According to new research, you might be overpricing your rooms.
Research from SiteMinder into its own data found that on average, hoteliers are charging 1.8x more for accommodation booked via their own website than via OTAs and other third-party channels.
This finding is based on 43.5 million reservations that passed through SiteMinder’s technology over a period of 12 months.
If you find that you’re currently charging higher rates on your own website, we strongly recommend that you at least match the rates you send to your distribution partners.
Why? It’s more revenue in your pocket! While you shouldn’t be undercutting OTAs, there are definite ways to get guests to book direct.
Our biggest recommendations for small accommodation providers on how to tackle rate parity issues are as follows:
- Package your rooms to make them more appealing (add elements like free parking, wifi, and tickets to a local event)
- Lower your rates to a limited audience (you can promote lower room rates to your Facebook fans, Twitter followers, and email database)
- Use metasearch engines (the commission fees you pay are significantly less)
Read the full press release from SiteMinder here.
By Dean Elphick
Dean is the Senior Content Marketing Specialist of Little Hotelier, the all-in-one software solution purpose-built to make the lives of small accommodation providers easier. Dean has made writing and creating content his passion for the entirety of his professional life, which includes more than six years at Little Hotelier. Through content, Dean aims to provide education, inspiration, assistance, and, ultimately, value for small accommodation businesses looking to improve the way they run their operations (and live their life).
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