How to Combine Direct Bookings with OTA Bookings

How to Combine Direct Bookings with OTA Bookings
December 16, 2019

In the competitive landscape of the hospitality industry, hotels and accommodations often find themselves navigating a complex relationship between direct bookings and Online Travel Agency (OTA) bookings. With the rise of OTAs like Booking.com and Airbnb, many properties have turned to these platforms to attract guests, while simultaneously striving to increase direct bookings through their own websites. Successfully blending these two channels can lead to enhanced revenue, improved guest relationships, and a more sustainable business model. In this comprehensive guide, we will explore actionable strategies to effectively combine direct bookings with OTA bookings.

Understanding the Landscape

The Role of OTAs

OTAs serve as a powerful marketing tool for hotels, providing exposure to a vast audience of potential guests. They have established trust and credibility, making them a go-to option for travelers seeking convenience and ease when booking accommodations. According to a report by Phocuswright, OTAs account for nearly 40% of hotel bookings in the U.S. alone, illustrating their significant role in the industry.

However, OTAs charge commission fees, which can range from 10% to 20% or more, significantly impacting profit margins. While the exposure is beneficial, it is crucial for hoteliers to consider these costs when developing their sales strategies.

The Importance of Direct Bookings

Direct bookings, on the other hand, allow hotels to retain a larger portion of revenue. They foster the opportunity to build relationships with guests, gather valuable data for personalized marketing, and reduce reliance on third-party platforms. Plus, direct bookings can lead to increased customer loyalty, as guests who book directly are more likely to return.

According to a study by the American Hotel and Lodging Educational Institute, 70% of guests prefer to book directly with hotels, citing reasons like better rates, loyalty program benefits, and the desire for direct communication with the property.

Thus, striking a balance between maximizing both direct bookings and OTA bookings is essential for a hotel's long-term success.

Strategies to Combine Direct Bookings with OTA Bookings

1. Leverage Your Website

Your website is your most powerful tool for direct bookings. It serves as the digital face of your property and is where guests will often make their first impression. To maximize its effectiveness:

  • User-Friendly Design: Ensure your website is easy to navigate. Use clear headings, intuitive menus, and straightforward calls-to-action that guide visitors toward booking. For instance, include prominent "Book Now" buttons on every page.

  • Mobile Optimization: With an increasing number of travelers booking via mobile devices, your website must be fully optimized for mobile viewing. This includes responsive design, fast loading times, and easy-to-use booking interfaces.

  • High-Quality Content: Invest in high-quality images and videos that showcase your property’s unique features and amenities. Utilize virtual tours or video walkthroughs to give potential guests a realistic feel for what to expect.

Example:

Consider a boutique hotel that highlights its unique decor, local artwork, and cozy ambiance through high-resolution images and engaging storytelling on its website. By showcasing the experience guests can expect, the hotel encourages direct bookings.

  • Exclusive Offers: Promote special deals that are only available on your website, such as discounts for early bookings, last-minute deals, or complimentary services like breakfast or late check-out.

Tip:

Use a booking engine that allows users to check availability and make reservations seamlessly. Highlight any exclusive offers available only through your website.

2. Price Parity and Strategic Pricing

Maintaining price parity across all platforms is crucial. If guests find lower prices on OTAs compared to your website, they may choose to book through the OTA, undermining your direct booking efforts.

However, you can incentivize direct bookings with attractive offers:

  • Price Match Guarantee: Consider offering a price match guarantee for guests who find a lower rate on an OTA. This builds trust and encourages them to book directly.

  • Loyalty Discounts: Implement a loyalty program that rewards guests with discounts or points for booking directly. For instance, guests could earn points for every stay that can be redeemed for free nights or other perks.

  • Flexible Pricing: Utilize dynamic pricing strategies that allow you to adjust rates based on demand, seasonality, and occupancy levels. This flexibility can help you remain competitive on OTAs while still promoting direct bookings.

Example:

A hotel might list rooms at $150 per night on OTAs while offering a direct booking rate of $140 with a complimentary breakfast included. This approach not only offers a financial incentive but also adds value to the direct booking.

3. Utilize Social Media and Email Marketing

Social media platforms and email marketing are invaluable tools for promoting direct bookings:

  • Engaging Content: Share high-quality content, such as stunning visuals of your property, guest testimonials, and local attractions. Use Instagram Stories or Facebook Live to highlight special events or behind-the-scenes peeks.

  • Targeted Ads: Invest in social media advertising to target specific demographics that align with your ideal guest profile. Use custom audiences to retarget individuals who have previously visited your website or engaged with your content.

  • Email Campaigns: Build an email list of past guests and interested potential customers. Send out regular newsletters featuring exclusive promotions, local events, and personalized offers based on previous stays.

Strategy:

Create a “Book Direct” campaign that emphasizes the benefits of booking directly, using both social media and email marketing to spread the word. Use a catchy hashtag and encourage guests to share their experiences.

4. Enhance Guest Experience

A strong focus on guest experience can lead to increased customer satisfaction and loyalty, encouraging guests to book directly in the future.

  • Exceptional Service: Train your staff to provide outstanding customer service. Personal touches, such as remembering a guest’s name or preferences, can make all the difference.

  • Loyalty Programs: Develop a robust loyalty program that rewards repeat customers. Offer tiered benefits that increase with the number of direct bookings, such as room upgrades, free nights, or exclusive access to amenities.

  • Post-Stay Follow-Up: After guests check out, send a personalized thank-you email along with a special offer for their next stay, encouraging them to book directly next time.

Example:

A hotel might implement a loyalty program where guests earn points for each direct booking. Once they reach a certain threshold, they could receive a free night or exclusive access to a special event at the hotel.

5. Use Data to Your Advantage

Data-driven decision-making is crucial in the hospitality industry. Understanding your guests' preferences and behaviors can help you tailor your marketing efforts effectively.

  • Customer Relationship Management (CRM): Invest in a CRM system to track guest interactions, preferences, and booking history. This data can be used to personalize communication and marketing efforts.

  • Booking Analysis: Analyze booking patterns to identify trends in guest behavior. For example, if data shows that guests tend to book more during certain seasons, you can tailor your marketing strategies accordingly.

  • Segmentation: Segment your email list based on guest demographics, booking history, and preferences. This allows you to send targeted offers that are more likely to resonate with each group.

Tip:

Consider using A/B testing for your marketing campaigns to determine which messages resonate best with your audience. This will help you continually improve your strategies based on real data.

6. Collaborate with OTAs

While it is essential to promote direct bookings, collaborating with OTAs can also be beneficial.

  • Optimize Your Listings: Ensure that your OTA listings are fully optimized. Use high-quality images, compelling descriptions, and highlight unique selling points (USPs) to make your property stand out.

  • Participate in Promotions: Take advantage of promotional opportunities offered by OTAs, such as seasonal sales or special campaigns. These can drive additional bookings while also enhancing your visibility.

  • Leverage OTA Marketing Tools: Many OTAs offer tools and resources to help you enhance your listings, such as sponsored placements or featured listings. Invest in these options to increase your exposure.

Example:

A hotel could collaborate with an OTA to offer a special package that includes a discounted rate and complimentary activities, such as a local tour or meal at a nearby restaurant. This not only drives bookings through the OTA but also promotes the hotel’s offerings.

7. Create a Seamless Booking Experience

A seamless booking experience is key to converting potential guests into actual bookings.

  • Consistent Branding: Ensure that your branding is consistent across your website and OTA listings. This includes logos, color schemes, and messaging. Consistency builds trust and recognition.

  • Easy Navigation: Make the booking process as simple as possible. Use a straightforward booking engine that allows guests to check availability and make reservations in just a few clicks.

  • Flexible Payment Options: Offer various payment options, including credit cards, digital wallets, and payment plans. Flexibility can make the booking experience more convenient for guests.

Tip:

Consider implementing a “Book Now, Pay Later” option for direct bookings. This can encourage guests to secure their reservations without the immediate financial commitment.

8. Promote Unique Selling Points

Highlighting your property’s unique features can set you apart from competitors and encourage direct bookings.

  • Local Experiences: Offer packages that showcase local experiences, such as guided tours, cooking classes, or cultural events. Emphasize how these experiences are exclusive to your property.

  • Special Events: If your property hosts special events, such as wine tastings, themed dinners, or seasonal festivals, promote these on your website and social media. Guests are often drawn to unique experiences that they can’t find elsewhere.

  • Sustainability Initiatives: If your hotel has sustainability initiatives, showcase them on your website and marketing materials. Many modern travelers are looking for eco-friendly options and are more likely to support businesses that prioritize sustainability.

Example:

A resort could highlight its eco-friendly practices, such as solar energy use, local farm-to-table dining, and wildlife conservation programs. By promoting these initiatives, the resort attracts environmentally conscious travelers who are more likely to book directly.

Conclusion

Combining direct bookings with OTA bookings requires a multifaceted approach that leverages your website, enhances guest experiences, utilizes data, and emphasizes unique offerings. By implementing these strategies, you can create a balanced and sustainable booking model that maximizes revenue and fosters customer loyalty.

Remember, both direct bookings and OTA bookings can coexist and complement each other. By evaluating your current strategies and making necessary adjustments, you can create a winning formula for your hospitality business. Start today by focusing on enhancing your direct booking efforts while maintaining strong relationships with OTAs. With careful planning and execution, you can achieve a harmonious balance that benefits your property and your guests alike.