Third-part Internet sites are siphoning off billions of dollars from our bottom lines though the large commissions they make on hotel bookings. I predict this won’t change soon; third-party Internet sites are here to stay because they have the support of our customers. But as these sites dramatically affect the profitability of our hotels, we must learn how do we deal with this new paradigm.

These sites were created to provide hotels a portal to sell last-minute inventory that would otherwise not be sold. It was a great idea that has turned into dire consequences as now they’re handling a larger part of our inventories than we would prefer. Let’s look at some ways you can mitigate the losses in revenue while understanding why we need to continue a relationship with these sites.

If you have meeting space, an obvious thing to do is to ramp up your direct sales effort to groups. The key factor here is managing the rate so meeting planners see the value since they also review rates on the Internet. Step up your direct sales effort with corporations and associations that deliver business to your market. It’s a good time to increase your sales staff, but make sure they’re properly incentivized and are held accountable for meeting their revenue goals on a monthly basis.

Your website is more important than ever so you need to be sure it’s updated continually and properly optimized. Pay-per-click programs are very helpful in bringing business in at minimal cost.

Are you communicating in an effective manner with your past guests? Let them know in a personalized way how much their business means to you. Third-party Internet sites will always be a part of your revenue source so make sure the rates you offer on these sites mirror your demand patterns. On one of the properties I managed, our rates on Hotels.com varied from $99 to $295, and we were one of the largest revenue sources for that site in our market. Revenue management done well can make a huge difference to RevPAR growth.

Henry Feldman is a hospitality consultant and hotel owner in San Antonio, TX. His company’s website is www.martinfeldmanhospitality.com, and he can be reached at henry@mfhospitality.com.