Reduced Profit Margins
Most OTAs work on a commission basis, which can be up to 30%. If not carefully monitored and controlled, these costs can spiral out of control and erode profitability. Given the terms and conditions applied by the OTAs, particularly around rate parity, accommodation providers need to consider how they can maximise the benefits of reaching new customers through the OTAs and then convert them into more profitable visitors in the future (more about that in a future post!)