In recent years, OTAs have taken an increasingly larger portion of independent hotelier revenues through commissions and fees, and now they’re stepping up efforts to attract new customers and hold on to current ones by aggressively offering previously unheard-of rewards. Now is the time to act and utilize clever and cost-effective marketing strategies to stay competitive against OTAs during these challenging times.

Hotels.com Rewards was already one of the most generous & simple rewards programs around offering 1 free night for each 10 nights booked. They recently made the program even more rewarding with a campaign that offered guests a bonus qualifying night on each stay. Theoretically, guests who participated in this campaign could earn a free night after only five one-night stays. The value of the program for those incentive-maximizing guests would therefore equal to 20% of the value of their bookings.

Booking.com boldly announced a new, albeit short-term, reward for rebooking due to the changes in travel plans caused by the pandemic. According to a recent PhocusWire article, “The online travel agency’s customers in the United States who had to cancel their accommodation bookings due to COVID-19 travel restrictions will get a 15% reward if they rebook a stay at that same property by December 31, for travel through April.”

Clearly, Booking.com has surmised that future rewards credits are a viable incentive. (At The Guestbook we’ve known this for some time, which is why we’ve always offered 15% Cash Forward on future bookings.) But in the age of COVID, discounts and deals to incentivize booking just aren’t’ enough. Even if you’re offering rates that are competitive with the OTAs, independent hotels and resorts must consider the entire guest experience of direct booking, from the moment a potential guest sees search results to the moment they hit “reserve” on your site.

The process often begins with a Google search. While independent properties can’t compete with the massive marketing budgets of the major OTAs, you can maximize your marketing dollar by amplifying your presence in search results, and we’re not just talking about keywords.

In a recent study, we found that 68% of guests preferred an offer that included a combination of a lesser discount + cash rewards vs. an offer that only showed a higher discount.

At The Guestbook, we’ve been working for years to redefine the direct booking process for our partner properties. The resulting consumer-focused technologies aren’t just engaging and incentivizing, they’re backed by proven strategies, tactics, and tools to help independent hotels stay competitive.

Boost direct bookings with The Guestbook cash rewards messaging in Google Hotel Ads

In the face of increased OTA presence in Google search results, we’ve made it possible for independent properties to not only rank higher within metasearch results, but to add rewards messaging alongside their direct rates. Savvy travelers are more likely to be enticed by a competitive rate AND a cash reward, and therefore book directly, as opposed to an OTA rate-only offering.

Customized messaging within the hotel’s website and booking engine not only highlight cash rewards and any other enticing offers such as seasonal discounts or exclusive amenities, it also prompts email registration. This contact information is essential for building long-term relationships with potential guests.

By securing the guest’s email address right up front, The Guestbook both makes the direct booking process easier and opens the door to future communication with every visitor to your site (whether or not they immediately choose to book directly.)

Capture emails and establish a relationship by adding new members to future marketing campaigns and exclusive promos.

Only time will tell if the OTAs will offer additional discounts and rewards to hold on to more guests during the pandemic. One thing is certain; If independent and boutique properties want to protect their revenue stream in these unprecedented times, improving the user journey from search to direct booking is essential.

COVID-19 Is Changing Independent Hotels. Maybe For Good.

La Coleccion by Fiesta Americana partners with The Guestbook on new Cash Back Rewards Program

Don’t Let OTAs Out-Reward You