Tripadvisor Plus changes: What are they and how do they impact your hotel?

Since its launch, and as hotels and large chains joined, the Tripadvisor Plus subscription program has had a remarkable impact, generating multiple debates about its business model and benefits, both for hotels and for the end consumer. As of October 1, Tripadvisor Plus has changed significantly. According to Steve Kaufer, President and CEO of Tripadvisor, These changes will reduce the reluctance of hotels about the program’s detrimental impact on price parity, without negatively impacting the experience and value offered to subscribing travelers. Tripadvisor’s goal is to continue to increase the number of participating hotels, which should offer more choice to the consumer, and in turn, more travelers subscribing to the program. How is Tripadvisor Plus changing as of October 1? Under the initial Tripadvisor Plus model, the traveler received exclusive discounts starting at 10%, which were applied at the time of booking. The traveler also obtained exclusive and free benefits (breakfast, credit for dinner or spa, parking, airport transfer, early check-in and check-out, etc). As of October 1, the hotel will no longer have to offer these exclusive discounts. Instead, the traveler subscribed to Tripadvisor Plus will receive a cash-back every time he/she makes a reservation, which can be redeemed at check-in. The amount paid will be visible from the Tripadvisor Plus user area and the traveler will be able to use it to extend stays, purchase activities at the destination through the hotel or for subsequent stays, among other things. Another important change is that Tripadvisor Plus is no longer an exclusive product for the hotel’s direct channel. From now on, OTAs will also be present. When there are two advertisers for Tripadvisor Plus, for example, the hotel’s direct channel and an OTA, the Tripadvisor algorithm will decide who occupies the space.  Everything indicates that the hotel will have priority since the conversion rate is usually higher when the booking is made directly. The entry of OTAs in Tripadvisor Plus makes it even more important that you activate your hotel in the program. On the one hand, to benefit from the high traffic and number of direct bookings that Tripadvisor can generate, and on the other hand, to prevent OTAs from benefiting from this space without your hotel being present. What are the implications of these changes for your hotel? If you want to participate in the program you will no longer have to offer exclusive rates (from 10%) on your best available rate. Those discounts are transformed into a commission to Tripadvisor, starting at 10%, which will be applied to confirmed bookings (excluding cancelled and no-shows) and will be calculated on the total booking, always before taxes. As with the previous model, based on traveler discounts, the better the conditions offered to the subscribed traveler, the better the position of your hotel in the search results (always in the “Best value” or “Value for money” category). This means that the higher the commission you offer to Tripadvisor, the higher the visibility for your hotel. The integration of Roiback with Tripadvisor Plus: greater benefits and more efficient management for your hotel. If you want your hotel to participate in Tripadvisor Plus, the direct integration of Roiback with Tripadvisor Plus allows real-time management of prices and reservations in the program, which will be automatically recorded in the Roiback CRS. You will save time and resources. If you want to know more about the many benefits Tripadvisor Plus offers to your hotel, and how Roiback helps you manage the program, please contact us, do not hesitate to consult this article.

Laura Oliver BeltránSeptember 30, 2021