The tiny mouse that roared!
For more than twelve months, motels and hotels alike that use a virtual credit card system (VCC) for collecting monies from guests for prepaid bookings, have faced anguish with online travel agents (OTAs) advertising mixed messages.
OTAs have continually splashed messages of ‘no deposits’, ‘nothing to pay until arrival’ and ‘no credit card fees’ on their websites, making guests and moteliers frustrated with OTAs promoting ‘easy to use’ booking systems with misinformation for guests.
In some cases, OTAs have allowed motels to state that monies may be taken at time of booking and that booking fees apply, but if the enthusiastic guest doesn’t scroll down further on the page, the message is never seen. To add to this, there are some OTAs that won’t allow the motelier to even state that they use the VCC system, which creates even more back lashes with guests, often resulting in cancelling the booking.
On a recent visit to Hong Kong, David McCall from Arra Accommodation Group (Budget Motels) met with directors at a Booking.com conference and raised the above issues that his members were constantly dealing with. He pointed out that these problems would be right across the board with other motel/hotel groups in Australia using the VCC system as well.
David McCall’s concerns were met with reassurance that a clearer message for Oceania properties using the VCC system would be rectified and corrected very soon. David McCall said that the best way to forge ahead with the large OTAs was to build stronger relationships and work with them, rather than against them. He welcomed the news that Booking.com would assist his Chain and looked forward to seeing other OTAs following suit in the very near future.”
What a crock of b&$@*t. It would be more truthful if Booking.com told people booking that there is a 15% commission. There are cancellation fees and it is effectively pushing up hotel and apartment rates. I add the 15% and tell the guests when they check in “You realise you are paying 15% more for using Booking.com, Expedia, etc.” They are astonished by the dishonesty and lack of transparency
Well said Peter. I have just added a $10 increase to rooms booked via OTA’s. It still doesnt quite cover the commission but I also tell guests that booking direct will save them and us money. In fact I have a sign on our reception saying just that. People are surprised when they read it. Not sure why they would be as its common sense that by adding a middle man into the transaction then it must increase the cost.
Yes it does cost you more, but would these guests have booked with you if you were not on the OTA?
To complain to guests and question their intelligence by pointing out that you have charged them more and make them feel unwelcome because they have booked though an OTA your biting the hand that feeds you. The reason you list on an OTA and offer up a commission is to increase exposure and if it works correctly, room nights. You more then likely have also lost a potential repeat guest due to just a basic lack of customer service. What an extremely negative way to start a stay.
Its one thing to offer a discounted rate if they book directly, similar to how the big chains are advertising for their members, it is another to treat guests who book though OTA as second class citizens.
In relation to the article, I believe that more people are after greater flexibility with their hotel stays and that more hotels should get on board with a pay on arrival 24hr cancellation policy. I for one never book a pre-paid rate and if that is the only rate offered, I simply will not stay there.
I think there needs to be a higher clarity on what security deposits hotels are going to take on arrival. Most confusion for OTA guests that have pre-paid is that they do not realise the hotel will also want a hold of anywhere between $1 – $150 a night on a credit card on arrival. So whilst they have already paid they will need to fork out more money, which if they a booking a discounted pre-paid rate they may not have or has not factored in their budgeting and are unwilling to give up It is only a hold, but this money becomes unusable for the guest for a minimum of their entire stay and in most cases days later, leading a lot of less travelled guests to believe they have been double charged. This needs to be clearer on OTAs and also when booking direct.
The guests are not made to feel unwelcome at all because they booked via an OTA and nor are they treated as second class citizens. Our rates on the couple of OTAs we are with are not prepaid and nor do we take a hold on anyone’s credit card at this establishment.
In fact a lot of people using OTAs do not bother reading their confirmations and are just a cause of grief when they check in believing they have already paid.
There was one particularly abusive women here 2 nights ago who would not believe that she had not pre paid and flounced out. She phoned Wotif and they told her that she had not prepaid. She came back without one word of apology. She was just about to be told her and her attitude were not welcome here.
The moral of the story is that life is much simpler if people book direct which is why I tell everyone to do so.