Independent hotels need the OTAs to gain greater visibility and, ultimately, bookability. But what can a hotelier do to maximize their OTA exposure while also keeping more of the reservation revenue for themselves? Hotels and OTAs: a relationship that appears as much a necessity as it is a burden. In the proverbial battle for direct bookings, it seems that smaller, independent properties are negatively impacted by this relationship. While it is true that hotels pay a higher commission rate for OTA bookings, many studies show that OTAs actually boost bookings through the hotel’s website. This happens mainly due to the ‘billboard effect’, wherein consumers use OTAs for price comparison only to seek out the hotel’s website to complete the transaction. Best of all, this accounts for roughly 20% of a typical hotel’s bookings! So we know that independent hotels need the OTAs to gain greater visibility and, ultimately, bookability. But what can a hotelier do to maximize their OTA exposure while also keeping more of the reservation revenue for themselves? The results of a study conducted by hotel management research firm Software Advice answer this very question. Poling 2,500 consumers, they sought to find out just what would incentivize potential guests to choose to book directly on the hotel website. Top Direct Booking Incentives When offered the option of an upgrade, nearly half of survey participants could be enticed to book direct with a room upgrade. The remaining participants chose room service (23%), on-site amenities (14%), and gift cards (11%). Next, we’ll delve further into each of these preferences for some valuable insight into the minds of your potential guests. Preferred Room Upgrade Incentives Keep in mind that a room upgrade doesn’t have to mean doling out your executive suites to everyone that books through your hotel’s website. It could mean something simple like a balcony (22%), a better view (27%), or even a room farthest away from potential noise. Preferred Room Service Incentives Nearly 50% would prefer a free meal over other incentives such as an in-room massage (19%), minibar and snacks (19%) and movies on demand (16%). If your hotel doesn’t have a restaurant, check out local restaurants to if they would like to partner with you on promotions. Likewise, you could seek out a local masseur to provide an additional perk to potential guests. Sometimes you just have to get creative! Preferred Amenities Incentives Over 50% responded positively to food and drinks at the hotel over spa packages (23%), fitness classes (11%), and golf/tennis reservations (7%). No surprise here, who doesn’t enjoy free continental breakfast? It’s also important to note that smaller hotels can still achieve these incentives, but you really have to leverage your relationships with fellow local business owners. Gift Cards Incentives for Direct Booking More than 40% favored restaurant gift cards over popular local events (22%), amusement/water parks (19%), and transportation service (11%). Gift cards are always a favorite and they’re so easy to manage. Promoting Your Incentives Now that we know what will entice potential guests to book directly with your hotel’s website, it’s time to create an action plan. Select incentives that are most approachable for your property and formulate a plan to communicate them to potential guests. Your hotel website’s homepage is the best place to announce incentives, front and center, always above the fold. If you’re an InnLink customer, you can add custom messaging into your internet booking engine. Also take advantage of social channels like Facebook and Twitter, but do be aware of Facebook’s policy regarding promotions as well as Twitter’s contest guidelines. If you have any questions regarding social channel best practices or hotel marketing in general, please email me and I’ll get back with you as soon as possible. |