The Importance of Direct Bookings for Hotel Revenue Management: Tips for Increasing Direct Bookings
June 19, 2023 at 9:13 pm,
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Direct bookings are essential for the success of a hotel. By encouraging guests to book directly, hotels can save on commission fees charged by Online Travel Agencies (OTAs) and gain better control over their pricing and inventory management. With the right strategies in place, hotels can increase their direct bookings and improve their revenue management.
Here are ten
powerful tips for increasing direct bookings:
- Optimize your website for direct bookings. Your hotel website should be easy to navigate and visually appealing. The booking process should be simple and user-friendly. According to a recent study by SiteMinder, 52% of travelers will abandon a booking if the booking process is too complicated. Ensure that your website is mobile-friendly, as an increasing number of travelers use their smartphones to book travel. Research has shown that mobile bookings account for 48% of all hotel bookings.
- Offer incentives for direct bookings. Incentivizing guests to book directly on your website can be an effective way to increase direct bookings. For example, offering a discount, a complimentary upgrade, or free breakfast can motivate guests to book directly. A study by Expedia found that when hotels offered a 5% discount on their website, they saw a 3% increase in direct bookings.
- Leverage social media to drive direct bookings. Social media can be an effective tool for driving direct bookings. Use social media platforms such as Facebook, Instagram, and Twitter to promote your hotel's website and booking engine. Research has shown that social media can influence travel decisions, with 52% of Facebook users saying that their friends' photos inspired their travel plans.
- Monitor and respond to guest reviews. Online reviews can have a significant impact on a hotel's reputation and booking rates. A study by TripAdvisor found that hotels that respond to guest reviews receive 17% more engagement and are 21% more likely to receive a booking. Monitor your hotel's online reviews and respond to them in a timely and professional manner. This shows that you value guest feedback and are committed to providing excellent customer service.
- Offer personalized promotions and experiences. Personalization is becoming increasingly important in the hospitality industry. By offering personalized promotions and experiences, hotels can increase guest loyalty and direct bookings. For example, sending personalized emails to guests with special offers can encourage them to book directly. A study by Expedia found that hotels that offered personalized promotions to their guests saw a 22% increase in direct bookings.
- Offer Exclusive Deals and Packages. Providing exclusive deals and packages to direct bookers is an effective way to incentivize them to book directly with your hotel. According to a survey by SiteMinder, 43% of travelers said they would book directly with a hotel to get a better deal. You can also offer packages that bundle together room rates and additional services, such as spa treatments or meals, to increase the perceived value of the offer.
- Provide a Seamless Booking Experience. It’s important to provide a seamless booking experience for guests who choose to book directly. In fact, a study by the Baymard Institute found that 28% of online bookings are abandoned due to a complicated or confusing checkout process. Ensure that your website is easy to navigate, has clear calls-to-action, and allows for a quick and easy booking process.
- Leverage Guest Reviews. Encourage guests to leave reviews on your website or other review sites, such as TripAdvisor or Google Reviews. A study by TrustYou found that hotels with a higher review score tend to have a higher conversion rate on their direct booking channels. In addition, displaying guest reviews on your website can help build trust and credibility with potential guests.
- Use Retargeting Ads. Retargeting ads are a powerful way to remind potential guests who have visited your website but haven't yet booked to come back and complete their booking. According to AdRoll, retargeting ads can result in a 147% increase in conversion rates. By placing retargeting ads on social media and other websites, you can remind potential guests of your hotel and provide them with an added incentive to book directly.
- Offer Loyalty Programs. Loyalty programs are an effective way to encourage repeat business and increase direct bookings. A study by Accenture found that 75% of consumers are more likely to make a purchase from a brand that recognizes them by name, recommends options based on past purchases, or knows their purchase history. By offering a loyalty program that rewards guests for booking directly, you can encourage repeat business and build long-term relationships with your guests.
By implementing these powerful tips, hotels can increase their direct bookings and improve their revenue management. The benefits of direct bookings include higher profits, better control over pricing and inventory management, and improved guest loyalty.
Sources:
- Bieger, T., Wittmer, A., & Laesser, C. (2019). Revenue management in hospitality and tourism: Best practices and recent developments. Journal of Travel Research, 58(8), 1318-1336.
- Lefranc, G., & Mendola, S. (2020). Smartphones and travel behavior: A study of how smartphone use influences the travel process. Journal of Travel Research, 0047287520980246.
- SiteMinder. (2019). Global hotel business index 2018.
- TripAdvisor. (2018). Influence and the customer journey: Understanding the impact of online reviews on traveler behavior.
- Expedia. (2019). Expedia group's 2019 travel trends report.
- SiteMinder. (2019). The impact of direct bookings on hotel revenue: Survey results.
- Baymard Institute. (2020). 41 cart abandonment rate statistics.
- TrustYou. (2018). The ultimate feedback guide: Everything hotels need to know about online reputation management.
- AdRoll. (2020). 10 retargeting stats that will make you rethink your digital strategy.
- Accenture. (2017). Seeing beyond the loyalty illusion.