For hotels, the challenge isn’t just being seen, it’s being seen in the right places, at the right time, and at the right cost. That’s where a smarter channel mix comes in.
NB: This is an article from Staah
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Why Your Channel Mix Matters More Than Ever
Booking channels aren’t just sales pipelines, they’re part of your brand presence. Online Travel Agents (OTAs) bring huge visibility and consistent bookings, but they come with high commissions and reduced guest ownership. Direct bookings build loyalty and higher profit margins, but they require stronger marketing. Metasearch gives you comparison visibility but demands competitive pricing.
The sweet spot? A channel mix that blends the reach of OTAs, the profitability of direct, and the efficiency of niche or regional platforms.
Understanding Your Guest Journey Across Channels
Guests rarely book the first time they find you. A traveler might discover your hotel on OTAs websites like Booking.com, compare prices on Google Hotel Ads, then book directly through your site after seeing better perks.
Knowing which channels drive awareness and which drive conversion lets you:
- Invest in discovery-focused platforms.
- Optimize conversion channels with compelling offers.
- Avoid overspending on low-performing sources.
The OTA Equation: Reach vs. Revenue
OTAs like Booking.com, Expedia, and Agoda deliver instant global exposure, access to diverse traveler segments, and lower operational effort. But they come with commission fees (10–25%), rate parity constraints, and fewer opportunities to nurture guest relationships.
The key is to leverage their marketing muscle while building strategies to convert OTA guests into future direct bookers.
How Rate Parity Shapes Your Pricing Strategy
Rate parity keeping your room prices consistent across all channels, it is not just an OTA requirement, but it’s also a trust builder. Guests who see the same rate everywhere are less likely to shop around endlessly.
Instead of lowering your direct rate, offer value-add incentives:
- Complimentary breakfast
- Free parking
- Early check-in or late checkout
