Manchester UK -- In comments to a panel called Make Love Not War - Embrace OTAs for a Brighter Future at the Annual Hotel Conference in Manchester UK, Magnuson Worldwide CEO Thomas Magnuson stated that the 16 year-long demonization of online travel agencies (OTAs) such as Expedia and Booking.com had been originally manufactured by the hotel franchise industry.

Responding to panel moderator Michael McCartan, Managing Director of Duetto's question "Is the war between hotel owners and OTAs over?" Magnuson stated "The OTAs are not the baddies. What most people do not realise is that the negative characterisation of OTAs as having too much power and charging excessive commissions had been originally manufactured by the hotel franchise industry. After the slowdown of 9/11, hoteliers took to the new online travel agencies and were amazed how much business they delivered. After the OTA booking volumes increased so quickly, franchises were rocked when hotel owners asked "why do I need a franchise when I could use Expedia?"

Magnuson added that the 'evil OTA' label was subsequently perpetuated to draw attention away from much higher franchise costs including an average 12.5% gross fees, large scale standardisation costs borne by hoteliers and the cost of rewards/frequent guest programs which now count for 30% of franchise revenues.

"There are far bigger concerns for hoteliers than OTA commissions," added Magnuson. "OTAs are as critical to each hotelier's success as the electricity company, they are just one component of an effective platform strategy."

Panel participants included Michael McCartan, Managing Director, Duetto; Thomas Magnuson, CEO & Co-Founder, Magnuson Hotels; James Osmond, COO, Triptease; Ryan Pearson, UK Area Manager, Booking.com; David Taylor, Chief Commercial Officer, glh Hotels.

About Magnuson Hotels

Magnuson Hotels was founded in 2003 as the world's first independent hotel chain. Today, over 2000 hotels across North America and Europe have increased revenues via the Magnuson Independent Hotel Group and the Magnuson Hotels Fair Franchise Brand:

For more info:
www.magnusonhotelsworldwide.com
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Thomas Magnuson
Chief Executive Officer
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Magnuson Hotels