Hotels direct sales cheaper than distribution? ETTSA disagrees
The average net contribution of all the direct distribution channels is €4.59 per booking greater than the average of all the indirect channels.
Hotels which attempt to boost direct bookings at the expense of agencies and online travel agents (OTAs) risk having lower occupancy rates with “no measurable” savings on costs, according to a report published this week.
The report shows that direct hotel distribution is “considerably cheaper” than indirect and suggest: “The average net contribution of all the direct distribution channels is €4.59 per booking greater than the average of all the indirect channels.”
The report argues:"Hotels benefit significantly from being displayed on OTA websites. Up to 35% of hotel bookings can be attributed to guests finding out about a particular hotel, then booking directly with that hotel."
Without ‘billboard effect’, the study suggests hotels would need to increase their spending on search engine optimisation (SEO) “by €7-€10 per booking”.
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