The Hotel Hacker’s Guide to Direct Bookings

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Are third-party sites holding your profits for ransom?

You've just had a fantastic month. Occupancy rates are up, guests are raving about their stays, and you're feeling on top of the world. Then you check your financials and... ouch. Where did all that revenue go? If you're watching a chunk of your hard-earned profits vanish into the pockets of Online Travel Agencies (OTAs), you're not alone. Welcome to the world of ‘OTA Dependency’.

“Hotels can lose 20% to 30% of potential guests – and the revenue that goes with them – simply because of poor online visibility,” Klaudia Chmielewska, Digital Marketing Manager at Profitroom, explains.“ When OTAs dominate the online space that should be showcasing your hotel, those losses can exceed 50%.”

The OTA balancing act

OTAs definitely have their place. They're useful for visibility, especially when just starting out. But making them your number one booking source?

That’s a risky strategy. Here’s how you can walk the OTA tightrope: 

1. Visibility vs. Control: OTAs offer widespread exposure but at the cost of controlling your brand message and guest relationships. The goal is to leverage OTA visibility while building your direct presence.

2. Commission Costs vs. Marketing Investment: OTA fees eat into profits, but completely replacing them requires investing in your own marketing. Find the sweet spot where OTA commissions and your marketing budget optimise overall revenue.

3. Instant Bookings vs. Long-Term Loyalty: OTAs excel at quick conversions, but direct bookings allow you to nurture guest relationships. Aim for a mix that provides both immediate bookings and repeat business.

4. Competitive Pricing vs. Value Add: While OTAs often focus on price comparisons, your direct channels can emphasize unique value propositions. Balance competitive rates with exclusive perks for direct bookers.

5. Broad Reach vs. Targeted Marketing: OTAs cast a wide net, while direct marketing lets you focus on your ideal guests. Use both to maximise your reach and conversion potential.

Breaking free (without going off-grid)

Shifting the balance towards direct bookings is within your reach. Here's how you can take the driver's seat:

1. Shine online: Make it easy for guests to find you directly. Optimise your website, booking engine, content, and mobile user experience for search or else end up losing 20-30% of your booking revenue, according to Klaudia. She recommends focusing on your Google Business Profile, creating SEO-friendly website content, and targeted ad campaigns. "Even small SEO changes can drastically increase organic traffic, leading to more direct booking opportunities," she says.

2. Flaunt your fabulousness: What makes your hotel the place to be? Shout it from the rooftops (or at least your website). Create a unique brand narrative designed for your clientele." Smaller hotels, Klaudia notes, have an advantage: "They can dedicate their entire website to showcasing the property's unique charm," creating a detailed narrative that resonates with your target guest.

3. Direct booking perks: Give those direct bookers some extra love. Exclusive perks, discounts, or packages not found on OTAs – like a free upgrade, a spa voucher, or a bottle of bubbly – make booking direct irresistible.

4. Smooth operator: A clunky booking process is a deal-breaker. Make it frictionless. As Klaudia cautions, "The most frustrating scenario is losing already-interested guests who abandon their bookings simply because of a convoluted reservation process." A clunky booking engine frustrates guests and leads to increased bounce rates and lost bookings due to complicated payment methods, outdated room availability, or an unintuitive process in general. Ensure your booking engine offers a variety of payment methods, is user friendly, is regularly updated, and makes sense on a variety of devices.

5. Loyalty love: A smart loyalty program makes guests feel like VIPs, fostering long-term relationships and repeat bookings.

The Profitroom advantage

Profitroom's platform is like having a direct booking expert in your corner, with tools and advice to help you, including:

• Guest-centric website and booking engine: Designed for conversions and a seamless user experience.

• Targeted digital marketing: Reaching the right guests at the right time.

• Data-driven insights: Understand guest behaviour and make smarter decisions.
  
  

Ready to take back your bookings – and profits? Book a Demo with us an let's build a revenue stream you control.