This article originally appeared on OTA Insight.
As our series of quarterly parity reports show, parity issues are at the root of huge potential losses for hoteliers. These have a number of causes, depending on whether OTAs have a contractual relationship with the hotels.
What’s often not discussed is the role wholesalers play in exacerbating this problem when dealing with non-contracted OTAs.
“The basic mechanism involves wholesalers contracting inventory at a big discount and selling it on to OTAs at a discount which still leaves room for the OTAs to undercut hotels,” says Clive Wood, Global Commercial Manager for Parity Insight at OTA Insight. “But it’s surprising how unaware some hoteliers are about what’s happening, day in, day out when guests book through the many channels out there. Just how much of their revenue is being threatened?”
As part our ongoing work in this area, we’ve gathered a huge number of data-points that match wholesalers to non-contracted OTAs. We’ve analysed this data to produce this infographic.
About OTA Insight
OTA Insight empowers hoteliers to make smarter revenue and distribution decisions through its market-leading suite of cloud-based business intelligence solutions including Rate Insight, Parity Insight and Revenue Insight. With live updates, 24/7 support from our customer success team, and a highly-intuitive and customizable dashboard, the OTA Insight platform integrates with other industry tools including hotel property management systems, leading revenue management systems and data benchmarking providers. OTA Insight’s team of international experts are based all over the world, including the UK, US, France, Germany, Belgium, Spain, Italy, Brazil, Mexico, Singapore, Australia and India, and supports more than 40,000 properties in 168 countries. Ranked one of 10 “Ones to Watch” in the Sunday Times Tech Track 100, OTA Insight is widely recognized as a leader in hospitality business intelligence.
For more information, visit www.otainsight.com and follow us on Twitter @otainsight.