Reducing your OTA commissions; is it worth it? As Dennis Schaal recently reported in “The Definitive Oral History of Online Travel”, it’s been more than 25 years since the birth of online travel and there are key innovators that led the change in hotel commerce with websites like hotels.com, Travelocity, Priceline, and naturally Expedia. One of the things that struck me throughout this story, and as Dennis points out, thought leaders at these companies were emotionally attached to the idea of pioneering a new way for consumers to shop and purchase travel. And so it began. Today, all day, every day we hear about the love/hate relationship between hotels and the OTAs. It’s a dilemma for many owners and managers who depend on the OTAs broad and expansive reach to draw in business when needed, but resentful of fees paid particularly during more fruitful times. Many independent hotels don’t understand nor have the budget to compete with these mega-digital marketing machines, and the brands don’t have deep enough pockets to go head to head with the biggest OTAs who are spending more than $2 billion just with Google alone.
See full article at http://blog.leonardo.com/ota-commissions-costing/