correction
Are on-line booking agents good for the hotel industry?
Submitted on: 13 – 4 – 2021
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Word count:
626
Table of contents Introduction 3 Losing Loyal Customers 3 High Commission fee 4 Loss Of Brand Control 5 Conclusion 6 Referencing 7
Introduction
In the past decade, the hotel industry has experienced enormous growth, mainly due to internet utilization. Most of the hotel all over the globe provide online booking reservation to their customers. Most importantly, online booking has become a norm for most travelers as they usually find it easier to book hotel services at their convenience (Triylo, 2018). An online booking agent is a form of online booking that provides customers with a wide variety of lodging services and enables them to make informed choices after facilities and price comparison amongst various hotels (Minett, 2018). The most popular online booking agents include Expedia, Thomas cook and Travelocity. The use of online booking agent in the hotel industry has both pros and cons in enabling the hotel to market its facilities.
Losing Loyal Customers
Online booking agents enables clients to customers to access all the information and details required for making appointments and arrangements. It makes it easier for customers to find contact information for the hotel (Minett, 2018). Online booking agents enable customers to interact with everything they require personally. Customers can make more informed decisions at their comfort. Online booking agents provide clients with hotel details encompassing the best deals, charges and guest periodicals (Triylo, 2018). These details make it easier for customers to choose the best hotel that suits their needs. However, online travel agent always tries as much as possible to minimize personal contact and therefore in case of any mistake, the customer will not have anywhere to look for support. This results in the hotel losing most of its loyal customers.
High Commission fee
Online booking agents make it easier for customers to compare prices. This is particularly beneficial relating to hotel accommodation. This reduces the need for customers to visit numerous hotel sites looking for what one needs (Triylo, 2018). Online booking agents enables customers to search for the accommodation dates and destination on their website and acquire a list of options. One can then narrow down the selections by ratings, location, amenities and reviews (Minett, 2018). However, the reduction in prices comes at an additional cost for hotels. Hotels are required to pay a huge commission to online booking agents, and they do not even get access to the customer details for future marketing and promotions. Also, the commission paid to online booking agents hotels remains forever by the hotels and the commission a hotel pays, the better ranking position their they the online booking agent’s website.
Loss of Brand Control
Further, the online booking agents provide the hotel with online visibility by listing the hotel's name on these websites. As a result, the number of prospective clients that hotels can find out about their services doubles (Minett, 2018). However, the customers do not interact with the respective hotel websites, making it difficult for hotels to improve their brands' relevancy of their brands which is a significant loss (Triylo, 2018). The hotel industry is usually unable to define and position its brand in the market. Therefore, hotel needs to educate their guests on how to book a hotel directly through their website as this can save the guest up to 15% when booking a hotel directly and which they can re-invest in other things.
Conclusion
In conclusion, although online booking agents result in personal customization and Supplementary income, High Commission Fee, and makes the hotel lose its loyal customers, online booking agents are very beneficial for the hotel industry as they provide customers with huge choice and options, allowing them to compare products, prices and select the most convenient option. Online booking agents also increase the hotel visibility by listing the hotel name on their websites, which is more likely to increase the number of prospective customers’ for a hotel.
Referencing
Minett, D., 2018. Are Online Travel Agencies (OTAs) As Bad as We Think? [Online] Available at: https://www.hospitalitynet.org/opinion/4087999.html [Accessed 12 April 2021].
Triylo, T., 2018. Warning: As a Hotelier You are Losing Money with OTAs. [Online] Available at: https://www.trilyo.com/blog/warning-as-a-hotelier-you-are-losing-money-with-otas/ [Accessed 12 April 2021].