Tour operators vs OTAs: the right channel mix for a Greek island hotel
Tour operators bring volume, early bookings and flights to the island, at lower net rates. OTAs bring later, flexible bookings, usually at higher rates, minus commission. Most Greek island hotels need both. The right mix changes by month and should be judged on net revenue, not gross.
By Florian Schaufler, Founder, 360° Consulting
What is the difference between tour operators and OTAs?
Tour operators buy or contract rooms and sell them, often in packages with flights. OTAs list your rooms online and take a commission on each booking.
| Tour operators | OTAs | |
|---|---|---|
| Booking window | Early | Mid to late |
| Rate | Contracted, lower | Set daily, usually higher |
| Cost | Lower net rate | Commission |
| Price control | Low (static contracts) | High |
| Main risk | Low rates in peak | Cancellations, dependence |
What do tour operators offer a Greek island hotel?
- An early base before the season
- Volume from their source markets
- Flight packages, important for islands
What do OTAs offer?
- Daily control over rates and availability
- Bookings that fill last-minute gaps
- Visibility and reviews
Which channel is more profitable?
It depends on the date. Compare the OTA rate minus commission with the tour operator net rate. The higher net amount wins for that date.
How do you set the channel mix by season?
- Shoulder months: tour operators build the base.
- Peak months: keep enough rooms for OTAs, where rates are higher.
- Gaps: OTAs react faster than contracts.
What are the signs your channel mix is wrong?
- Peak nights sold at low contract rates
- Many allotment rooms returned unsold
- One partner with a large share of revenue
Frequently asked questions
- What is a good channel mix percentage?
- There is no universal number. It depends on size, location, season and flight access. Use your own data.
- Should a small hotel work with tour operators?
- Often yes, for shoulder months and flight markets.
- Is Booking.com enough?
- No. Depending on one channel is a risk.