High usage of OTAs and poor Rooms Revenue returns
This commercial hotel in the South East of England was essentially busy, but was not Profitable enough for a number of reasons.
One of these reasons, we discovered, was that Reception staff were not disciplined to monitor the room rates offered, and were not encouraged to try to attract bookings via the Hotel’s own Website. As a result of this the Accommodation Sales became more and more dependant on the OTAs for business, which meant a lower rate was attracted, and on top of that, the hotel was paying 18% commission to the OTAs as well.
We started monitoring and reporting every week on the % of Accommodation Sales that were coming from the OTAs, and quantifying weekly the total commission paid weekly to the OTAs. We took a new Reception Manager under our wing, and set up targets for him to achieve in terms of reducing the dependency on the OTAs, and encouraging customers to book directly more often. Almost immediately the % of total Accommodation Sales coming through the OTAs reduced, and we started getting more and more direct bookings, substantially increasing the Profit contribution from the bedrooms.
Do please call David Hunter direct, on: 07831 407984 or email him on: davidhunter@bowdengroup.co.uk – if you feel that we can assist YOU in any similar way.