Getty Images |
Anyone expecting a post-COVID 19 replay of what happened in the aftermath of 9 / 11 and 2008-09 financial crisis — when online travel agencies grabbed a bigger share of bookings — might be surprised this time around . The reason , in a word : loyalty . Both crises created an opening that OTAs exploited . “ They gained a lot of share and power because hotels got
|
scared and got addicted to dumping inventory ; frankly , they got a little lazy ,” says Marco Benvenuti , co-founder of revenue management platform Duetto . “ They made the OTAs what they are today .”
But with operators and hotel companies scrutinizing every nickel to stay afloat , the cost of ceding their inventory to third parties — along with those hefty commissions — provides a
|
compelling reason to seek another way to fill rooms .
The difference between today and 2009 or earlier is the rise of loyalty and its power in encouraging direct booking . “ Instead of just passively letting OTAs dominate , I think brands will double down on promoting their loyalty programs , especially on the leisure side ,” says Cindy Estis Green , Kalibri Labs CEO and
|
founder . Rewards that involve experiences or upgrades rather than room night redemptions , for example , appeal to leisure guests . Hotels don ’ t like giving up hefty commissions to OTAs . But they have an even stronger motivation to reclaim control over their inventories . “ Hotels want the flexibility to sell to their own client base whatever they want to sell ,” Green |
26 hotelsmag . com June 2020 |