Breaking the Costly Hotel Addiction to Online Travel Agencies
A Three-step Recovery Plan
As hotels begin to recover from the economic crisis, a hidden problem that poses an even greater financial burden is emerging. Hotels are becoming addicted to online travel agencies (OTAs).
The facts are clear. While the travel industry slowed in 2009 and 2010, OTAs share of sales grew dramatically. It is estimated that hotels channeled more than $5 billion to the OTAs in 2010.
Of even greater concern is many hotels may not even realize the depth of their addiction. This is because OTAs commissions are transparent and therefore, hidden from the hotel.
Fortunately for hotels, the addiction cycle can be stopped and the hidden costs can be uncovered. In a new hotel marketing white paper published by Madigan Pratt & Associates, hospitality marketing veteran Madigan Pratt outlines a three-step recovery plan for hotels:
- Identify the hidden costs using a new easy-to-use online tool created by Madigan Pratt and available at www.MadiganPratt.com/Calculator.
- Determine the ideal sales mix. OTAs can be a valuable marketing partner – when used in moderation.
- Refocus on direct to consumer marketing to attract more profitable customers and achieve a better return on investment (ROI) for marketing efforts.
"As a strong advocate for hotels, I wanted to shed light on this growing issue and provide an actionable plan to break the cycle of OTA addiction," comments Madigan Pratt, Managing Director of Madigan Pratt & Associates.
Now other hoteliers can be armed with the knowledge to break the addiction to OTAs by downloading the complimentary hotel marketing white paper, Breaking the Hotel Addiction to OTAs: A 3-step Recovery Plan, at www.madiganpratt.com/calculator.
About Madigan Pratt & Associates, Inc.
An advertising agency specializing in customer relationship marketing for hospitality and luxury service clients, Madigan Pratt & Associates creates programs that help clients attract and retain profitable customers. Principals with more than 30 years experience at some of the world's largest advertising and direct marketing companies lead the agency's team of marketing, creative, public relations and social media professionals. The agency relocated from New York to Williamsburg in 2006. For more information, visit http://www.MadiganPratt.com.
