The truth about OTA's Auto Top-up and why it could be costing you dearly.

"Auto Top-up system for convenient inventory management, yet risks of oversupply and missed market opportunities when not cautiously managed"

The truth about OTA's Auto Top-up and why it could be costing you dearly.

Agoda's "Auto Top-up" function – it sounds convenient, right? Your property always has rooms listed, no more scrambling to update inventory.

But there's a hidden trap. Auto-refilling your allotments at the wrong time can tank your strategy.  Think of it like running the tap nonstop – soon you're overflowing.

If you are not using Channel Manager, Problems Auto Top-up Can Cause:

Missed High-Demand Opportunities: Sold out too early on that concert weekend?  That's Auto Top-up kicking in when prices should be sky-high.

Devalued Rooms: When supply constantly exceeds demand, your perceived room value drops. Guests wait for those last-minute auto-replenished rooms at low rates.

Lost Control: Auto Top-up takes the dynamic decision-making out of your hands. Your revenue strategy flies out the window.

Even if you are using Channel Manager, Auto-Top up can also cause you 

 Overbooking Nightmares: Imagine this. It's peak season, and your hotel is buzzing. Every room is booked, and then some. Why? Because the auto top-up function didn't account for the reservations coming from other channels. Now, you're in the unenviable position of explaining to guests why their confirmed booking is no longer available.

 

So, is Auto Top-up ALWAYS bad?

Not necessarily.  Used sparingly, it's a safety net. But it's NOT a replacement for vigilant revenue management.

Tips for Taming Auto Top-up:

Set Limits: Don't let it add more than 1-2 rooms at a time. Think of it as an emergency reserve.

Watch Your Calendar: If a high-demand period is looming, turn off Auto Top-up in advance.  Control those rates yourself.

Leverage Your Data: When IS demand weakest? That's when Auto Top-up makes sense. Let your data tell the story.

The Bottom Line: Auto Top-up is a tool, not your boss.  Use it strategically, or it will use you.

Let me know if you'd like a visual to go with this article. A simple graph demonstrating supply/demand could add that extra punch!