Tourism + Digital
Helping hotels and destinations with digital strategies to develop their businesses
Role
Coach and Course Leader
Industry
Tourism
Duration
1 year
Online Travel Agencies
The OTA Dilemma: Balancing Visibility and Independence in Hotel DistributionOnline Travel Agencies (OTAs) have revolutionized the hospitality industry by providing unparalleled visibility and convenient booking solutions for hotels worldwide. While platforms like Booking.com, Airbnb, and TripAdvisor excel at connecting properties with potential guests, their high commission rates (20-30%) and control over customer relationships pose significant challenges for small and medium-sized hotels.The core issue lies in the increasing dependency on OTAs, where hotels risk becoming commoditized as mere "room providers" while losing direct customer relationships and valuable data. This dynamic mirrors the Amazon marketplace effect, where businesses trade independence for visibility.
Here are some of the strategies we created during a recent delivery of the course
Direct Booking Optimization
Enhance hotel websites to capture OTA-originated research traffic
Offer exclusive benefits for direct bookings (flexible cancellation, upgrades, parking)
Implement a robust CRM system to maintain guest relationships
Value Differentiation
Create unique experiences beyond basic accommodation
Develop local partnerships for exclusive guest packages
Focus on personalized service and authentic local experiences
Channel Management
Optimize OTA listings with professional photos and compelling descriptions
Maintain rate parity while differentiating through value-added services
Diversify distribution through local tourism boards and niche platforms
By implementing these strategies, hotels can leverage OTAs' reach while building their brand identity and direct customer relationships, ensuring sustainable growth in an increasingly digital marketplace.
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