Pension assessment is a term that always takes care of hotels and can even be a growing barrier for small and new players. The assessment of a parity is the practice of maintaining consistent and same ratings of the same room in all distribution channels / reservoirs, whether it is a web site or OTAs regardless of the responsibilities of OTA. The purpose of this practice is to create a borrowing field for all players. Both hotels and OTAs must agree to assess standard standards when signing with OTA.
Sometimes this accelerated field makes it difficult for new players to compete in this fierce competition and choke them even before they can spread their wings.
How would hotels have to look at Tax Parity?
The practice of a Takas parity has come to ensure the interests of OTAs from situations where hotels can reduce their webpage rates and cut OTAs.
Why are hotels really heavy on OTAs?
OTAs provide a legal platform for any hotel to register reserves from the first day they enter the world of online reservation. They do not have to spend heavy markets, just negotiate better agreements with OTA rights and they have to make revenues. Hotels can easily look at OTA commissions as their market costs but with higher success. Here, the advantage of OTA offers to hotels ie eliminates the disadvantage of tax-parliaments to hotels.
What are the challenges of a tax-parcel for young and small hotels?
In small and new hotels, every single reservation is important. Paying great responsibilities to OTAs from already thin edges makes it very difficult for hotels. Here's where direct reserves can prove to be a variable player. However, receiving direct reserves can be a higher task without a promotional campaign and price handling. Often, OTAs will request hotels to keep them in the loop when they run any promotional campaigns or discounted prices on their websites. In order to prevent any infringement of Row House Clauses, sometimes small hotels exclude the entire OTA room and sell it on their website at their own prices.
Competing with OTAs for prices is difficult for small hotels since OTAs are known to reduce prices under budget prices by reducing their responsibilities. We do not live in a perfect world!
This requires hotels to control the prices of various OTAs to maintain their competitive prices with them. When OTA channels are not directly linked to a PMS system through a channel administrator, rate rating is even more difficult to manage. Hotels then have to login multiple systems to update their rates. However, it is much easier and faster, if the hotel uses hotel-based technology tools to manage all this.
Few people think that in this situation, small hotels are interconnected between rock and hard place, because the saying is on the one hand, they do not have the market budget to reach the sort of reach OTA provides. On the other hand, it is difficult to pay the great greasy commission to the OTA. Moreover, OTAs bring them business. Here, hotels want to travel more direct reserves. However, this course requires more dollars to spend marketing. They are in this cruel circle.
Here are a few tactics that hotels can be used to deal with tackling issues
Creating packages that are calculated
Hotels can improve their offers, as well as an OTA price, adding benefits such as free parking, Wi-Fi, tasting sessions, comfortable breakfast, a point of view, free options, etc. This practice can help them to have a clear edge over OTAs without violating standard norms since the price is priced, the hotel offers a better deal than the OTA.
Lower your rates to a limited audience.
Hotels can reduce the prices for age group, category, Close User Group (CUG) or mobile app users. Run email offers for CUG members or on email programs. This can help them drive direct reserves on their website and a mobile program without infringement of parity tax.
Loyal Program and Customer Agreement
Another way to improve direct reserves is trustworthy programs. Loyal programs provide twice as many benefits as well as just keeping OTA missions. Getting a reservation of a loyal customer's reservation is much cheaper than getting a new customer. At this, the hotels are aware of their choice and preferences that enable them to serve them even better. This spreads a positive mouth for the brand and shoots the way for more direct reserves.
Use Meta search engines
Target Search engines such as TripAdvisor and Trivago can be considered as the rescue of small hotels. Small hotels can even appear on top of the list in TripConnect, because it works in a PPC model unlike contracts as in the case of OTA. Metasearch engines are quite popular consumers because they not only provide a comparison between different properties but also allow them to choose the cheapest channel to book the hotel. Consumers often consider direct books, as long as the difference is not huge, because direct presentations are considered more reliable.
User friendly website and booking process
In order to improve direct reserves, the tourists must ensure that they have the necessary infrastructure in the place that induces and proposes direct reserves such as – an ample friendly web site with a clean interface that provides all the necessary information without searching. In addition, the tourists must ensure that the reservation process is simple rather than annoying, so that the prospects do not restart. OTAs have a clear edge in this department, but hotels have no choice but to bring their online infrastructure at the same time with those of OTAs.
From the top discussion, we can embrace this, although Rate Parity's agreements can deceive the direct reserves of any hotel; There are many factors that prove that OTA is actually good partners with hotels. Hotels can take several stepping strategies to mitigate the rates of Rate Parity while enjoying the large number of reserves of the OTAs