OTA commission cap
A new survey has revealed that independent accommodation businesses in the UK want stricter rules on OTA commission levels as they struggle to increase their own online bookings.
The majority of the 288 survey respondents are spending between 1-5% of their annual turnover on marketing activity. A new survey has revealed that independent accommodation businesses want stricter rules on OTA commission levels as they struggle to increase their own online bookings. This comes in the wake of the Office of Fair Trading investigation rulings on new membership schemes that will make it even harder for independent hotels, b&bs and guest houses to win the price war.
The OFT felt that the strict rate parity contracts imposed by OTA’s were not an issue in regards to competitiveness within the sector. The majority of the 288 survey respondents are spending between 1-5% of their annual turnover on marketing activity but 87% said that the marketing budgets of large hospitality brands and OTA’s are making it increasingly harder for independents to compete for online sales. Surveyed by umi Digital, 61% of those that took part said that using online travel agencies is a necessity and 87% also stated that they believed OTA and third party commission levels should be capped.
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