IMPACT OF ONLINE TRAVEL

AGENT IN HOTEL REVENUE

NAME – SRIYA GOSWAMI

ROLL NO- 60
BATCH – “D”
 CONTENT
• RESEARCH METHODOLOGY
• INTRODUCTION
• OBJECTIVE
• HOTEL DISTRIBUTION CHANNEL
• BOOKING PERCENTAGE
• BENEFITS TO OTA AND HOTEL
• COMMISSION PERCENTAGE TO OTA
• HOW HOTEL REVENUE GET AFFECTED
• HOW TO INCREASE DIRECT BOOKING
• CONCLUSION
 RESEARCH METHODOLOGY
• PRIMARY DATA:-
1. TAJ EXOTICA, ANDAMAN
2. AVASA
3. THE MANOHAR
4. NOVOTEL SHAMSHABAD
• SECONDARY DATA:-
1. HVS GLOBAL HOSPITALITY SERVICES
2. PUBLISHING INDIA.COM
3. LIVE MINT.COM
4. Hotelgix.com
 INTRODUCTION
 A travel agency is a private retailer or public service that
provides travel and tourism related services to the public on
behalf of suppliers such as activities, airlines, car
rentals, cruise lines, hotels, railways, travel insurance,
and package tours.
 There are different opinion regarding the impact of OTA. Some
believe it’s a great marketing tool, while other believe that it
cost the hotel industry lots of money.
 The travel service market in India can be classified as online
and offline. SALES
33.89
% Offline-33.89%
online- 66.11%
66.11
%
 OBJECTIVE
• To study the relationship between hotel and
OTA
• To know how OTA impact on hotel revenue.
• To know advantage and disadvantage OTA to
hotel.
• To know the commission percentage given to
OTA
• Benefits given to OTA.
• Way to increase direct booking in hotels.
HOTEL DISTRIBUTION CHANNEL

HOTEL
 BOOKING PRCENTAGE
TAJ EXOTICA AVASA

OTA-73% OTA 40%

OTHERS - OTHERS
27% 60%
 BOOKING PERCENTAGE
THE MANOHAR NOVOTEL SHMASHABAD

OTA- 40% OTA- 45%

OTHERS- OTHERS-55%
60%
COMMISSION PERCENTAGE TO OTA
• 0-20 guest - 10%
• 21-49 guest - 11%
• 50-199 guest – 13% to 15%
• 200 and above guest – 15 to 25%
• Weekly and weekday commission for e.g (2%)
 BENEFITS TO OTA AND HOTEL
• HOTEL:-
1. Occupancy %
2. Marketing and promotion
3. Increase in booking
4. Group booking
• OTA :-
1. Commission
2. Discount on room rates
3. Meal packages
4. vouchers
HOW HOTEL REVENUE GET AFFECTED?

• Hotels gets badly affected when its come to

revenue because:-
1. OTAs discounted rates in website.
2. Higher percentage of commission.
3. Competitors.
• Advantages would be :-
1. Helpful in slack season
2. Benificial for standalone hotels.
 HOW TO INCREASE DIRECT BOOKING

• Optimize your website

• Incorporate a booking engine into website
• Promote positive guest review in website
• Excite your website with offers and packages
• Offer loyalty program
• Enable booking via facebook
• Give your hotel’s virtual tour
• Enroll for google hotel Ads campaign
 CONCLUSION
• According to my research ,a travel agent is not very
beneficial for 5 STAR hotels .
• Although 50% of business is bought in by a travel agent ,
in return commissions are provided to them , which can
high sometime for stand alone hotels.
• It is currently considered as the most effective way to
extend sale and marketing .
• OTA’S bring new customers for the hotels, but its up-to the
hotel how they can generate the repeat business.
• Hotel should find more effective ways to increase direct
booking.
Visiting card