THE BATTLE CONTINUES
While hotels and OTAS are indispensable to each other, the relationship is a classic case of ‘can’t live with him/can't live without him’
In the last two decades, since the launch of Expedia, the exponential growth of OTAS has un-nerved the hotel industry. For hotels, they are giants, threatening to disturb the equilibrium they used to enjoy before the advent of the internet. With the continuous shift to online business, coupled with changing consumer behavior patterns, hotels are finding it difficult to cope up with the challenge not restricted to competition with the neighborhood properties any more. Far beyond that, they now have to capture and retain the attention of consumers who would spend an average of 20 to 29 days researching their trip before hitting the ‘Book’ button. Over half the population in the Middle East is between 18 and 34 years of age. They will visit over 17 websites, check reviews, exchange notes with friends and family before finalizing on where to stay. As the fight for a share of the pie heats up, with the availability of more inventory, hotels need to be visible at every touch point to capture the customer’s interest. On the other hand, OTAS invest a lot more than individual hotels. Two online travel giants, Expedia and Priceline, spend around USD 4 billion annually in Google search advertising. In the Middle East, about 38 percent of online bookings are made through OTAS. For hotels, OTAS can be a great opportunity to not only increase their visibility in the region, but also expand their market reach. With high internet penetration and increase use of smartphones, guests are more engaged in searching their travel planning online. Generally, the classic booking journey starts with OTAS i.e. guests visit online travel sites and book their preferred hotel. According to a Google survey, 52 percent of travelers will visit your hotel’s website after seeing you on an OTA. A three-year-long survey on the billboard effect by WIHP shows that over 20 percent of direct bookings occurred, after the guest found the hotel on an OTA.