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ONLINE TRAVEL SITES: Hoteliers "can't afford not to deal with them"

Working with online travel sites is like a double-edged sword, according to some hoteliers, who say they feel exploited by the online giants but don't believe they could survive without them.

Working with online travel sites is like a double-edged sword, according to some hoteliers, who say they feel exploited by the online giants but don’t believe they could survive without them.

Their comments come after Aussie entrepreneur Dick Smith described online travel agencies (OTAs) as “leeches” who take up to 30 percent commission from small Australian business owners offshore.

Missed Dick Smith’s V-blog? Click here to watch it.

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Following his lead, small hotel and motel operators around Australia told SmartCompany that they feel obligated to sign contracts which prevent them from advertising rooms online for a lower price because otherwise, their web presence would drown under the online giants.

The operator continued, explaining to SmartCompany that search engines priorities OTAs over a hotel’s actual website because they’re bigger, which makes it difficult for smaller, independent players to be found online.

“It just isn’t a level playing field.”
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Image: rawpixel/Unsplash

Some operators are so concerned by the OTAs dominance that they’ve taken their complaints to Australian Small Business and Family Enterprise Ombudsman Kate Carnell, who described the situation as a “huge issue” to SmartCompany.

She believes that OTAs should follow a legislated code of conduct, similar to that in place for Coles and Woolworths, which prevents them from placing ‘parity clauses’ in their contracts.

“”A clause that stops a business being able to market its own rooms at a lower price than on their own platform is restrictive trade and that’s not okay.”

Kate Carnell, Australian Small Business and Family Enterprise Ombudsman

<< CLICK HERE to read the full story on SmartCompany  >>

 

Do you think online travel sites need a legislated code of conduct?