Tony Ryan, one of Asia-Pacific’s leading hospitality industry lawyers, believes that Online Travel Agents are “lazy business” for hotels, implying that accommodation operators should be working harder to drive higher-yielding direct bookings.
“There is a view that OTAs are lazy business and ‘why should I pay Expedia 25%?’,” he told delegates at a Bali hotel investment conference.
This attitude means many owners now choose go with international hotel brands that have global OTA agreements with commission rates of 7% to 8%.
“I think as an owner a big issue is what is the level of OTA business and it should be a Key Performance Indicator (for management).
“I do think it (OTA) is lazy business.”
Mr Ryan has been involved in many major hotel transactions over the past few years, acting on both the buy and sell side – see background.