Disintermediation is a term used in the banking/trade world and not commonly heard in the every-day language. What does it mean? It literally means eliminating intermediaries, thus weakening the role of mediators and … who are the mediators in the hospitality sector? Obviously travel agencies, tour operators and real estate agencies that generate bookings for hotel in exchange for a commission.
In the world of online agencies (OTA) Airbnb, for example, collects a 3% commission from owners and 8% from travellers; Booking.com instead does not charge commissions to travelers, so the intermediation service is to be paid exclusively by the operator, who has the option to increase the fee paid to the agent in order to increase the property visibility on the platform.
In order to improve its competitiveness and reduce the importance of the role of agencies, a good accommodation structure should never produce more than 50% of bookings through brokers. To achieve this result, you need to create your own strong identity and focus on the relationship you create with your clients.
By creating an identity, a brand and an own image, the property can be marketed autonomously in order to avoid the risk of having sales monopolized by the travel agents. This strategy will reduce the cost of commissions and allow you to progressively increase rates. Throughout this process it is necessary to distinguish between what we want to achieve and what to do in order to hit the target. The first purpose of the disintermediation strategy is to obtain a competitive advantage that can be used to offer better rates to customers.
To be clear, a good direct marketing has to allow the traveler to book your property without paying commissions, thus saving on the cost of mediation. A good indicator to measure your disintermediation level is certainly the number of direct enquiries and requests you receive each day. In the digital environment, it could be email, but more and more requests nowadays come through social media and chat rooms, while in the traditional market, local customer calls provide the feedback.
This parameter is to be kept in mind because it offers a guide on the quality of direct marketing. If you do not receive at least 4/5 enquiries a day, it means that this area needs to be completely redesigned.
Andrea Angius – Founder of the brand Holiplanet – Affitti a Breve
Author of Best Seller book “Make Money with Airbnb”
Over 60% of travel, flight and accommodation reservations are nowadays done online. The remaining 40% continue to book in the traditional way by contacting to travel agencies, large tour operators or simply using the old dear word of mouth. The percentage of online bookings is set to grow as well as the number of accommodation […]
Let’s go back in time 20 years; it’s the end of the 90s the New Economy’s funeral is organized and everyone is panicking with the dot.com bubble scandal. If we think about the impact of technology and the socio-economic dynamics of recent years, we quickly realise that there was no such funeral… Since the end […]
Here’s a brief guideline on how to get around Phuket as a true islander! Discover the Dim Sum, Gai Tod with Kao Niao and much more…
Just arrived in Phuket? Here some tips for you. Depending on the time of day and where you are heading, the transport to your hotel can take from 10 minutes to 2 hours, so it can be much less stressful to stay in a location that is closer to the airport. Prepare to spend 10/15 minutes in the taxi if you are heading to Nai Thon, Layan, Bang Tao and up to 1 or 2 hours if your final destination is Patong, Kata, Karon, Rawai or Nai Harn.
Why Thais celebrate the new year in April? The first day of Songkran is National Elderly Day. There are many rituals at schools at temples… children pay respect to older people pouring fragrant water into the elders’ palms as a gesture of humility.
In tropical waters you can easily spot coral reefs and colourful fish by simply putting your head in the water. With a snorkel set it certainly becomes more exciting, but the ultimate experience is without a doubt Scuba Diving.
Fancy a trip to Phuket Town? Phuket Town is often overlooked as the island main attractions are the beautiful white sandy beaches which you can find all along the west coast, but you’ll be surprised to find there’s a lot to see on the east coast too.
Ever dream of quitting work, renting out the family home and taking off to explore the world long-term? It’s a step that plenty of parents would love to take but the thought of planning such a mammoth trip can be daunting – especially when it takes all your energy just to get the kids out the door.