There is the assumption that larger hotels have an upper hand when compared to the OTAs as a result of their high brand visibility, higher capacity, budget for marketing, and established customers. But small hotels and even homestays can effectively compete against OTAs through proper pricing strategies, good listings, good experience for guests, and online management of the hotels. This is possible with the right strategy.
Create an Attractive OTA Listing
The OTA profile is one of the first things that a prospective guest sees about your establishment. It's crucial that you have high-quality images and descriptions of amenities and rooms because they greatly affect the bookings.
A good strategy for small hotels and homestays would be to accentuate their uniqueness. It might be their serene setting, personal service, local attractions, traditional buildings, home cooking, beautiful views, or their proximity to popular sites. Instead of fighting for lower prices, you should focus on the experience offered.
Use Smart and Flexible Pricing
Pricing is one of the key things that are considered in competitions on OTAs. While bigger hotels have lots of opportunities, smaller places may offer more flexibility in terms of pricing.
Use flexible pricing depending on demand, seasons, weekends, holidays, local events, and patterns of bookings. Do not use only one price all year long. Higher rates may be used in high-demand periods, while in low-demand times you may consider offering good deals.
Managing OTAs in case of homestays is one of the best ways for property owners to control market prices and adjust rates depending on the demand and competition.
Focus on Reviews and Guest Satisfaction
Feedback plays an important role in the performance of OTA. Customers normally compare feedback before making decisions on where to lodge. A small homestay with great feedback can compete quite well with a large hotel that has equal pricing.
You should encourage your happy customers to write authentic feedback after visiting your accommodation. You should respond to feedback positively, whether it is bad or good. The most important thing you should do is utilize customer feedback.
Maintain Accurate Availability
Inadequate updating of information regarding availability and rooms may cause an accommodation to miss out on potential bookings. Problems such as double booking, outdated prices, and inaccurate information regarding the available rooms will be a cause for concern.
Proper channel management for homestay bookings will allow synchronization of prices and inventory across various channels. It will save time and prevent manual errors.
Offer More Than Just a Room
There is just one big strength of small accommodations—personalization. Big hotels might have plenty of amenities, but a homestay will give a more personalized experience.
Think about providing your guests with some unique services like local tips, tailor-made experiences, local cuisine, assistance at the airport or during sightseeing, or any other service that adds value to your business.
Improve Visibility With Consistent Optimization
OTA performance requires continuous attention. Monitor your property's search visibility, booking trends, cancellation rates, reviews, pricing, and competitor activity.
Update photographs and descriptions when necessary and review your promotions regularly. A listing that is optimized today may need adjustments as market conditions change.
Compete Smarter, Not Bigger
Smaller accommodations such as homestays will not require the same budget and inventory management required by larger hotel chains to be successful on OTAs. What is required is a strategic approach to competing on price, offering appealing accommodation listings, providing a great guest experience, having good reviews, and proper availability management.
Effective OTA management for homestays will enable property owners to make the best decisions concerning prices, to be able to manage many OTA sites simultaneously, to increase their online presence, and to capture more bookings.
In Revenue Zone OTA Management, our objective is to ensure that your accommodations become a source of more revenues. This is possible when the right strategies and optimizations are employed.
