What Booking.com Was Doing to Gain Market Share While We Were All in Lockdown

What Booking.com Was Doing to Gain Market Share While We Were All in Lockdown



During the pandemic, many hotels have seen their direct sales grow exponentially within their channel mix. Meanwhile, on the sly, Booking.com has also managed to increase its share with almost no resistance. Given the current situation, where many channels are still not appearing and we don’t know if they will be activated this season, Booking.com has become the basket where most of your distribution eggs are stored.

Excerpt from Mirai

During the pandemic, many hotels have seen their direct sales grow exponentially within their channel mix. Meanwhile, on the sly, Booking.com has also managed to increase its share with almost no resistance. Given the current situation, where many channels are still not appearing and we don’t know if they will be activated this season, Booking.com has become the basket where most of your distribution eggs are stored. 

Booking Holdings

This past year Booking.com has worked hard to take that significant share, and many hoteliers have probably helped them with this, more or less knowingly.  How is Booking.com  doing this? In this post we analyze some of the practices implemented by the OTA and how you can compete with them. 

Online Payment or how Booking.com follows in Expedia’s footsteps

If there has been a hot topic among hoteliers over the last five years, it has undoubtedly revolved around Booking.com’s famous virtual cards and their online payment.

Seen as a “non-refundable” charging model, taking advantage of the wish of cash and easing the process to charge customers whose cards were not accepted by the hotel, many hoteliers decided to activate Booking.com’s Online payment model at the cost of a relevant  (and additional) chunk of commission. A brilliant idea until the pandemic “allowed”  Booking.com to unilaterally relax its customers’ non-refundable bookings and all that cash flew away. A warning of what could happen in the future.

In another turn of the screw, hotels  can use Booking.com’s Online Payment to receive prepayment on their  bookings (refundable or non-refundable) and generate some cash. Music to our ears? In reality, what this means is that Booking.com is moving  to the merchant model, charging the booking themselves, and gaining the capacity to undercut prices , playing the old game of net vs. final  prices. In other words, if you play with Booking.com’s Online Payment model, they will play with their margin to offer more attractive rates than your direct channel.:

Booking.com

If you thought Booking.com Basic was already messing up your OTA pricing, you can now add a second programme that moves a little further away from Booking.com’s traditional agency model. In your battle  to control your prices against Expedia, Hotelbeds and other bed banks, you are opening the door to the most dangerous opponent. Are you sure this is the right move?

Click here to read complete article at Mirai.

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© 2021 Hotel News Resource



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