Empowering Hotels and Destinations | Boosting Visibility, Reach, Direct Bookings, Reputation and Economic Sustainability | Digital Transformation Expert | Keynote Speaker | Thought Leader.
Booking fined €530 million for unfair business practices. Spanish regulators have fined Booking €530 million, a significant move for the #hospitality world and the #hotel and tourism sector, especially for smaller and independent #hotels. This action against anti-competitive practices sends a clear message to online platforms (#OTA) about the need for fair terms and conditions. The decision targets Booking's dominant market position, which particularly disadvantages small hotels that have become dependent on platform visibility because they have not positioned themselves digitally accordingly. High commissions and limited pricing autonomy have put many hoteliers in a precarious position, with costs that can reach up to 60%-80% of the GOP, including loyalty programs and preferred partner programs funded by the hotels. Added to this is the loss of their own visibility, customer sovereignty, price sovereignty and important SEO content. This is often no longer economically sustainable for hotels. We are dealing with a broken value chain. This move could set a precedent and lead to a fairer distribution of power in the digital space, rethinking business models and providing more competitive space for small businesses. It underlines the importance of digital independence and offers opportunities to reduce dependence on dominant online agencies. This is the 2nd large win in the EU against booking and the defective OTA value chain. The first win was that rate parity clauses were banned from the EU. The "5 Stages to Success" of rainmaker.travel | 5 Stages of Success | Restoring & Strengthening Hotels Economic Sustainability is a strategy to strengthen digital presence, drive direct bookings and improve economic sustainability. The penalty against Booking marks a turning point for the industry, opening up the opportunity to re-evaluate business practices in the digital tourism market and work towards a fair, transparent and equal opportunity model. A positive step towards a more sustainable and equitable hotel and #tourism industry. ❓ How do you see this development❓ ❓What challenges do you face with the OTAs❓ #hotelmarketing #hoteliers #hotelnews #hotelindustry #hotelrevenue #hotelmanagement #hoteltechnology
- Why is it booking´s responsibility that "... small hotels that have become dependent on platform visibility because they have not positioned themselves digitally accordingly ...". Are booking getting penalised for being "first movers" whilst hotels prefered to pay comision on delivered sales rather than invest in developing a digital possition? - Is there any legislation that prohibits others, including OTAs, form running adverts (including bidding for key words) with our brand name, apart from registering/trademark the brand: a) is this easily enforced? b) will the OTA / retailer not add to the contract that suppliers authorise use of supplier´s brand name? Online advertising (adwords and others) and social media advertising (all of them) are no doubt rejoicing in this opportunity ...
Das steckt booking locker weg, die zahlen das aus ihrer „Trinkgeldkasse“ und machen mit immer neuen Monopoltricks einfach weiter. Vor ein paar Jahren wurde booking bestraft, weil sie Hoteliers mit dem Niedrigstpreis drangsalieren, und was ist passiert? Nüscht! Hoteliers müssen dringend nachholen und sich selbst sichtbar machen, eigene Website, social media und vor allem: Solidarität untereinander! Wer mehr als 20% des Kontingents über booking anbietet, verliert.
Revenue Management Leader – Driving Financial, Technological, and Operational Results for Multi-Unit Hotel Groups
10moAll big hotel companies are still using booking.com, after trying to build their own platform, room key, with all big players involved, which failed. So if the biggest hotel chains can't manage to live without booking, how should small independent hotels survive, which also don't have huge loyalty programmes in the back? Competitive pricing, other distribution channels (which also charge high commissions) and a sophisticated bidding process, eg on Google will help to compensate for Booking.com demand, but on lower rates, less demand and still comparable commission levels.