DICK SMITH IS ON THE MONEY ! !

Motel Mingle Forums Online Bookings DICK SMITH IS ON THE MONEY ! !

This topic contains 18 replies, has 4 voices, and was last updated by  howie 2 months ago.

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  • #8791

    TIDYWAZZA
    Participant

    Please view the video below & pass it around. He has our best interests at heart. Good on you Dickie !

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  • #8819

    TIDYWAZZA
    Participant
    • Topics Started 8
    • Replies 82

    Looks as if most of us have similar thoughts on this subject. It does irritate me no end that OTA’s are using our commissions to discount our prices online. Are they then thumbing their nose at the price parity ? ? I am going to increase my advertised Expedia only prices by a few dollars just to see what reaction I have from them. If it comes to a hardball conversation between us my argument will be they are making me noncompetitive in the market place. It is a pity we cannot just get on with business without all the BullShysta from OTA’s.

    • #8821

      howie
      Participant
      • Topics Started 3
      • Replies 61

      We have had our own website set to 12% cheaper on all of the OTA`s for the past 2 years , not had a word from them , might be different if you are part of a chain , but if you are an independent they are less likely to be worried about mum and dad operations in regional australia

    • #8820

      MVM
      Participant
      • Topics Started 10
      • Replies 51

      With the expedia discounting –
      Direct price $90
      Booking.com $94
      Expedia $98

      Reason for the big jump for expedia.. They use to be $94, but they discounted to $89, so upped it to $96 then after a week or so they discounted back to $89, Upped to $98 and they have not gone below $94 with their discount.
      Everytime they go lower then my ota price of $94 i up it to whatever takes it back to it.
      Funny thing is, it randomly shows the lower price to random people. I can do 2 searches for the same dates and same rooms on expedia for my motel – 1 time it says $94 another it will say $98… Domestically it’s random, overseas (USA) They get the discount 100% of the time, so i assume they make extra with the currency conversion.

      • #8823

        MVM
        Participant
        • Topics Started 10
        • Replies 51

        I should also say that we are a 3 motel town.
        On booking.com we are ranked 1 out of 3 on their ranking page, highest reviewed and highest scored out of all of them. Yet when you do a search we show up at the bottom and the 3rd ranked motel comes up 1st. This is purely because our rate is slightly higher on booking.com and we quite often do not give them all our inventory.

        I’m ok with that since there is only 3 motels so no big deal scrolling past another 2 to see us.. But for those towns where there are heaps of motels i’d be a bit more concerned.

  • #8814

    Paul
    Participant
    • Topics Started 24
    • Replies 76

    100% on that! Imagine, let’s just say Booking.com as an example, and they get an average of 15% off each motel room sold through them. Australia has, I believe, approximately 2,000 small motels with an average of 16 rooms. Let’s assume that Booking.com has 40% of the OTA business and the average cost of a room , per night is $120.00

    15% of $120.00 is $18.00
    40% of 16 rooms is 7 rooms
    7 x $18.00 is $126.00
    2,000 motels x $126.00 = $252,000……..PER DAY!

    I realise that there are a lot of assumptions in my calculations, but still, it’s a frightening thought….

    • #8822

      MVM
      Participant
      • Topics Started 10
      • Replies 51

      I should also say that we are a 3 motel town.
      On booking.com we are ranked 1 out of 3 on their ranking page, highest reviewed and highest scored out of all of them. Yet when you do a search we show up at the bottom and the 3rd ranked motel comes up 1st. This is purely because our rate is slightly higher on booking.com and we quite often do not give them all our inventory.

      I’m ok with that since there is only 3 motels so no big deal scrolling past another 2 to see us.. But for those towns where there are heaps of motels i’d be a bit more concerned.

      • #8825

        howie
        Participant
        • Topics Started 3
        • Replies 61

        Another reason you can be pushed down the order is that the other motels can pay more commission , which is a setting in the booking extranet. Or as simple as changing the price of rooms , they will notice this and highlight it in the searches panel

    • #8815

      howie
      Participant
      • Topics Started 3
      • Replies 61

      Probably being a bit pedantic but booking.com charges 12% and most motels dont get $128/night , I say that because we have been looking to buy another motel and we have looked everywhere and most motels in populated areas are lucky to be getting just over $100.00 / night and lots arent even close to that.

  • #8813

    TIDYWAZZA
    Participant
    • Topics Started 8
    • Replies 82

    Yes, not altogether correct but a step in the right direction. Exposing the OTA bandits to the public in any fashion has to be beneficial to us as operators.

  • #8812

    Paul
    Participant
    • Topics Started 24
    • Replies 76

    The only thing Dick Smith stated incorrectly (on his video on Current Affair) is that he said “Go to the motel directly. It may cost you $10 more or so but they’ll often throw in a free breakfast or something”

    Do your research Dick, it’ll cost you LESS if you book direct with us…..

    • #8816

      MVM
      Participant
      • Topics Started 10
      • Replies 51

      Dick first said something along the lines of mention the video and i’m sure the motel will discount it for you by 10%. He softened that as then people expected that the discount should reflect the commission paid and then also because of the pricing parity laws with online pricing – so he changed it to be about getting value addons etc instead or just matching the price.

      My personal opinion and what i’ve been commenting on facebook is that ask the motel to match the price or beat it. Not just remove the commission pricing.
      Not many of us add the commission on to the price because to get the same nett rate you’d have to add about 30% ontop.. (i haven’t done the math)… So for most places they either match it or like me, beat it by a few dollars.

      What i don’t understand is why family run motels (not your big franchise ones) don’t offer either the same price or better pricing then online when you book direct either over the phone or via email (we are allowed to do that!!)
      I recently enquired to a motel about staying 3 nights – Like alot of people i looked online and found the best price was on booking.com for $120p/n. Emailed motel and enquired and they quoted $150p/n, same room type, same occupant numbers. I hit them up and said it was $120 on booking.com, their reply was that they weren’t responsible for what prices were on booking.com…. I went back and said that i run a motel and know you set the prices on booking.com and that they take 12%. Also said more than happy to pay the $120 if booking direct with them but when it’s $90 dearer to book direct that i wasn’t going to book. Usually in this case i would book through booking.com, but i chose not to stay at that motel just because they were obviously gouging direct customers to pay for their online customers commissions!

      I tell my guests all the time when trying to educate them on booking. Look at the sites, ring/email motel, get them to price match or beat the price (without negotiating) but if they don’t at least match it then just book with booking.com!

      I seriously don’t understand sometimes.

      • #8818

        Paul
        Participant
        • Topics Started 24
        • Replies 76

        Have to agree MVM. I seriously don’t understand motels that won’t at least match or better the online price. As managers we always tell our guests to have a look on line and then phone direct.
        I had a similar experience to yourself at a central Queensland motel. This was a large 56 room motel and I was a ‘walk in’ for them. The motel was obviously quiet (out of season) and I asked the price of the owner/manager and his reply was $150.00 per night. I told him that the online price was $125.00 and that as a motel manager myself I’d rather pay the motel direct and save them some commission also. His reply? “Take it or leave it, it’s $150.00 a night”

        We left it…..

  • #8805

    MVM
    Participant
    • Topics Started 10
    • Replies 51

    No chance of ever getting it knocked down – All contracts since 2015 are 15% – A motelier in Holbrook (our landlord) has now been charged for 6months @ 20% even though contracted at 15%. She has been fighting it ever since. Can’t afford to take it offline, she’s just hoping that she gets it knocked back down and reimbursed.

    Google is a very complicated business. Did you know, that if you show up on page 1 directly after the OTA’s that for another person your site may be on page 6. So don’t always assume people will find you on page 1.
    It tracks the users usage and will manipulate the search results depending on that persons usage.

    We add $3 for booking.com and $8 for expedia (cause expedia are using their commission to discount the rooms and undersell us)
    HOtelscombined will send the user directly to your very own website to book but they will take a commission of 14%

    Adding a few dollars has deranked us on the OTA’s. We are ranked #1 where we are but when you search us on booking.com we usually come up at the bottom of the list. This is purely because of the price difference. I also read an article this year saying that booking.com and expedia have started delisting properties in the USA due to breaching the price parity clause. Eventually it will happen here.

    Remove the parity clauses, like germany and france and others already have, where they have seen a 29% fall in the OTA’s brand, allow the direct sellers to severely undercut them – Get it out in the media that hotels are cheaper to book direct, like Dick has raised awareness (and he has, it’s in all the major newspapers and was on all the news reports)

    I had a previous guest who has stayed with us several times email me 2 days ago the following, out of the blue and isn’t even on facebook to see my post (i’ve pasted it below).

    Hi MVH
    Sending to you fyi – just spotted this. I had no idea, I’ve always booked through wotif and feel ashamed, I’ve always thought I was conscious of the effects of big business by always buying the expensive milk, not buying no name brands etc, just never related it to hotels..
    Never again
    Kind regards
    Helen

    http://www.theguardian.com/travel/2018/sep/15/australians-told-to-call-hotels-rather-than-rely-on-booking-sites-for-cheaper-rates

  • #8800

    MVM
    Participant
    • Topics Started 10
    • Replies 51

    Booking.com is 12%

  • #8799

    MVM
    Participant
    • Topics Started 10
    • Replies 51

    Expedia group is 15%
    Some people are paying upwards of 20% with expedia group now. Depends on when you signed.
    ACCC need to remove pricing parity – Raise prices on OTA’s and lower prices direct – People will learn.

    • #8802

      howie
      Participant
      • Topics Started 3
      • Replies 61

      We have been with expedia group for 6 years and we pay 12% , Maybe a call to the account manager is in order as we did . Just tell them, that all the motels you talk to are paying 12 % not 15%
      We have our own website prices set 12% lower than the otas but it doesnt seem to make any difference to the public. As i said our website comes up on the first page all the time but they don`t bother.
      So i like to have fun with them now
      So if they make a booking on an otas then ring soon after i just tell them that we dont have the booking and they will have to contact the ota direct , the funny thing is sometimes they get so fed up with the ota they then cancel and book direct

  • #8794

    MVM
    Participant
    • Topics Started 10
    • Replies 51

    Yep, 100% – we quite often share this video regularly as well The Checkout
    But here’s my post i shared on our facebook business page

    Great video to watch and Dick Smith Fair Go Dick Smith Foods is 100% correct in everything he says in it.

    $30000 is how much we’ve paid in the last 12months. That’s nearly 5 bathroom renovations. That’s all new large screen TV’s in the rooms with netflix subscriptions, that’s sealing the carpark, that’s installing new carports – But NONE of that has happened.
    Another great video that we have quite often shared is this one here https://www.youtube.com/watch?v=FfkGVC1DF9s

    All your booking websites are owned by 2 companies. Priceline and Expedia! We have always been cheaper to book with us then with any of the OTA (online travel agency) But people just don’t seem to look any further than the OTA. We’ve had people call up seconds after booking with an OTA asking if we received the booking and everything was ok? We shake our heads.. We can’t tell them to cancel and save money because then the OTA punish the business and removes them from the rankings.. Dick is right – it’s flat out extortion. They charge 15% commission, but what they do then is use YOUR commission TO DISCOUNT THE ROOM MORE! So 15% they take off us and then discount the room another 10% and they get the 5%.. It is truly hypocritical that there is parity clauses but they aren’t subject to the same parity clause. Apart from their own website, they do absolutely nothing else – They do nothing for the motel, they do nothing for you.. All they are doing is taking money away from Australians and are the one and only reason why accommodation costs HAVE GONE UP!
    Anyone that books with us directly we WILL guarantee the cheapest price then anywhere else for the same room and same dates – ALWAYS HAVE!

    Priceline owns the following
    Booking.com, Priceline.com, Agoda.com, Kayak.com, Cheapflights, Rentalcars.com, Momondo, and OpenTable

    Expedia owns the following
    Expedia.com, Hotels.com, Hotwire.com, CarRentals.com, CheapTickets, trivago, Venere.com, Travelocity, Orbitz, and HomeAway Travelscape, Vacationspot, Classic Custom Vacations, Metropolitan Travel, Newtrade Technologies, Activity World, Egencia, Venere.com Mobiata, VIA Travel, trivago, Wotif, Travelocity, Orbitz, HomeAway

  • #8792

    TIDYWAZZA
    Participant
    • Topics Started 8
    • Replies 82

    Yes I forget the video link to Dick Smiths’ support. Sread it around …

    • #8798

      howie
      Participant
      • Topics Started 3
      • Replies 61

      MVM , i agree with nearly all you say . But we only pay a max of 12% to the ota`s. Who do you pay more than 12%? I understand you can choose to pay them more if you want to , which in turn will move you up there website, presumably getting more bookings.
      If we want to tell the public about the Ota`s we need to be factual and not stretch the truth.
      We are choosing to spend less on our own advertising and let the ota`s do the advertising for us.
      We are in a small town which only has 3 motels. So when you do a web search we come up on the first page, just under the ota`s , so it tells us that the public do not want to use direct bookings , so I take the view now that if they are to lazy to click on our website only just under the ota or ring direct then let them pay extra , we just put our price up a bit.
      We do tell them when they arrive that it is better to book direct but they don`t seem to care
      I don`t know what the answer is

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