Travel & Hospitality Tech Outlook | Thursday, October 14, 2021
Direct bookings benefit both customers and the hotels as it provides better customer relations, loyal customers and sets brand name.
Fremont, CA: The direct booking war has been raging for more than two decades. The hotel sector has been taken over by online travel agencies (OTAs). As OTAs have grown in popularity, hotels are paying ever-higher commissions. A direct booking not only benefits customers but also benefits hotels significantly. Rather than focusing solely on OTA commissions, hoteliers should focus on direct bookings and ensuring their hotels' long-term viability.
Consumer perceptions of OTAs have evolved as a result of the pandemic. Currently, 39 percent of consumers prefer to book directly vs 17 percent who prefer to use online travel agencies (OTAs), according to a survey. Consumers' dissatisfaction with trip changes during the pandemic has contributed to this decline in confidence. Direct bookings should be a priority for hoteliers today more than ever.
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Here is why direct bookings are essential for hotels:
Build guest relationships
When a consumer books directly with the hotel, the hotel has direct contact with the guests. This includes, above all, their contact information as well as their booking preferences. Hoteliers can take advantage of this information to learn more about their guests. Consider the possibilities for the hotel: from sending pre-arrival emails with upsell offers to retargeting returning customers to personalizing and specializing their stay. Bringing guests closer to the hotel is a win-win situation for both the guests and the hoteliers.
Protect hotel brand name
When guests visit the hotel's website, they can sense the brand's atmosphere and learn about the hotel's expertise. OTAs, on the other hand, display all hotels in the same way, denying hoteliers the opportunity to form an emotional connection with their customers. Hotels have the chance to oversee the complete guest experience when guests book directly, including the pre-arrival anticipation phase, which makes guests the happiest. There are numerous touchpoints that a hotelier may influence to make their experience exceptional, from the minute they land on the website to when they check out. A hotel that invests in its direct booking strategy is also investing in its brand.
Create a loyal customer base
Customers who make a reservation directly on the website are more likely to return. When customers book directly with hotels, they can take advantage of exclusive offers through a loyalty program. Marriott Hotels is a role model in this industry. Their direct booking guests receive immediate benefits such as early check-in and check-out times, as well as the ability to earn points for each stay that can be exchanged for special offers such as an extra night stay, a discount, or a special offer such as a scuba diving trip, a culinary workshop, or musical tickets.
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