Articles: Tourism Industry News

Online Travel Agents – OTA’s

For those of you in the accommodation business, the changing shape of online bookings has been a concern for some time.

Last year when we visited clients and other people there was great concern about the amount of commissions paid to sites like Booking.com. A bit of a sense of panic!

We have recently also had a number of meetings and sense a change in the mood from last year. Yes, people are still concerned that they are paying large amounts of commission to OTAs. But there seems to have been a maturing of attitudes to this and acceptance that this is just the way the market is now.

Now people are more accepting that if they are paying commissions it actually means confirmed business and that online bookings are often easier than walk-ins who want to look around first.

Also, many are coming up with creative ways to encourage direct bookings without violating price parity rules that some of the OTA’s have.

Some have dropped their Google AdWords campaigns – why bid to compete with the large OTA’s like booking.com for top spot if your property is coming up in their Adwords anyhow? Let them spend the money to promote you. They have much deeper pockets than you.

And we know of one site that has a “price ticker” showing the OTA prices versus the direct booking price which encourages direct booking because it shows clearly that the direct booking rate is the best price (or equal to it).

At the end of the day many of the bookers look at the OTA listing as well as visit your site – you then just need to convince them to book direct. Value added offers can help achieve that. If you are clever, you can do that without breaking price parity rules.

But check out our article about Google becoming an OTA to see what shakeup is coming soon.

TripAdvisor becoming a booking site

It has been slowly happening but now appears to be in full swing, at least in the US. Now that they have such market dominance, TripAdvisor are becoming a full blown booking site and maximising their returns.

With Instant Book, or Book on TripAdvisor, consumers get the convenience of booking the hotel on TripAdvisor or in its apps without having to navigate to a hotel or online travel agency site. The hotels pay TripAdvisor a commission instead of paying for clicks. The commissions undercut those that they might have to pay to Expedia or Booking.com, for example.

More info on the transition is at these links

http://skift.com/2015/07/24/the-numbers-behind-tripadvisors-evolution-into-the-next-booking-giant/

http://skift.com/2015/07/23/tripadvisor-transformed-the-booking-site-is-now-in-full-swing/

This will probably mean more business listing options from them for promoting your business above others. It will be driven by commission $$$ rather than traveller ratings and reviews. And an even more aggressive approach from TripAdvisor to selling you business listings.

If paying for business listings just make sure that you know if your return on investment is worthwhile. And maximise the opportunities that are available. Eg feature a special offer for your property as this provides additional exposure on the site.

You probably don’t like paying commissions but that is just the way the market is changing. Unfortunately you need to get used to it and maximise your benefit (or minimise the impact) from this change.

Objection to Increasing Commissions on bookings

Tourism Accommodation Australia (TAA) is calling on travellers to bypass Online Travel Agencies (OTA’s) like Booking.com and to book direct in response to recent commission rate increases.

Expedia and Priceline dominate the OTA market so are now in a position where they can dictate the terms even more and have recently increased commission rates. Expedia now owns Wotif and Priceline owns Agoda and Hooroo.

TAA is making a case with ACCC (Commerce regulator) to ensure that the OTAs don’t follow the European and US trends where booking commissions have now reached 20% plus.

From recent discussions with our clients, we know how concerned operators are about increase in the amount of commissions they are now paying and looking for ways to maximise direct bookings from their own websites.

View the full article at http://www.tourismaccommodation.com.au/wp-content/uploads/2012/08/TAA-MR-Hooroo-OTAs-May-15.pdf

Or contact us to see how to maximise direct bookings from your own website.

Free WiFi most desired amenity for travellers

Free WiFi is slowly declining as most desired amenity by hotel guests.

Hotel.com reports that while it is still easily the most desired traveller amenity, it is declining a little (4% in last year) as more people have better mobile data plans and public WiFi Hotspot availability increases.

In the US, free WiFi is still cited by 49% of business travellers and 25% of leisure travellers as their top priority. Free breakfast ranks next along with free parking and swimming pool. So free WiFi is still the main amenity that people want.

Read the full article at http://press.hotels.com/en-us/news-releases/free-wi-fi-reigns-but-wanes-as-top-hotel-amenity/

Preventing Bad Online Reviews

We hope that your great service and product means that you only get positive online reviews.

But to minimise the risk of bad reviews, in the US there have been cases of hotels adding a “non disparagement” clause into their terms and conditions and/or check-in forms. This means the guest agrees (with or without reading the fine print) not to write a bad online review of the property. The hotel could then sue if they did!

Every month 280 million visitors check out Tripadvisor reviews. 89% of people say that online reviews are instrumental in their decision. The introduction of no-review policies and rules would certainly change the importance and credibility of online reviews in the decision process. It could well mean the demise of some online review sites as they would no longer represent the whole picture..

See the article “Could lawyers Destroy Tripadvisor?

Free WiFi in Tourism Accomodation

Feedback that we also got from clients confirms what we thought – free WIFI (within reasonable limits) sells rooms.

Properties are offering anything from 50mb to unlimited data via WiFi. Most are around 250-500mb per day. Even 50mb is adequate for emails and general browsing as long as lots of images are not being uploaded to sites like Facebook.

Our advice is to offer free WiFi. And remember to make it clear on your website that it is actually free and what the limits are. If this is not stated, people will probably go elsewhere rather than enquire about it from you. Too many sites we look at do not have this information.

There seems to be a relationship that the more expensive the room, the less chance that free Internet is offered. High daily rates charged by some higher end properties are certainly turning off customers.

Adventure Operator Audits & Registration

In an effort to stamp out “Cowboys” and maintain high standards, Worksafe NZ is tightening up on rules for adventure operators. Operators falling under the Worksafe NZ regulations are required to complete safety audits and registration by a 1 November 2014 deadline.

The Worksafe NZ site states:

Operator responsibility

It is the responsibility of operators to ensure the safety of their clients and staff at all times. They remain responsible for ensuring the safety of their operations on a daily basis.

This includes identifying whether they are subject to the regulations and, if so, to ensure they are audited and registered by 1 November.

So if you are an adventure operator or have some sort of business that may fall under these regulations you should ensure that you know what your responsibilities are and if you are subject to audit and registration.

Failure to do so appears to have significant consequences. This includes your ability to advertise in regional guides, and Tourism New Zealand will only support registered operators.

Full information is available at http://www.business.govt.nz/worksafe/about/what-we-do/adventure-activities/for-operators#guidance

and

http://www.supportadventure.co.nz

Help Linda – Support Dry July Fundraising for Cancer Facilities

If going without your favourite glass of vino for an entire month sounds like really hard work, spare a thought for the thousands around New Zealand who are doing just that to raise money to make life just a little easier for adult cancer patients. The fundraising campaign is called Dry July and the aim is to raise lots of $’s to pay for some creature comforts, such as I-pads in the chemo wards, to help pass the hours for patients during their treatment time. Long standing NZ Tourism Industry member Linda Jenkins is “on the wagon” to support this great cause. If you would like to help her raise $’s, here’s the link to her donation page:
http://nz.dryjuly.com/our-community/search-results?keyword=linda%20jenkins

She’s raised over $1000 so far with just one week to go – please make her day and send her cause a donation this week.  Any amount gratefully welcomed.

Company Change

For some years we have had our business split into two companies – Great New Zealand Ltd and Net Action Ltd

Great New Zealand Ltd owned and operated our online directory websites. Net Action Ltd was our Web Marketing, Search Engine Optimisation and Website Performance company

All having two companies has really achieved for us has been more paperwork – double the GST returns, annual accounts etc as well as interco transactions and journals. And it has created some confusion with clients about how the companies related.

So we decided to bring everything back under one company. Continue reading