Over the past few years, independent hoteliers have realized what the big guys already know when it comes to direct booking: Loyalty is everything. The large hotel chains (think Accor, Hilton, InterContinental, Marriott International) secure a huge percentage of direct bookings through their loyalty programs, delivering greater revenues while lowering commissions paid to the OTAs. The Guestbook Cashback Rewards program was created to deliver the same results for independent hotels and resorts.
According to this recent article in PhocusWire, Accor chairman and CEO Sebastian Bazin described the company’s loyalty program as “the best tool in the armory to fight the online travel agencies.” Bazin also conceded that “while Booking.com and Expedia would spend billions on keywords to acquire customers, Accor did not have the same ‘amount of wealth’.”
Whatever the size of your property, regardless of whether you have a loyalty program or not, there’s no denying the growing power of the OTAs.
However, in the wake of the Covid-related decline in travel over the past year, Expedia and Booking.com slashed their marketing budgets by around $6 billion. What’s more, travelers are increasingly going directly to property sites in the first place to find property-specific details on safety protocols and the most current operational information. In the same PhocusWire article, Peter O’Connor, professor at the University of South Australia says that “with most travel tending to be domestic and local recently, customers are also more likely to go direct because they know the property.”
The result of more guests seeking out properties directly at the same time the OTAs have lowered their marketing spend is a unique “window of opportunity” for properties of all sizes to boost their direct booking revenues and build customer loyalty.
The question is how long it will last. O’Connor goes on to say that he believes that OTAs are already shifting into a defensive mode. “Most have included increased sanitary info into their listings. In addition, they are including destination level information, so customers can understand restrictions and what is open not just in the property but in the surrounding area. In effect, they are aiming to provide ‘better’ information than the suppliers themselves. They are also stressing the cancellation issue, again eroding the book direct perceived advantage.”
So what is the take-away for independent properties? Act now. Take advantage of the current boom in direct site visits to secure relationships with travelers by promoting your loyalty program and reminding visitors that booking directly is the safest way to lock in the best rates and ensure preferred room availability. Even if visitors don’t book directly, you can at least capture their contact information and follow up directly with offers and incentives.
For more information about how to better secure direct bookings and build long-term customer relationships, don’t hesitate to reach out to The Guestbook team. Happy bookings!
