For many of you, these 2020 summer holidays will sometimes have a real concern to consume locally in order to help revive the economy or even to make your contribution to the fight for the climate.
Consuming local means booking your hotel directly!
You will therefore choose a hotel in your country, why not by favoring independent hotels, favor restaurateurs who make homemade or have adopted short circuits, etc. These are laudable concerns but maybe you will ruin everything by booking your hotel on an online travel agency (or OTA) like Booking or Hotels.com
Booking, Expedia et Hotels.com tuent les petits hôteliers…et pas qu’eux
OTAs, whether Booking, Expedia, Hotels.com etc ... kill the hotel business by taking a commission which can reach or even exceed 20% on the price of your room! Sometimes they go up to 30%! When your name is Marriott and you have 6,700 hotels you can try a standoff, not when you are a small independent. What this means is that the hotelier (independent or not but mostly independent because he does not have the strength of the brand and the loyalty program to attract a direct clientele) who in general does not make a huge margin, sometimes has only a seasonal activity, and in addition suffers from the impact of COVID will lose up to 30% on its sales. In other words, OTAs bring them customers, volume, but do not save them money or very little.
If you have booked a room for 100 euros a night via an OTA, it will only cost him 70. Take away his fixed costs, he doesn't have much left to live on at the end. If you have booked directly on his site or by calling him on the other hand the 100 euros will be for him! So you will tell us that Booking, Expedia and other OTAs are often cheaper than booking directly with the hotelier! Well that's wrong! More often than not, the hotelier is subject to the OTA's pricing policy or does not know how to “raise” its more attractive direct prices so that you can see them in search engines.
OTAs are not cheaper than hotels
But from the moment an OTA offers you less than the hotelier directly while taking an average of 20% of commission, this means that the hotelier can align with the OTA by recovering in addition its 20% or even lower its price by 20% to earn as much as if you had gone through the OTA.
You just have to contact him directly by mentioning the price you have found. He offers his room at 120 and you find it at 100 on the OTA. If you book it with him, he will receive 120 euros, which will naturally be deducted from his running costs. If you book on OTA he will only receive 70 before charging his fees. If you contact him and he lines up with OTA he will earn 100 instead of the 70 if you had been through OTA and that's neutral for you. Even at 80 euros it is a winner (and in this case you too).
And more often the situation is even more vicious: you will realize that there is at his place, on his site, a price lower than that of the OTA but that it is not offered by the search engines! So no other effort to do on your side except to book with him directly.
Posted by Thibault Duret
VISION Destinations | August 20
Tags : consuming local, bookdirectly, booking, expedia, ota, bookyourhoteldirectly, hotelbooking, luxuryhotelbooking,