Online travel agencies (OTAs) and booking sites gain a lot of money from booking transactions and their commission is raising and raising.
As a small hotel, you should focus on generating as many bookings as possible via the direct online channel rather than through the OTAs. But how do you do that since you already have so many tasks to do? The answer is simple, focus on implementing a “Direct is Better” strategy in your unit.
1. Create incentives for people who book directly on your website or face to face
You might not be allowed to offer lower prices publicly on your website but you can offer people who book directly certain incentives: free Wi-Fi, early check-in, late check-out, free room upgrades, free transfers, dining credits, free breakfast, free parking, or other discounts.
You should promote heavily this on your website right next to every Book Now button. So search, what is it that your guests would enjoy and you can offer for free or with little cost?
Even though parity agreements prevent you from offering deals publicly for the exact room, there is the option to send discount codes to your Facebook fans, for example, or to people who signed up to your email list. Don’t have an email list? You should, it’s one of the most powerful marketing weapons you could use but we’ll talk more about this in a future article.
On your website you should also offer your visitors a booking widget that shows your current availability and allows them book exactly what they need and when they need. With your business taking bookings 24/7, it`s like having a receptionist who never sleeps or takes breaks.
HoteloPro offers such a widget, all availabilities being sent to your website and then all bookings automatically sync with the app, making sure to avoid double-bookings.
2. Educate and empower your staff to offer the best deal possible
Explain your employees why direct bookings are more profitable and how they positively affect salaries, bonuses, and the overall health of the hotel. Empower your guest-facing employees with the ability to offer the best rate to anyone who calls or writes for a booking.
Additionally, create a sign at your reception that points out the benefits of booking direct with you. The same messaging that you use on your website should be used at reception too.
3. Turn your guests into your ambassadors and help them spread the word about your offers
It’s very common for people to talk about their vacations, so your guests could very well become your marketers. Prepare some discount coupons to give away to your current guests for their friends, family or even for their next time visit. When people are leaving your hotel, they should walk away with your marketing materials that entice them to book directly.
Digital coupons can also be used, when people post on Facebook their vacation photos, they can include in the album’s description a discount code for anyone to use when booking online with you.
Even though I am saying that you should focus on direct bookings, it’s been proved that properties who list inventory on OTAs increase their direct reservations by up to 26%. There are guests who discover your hotel via an online travel agency (OTA) then visit your website and end up booking directly with you. So you shouldn’t ditch the OTAs, you just need to work a better deal for people who book directly with you.
There are many things to be said about each point but the best thing is to start implementing something, now. What’s your experience with direct bookings versus OTAs? Please share it with us in comments.