Every hotel should be performing a regular analysis of their distribution channels, especially the online channels, including their own website, Booking.com, Expedia and other online travel agencies. It’s important to be aware of the different clientele that each channel is bringing to the hotel. You should know the variances geographically and the type of guests be they business or leisure visitors, families or couples. Also take note of booking lead times for each channel, seasonality, cancellation rates and most importantly, the Cost per Acquisition. All this information will allow you see how each channel affects your bottom line. One of the most important aspects to look at is how the OTA’s affect the bottom line – i.e. how much does a booking cost from each channel and the impact this has on the profit you are making from this sale. OTA commissions vary between 15% and 23%, so when looking at your ‘Direct’ business, event after you add the cost of your marketing strategy to the commission paid on your website, these costs should still be lower than your OTA commission. Get the full story at Net Affinity