Hotel companies are utilizing a myriad of methods to increase direct bookings on their websites To find out more about how hotel companies are doing this, HOTELS spoke with Michelle Woodley

　　Online hotel booking is a lengthy process in which consumers check multiple websites for the best deals, and online travel agencies are using their large marketing budgets to make sure the transaction ends up taking place on their websites. To counter this and avoid paying the large commissions charged by online travel agencies, hotel companies are utilizing a myriad of methods to increase direct bookings on their websites.

　　To find out more about how hotel companies are doing this, HOTELS spoke with Michelle Woodley, senior vice president, distribution and revenue management, Preferred Hotel Group, Chicago.

　　HOTELS: What methods are being used to increase direct bookings online? How much is being invested, and what is the ROI?

　　Michelle Woodley: The most effective direct channel is through our brand websites. We are investing in search marketing to increase traffic and drive bookings. This includes search-engine marketing, buying traffic through paid search and search-engine optimization, earning traffic through unpaid listings and other tactics.

　　With the investment required in research and a redirection of resources we have put most of our efforts in SEO as it yields a much better return. From January through February 2014, our efforts from the previous six months yielded a 50% increase in organic traffic over the same time last year.

　　In the SEM area, we have a multi-tactic approach that is launching now. This includes traditional pay-per-click advertising in which we focus on our branded programs, our hotels and destinations. Other tactics we use to drive business to our brand websites include data-based display advertising, which is advertising through a network to web users who meet a certain criteria such as having purchased a business or first-class airline ticket, and retargeting, which is targeting guests who have been on our site and not booked and serving up an advertisement when they go to another site within an advertising network.

　　We are looking at behavioral targeting, which is profiling guests that have reserved a room through our site and, through a network, identifying guests with similar behavior and serving up appropriate ads to them. Of course, our call-to-action in print and email marketing is to visit our brand websites for more details and to make a booking. We strive for a minimum return on ad spend of 6:1.

　　We have relationships with the metasearch engines such as Kayak, Trivago, Wego and RoomKey. Our brand relationships provide the visibility of our hotels through these important search channels and drive users to our brand websites to make a booking.

　　HOTELS: How important is organic search versus paid search?

　　Woodley: Both are important. We have put more emphasis on natural search thus far.

　　HOTELS: What is your company’s most important source of direct bookings?

　　Woodley: The website for our guest loyalty program is our most important source of direct bookings, as our most valuable guests research and book through iPrefer.com.

　　HOTELS: Are there times when trying to get a direct booking would cost more than having the booking come through an online travel agency?

　　Woodley: This all depends on how you look at attribution. For example, one could argue that the cost of acquiring a guest for a loyalty program plus administering the program, etc., is more than an OTA booking. But, we look longer term. It’s not just about the first booking; rather, it is about the potential lifetime value of the guest and a low attribution cost once they are in the program.

　　HOTELS: Does Preferred have any plans to partner with Google to showcase on-property photos in Street Finder like Best Western has done?

　　Woodley: I understand that Google is still experimenting to find the best placements for the user and for conversion. We do not have any immediate plans for a partnership in this area, but it will be important to watch.

　　HOTELS: What are your thoughts on the anticipated rise of the “metamediaries” like Google, Apple, Facebook and Microsoft in the online booking sphere?

　　Woodley: All of these companies have resources and a captive consumer audience. They will certainly play a role in travel and in the hotel space. Exactly how and where is to be determined. In the end, consumer behavior will drive their level of success.