Yesterday we spotted TechCrunch’s write up about DreamCheaper: could it become the hotel industry’s most hated start-up? We’ll be honest – we found the article as we were mentioned, but it got us thinking about what this Berlin-based start-up might mean for the industry.
Some of the hoteliers we speak to tell us about how they try to encourage bookings on their sites vs. OTAs. Often, not asking for credit card details drives up direct bookings as there is a lower cost at the time of booking but comes at the risk of no-shows or cancellations.
The comments in the article point to hotels having to change this in order to make sure the booking is confirmed and the guest is committed. There could be a considerable operational cost for hotels to make this happen and what’s more, could DreamCheaper mean a decline in flexible booking options?
It’s too early to tell. It also remains to be seen what happens when something goes wrong like a booking doesn’t make it through, or a guest is double booked. But what we do like is that they are encouraging direct bookings. While consumers still believe OTAs are cheaper than going direct, DreamCheaper will help us to prove – in a fun way – that that isn’t the case.
