Why You Should Obsess Over Direct Bookings

The continued battle of online direct bookings vs. OTA bookings is one that may never end. But after years of giving up power to the online giants, properties are slowly starting to win.

According to Lily McIIwain of Triptease, “the hotel industry is in a very different space to where it was a couple of years ago,” by offering more direct booking strategies like providing exclusive offers, managing rate parity, and website optimization.

While it is a “necessary evil” to accept OTAs as part of your marketing mix, there is a good reason to obsess over gathering the most direct-bookings you can. Not only does this put more money in the bank but it’s also essential to the entire guest experience and the strategy of personalization.

As properties across the world make “more direct bookings” as a key business goal, there are several reasons why you should be striving for more bookings through your own website.

Build direct relationships

Hospitality is a people-focused business, and the key to gaining lifetime customers is building and maintaining a direct relationship. When you allow a third party comes between you and the guest during the booking process you lose that relationship. Effective personalization and offering the best experience possible for your guests include gaining knowledge about your guests – which can only be gathered if they book directly with you.

Guest loyalty

It is far easier and cheaper to foster a repeat visit than it is to find a new customer. Booking direct simplifies fostering a post-stay relationship and helps build an effective and profitable loyalty program. Gathering guest contact details at the time of booking is far easier when guests book direct.

Build anticipation

The anticipation of the trip can bring just as much happiness as the trip itself. Capitalizing on that anticipation can add value to any stay. When guests book direct you can offer pre-stay communication and messaging that provides another layer of value for the guest.

Avoid commissions

Probably the number one reason you should focus on driving more direct bookings is to avoid paying high commission costs. With OTAs charging anywhere from 15-25% commission rates, these astronomical fees kill your bottom line. If your property is strictly selling rooms via OTAs, you inflate your guest acquisition costs and more importantly you lose those important relationships that were built with the guests.

To learn more about how you can drive extra direct bookings for your property’s website, contact us at rezStream.