Hospitality eBusiness Strategies

Channel Comparison Calculator

Hotel Booking Channel Comparison Calculator

Directly Compare Revenue from Hotel Websites to OTA Bookings

Not all bookings are created equal.

HeBS Digital, the leading hospitality Internet marketing firm and hotel web design team, estimates that for the hospitality industry in North America, direct online channel contribution in 2010 will be 60% vs. 40% for the indirect online channel.

Why should hoteliers care where their Internet bookings come from? The following Channel Comparison Calculator clearly illustrates the cost effectiveness of the direct online channel. Just fill out the table below, and discover how much your bottom line is positively affected when you focus on driving bookings directly on the hotel website and benefit from our hotel marketing ideas and initiatives.

Channel Comparison Calculator

Channel calculator results are based on single property numbers of $20,000 initial development fees, $17,000/year in operations and marketing fees and marketing spend of $18,000 per year. If your property does not meet these spend requirements, please contact HeBS Digital for a personalized calculation.

 

Here is a case study clearly showing the true cost of distribution via the OTAs:


A Full-Service Hotel in Washington DC

 

OTA

Hotel Website

BAR (Best Available Rate) - 2 nights

$400

$400

Deal Face Value

$400

$400

Third-Party Commission

25%

0%

Net to Hotel

$300

$390

Cost of Reservation

$100

$10

Cost as Percentage from BAR:

25%

3%

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