregator|aggregators]] like Bookings.com, or who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels | * 30% via [[aggregator|aggregators]] like Bookings.com, or who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels 15% commission on an average] in many cases more | ||
* 15% via [[affiliate]] links, who you would pay (cost per sale) [https://blog.travelpayouts.com/en/selecting-hotel-affiliate-program/ commission would be like 5% on | * 15% via [[affiliate]] links, who you would pay (cost per sale) [https://blog.travelpayouts.com/en/selecting-hotel-affiliate-program/ commission would be like 5% on average] | ||
* 5% via Daydeal sites like Groupon | * 5% via Daydeal sites like Groupon | ||
Some alternative for Bookings groups, being the biggest payer, are sites like [https://alternative.me/booking-com Hotels.com], and [https://alternativeto.net/software/booking-com/ others].<br> | Some alternative for Bookings groups, being the biggest payer, are sites like [https://alternative.me/booking-com Hotels.com], and [https://alternativeto.net/software/booking-com/ others].<br> | ||
Revision as of 10:09, 29 August 2023
Which distribution channels?
At the moment, the hotel mainly relies on its own sales, in their distribution (so getting customers and occupancy in the hotel). So, in the variable costs you will see no costs for this at all.
This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have:
- 30% directly from the own reservation system (CRS), royal customers, website etc.
- 20% via agents (OTA, travel companies, partners etc), who would get 10-15% commission on average:, mega partners like Expedia.com
- 30% via aggregators like Bookings.com, or who would get 15% commission on an average in many cases more
- 15% via affiliate links, who you would pay (cost per sale) commission would be like 5% on average
- 5% via Daydeal sites like Groupon
Some alternative for Bookings groups, being the biggest payer, are sites like Hotels.com, and others.
There is initiatives, like Moonback setting up a more 'fair' system, starting from a steward-ownerships structure.
Interesting read on Hospitality net is The economic impact of OTAs in the EU: summary report.
So looking ahead at the future, using these partners would also mean having the prices go up a bit, to compensate for the commissions (costs) to be paid. Or, having a higher occupancy rate to compensate for the additional costs.
Models in operating a hotel
Read the interesting article on profit-models, ownership and distribution White paper in Hospitality Management,
→ GO! Top of this page
