A Billion Dollar Sinkhole [Infographic]

6393
OTAs Undercutting Hotels

As we all know, maintaining rate parity plays a pivotal role in encouraging direct booking through a hotel website rather than a OTA or third party. But how big an impact does being out of parity have on the hotel industry?

SaaS company Triptease released some very interesting research yesterday suggesting that rate disparity in the hospitality industry could be costing hoteliers as much as $1Bn per annum.

Charlie Osmond, Chief Tease at Triptease comments:

“Disparity is a sinkhole, costing¬†hoteliers millions. Policing and removing disparities has an immediate impact on direct¬†bookings.”

Based on a global dataset of 33 million website searches, they discovered that on average, a direct hotel price is undercut by an OTA 23.7% of the time.

Check out some of their key findings in the infographic below or download their full report, which also breaks down rate parity issues by country/city, here.


OTAs Undercutting Hotels (Infographic)

OTA Billion Dollar Sinkhole

80 DAYS Benchmark
80 DAYS Benchmark
Sam Weston
Sam Weston is an experienced digital marketing professional who has worked both client and agency side with a focus on the hospitality industry. Currently, he is Marketing Manager for a full service creative and digital marketing agency, 80 DAYS, based in Edinburgh, Scotland. Any views expressed on this site are his own.