Direct selling vs. touroperation, strategies for model transformation

Touroperation

Are we missing a golden opportunity by relying on TTOOs?

A few months ago, GuestPro 's revenue management team implemented a strategy aimed at reducing the dependency on touroperation of some of our clients, holiday hotels. The objective was clear, not to be overly dependent on third parties and to have a stronger control over their assets.

In a destination such as Menorca, for example, we found that at the time of implementing this revenue management strategy, many of our clients had been heavily dependent on TTOOs for years.

The reasons for this? They could be summarised as follows:

  • I secure the sale
  • I save work
  • I thought that "the sooner I sell, the better".
  • I was attached to a system

What is the GuestPro MR team doing to reverse this trend?

Once we have detected what our clients are doing and the problem it means for their profits, our revenue management team designs a transition strategy towards a new model. This new model that GuestPro is committed to is based on three main aspects:

1- Closing quotas:

Firstly, we determine when is the ideal time to close sales and achieve higher profits. In this sense, we stress the importance of NOT being afraid to close them, something that happens frequently among our clients.

2- Demand:

Undoubtedly, it is essential for our strategy to have a thorough knowledge of the demand on the market. This is the one that should always be in command in our sales strategy: What is happening in our destination? What are the most popular dates?

Based on this demand, we detect and act when to sell through TTOO and when not to.

3- Guarantee:

Finally, we are going to reduce our dependence on guarantees, with the aim of eliminating them altogether. This is the best way to take control of what is most convenient for us at any given moment. Without fear and with the conviction that this is the best way to promote direct sales.

directa vs touroperacion


Successful case

During the last 2022 season, we have carried out this strategy with some of our holiday clients, obtaining great results.

This is the case of a group of flats in Menorca that had a price difference that could reach 180 € vs 70 €.

This means that the price of the same room sold to the tour operator or directly from their accommodation website could reach these very different figures.

After applying our strategy in holiday hotels with long experience in TTOO, we have seen how they have increased their direct sales and increased their profits by 20-40%.

The ultimate goal of this strategy is to continue along these lines in order to reduce the dependency on touroperation as much as possible.


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