Wednesday, 18 March 2020

Hotel Rate Structure

If we can apply the hotel rates flow like this:

The prices of B2B agent<local travel agent prices<corporate prices <direct booking prices<or=OTA prices; It will make great impact to all the hotel market segments. However, cross-cutting the OTA prices through all other segment rates is causing the death of the segments and closing equal opportunities of selling from supposed distribution channels.

Main Factors such as:
- The inability of the hotel offline sales team to fulfill the hotel base allotment
- Many of front liners and offline sales people aren't understanding the art of direct booking and direct selling
- Disruptive offers from OTA to their market
were resulting the OTA innocence being "REVENUE FULFILLMENT FAST FOOD" to reach the bottom hotel budget line. Actually it's not wrong since the hotel owners did not matter where the money comes from, as long the cash flow was there and the hotel was making profit.

FAST FOOD sometimes delicious but will cause you bad health.

One thing to remember: businesses is not running in short term only but also in long term. So how we fix this matters? Let's discuss...

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