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STAAH Blog

  • Home
  • MANAGEMENT
    • Why Every Hotel Needs a Channel Manager…

      Program Konsorsium Hotel: Bagaimana, Mengapa & Berapa…

      โปรแกรม Hotel Consortia: อย่างไร ทําไม และค่าใช้จ่ายเท่าไหร่?

      ตัวจัดการช่องทาง Channel Manager คืออะไร และทำไมผู้ให้บริการที่พักจึงจำเป็นต้องมี?

      The Top Traits of Exceptional Hospitality Professionals

  • Marketing
    • Smart Hotel Distribution: What Every Hotelier Needs…

      The Ultimate Guide to Turning Negative Reviews…

      6 Social Media Trends Hoteliers Must Leverage…

      ไอเดียโพสต์โซเชียลมีเดียที่กําลังมาแรงสําหรับโรงแรมในปี 2025

      Xu Hướng Nội Dung Mạng Xã Hội…

  • Tips & Trends
    • Smart Hotel Distribution: What Every Hotelier Needs…

      Maximizing Hotel Revenue: Advanced Channel Manager Strategies…

      The OTA Balancing Act: How a Channel…

      Tapping into Wellness Tourism: A Hotelier’s Guide

      Overcoming common challenges in channel management for…

  • News
    • Cloudbeds and STAAH partner to enhance channel…

      STAAH Achieves Prestigious Seamless Product Badge from…

      STAAH Product Updates You Can’t Miss –…

      Thoughtful Thursday – Reporting for Properties: Converting…

      Thoughtful Thursday – Matrix – Revenue Control…

  • Success Stories
    • The Komu Boosts Direct Revenue by 25%…

      Online Revenue Jumps 50% for Mangkuluhur Residences…

      23% more online bookings for Vivatel Kuala…

      STAAH boosts Indonesian resort’s direct bookings by…

      Nova Express Pattaya expands online visibility with…

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    • All BLAAH BLAAH @STAAH Connectivity News e-Books Events Podcast Quiz Testimonials Webinars

      Connect with Expedia – Expand Your Reach…

      Alexa+ could earn “top-of-the-funnel” spot in travel…

      STAAH & Hotelbeds: A Powerful Partnership Driving…

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Zero Commission by an OTA! Really?

27 September 2018
go image

It’s true what you read. Go-MMT offers zero commission rates to its hotel partners. Here’s everything you need to know about it.


What Is Zero Commission Rate?

This is a plan introduced by Go-MMT, India’s largest online travel agent (owners of MakeMyTrip and Gobibo).

In an effort to support its hotel partners and drive greater value, the travel giant has introduced a feature that waves off their commission on last-moment bookings. These include all bookings for today and tomorrow’s check-ins. Not only does this help hotels sell their proposition at the best possible rate, but it also lowers the cost of distribution for the hotel partner.

What’s the Need?

An increasing number of consumers are booking their travel online thanks to rapid digitalization. It’s not news anymore. But, this rapid digitalization has also given rise to increased competitiveness. Properties around the world want to make their presence felt in this buzzing online space.

To stand out, hotels need to give themselves an edge over others. The zero commission rate is a way to give properties this edge, allowing properties to put out the best possible rate to their prospective customers.

Why Offer Zero Commission on Last Minute Check-Ins?

The modern traveler tends to explore multiple options before booking accommodation. In some cases, they even bid for the best hotel rates online.

These trends have prompted MakeMyTrip and Goibibo, along with the hoteliers from the industry, to try and offer the best possible price on a daily basis, which is expected to be lower than the regular rates. This rate can be run by the hotelier for up to 30 days from the date of sign-up, with a recurring feature, and is applicable only for today and tomorrow’s check-ins.

Numbers Do the Talking…

 Here’s a dip into how the zero commission rate helps bring down distribution costs.

Zero1

Zero2

What Benefits Do Hoteliers Get to Reap?

Hotels that have used the zero commission rate feature have witnessed a tremendous upside in bookings. 22% of hotels that are using it have seen an upside of 110% in their overall room night productivity, and have also seen their overall revenue generation shoot up by a whopping 135%, on a month-on-month basis.

The biggest advantage, however, has been the reduction of effective commission by 4.5%.

quote 1

 

Download the ingoibibo app now by scanning the QR code below.

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Zero Commission by an OTA! Really? was last modified: October 26th, 2022 by staah

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