Your main goal is to have as many guests as possible book their stay with you, as this will lead to higher traffic and increased revenue. There are several ways to secure bookings: directly through your website or through online intermediaries and booking platforms (OTAs, Online Travel Agencies). Let’s explore which option is more advantageous: direct sales or distribution through OTAs.
Booking via OTAs
OTAs are digital marketplaces offering online booking options, such as Booking.com, Agoda, Airbnb, and Szallas.hu. The benefits of listing services through OTAs include their contribution to marketing efforts, providing market insights, processing bookings, and managing reviews to some extent.
They are popular among guests because they present a wide range of options, including descriptions, photos, prices, and reviews. Recently, booking platforms have gained significant traction, with millions of travellers worldwide using them to plan their trips and stays. Therefore, it is worth leveraging their benefits, even if it means paying a commission on bookings.
Advantages of Booking Sites
Even if you’re steadily building your direct sales channels, it’s still worth using OTAs because of the “billboard” effect. Potential guests often browse through booking sites during their booking process and then, in most cases, visit your website for comparison, which could lead to direct bookings. Therefore, it’s wise to consider booking sites as marketing channels while continuing to develop your commission-free booking strategy. Technology is now available to enable modern hotels with direct booking features to compete with the deeper pockets of OTAs.
How to Turn Intermediary Guests into Loyal Guests
Once guests find you through an OTA, the main task is to convert them into commission-free returning guests through excellent service and hospitality. Here are a few strategies that can work!
#1: Use Data!
Capture guest contact information at check-in, primarily their email address, which you can use for automated emails, greetings, offers and other marketing automation opportunities.
#2: Create a Loyalty Program!
Loyalty programs play a significant role in both data collection and direct bookings. For example, points-based solutions can reward not only bookings but also other activities like inviting friends or sharing on social media. The accumulated points can then be redeemed for discounted bookings or services.
#3: Offer Late Check-Out!
If possible, offer your guests the option to stay a few hours longer than the usual check-out time, which can be a very welcome gesture.
Costs of Booking Sites vs. Online Direct Channels
For online intermediaries, you must pay sales commissions and possibly additional fees for extra services like an email marketing campaign. In the case of online direct sales, you need to account for:
- Marketing costs (brand and direct marketing),
- Booking engine fees,
- Website and various software operating costs, and
- Agency and consultancy fees.
Which is more cost-effective? It’s not easy to answer this question definitively. While direct bookings are generally more advantageous since you don’t have to pay commission to OTAs, you can’t entirely exclude these platforms from your sales strategy, as you would miss out on a significant percentage of potential guests. At Everguest Revenue Management, we work to balance these two areas so they contribute together to increasing your revenue. OTAs are also crucial when opening a new hotel, as they help establish brand awareness, collect guest feedback, and build your reputation.
At the same time, it’s essential to have an up-to-date, attractive website with a strong brand story and identity that encourages guests to book directly through the hotel’s website. Investing in your brand in the long term is definitely worth it.
Effective Accommodation Management with Everguest
Running and managing a hospitality business comes with numerous tasks, and both managers and employees often face capacity shortages. We can help with addressing these issues, among other things. Everguest’s services will assist you in not only acquiring new customers but also retaining existing ones. We entice satisfied guests to return using targeted and effective tools, and we address the different target groups of the hotel with unique messages, creating the opportunity to build a loyal customer base.
With dynamic pricing, we take advantage of demand opportunities that allow for higher-priced sales, while continuously monitoring the supply side. Supporting the work of revenue management, we design user-friendly websites and efficient booking interfaces, and use messages that encourage direct bookings to secure as many commission-free reservations as possible. Additionally, we optimise your presence on OTA platforms.
Call or write to us so you don’t miss out on a single guest! We can even introduce our services to you in person, along with the opportunities they offer for your business and property!
