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Technical analysis: the pros and cons of hotel + hotel VS hotel + OTA

December 06, 2021

Under the general trend of informationization, the future hotel will use the unique big data as the cornerstone to open up the data of the industry before, during and after the living, and establish the big data ecological environment of the industry.

In the future, the hotel industry will no longer be unified by a single model and standards, and more marketing methods will emerge. In this process, there is not much discussion about specific profiling and how to use it systematically. Today, the editor will analyze the pros and cons of the "hotel + hotel" model and the "hotel + OTA" model from a technical perspective.

Hotel + hotel

Under the impact of the mobile Internet wave, the hotel has rushed to break through and form an alliance to break the game. How to "kill" a way of life? The call for integration of resources and the establishment of a platform through the alliance is getting stronger and stronger. However, what kind of technical support is needed behind the alliance that warms up the group? What kind of technical difficulties will arise in the process of strategic cooperation? These are all issues that the hotel industry deserves.

Technical support: group self-operated cooperation platform, member exchange + multi-part cooperation.

Compared with the tens of thousands of star-rated hotel markets, the chain of hotel industry is very low, and the regional development of major hotel groups is very obvious. In addition, various hotel groups have established a central marketing platform and a loyal customer system, but their coverage is far from meeting the travel and business needs of the member groups. The establishment of a self-operated cooperation platform will bring value-added services to all members of the alliance, realize member-to-share sharing and interest-sharing, and bring together scattered points to realize the role of small points.

The pros and cons of the alliance -

1. Whether it is “Jiameng”, “Platinum Club” or “Wanjia Alliance”, through the platform alliance, share the membership system, form the ecological barrier between hotels, work together to balance the online channels such as OTA, and maintain hotel direct sales. Member channels and a healthy and reasonable price system. When it is difficult to achieve a major breakthrough in the performance of its own hotel, it is expected to achieve a win-win situation by joining other hotels and sharing member resources.

2. The hotel alliance seems to be good, but the industry also has a pessimistic voice. The so-called alliance, 10,000 store sharing, there are still many problems to be solved. How does the Alliance Hotel bring customers to the alliance platform? This requires deep thinking and a series of measures.

3. How to achieve the sharing of core interests on the basis of cooperation is also the focus of attention in the industry. For example: How do members share? To what extent is the share? How to unify the sales channels? When each hotel joins the alliance, does the member price system have conflicts in the alliance? How to achieve the effect of 1+1>2?

4. Union and sales must follow fair and just rules of the game and unite with each other in the constraints. Once a hotel that does not comply with the rules of the game, the alliance will be easily destroyed.

Hotel + OTA

The cooperation with OTA can help the hotel get more orders from the network. The editors here refer to the OTA, which is mainly an online reservation center that can provide reservation service directly for customers. With the popularity of credit cards, Alipay and smart phones, the hotel's cooperation model with OTA has gradually transformed from a relatively single pay-as-you-go model to a diversified cooperation model.

However, whether it is the active payment mode, the prepaid mode, or the passive agency cooperation, the hotel has enriched its products to the greatest extent, giving customers more choices and maximizing the revenue on the network. If the hotel can use these three forms separately, give the appropriate price gradient, and impose strict restrictions and flexible control, it is believed that the hotel's output can be further improved.

Technical Difficulties--

1. OTA and the hotel system are “disjointed”. Many hotels and OTA systems are not connected, so some OTA companies are only after the user places an order, the customer service staff dials the hotel front desk to make a reservation. Because of the diversity of channels, there must be depth in cooperation. Some channel reservation information may not be processed due to failure to process or wait until the processing, or priority has been given to important channels, etc., so that guests who complete the reservation on OTA cannot be accommodated. This phenomenon has occurred during the tourist season.

In addition, the two systems of OTA and the hotel itself have not been synchronized. If the OTA system and the hotel management system can be technologically innovative and synchronized in the future, the above phenomenon may be improved.

2. The competition for customers has intensified. In fact, the OTA system and the hotel management system are not only a microcosm of the discord between OTA and the hotel. In the industry's view, the relationship between the hotel and the OTA, although difficult to separate but entangled, on the one hand, the hotel brand because of the short-term in the direct sales, traffic and platform construction, had to rely on a third-party OTA website to guide On the other hand, the OTA platform has fought a price war to grab the market, and finally let the hotel pay the bill to make the hotel brand miserable.

3. The model is wonderful and the market is cruel. For business operations, whether it is OTA or a hotel, its core goal is to maximize its overall revenue. This has led to the inevitable game between OTA and the hotel in order to maximize its revenue. In the game, what OTAs most want to see is that their traffic is becoming more and more valuable. Therefore, OTA will continue to require hotels to give better price and product policies to improve their traffic conversion capabilities; will continue to require hotels to give higher commission ratios to improve their flow profitability. In order to protect their commission bargaining power and profit margin, the hotel does not want to have too much dependence on the OTA. Therefore, it will make unremitting efforts in protecting the price system, balancing multiple distribution channels, and self-built direct sales channels.

4. All major OTAs require exclusive cooperation and lowest price products, constantly plundering the hotel pricing power, and the price war between OTA and various cashback methods have impacted the hotel's own price system and direct sales system, bringing the hotel's operation. A lot of trouble.

However, under the general trend of informationization, future hotels will use the unique big data as the cornerstone to jointly lead the industry's leading OTA and PMS suppliers, open up the industry's pre-, post- and post-stay data and establish industry big data. On the basis of the ecological environment, on the basis of different needs of hotel brand management, operation management and revenue management, we provide corresponding big data solutions to help hotels enhance their wisdom.

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Author:

Ms. Abby Zhong

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+8618948793751

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