This document summarizes the key points from a presentation about the hidden costs of outsourcing sales and marketing to online travel agencies (OTAs). It discusses how data and personalization can drive higher conversion rates and loyalty. It presents a framework called the "Royal Court" that emphasizes putting content, customer experience, and data to work to recover revenue lost to OTAs. Engaging guests through social media and collecting their information are presented as ways to activate a "Secret Sales Force" to increase direct bookings and sales. The document estimates that a typical property could be losing over $770,000 in annual revenue by not implementing these strategies to overcome the hidden costs of OTA dependence.

1. W W W . T I M P E T E R . C O M
The Hidden Cost of Outsourcing
Sales and Marketing to OTAs
September 2023
Triptease Direct Booking Summit

2. |
These are the “good ol’ days…” your best year ever
© 2023 | TIMPETER 2

3. |
OTAs Aren’t Evil… Really
© 2023 | TIM PETER & ASSOCIATES 3

4. |
They Are Expensive: The Hidden Costs
© 2023 | TIM PETER & ASSOCIATES 4
Data drives personalization: 97% of ”digital first”
travel companies; 42% of “traditional” hospitality
Personalization drives conversion +5% - 40%
Conversion drives loyalty

5. |
Repeat After Me: “Google is a Paid Channel”
© 2023 | TIM PETER & ASSOCIATES 5

6. DATE DESCRIPTION CHARGES
12Sep23
Didn’t drive direct booking
($149 ADR x 1.5 LOS x 18% margin)
$40.23
Card # VIXXXXXXXXXX1234/XXXX
Balance $40.23/res
LOST REVENUE FOLIO

7. |
The Conversion Myth
© 2023 | TIM PETER & ASSOCIATES 7
250 Rooms 100 Rooms 50 Rooms
Site Visitors 1,000 750 650
Rooms booked 250 100 50
Conversion Rate 25% 13.3% 7.7%

8. |
RevPAR Matters More Than Conversion Rates
© 2023 | TIM PETER & ASSOCIATES 8
250 Rooms 100 Rooms 50 Rooms
Site Visitors 1,000 750 650
Rooms booked 250 100 50
Conversion rate 25% 13.3% 7.7%
Occupancy 100% 100% 100%
Pay attention to “relative conversion rates;” is yours growing or declining

9. |
Guests Shop Value: Mind Your Ps & Qs
© 2023 | TIM PETER & ASSOCIATES 9
Price
Proximity
Quality
P
P
Q
Qualities
Q

10. |
Think “Value,” not “Price"
© 2023 | TIM PETER & ASSOCIATES 10
Guests remain optimistic about travel
“Best prices” is not the same as “lowest prices”
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
"Very Concerned"
Overall Economy Personal Finances

11. |
Winning Strategy: “Backyard and Bundle”
© 2023 | TIM PETER & ASSOCIATES 11
Upsell and cross-sell to connect with
guest’s “second wallet” + more data
Offer packages and ”exclusive
experiences” to drive increased value
”Free WiFi,” “Free parking,” “Free
breakfast,” “X for Y” drive conversions

12. DATE DESCRIPTION CHARGES
12Sep23
Didn’t drive direct booking
($149 ADR x 1.5 LOS x 18% margin)
$40.23
12Sep23
Didn’t drive extra amenities or upsell (Average upsell/cross-sell value
of $35 @ 20% take rate)
$7.10
Card # VIXXXXXXXXXX1234/XXXX
Balance $47.33/res
LOST REVENUE FOLIO

13. |
The Royal Court Framework
© 2023 | TIM PETER & ASSOCIATES 13
Content is King Customer Experience is
Queen
Data is Your Crown
Jewels

14. |
Content is King
© 2023 | TIM PETER & ASSOCIATES 14
Content is cheap
“Think global, act local”

15. |
Hotel Name
•Variants
•NAP+W
•Amenities Offered
(“Hotel with pool,”
“Hotel with free
parking,” “Hotel with
free breakfast”
Hotel + Location
•City
•State/Province
•Geographic Area
("Downtown," "Historic
District")
Hotel + Proximity
•Major attractions
•Parks
•Sports
•Historical Sites
•Businesses
•Universities/Colleges
Events
•Holidays
•Major Sporting Events
•Conventions/Trade
Shows
•Festivals/Concerts
Think Proximity and Qualities for Guest Content
© 2023 | TIM PETER & ASSOCIATES 15

16. |
Content in Practice
© 2023 | TIM PETER & ASSOCIATES 16

17. |
Customer Experience is Queen
© 2023 | TIM PETER & ASSOCIATES 17
Personalization starts with a person
Personal experiences drive loyalty
Unleash “your secret sales force”

18. |
Your Secret Sales Force
© 2023 | TIM PETER & ASSOCIATES 18
Value
Guests per night (150 rooms; 60% occupancy; 1.4 guests/rm) 126
Guests per year (guests/night x 365) 45,990
Average social connections 200
Potential audience 9,198,000
10% share 919,800
10% see it 91,980
1% convert 920
Effective Lift (@ $148 ADR) $137,089

19. |
Social Proofs Sell Properties
© 2023 | TIM PETER & ASSOCIATES 19

20. DATE DESCRIPTION CHARGES
12Sep23
Didn’t drive direct booking
($149 ADR x 1.5 LOS x 18% margin)
$40.23
12Sep23
Didn’t drive extra amenities or upsell (Average upsell/cross-sell value
of $35 @ 20% take rate)
$7.10
12Sep23
Didn’t engage Secret Sales Force
(Instagram ad for 1 day to reach 90,000 people)
$17.86
Card # VIXXXXXXXXXX1234/XXXX
Balance $65.19/res
LOST REVENUE FOLIO

21. |
Teach Guests to Search For You By Name
© 2023 | TIM PETER & ASSOCIATES 21

22. DATE DESCRIPTION CHARGES
12Sep23
Didn’t drive direct booking
($149 ADR x 1.5 LOS x 18% margin)
$40.23
12Sep23
Didn’t drive extra amenities or upsell (Average upsell/cross-sell value
of $35 @ 20% take rate)
$7.10
12Sep23
Didn’t engage Secret Sales Force
(Instagram ad for 1 day to reach 90,000 people)
$17.86
12Sep23
Guest didn’t book direct on return
(TRevPAR of $238.22 x 10% return rate)
$23.82
Card # VIXXXXXXXXXX1234/XXXX
Balance $89.01/res
LOST REVENUE FOLIO

23. |
Data is Your Crown Jewels
© 2023 | TIM PETER & ASSOCIATES 23
Data fuels personalization
Personalization drives conversion
Data: Broaden your definition of conversion

25. DATE DESCRIPTION CHARGES
12Sep23
Didn’t drive direct booking
($149 ADR x 1.5 LOS x 18% margin)
$40.23
12Sep23
Didn’t drive extra amenities or upsell (Average upsell/cross-sell value
of $35 @ 20% take rate)
$7.10
12Sep23
Didn’t engage Secret Sales Force
(Instagram ad for 1 day to reach 90,000 people)
$17.86
12Sep23
Guest didn’t book direct on return
(TRevPAR of $238.22 x 10% return rate)
$23.82
12Sep23
Didn’t collect email address
(Average email value ~$5-$25)
$5.00
Card # VIXXXXXXXXXX1234/XXXX
Balance $94.01/res
LOST REVENUE FOLIO

26. DATE DESCRIPTION CHARGES
12Sep23
Didn’t drive direct booking
($149 ADR x 1.5 LOS x 18% margin)
$40.23
12Sep23
Didn’t drive extra amenities or upsell (Average upsell/cross-sell value
of $35 @ 20% take rate)
$7.10
12Sep23
Didn’t engage Secret Sales Force
(Instagram ad for 1 day to reach 90,000 people)
$17.86
12Sep23
Guest didn’t book direct on return
(TRevPAR of $238.22 x 10% return rate)
$23.82
12Sep23
Didn’t collect email address
(Average email value ~$5-$25)
$5.00
Card # VIXXXXXXXXXX1234/XXXX
Balance $94.01/res
Annual cost to your property @ 8,213 reservations $772,057.13
LOST REVENUE FOLIO

27. |
The Hidden Costs: Key Takeaways
© 2023 | TIM PETER & ASSOCIATES 27
Data and loyalty drive conversions
Data and loyalty represent the hidden
costs of outsourcing to OTAs
The Royal Court and your Secret Sales
Force help you recover those costs
1
2
3
4
Demonstrate value and drive conversion
in every guest interaction

28. Thank You

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