The islandchief

How important are OTAs for Maldives? What incentives do you offer to local DMC’s compared to OTAs?

PUBLISHED February 01, 2019

Ahmed Karam

President

Guesthouse Association of Maldives

“OTAs and local DMCs are both important. I look forward to see more locally owned OTAs. About DMCs as guesthouse are small in scale which is not attractive for many of them. At the beginning I walked into some of the DMCs in Malé, but they didn’t show much interest in us. But I am happy to see the situation is getting better. Sustainable way of managing it is really important to work with DMC’s. In terms of Qmarketing it will help to take the destination marketing in a good way. It’s really a bit insecure to depend heavily on OTAs, as they promote destinations in a choosy way when we have issues at times in the country. But local DMCs will help us continue even at the difficult times.”

Nina Nizar

Sales & Marketing Manager

Sun Travels & Tours

I believe OTA are as important as the Dmc for the local industry. OTA are imperative in filling in last minute inventory. OTA generally get a 15 to 20% commission while DMCs enjoy a wholesale contact rate which is around 25% less than the rate given to OTAs OTA’s also work on a dynamic rate to their client while the DMC have a set seasonal rate.

Amjad Thaufeeg

Director of Sales & Marketing

Kanuhuraa Maldives

“Both are important. DMCs have 25% lower rates than OTAs. We also offer incentives to selected DMCs based” on their performance.”

Mohamed Zaheen

Sales Manager

Angsana Velavaru

Both play a significant role, however we see OTAs growing day by day. In terms of incentives, we offer different options: Option 1: Year-round incentive percentage based on targeted production tiers. Some counts RN and some counts revenue. Option 2: Booster incentive along with year-round incentive to penetrate last minute business. Offer a certain amount as a kick based on the category (Beach & Water) with reachable targets. Option 3: Offering a gesture for the top producer (DMC). This is being calculated on quarter basis. Select the top producer (either RN or Revenue) and offer free stay at resort or return tickets to close by destination with accommodation.

Thoha Ali

Director of Sales & Marketing

Cocoon Maldives / You & Me Maldives

“Both are important. Incentives are offered based on individuals’ performance and contribution whether it’s a DMC or a foreign tour operator.”

Nabeel Abdulla

Group Director of International Sales & Distribution

The Small Maldives Island Co (TSMIC)

Both models work and helps the growth of tourism in their own ways. DMCs generally offer 25% rate advantage over OTA rates.

Abdulla Nasheed

Managing Director

Kaani Hotels

How we got bookings in the past and now: Past. OTA’s. 85% Travel Agents. 15% Now. OTA’s. 40% Travel Agents. 60%

Ahmed Afrah

Managing Director

Canopus Maldives

OTAs are very important as the big players are now dominating the online business due to their size, financial strength, technology... etc. There are no incentives offered to OTAs, it’s actually higher than DMCs. OTAs will only ask for the same rate which we publish online to be given to them. Nothing more!