Booking.com's recent decision to lift its wide and narrow price parity rules is a game changer for independent hotels in South Africa.
For many small accommodations lacking dedicated teams to handle tasks like advertising, reservations and the digital guest journey, relying on online travel agencies (OTAs) has been a convenient solution. According to RoomRaccoons South African Summer Hospitality Report 2024 , OTAs like Booking.com drove 42% of all bookings in the past summer season. However, this convenience often comes at a steep price as commission fees can significantly eat profit!
While OTA giants like Booking.com remain essential for boosting visibility and attracting global travellers, removal of the rules allows hoteliers to set competitive pricing against OTAs.
Heres how hotels can capitalise on their newfound freedom and increase direct revenue:
- Enhanced online presence can increase commission-free direct bookings Its important that hotels can provide the same level of booking experience as an OTA. According to Skift, only 64% of hotels globally have a booking engine, leaving 36% unable to capture direct reservations online.
Hotels wanting to decrease dependence on OTAs and increase revenue need the right tools. An optimised website and integrated commission-free booking engine with high-quality images and well-managed descriptions can greatly increase a property's attractiveness. However, offering real-time availability, secure payment processing and instant confirmations can be a game changer in converting lookers into bookers.
