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Studies show that hotels lose up to 20% of their annual revenue to chargebacks caused by guest disputes, unclear cancellation policies, and OTA-related miscommunication. For hoteliers, this doesn’t just mean lost revenue—it also leads to operational inefficiencies and added pressure on staff.
Some of your competitors made five times their usual revenue during the Coldplay concert simply by optimizing their pricing and room availability, while others failed to act and barely made a dent in their earnings. The question is, will you seize this opportunity, or will you watch another revenue surge pass you by?
Finding the right balance between OTAs and direct bookings is a crucial strategy for hotels and accommodation providers for success. On one side, you have OTAs (online travel agents) that are vital distribution partners to liquidate unsold inventory and put heads in beds. There are some distinct advantages of partnering with OTAs.
A bed bank is a business-to-business (B2B) travel provider that connects hotels with travel distributors, such as online travel agencies (OTAs) and tour operators. These rooms are then resold to various travel distributors, such as OTAs, tour operators, and travel agents, who then offer them to end consumers. What is a bed bank?
Sydney, Australia A new report by SiteMinder, the worlds leading hotel distribution and revenue platform, reveals that hotel websites outperformed all other booking sources in driving revenue per booking in 2024, by as much as 60%. This figure was 8.5% The longest stays were in Portugal and the shortest stays were in Taiwan.
The hospitality and travel industry is experiencing a spending surge, with online travel agencies (OTAs) like Expedia Group, Booking Holdings, Airbnb, and Trip.com Group collectively spending a record $4.08 However, Airbnb’s marketing spend as a percentage of revenue (24%) has dipped slightly compared to the previous year.
If there’s a sudden change, for example, an influx of last-minute bookings hits the system, the platform can enable revenue managers to adjust room rates dynamically to maximize revenue. Decision intelligence unifies the full range of pricing decision-making through both OTAs and direct bookings. Why it’s important for hotels?
The battle for direct bookings has entered a new phase as online travel agents (OTAs) ramp up efforts to establish ownership of hotel guests and their booking journeys, a new report from hospitality technology specialist SHR Group reveals. A knock-on effect of this is that the revenues associated with organic search have fallen 15.3%
Managing fees on online travel agencies (OTAs) can be a real headache for property managers. According to a new Forbes report, Airbnb customers in summer 2023 face a whopping average of 36% in added charges above the nightly rate, and the same is probably true for other OTAs. This increases your ranking on OTAs. More info here.
What is hotel revenue management? Hotel revenue management is the strategic distribution and pricing tactics used to sell perishable room inventory to the right guests at the right time in order to boost revenue growth. What is the primary purpose of revenue management? Revenue management is essential for any hotel today.
What is the Booking.com cancellation policy? The Booking.com cancellation policy outlines the terms and conditions that apply when a guest cancels a reservation at your hotel. It includes specifics about refund procedures, penalties, and fees associated with cancellations.
What is the Expedia cancellation policy? Expedia provides a cancellation policy that allows users to cancel or modify their reservations without any charges or penalties within the first 24 hours. This can help to mitigate potential revenue losses from cancellations.
Like many other areas in travel and hospitality, revenue management has dramatically changed in the last two years. We spoke to leading revenue managers on what they think lies ahead. Don’t rule out presence on OTAs,” suggests Jaydeep, “but make sure you keep up your profiles on other online media.”. Additional revenue streams.
Can hosts cancel a booking on Booking.com? Yes, as a host you can cancel a booking on Booking.com – but only when certain issues arise, such as no-shows, payment issues, double bookings or if a guest asks you to. As a host you probably know that Booking.com makes it simple for the guest to cancel.
Drip Feed feature allows you to strategically control inventory across OTAs to maximise revenue and booking conversions. The primary advantage of Drip Feed is you do not sell an overwhelming majority of rooms at a single price point or to a single OTA. How does it help in distribution mix? This prompts higher conversion.
We have written extensively about hotel revenue management strategies and tactics here throughout the years. As strategy is one of the most essential parts of revenue management, we have made a summary of all the top advice from our perspective as a hotel revenue management consulting company.
However, one of the biggest challenges hoteliers face is determining the right pricing strategies to maximize their revenue in the post-pandemic world. The question is, how can hoteliers implement effective pricing strategies to boost their revenue and stay ahead of the competition?
While for some hoteliers it’s best to avoid overbookings altogether, for others, a good strategy can increase revenue, improve the occupancy rate and mitigate losses. Additionally, you may distribute your hotel rooms across multiple third-party channels such as OTAs , GDS providers , or meta-search providers.
The bottom line is that hotels can lose millions of dollars in revenue due to abandonment, especially when you also consider that guests may book a room before delaying payment, and then cancelling altogether. Additional data shows that over 80% of travel bookings are abandoned, compared to the general average of around 70%.
Your front desk staff can use a Hotel PMS to accept, cancel, and modify reservations based on your guests’ requirements. and suggests you the right room rate so that you can get more out of your room revenue. For example, you sell your rooms on 5 OTAs. This would lead to overbooking and double booking.
When it comes to the future of online travel agencies (OTAs) and their role in the hospitality industry, there are a few key trends and factors to consider. In this post, let us focus on the reasons that will point toward the predictions and trends that have impacted OTAs.
The vibrant city hotel’s revenue strategy, driven by STAAH’s OTA connections, resulted in a remarkable 300% year-on-year increase in direct bookings since the transition. However, IDEAS was struggling to achieve this with constant connection issues with multiple online travel agents ( OTAs ).
It’s about enhancing the guest experience and boosting your revenue. The more intuitive and easier your booking process is, the easier it will be for hotels to compete with online travel agents (OTAs) for direct bookings. Ability to offer guests offers, demand-led rates ( dynamic pricing ) and comparing rates with OTAs.
If you are a smart hotelier or any type of accommodation provider, you would not want to miss the chance of converting your website visitors from an OTA (or any other source) and bag the commission-free direct bookings. To make this possible having a robust online booking system is really important to help you reach your revenue goals.
SiteMinder’s new Hotel Booking Trends report, a hotel commerce data analysis of more than 36,000 hotels and 450+ connected booking integrations, has revealed travelers booked their trips on average eight days earlier, and canceled their bookings 17% less year-on-year in 2022, despite a 24% increase in the average daily hotel room rate.
To keep travelers on your site and away from OTAs, hotels must seamlessly integrate their booking engin e to facilitate online bookings. Include add-ons and upsells on your property’s website to increase revenue and allow guests to customize their stay with you.
One of the best ways to do that is by listing your property on Online Travel Agencies (OTAs). However, not all OTAs are the same, and choosing the right one can make a big difference in your hotel's success. What is an Online Travel Agency (OTA)? Make sure the OTA you choose reaches the audience you're targeting.
In today’s digital age, effective hotel distribution and pricing strategies are crucial for maximizing revenue and staying competitive. Analyzing revenue streams using a channel manager’s dashboard helps revenue managers gain insights for creating an optimal online distribution strategy.
It took the risk out of running this type of media campaign from Google by allowing hotels to remove cancelled bookings from the commission payments. rise in revenue per available room (RevPAR). While its still working out kinks, this is an exciting first to market win for independent hotel booking platforms vs OTAs.
Properties can tap into this increase in demand and secure revenue by offering targeted discounts to international travellers who tend to book earlier and cancel less. This feature supports creating NEW promotions created in the MAX extranet, and option to pull existing promotions created on OTA extranet.
Online travel agencies (OTAs) captured 74% of hostel bookings globally a 1% increase compared to 2023. OTA bookings had the highest cancellation rate at 19%, followed by wholesale bookings at 14%. Weekends remained the main hub of activity, with 35% of reservations starting on Friday or Saturday, and 20% checking out on Sunday.
What is hotel revenue optimisation? As a small, independent hotelier you may have heard the terms hotel revenue optimisation and hotel revenue management. So what is revenue optimisation? Do all that and you’ll optimise your revenue by making as much money as possible from a limited resource: your rooms.
Since the early days revenue management has been applied in hotels, there has been an intriguing ongoing discussion. I have been in hotel revenue management consulting since 2006, and it is a question that keeps coming back. As they both contribute to the total equation of revenue being generated in the hotel.
Setting the right price for your hotel rooms is crucial for driving revenue and maximizing profitability. Hotel room pricing is a critical element of revenue management for hotels. If you are new to Revenue management and would like to know more, read our in-depth ebook to help you understand better.
👉 Read Also - Hotel PMS UX: Improve Revenue & Staff Workflow Go Mobile or Go Home In 2025, your smartphone isn’t just for scrolling through social media—it’s your most powerful travel tool. The OTA Balancing Act Online Travel Agencies (OTAs) can be your best friend or your worst enemy.
Hotel PMS System, or hotel management software, is crucial for generating more revenue. To increase hotel revenue, you must start with the right Hotel PMS System - a cloud one. It should be your very first step towards achieving your revenue goals. Ultimately, all these result in more sales and revenue.
In the fiercely competitive hospitality industry, the essence of successful resort revenue management lies in data-driven decision-making. This approach is pivotal in optimizing financial performance and driving both revenue growth and guest satisfaction. Why is Revenue Management Imperative for Resorts?
In fact, OTAs such as Expedia have updated their algorithms to give preference to properties that have been called out by guests for their fantastic guest experience. In related trends, booking windows are much shorter and cancellation policies continue to be very flexible across the industry. Focus on customer experience.
We recently spoke to Alexandra Rolton , Strategic Sales & Key Account Manager , about the group’s operations and how it has been utilising SiteMinder’s platform to optimise operations and revenue strategies. “We We also maintain rate parity with our consortia preferred rates and offer a 24 hour cancellation policy.”
Since the early days revenue management has been applied in hotels, there has been an intriguing ongoing discussion. I have been in hotel revenue management consulting since 2006, and it is a question that keeps coming back. As they both contribute to the total equation of revenue being generated in the hotel.
But if you break it down in terms of the players – OTAs, travel agencies, hotel websites and other players – all of them will be growing at a rate of somewhere between 6-10%. OTAs at the higher end of the range, 10%; hotels’ own websites, somewhere in the 8% range, but a really robust rate of growth. ’ That’s what we hear.
The reservation system acts as the central hub of the reservation ecosystem, which may also include a website booking engine, channel manager, and revenue management system. When integrated, these modules work together to help hotels manage room availability, distribution, reservations, and revenue. Generate more revenue.
They can also be strategic revenue boosters that can significantly elevate your hotel’s profitability. While hotel fees can be powerful secondary revenue generators or a useful tool to mitigate additional operational costs, there is an art to applying them effectively.
After reading this article, you will learn how an effective analysis of your property’s booking performance will help you better understand your property’s demand patterns and how to leverage them to maximize revenue and occupancy. What is booking performance? are the most common. What is the cause? (Is Is it a particular group?
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