Data suggests hotel loyalty rates may hurt owners more than OTA fees do
Maintaining visibility in OTA search rankings creates a ton of value that both brands and owners. 75% of customers buy from the top 15 hotels in their search results; 33% buy from the top 5 search results.
A recent Deutsche Bank Research Report published July 13, 2016, highlighted hotel owners’ creeping concerns. Something just isn’t quite right when it comes to the proliferation of loyalty rates.
A close examination of hotel property financial statements reveals the truth: for many branded hotel properties, online travel agency (OTA) channels are now driving more value, and increasingly more room revenue, than brand.com!
How could this be? Let’s take a look at an interesting case study. (Editor’s note: Tnooz has agreed to not name the brand for confidentiality, but we confirm that the data is for one of world’s most recognized brands.)
Read original article