Hotel Booking Values and Margins
To find the average booking value for a tourists in various geographies.
- According to Trivago, the hotel price index for several SE Asian cities in November 2019 was: Bangkok ($94), Beijing ($105), Hong Kong ($114), Kuala Lumpur ($56), Manila ($95), Seoul ($108), Shanghai ($127), Singapore ($180), Taipei City ($103) and Tokyo ($158).
- Global data from HotelChamp indicates booking values and margins are higher via direct bookings versus through OTAs.
- TravelDailyNews indicates OTAs' commissions can be as high as 30%, but no regional information was offered. Commissions for chains tends be between 15-30% but can be higher for smaller hotels.
- In an article from only a couple months ago, TTR Weekly indicates commissions rates are "up to 25%". This is an Asia-specific publication. Smaller hotels use OTAs for up 90% of their bookings.
- Bidroom aims to disrupt this by offering no-comissions bookings for the APAC travel market.
- Hotel Bonanza is also adding properties in Asia. It offers a flat 8% commission rate to all hoteliers.
OTAs are predicted to have a 41% market share in APAC by 2020.
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