Online travel agencies (OTAs) play a major role in most real estate distribution strategies. Over the years, it has rapidly evolved to adapt to consumers' needs and desires. As we know, the pandemic has changed the distribution landscape and given hotels new opportunities to attract more travelers.
To take advantage of the rapidly changing distribution environment, hoteliers must incorporate a strategic mix of strategic air travel agencies into their strategy. Read on to learn more about three ways to reshape the distribution landscape in the post-pandemic era and a recipe for creating the best channel mix .
What is OTA and why is it important?
By definition, online travel agencies are websites that connect industry providers, such as travel search engines, to help travelers easily plan their trips. Online travel agencies give travelers the tools they need to easily compare different accommodation options and allow hoteliers to promote their properties to a wider audience that is hard to reach through direct channels.
Listing properties in many online travel agencies can help increase brand awareness and increase registrations (either indirectly or through the effects of billboards).
3 Changes in the distribution area after the pandemic
Before online travel agencies, the distribution area was mostly dominated by travel agents and direct phone calls. Online travel agencies emerged in the 1990s and used the internet to simplify the travel booking process. Over the years, online travel agencies have changed the way people travel and have greatly influenced how hotels organize their inventory and engage guests online. The pandemic has only accelerated this change by introducing 3 significant changes to the distribution environment.
1. Airbnb leads innovation in distribution channels
Airbnb has gained in popularity during the pandemic as travelers opt for private accommodations to reduce contact. This surge in demand helped Airbnb earn more than $1.5 billion in the fourth quarter , its best year to date. With this revenue, Airbnb has invested in innovative offerings, including:
- Airbnb Categories - a new way to search for all types of properties
- Sharing - Allows travelers to split flights between different hotels and stay longer.
- Air cover for guests - free general protection per stay
The Airbnb platform enhances the traveler experience and raises expectations in the delivery environment with ease of use, a wide range of accommodation options and flexibility in length of stay.
2. Google Free Booking changes travel destinations.
Over the past few years, Google has made a huge impact on the distribution market by introducing new features that impact travel booking. Google Hotel Search was the first to appear. With this feature, travelers who search for hotels by name will see their prices listed via online travel agencies in one place. You can choose the best rate from the list and go directly to the OTA to book, eliminating multiple steps in the search and reservation process.
This year in 2021 Google took it a step further by offering free booking links that allow hotels to list their rates directly in the Google Hotel search box and display results on a map for free . This had a huge impact on the distribution area, helping the real estate increase their direct registrations.
3. OTA provides more experience
Online travel agencies are expanding their product range and helping travelers find accommodations, flights, tours, restaurants, activities and more. I felt pressured to offer a full range of services, including the need to stand out from the increasing competition and be more creative to appeal to a smaller audience of travelers looking for unique experiences.
For example, Airbnb offers tiny houses, caves, castles, etc. 56 new rental categories have been introduced, while HostelWord has created a new group tour option called Romeus for travelers to visit lesser known places. Interact with the local community. These concepts have changed the distribution landscape, bringing more variety and value to travelers outside the resort. Also, hotels have opened up more opportunities and challenges to attract travelers by offering unique experiences.
How to make the best OTA combination
With hundreds of online travel agencies in the market, property owners and operators looking to build effective distribution strategies must prioritize channels that match hotel brands and attract visitors to their target markets.
Choosing the right online travel agencies helps to get exposure in different regions and audiences to increase occupancy without incurring any additional marketing costs. It is recommended that your OTA mix includes at least 6 channels of the following OTA types:
- 2 leading international OTAs in OTAs like Expedia, Booking.com and Tripadvisor form the backbone of your channel suite. They have millions of visitors per month and can draw attention to your property, but they charge high commissions to avoid being your only channel.
- 3 Regional Online Travel Agencies - Attract local travel within your region and from your target regions with these types of online travel agencies. Regional online travel agencies are suitable to meet seasonal demand. For best results, include 2 OTAs targeting your area and one to another area, possibly with seasons reversed, to keep your property open year-round.
- 1 x Niche OTA - A specific audience (eg surfers, windsurfers, vacationers) looking for a property that meets their needs. Depending on what your property offers, good online travel agencies can often be very profitable channels due to their target audience and the potential for repeat guests.
This comprehensive set of channels is shown to help hoteliers reach OTA guest demographic targets, increase occupancy and drive traffic to hotel sites through bulletin board results. By choosing a mix of different channels, real estate can remain flexible and competitive as its distribution environment evolves and evolves.
