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Online travel agencies put pressure on hoteliers

Author
Lena Aulfes
Project Assistant

Online travel agencies put pressure on hoteliers

Every two years Hotrec's European hotel distribution market is examined in collaboration with the University of Applied Sciences of Western Switzerland. This year, above all, one result was in the foreground: The dependence of hotels on online travel agencies is increasing.

The largest providers, Booking.com (66.4%) and Expedia (16.6%), continued to gain market shares in 2017. Booking.com sets contract terms and conditions such as cancellation policies, special discounts, pay-per-click advertising, which would be unimaginable for direct sales. The majority of hoteliers (50%) feel under pressure, which is currently causing great dissatisfaction.

The Tourismussuite GmbH opts for this rising dissatisfaction with the HotelGuest app a software solution, which enables the direct selling of the hotel rooms on its own website. So the control over the sales goes back to the hotel.

On average, six out of ten hotels have already had a conflict with an online marketing platform, 70% of which have not been settled by a fair and effective solution. In order to be able to avoid it more and more, we offer the TourismusSuite to be service-oriented with our customers.

To the disadvantage of the hotels, the share of direct sales is only 52% in 2017 - compared to 55.3% the year before. We help small to medium-sized hotel groups to present their clients a modern internet presence with a user-friendly booking system. The goal is to strengthen the entrepreneurial freedom of the hotels and to subtend a strong alternative to the online travel agencies.

In addition, Christian de Barrin, CEO of Hotrec, states that, of course, political arrangements are needed to ensure fair and transparent market conditions for online platforms. A short version of the study is available on the Hotrec website.

www.hotrec.eu

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