The current conversation about OTAs is full of fallacies, meaning that the arguments don’t have evidence to support their far-reaching conclusions. It looks like if “a” happens, then “x, y, and z” will happen. For example, if you don’t use OTAs (“a”) then travelers won’t find your product online (“x”), and your business will die (“y”). OTAs also like this one: Because OTAs have marketing power (“a”) they will drive high volumes of business (“x”) that will make up for the cost of commissions (“y”).

Conversely, you have certainly heard that if you give your business to OTAs (“a”), they will eat up profits (“x”), and while you will attract guests, you will not make money (“y”). Some go so far as to say that in the long term you will effectively be bankrupted (“z”). As with most fallacies, there is some truth to many aspects of the arguments, but the reality for hotels and vacation rentals is not this black and white.

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2 years ago

I agree, it's important to not put all your eggs in one basket. I guess when it really comes down to it, it's about a balance.

Use marketplaces to your advantage, not theirs.

2 years ago

Excellent report/post. All should take note. Its too easy to be sucked in to the OTA game without metrics and strategy.

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