It’s an understatement to say that OTAs have had a huge impact on the independent hotel business. While OTAs do bring a level of exposure that no independent properties could ever manage themselves, this exposure isn’t free of charge. Far from it. While OTA commissions averaged somewhere in the 10% range in the early 2000s, they have been increasing steadily over the last decade. Commission rates charged by OTAs today typically range between 15% and 30% of the value of the reservation. What’s more, as competition between the OTAs increases, they often drop rates to attract clicks and win customers.
So while you may have realized an increase in nights booked, you’re seeing a far lower net profit for those bookings. Plus, with every direct booking you lose, you’re not just losing revenue, you’re also eroding your brand. Driven by massive marketing campaigns, the brand recognition of the OTAs is eclipsing the individual brands of the properties they feature. While guests who book with OTAs will stay at your property, the guest “relationship” (the guests’ data) remains with the OTA. You provide the service, but you lose the ability to connect with your guest over the long run.
What’s an independent hotelier to do?
Even with the growing influence of OTAs, there’s one key piece of good news: your potential guest will likely check out your website before booking. According to a recent post on Hospitalitynet, “Although online travel searchers typically use OTAs to browse and price-shop through accommodation options, research by Fuel & Flip shows that 87% will generally visit a hotel’s website before booking a hotel stay.”
What’s even better news is that in the wake of the COVID-19 crisis, more potential guests than ever are visiting individual hotel and resort sites to learn about the safety and cleaning policies. No one knows if this behavior will continue as the threat from COVID (eventually) diminishes, but one thing is certain: for the time being, visiting an individual property website has become an important part of the guest decision-making process.
That represents a golden opportunity. Whatever information they’ve come to learn about your property, don’t miss your chance to convince them to book directly rather than navigate back to the OTA.
Give Them A Reason To Book With You
There are many ways hoteliers can grab the attention of site visitors. The easiest way is to offer perks, discounts, or special rates. One of the most attention-grabbing offers is to promote a “best-rate guarantee.” If your visitor understands that they won’t find a lower room rate through an OTA, they’re much more likely to explore room options on your site and book directly with you.
You can also sweeten the low rate by offering incentives to guests who book directly. They can also create exclusive offers only available through the hotel website.
Another powerful tool to encourage direct bookings is a loyalty program of your own. Similar to a best-rate guarantee, online shoppers are very familiar with this concept, as most OTAs (and airlines, and credit cards, etc.) offer rewards programs for loyalty. It’s important to note that research shows travelers prefer cash back over convoluted, point-based loyalty programs. The Guestbook allows its partners to entice guests to book directly by offering up to 15% cash back rewards. Guests are rewarded for their stay and hoteliers reap the benefits of direct booking—higher net revenues and the opportunity to build a direct relationship with their guests.
Make Your Hotel A Destination
Even if you’re not a full-service resort with an acclaimed spa and world-class golfing, you can (and should) promise your potential guests more than just accommodations. In-stay experiences are a powerful marketing tool.
If you have onsite dining, for instance, you can offer exclusive discounts to guests who book direct. Maybe it’s a free breakfast for every three nights booked. Perhaps you could offer special in-room dining options, or a romantic dinner package of some kind. You might consider a complimentary daily happy hour in your lobby with complimentary or deeply discounted wine and cheese.
If you don’t have much in the way of onsite activities to offer, perhaps you could contract with a local guide to offer walking or hiking tours. Perhaps you could partner with a local artist to host a show in your lobby or conduct a complimentary art class for your guests.
Be creative. Anything you can do to promise that your guests’ “stay” will be an “experience” is a valuable differentiator for site visitors who are considering booking, even if they ultimately never take advantage of the in-stay experiences. Just knowing they have the option is incentive enough.
Note that when you partner with a loyalty program like The Guestbook, you’ll provide the added incentive of allowing guests to redeem their cashback rewards on a variety in-stay experiences at your property.
Make It Personal
Just as you would warmly greet your guests at the front desk, your website should feel personalized and welcoming. It should be friendly in tone, easy to navigate, effectively convey the “feel” of staying at your property, and encourage interaction from the site visitor.
Make your guests feel welcome from the moment they land on your site. Address them by their name and encourage them to interact and ask questions, as well as register their email with you to receive discounts on booking. A “slider” feature that highlights special offers and prompts email input is especially effective in personalizing the experience and taking that first step to build a relationship.
Whatever you do to capture your visitor’s attention, there’s never been a better time to give your site visitor a reason to stay—on your site and at your hotel. This is the year to maximize the visitor traffic created by the OTAs by boosting the effectiveness of your site and capturing your fair share of direct bookings!
