The hospitality industry has undergone major changes in recent years due to the rise of online travel agencies (OTAs) and the rise of direct online booking platforms. Travelers are increasingly booking websites such as Booking.com, Expedia, and Hotel Brand Portals, raising important questions. Is the hotel sales team still worth it in this digital age? This article examines the evolving role of sales teams in hotels, taking into account the impact of online and OTA bookings, and argues that despite technical changes, sales teams are essential to fostering profits in competitive markets, promoting relationships and differentiating properties.
The rise of online and OTA bookings
The advent of OTAS and online booking platforms has revolutionized the way consumers stay in hotels. Industry reports show that OTAS accounted for around 30-40% of hotel bookings worldwide in 2024, earning direct online bookings via another important part through the hotel website. These platforms provide convenience, price transparency, user reviews, and enable travelers to make informed decisions without interacting with hotel staff. For many budget-conscious or independent travelers, OTAs are the go-to channel due to their ease of use and competitive pricing.
This shift has led to doubting the need for traditional sales teams. After all, when bookings are becoming more and more automated, why invest in HR to perform functions that technology appears to be handling efficiently? The answer lies in the unique value that sales teams bring to specific market segments and the strategic goals that online platforms cannot fully address.
The permanent role of the hotel sales team
OTAs and online bookings dominate leisure travel, but hotel sales teams continue to be important for several reasons.
1. Targeting Groups and Corporate Business
Sales teams are essential to ensure high value group bookings for meetings, weddings, corporate events and more. These bookings often include complex negotiations, customized packages, and long-term contracts not designed to be handled by the OTA. For example, clients from companies planning an annual meeting may need customized proposals, site visits, and negotiation fees. In 2024, Group and Corporate Travel accounted for a significant portion of the hotel's revenue, particularly for full-service and luxury real estate, highlighting the importance of the sales team in this segment.
2. Building and maintaining relationships
Relationships are at the heart of hospitality, and sales teams are great at promoting long-term connections with clients. Unlike OTAs, which prioritize transaction interaction, sales professionals cultivate trust with meeting planners, travel managers and repeat customers. These relationships often lead to repeated business and referrals. This is more cost-effective than attracting new customers through OTA commissions, which ranges from 15-25% per booking. A skilled sales team can secure loyalty from key accounts and ensure a stable revenue stream that the online platform cannot replicate.
3. Reducing direct booking operation and OTA dependencies
OTAs are strong, but high lawyer fees undermine the profit margins of hotels. Sales teams play a strategic role in driving direct bookings by promoting loyalty programs, offering exclusive rates and creating targeted marketing campaigns. For example, the sales team works with the marketing department to bypass OTA fees and provide direct booking incentives to corporate clients. In 2024, hotels invested in direct booking strategies highlighted the value of sales teams to improve profitability and reduce reliance on third-party platforms.
4. Differentiating real estate in a competitive market
In busy markets, sales teams help hotels stand out by showing unique selling points, including specialized equipment, sustainability initiatives, and personalized guest experiences. While OTA offers standardized listings, sales professionals can adjust the pitch to highlight the distinct benefits of the property, especially for niche markets such as luxury travel and boutique hotels. This human element is important to convince clients to choose one property over another, especially when online listings may appear similar.
5. Navigating complex sales cycles
The sales process for group or company reservations often involves multiple decision makers, an extended timeline, and detailed negotiations. Sales teams are trained to navigate these complexities, ensuring that their proposals are tailored to the client's needs and hotel functions. In contrast, OTAs are not equipped to manage such complex sales cycles, making sales teams a key asset to ensure high revenue opportunities.
Adaptation to the digital age
To stay relevant, hotel sales teams need to adapt to a digital environment. This includes leveraging data analytics to identify high-value clients, using customer relationship management (CRM) systems to track interactions, and working with digital marketing teams to increase online visibility. Sales professionals also need to be trained to understand OTA dynamics, allowing them to create strategies that complement online channels while maximizing direct bookings.
Furthermore, the role of sales teams has evolved to focus on strategic partnerships and niche markets. For example, sales professionals may target emerging segments such as remote work retreats and wellness tourism that require personalized outreach that OTAs cannot provide. By aligning their efforts to market trends, sales teams can continue to deliver value in a digital-first world.
Issues and considerations
Despite its value, sales teams face challenges in the age of online bookings. Budget constraints can potentially reduce staff costs by some hotels, particularly small properties, rely heavily on OTAs. Furthermore, the rise of self-service booking tools for small groups could potentially invade traditional sales capabilities. To address these challenges, hotels should invest in training their sales teams to focus on high impact activities, such as delegating daily tasks to technology, such as securing large accounts and driving direct bookings.
The rise of online and OTA bookings has undoubtedly changed the hospitality industry, but the value of hotel sales teams has not diminished. These experts are essential to secure the business of the group and the company, build relationships, reduce OTA dependency, and distinguish real estate in a competitive market. By adapting to digital trends and focusing on strategic and valued opportunities, sales teams can continue to generate revenue and ensure long-term success for hotels. In an industry where personal connections and customized solutions are of paramount importance, the human touch of a skilled sales team is not only valuable, but irreplaceable.
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