Direct booking is when guests make their booking with the property manager and there are no third parties involved, the property manager has full access to guest data and control over the whole booking process.
The direct booking war has been raging for more than two decades. At its peak,
online travel agencies (OTAs) had taken over the hotel business, with 4 out of 5 bookings made through them. 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 opinions toward OTAs have evolved as a result of the pandemic, according to a survey conducted in early 2021. Online travel agencies (OTAs) were the most common booking method in 2019. Currently, 39 percent of consumers prefer to book directly vs 17 percent who prefer to use online travel agencies (OTAs). 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.
Why are Direct Bookings so Crucial for Hoteliers?
• Build a loyal customer base: Customers that make a reservation directly through your website are more likely to return. When your clients book directly with you, you can use a loyalty program to offer them discounts. When guests book directly through your website, you have the potential to reward them and begin establishing loyalty from the moment they arrive. You can also contact your consumers and target them with advertisements for returning visitors because you have their data.
• Get closer to your guests: You get direct access to your guests when your clients book directly with you. This includes, above all, their contact information as well as their booking preferences. You can take advantage of this information to learn more about your visitors. Consider the possibilities for your hotel, such as sending pre-arrival emails with upsell chances, retargeting returning visitors, and personalizing and personalizing their stay. Getting closer to your visitors is a win-win situation for both you and them.
• Protect your brand: Your hotel's brand has taken a lot of time and money to develop. When visitors visit your website, they are immersed in the atmosphere of your brand and the expertise of your hotel personnel. Unlike OTAs, where all hotels are presented in the same way, you will be just one among many with no potential to form an emotional connection. When a guest bookings directly with you, you have complete control over the guest experience, including the crucial pre-arrival anticipation phase. There are several touchpoints you can affect from the moment they land on your website to the time they check out to ensure they get the greatest experience possible. By putting money into your direct booking strategy, you're also putting money into your brand.
Overall, concentrating on direct reservations allows you to create closer ties with your guests while also saving a significant amount of money on commission fees. All of this will contribute to your hotel's long-term viability.
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