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Why Offering Local Tours and Activities Is A Huge Revenue Opportunity for Hotels

Starkov In many cases hotels have been using trusted local operators for many years now. Locals unite: local properties can connect to local operators on an emotional level, as local business operators, something that is completely absent in any big OTA-small operator relationship. How can hoteliers make money from local tours and activities? By positioning the property as the "hero of the destination", hotel marketers will make the hotel more attractive thus increasing occupancy, an indirect revenue effect. In the same time, there is a strong direct revenue benefit for hoteliers: Bundling local tours and activities with hotel accommodations: city tour, family, museum, theater, shopping and weekend packages, girls and romantic getaways, etc. Referral fees and commissions from sale of local operators' tours and commissions. Hoteliers can easily negotiate a reasonable commission for offering a local operator's tours and activities: advance sales, at the front desk and by the concierge. Typically, the OTAs are charging local tour and activities operators commissions to the tune of 20%-35% to enable and sell their offerings on the OTA online platforms, so there is plenty of room for negotiating a fair reward for the hotel. Action plan for hotels to launch local tours and activities: Hoteliers are uniquely positioned to offer tours and activities and work closely with fellow local business operators.

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