At 12% TripAdvisor’s Instant Booking connection has a lower commission than big online travel agents. Is it time you looked into how to get your share ?
Why not start by checking out your own listing on TripAdvisor to see how they promote the booking links. You can’t fail to notice that visitors are asked for dates of stay and encouraged to search and book.
The connection to TripAdvisor through your freetobook diary is free (you do have to pay TripAdvisor).
6 Advantages to TripAdvisor Instant Booking
1) Lower commission, from 12%
2) You only pay commission on completed bookings
3) No upfront costs, no signup costs, no fees from freetobook
4) You receive all of the customer’s direct details, including email address
5) Simple to do, just login to TripAdvisor and connect
6) You don’t need a Business Listing to get these TripAdvisor bookings
The connection simple, just activate it in your TripAdvisor account to enable direct bookings on your TripAdvisor page. If you already have a freetobook account you don’t even need to contact us.
Most of freetobook’s benefits are free with a few optional charged services, find a complete list of our charges on our pricing page, what does freetobook cost ?
Increasing direct bookings is the priority and we certainly help thousands of businesses grow theirs. The next priority is to ensure you have a good mix of other booking sources so you don’t have all your eggs in one basket. Too many bookings from one source creates a risk to your business.
If almost all your bookings come in from Bookingcom or Expedia there’s a danger of a single source being too dominant and any business knows that securing future success requires a healthy spread of bookings.
What if you were to fall out with your single biggest source of bookings, do you have any alternatives? Perhaps they decide to implement something you disagree with, do you have another source as back-up? These are valid questions that could affect the sustainability of your business.
You also need to consider that each agent has their very own customer database and by working with a variety of them you maximise your exposure to potential new customers. If for example you only work with Expedia, you’ll only get Expedia customers and that will limit your business.
A good healthy business mix includes plenty of direct bookings alongside a diversified strategy with Bookingcom and Expedia, but make sure you have a plan to increase direct bookings.
Freetobook properties have always been able to offer their very own extras enabling customers to choose items that will make their stay special, whilst adding to to property’s revenue.
We have now added the ability for you to define nightly extras so that the extra cost is multiplied by the number of nights your customer stays. Nightly extras can be also booked for a specific number of nights rather than all nights.
Booking Extras can be found in Tab “Availability” and “Booking Extras” on the orange bar.
More great options included with freetobook’s booking extras include;
Ask your customer an associated question related to a booking extra.
Limit the extra to certain dates of stay.
Extras can also be offline only (not bookable by the customer), this is great if the extra is variable and you only want to add it to their bill during stay i.e. meals and drinks.
An extra can also be compulsory i.e. for a security deposit.
These functions and much more are included in freetobook’s free version which continues to grow and improve, all helping your direct bookings. Just what you would expect from a cutting edge family business.
On the phones we hear the pain many accommodation owners feel when they get the monthly commission bill from their OTAs. Particularly annoying is finding repeat or regular customers who somehow end up booking through an OTA rather than directly. Many of you are looking for tools to help fight back against rising costs from the Online Travel Agents. One excellent way to do this is by using promotional codes.
A promo code is a private special offer that gives customers a discount when they book online directly with you. Essentially you give them a small discount making it cheaper to book directly, they save and you reduce your commission bill with more direct bookings. They simply type a promo code into your online booking page and it gives them a special direct discount.
The first step is to think about how much of an incentive you want to give to direct bookers. Perhaps your OTA commission is 15% and you want to give your customers 10% off thus saving you 5%. In the example we give the hotel offers a ten percent discount but you decide the amount yourself (you set it and you can easily change it).
Next you create a “Promo Code” in your freetobook account. Once you have your promo code setup (eg. DIRECT10) you now need to let your customers know about it, ensuring they know that booking directly on your website will save them money. The simple message is “Book direct and save” but you do have to promote it. Here are some clever ideas to help.
At Guest Checkout – Hand your guest a little business card with your promo code on it. This lets them know they are special and that they will always get a better deal booking directly with you.
At reception – Put up a little plaque or sign stating that you always guarantee the best rate when guests book direct and that some guests might get a special discount when they book again. Give them the promo code so they can use it to claim their discount when booking direct.
On your email signature – When you email guests about coming back to stay with you mention your promo code so they can get their special private deal. Again this reinforces the book direct message in a place where they might be considering making a booking with you.
We all like to feel special, using promo codes is a great way to show guests that you value their business and want them to come back and stay. Its a powerful message, book direct and save… here is a little exclusive discount because we value your custom. You want them to come back and/or tell family and friends about the special deal they can have by booking with you directly next time – promo codes do that for you.
The video below shows how the promo codes work, all you need to do is login to your freetobook account select the tab “Specials” and “Promo Codes” on the orange bar. To get a little further information see the promo codes section on our website.
More and more bookings are being made on TripAdvisor, we have some information and friendly advice to help ensure you are not losing out. In the last week we have seen a 400% increase in TripAdvisor Instant Bookings. If you use the freetobook direct connection these are now available at 12% commission.
All across the world Instant Booking is becoming more widely available, you will have noticed a change to your TripAdvisor page. Now visitors to your page are asked for their dates of stay and your availability only shows if you’re connected, if not, TripAdvisor lists availability of nearby properties.
Getting a direct connection to Instant Booking is easy and will save you commission. To take part you just need a freetobook account and a TripAdvisor account.
Login to your TripAdvisor account and switch on the connection to freetobook, it’s as simple as that.
Six advantages of a direct TripAdvisor connection:
1) Lower commission, you can pay as little as 12% 2) You only pay commission on completed bookings 3) No upfront costs, no signup costs, no fees from freetobook 4) You receive all of the customer’s direct details, including email address 5) Simple to do, just login to TripAdvisor and connect 6) You don’t need a Business Listing to get these TripAdvisor bookings
The connection simple, just activate it in your TripAdvisor account to enable direct bookings on your TripAdvisor page.
Freetobook has always believed in great technology for direct bookings as well as offering the highest quality connections to world’s biggest sources of bookings. We all know some providers are not universally popular with accommodation owners but it remains a fact that they have access to the world’s online bookers. We try to advantage our customers (property owners) by offering these connections at better value. It is certainly better to get a booking through TripAdvisor at 12% than one through another big source at higher commission!
This year a freetobook customer was awarded TripAdvisor’s “Best B&B in the World,” yes, number 1 out of 300,ooo or more listed on their site. The Millgate in Masham is certainly a fantastic B&B and for us what stands out is their great attitude to using new technology to maximise sales and free up time to get on with taking care of customers. See what the Millgate has to say about getting to the top on TripAdvisor.
To become the best B&B in the world you certainly need to be fabulous but you also need to have fantastic reviews and as many of them as possible. Here again freetobook can help you rise up on the TripAdvisor rankings. A Review Express connection on your freetobook account can automate review requests for your customers and dramatically increase the number of reviews you receive. Find out more about Review Express.
Most of freetobook’s benefits are free with a few optional charged services, find a complete list of our charges on our pricing page, what does freetobook cost ?
View our helpful TripAdvisor Instant Booking video for a quick recap of how to increase bookings on your TripAdvisor page, click play below.
How much more of the “booking cake” can the OTAs (Online Travel Agents) take and how much bigger is the online booking sphere getting? They’re both interesting questions we continue to ask ourselves with a view to helping independent properties generate more direct bookings and reduce commission bills.
There is now evidence that the growth in new online customers is starting to flatten and mature. The OTAs are giant corporations that require continual growth to fire their share price. With fewer new online customers to sell to, the OTAs are looking for ways to keep their growth on target and some have been launching products to control your direct bookings. This strategy of getting income from your direct bookings doesn’t require them to find any new customers yet helps them expand their income. When they manage your direct bookings you are effectively providing them with an opportunity to acquire new customers, your direct customers.
We have also seen some OTAs removing the customer’s direct email address when the booking has originated on their site. In the past they shared these details freely with the property owners but now you need to make the effort to obtain the customer’s contact details. This will lead to less communication between you and the customer, reducing your ability to make direct marketing offers and run loyalty promotions. The knock-on effect is to shift more bookings into commissionable income and reduce direct bookings. Make sure you get contact details of all your guests.
How do the OTAs control so much of the online business? Well, they spend billions on online marketing to get customers to book on their website. Along with the expensive adverts they quite often advertise on the search engines under cheaper terms like your property name. When they advertise under your name customers looking for your property will see them first at the top of the Google page. You will also probably see them paying for advertising on other high traffic websites e.g. your TripAdvisor page.
So what can you do about it ? Take your direct bookings very seriously, be under no illusions that you are in competition for your own direct bookings. You need to stop thinking that the property down the road is your main competition. In the online world your biggest competitor is most likely to be the OTA that provides you with the most bookings. If a potential customer has a better website experience on an OTA’s website then that’s where they’ll book.
Make sure you have invested in a great website, lots of fantastic images (critical), a great design and good original copy. There is nothing new there but independent businesses are all too often reticent to invest in their marketing, seeing it purely as a cost. Have you ever wondered why the OTAs insist on you uploading so many great images? They know customers are more likely to book with them if they have great images of your property.
A fantastic image led website will generate more direct bookings and save commission. Making sure your website is the best it can be will give you an edge when competing for direct bookings. Some of the big hotel chains even keep their best images for their own website so that they have better visual content for direct customers.
It’s a fact that big OTAs have a global sales coverage that independent accommodation owners can’t match. Learn from the way the big hotel chains do it, they use the OTAs for customer acquisition in areas they cannot reach. Use the OTAs to get the bookings in and convert the customers to future loyal direct bookers. Not all OTAs are the same, some customers have loyalty to a specific OTA that they use most of the time. If you rely on just one OTA for too large a percentage of your bookings then you should probably diversify the source of your OTA business. Work with the biggest OTAs but not just one of them. This gives you more online exposure, access to more customers, reduces your reliance on a specific channel and gives you a better mix of customers. It’s also a lot easier to bargain with the OTAs if you have more than one.
Co-operation between nearby properties will help grow direct bookings for all. When it comes to getting more direct bookings your main competitor is your OTA. If properties switched from competing with each other to cooperating there would be a mutual benefit for all. Taking it to another level some accommodation owners have enjoyed significant success by cooperating and creating bookable websites featuring their members, examples include Fort William and St Ives in the UK (see freetobook together).
The benefits of more direct bookings are clear, the simplest calculation is the commission. By cutting out the middleman you save precious commission but importantly you also own the customer relationship. You have the customer’s contact details, and from the booking onwards it’s your brand that they will communicate with, not the OTAs. The direct booking message is simple so make it clear on your website, social media, emails, brochures and do let guests know that booking direct is better for them and better for you.
The service you offer from the point of confirmation to their stay with you and beyond is all yours. With direct bookings you have no communications middleman, so take advantage of the opportunity to differentiate yourself and be “special”. Always have the best rate on your website. If you ever feel the need to make a special offer make sure it’s on your website so customers booking direct never pay more.
It can be complex in the online world, as an independent family business we try to keep things simple and in perspective for smaller businesses, there’s lots of bookings out there you just have to keep chasing them.
Are all your eggs in one Online Travel Agent’s (OTA) basket? We see a number of independent accommodation owners who rely on just one OTA. Business wisdom and common sense suggest that an over reliance on one source of sales is risky. Spreading your sales sources will give you a more reliable, robust and diversified stream of bookings.
So what are the risks of working with just one OTA? At some future point that company may decide to implement something you disagree with; it could be a policy about commission or some way that they deal with guest data, reviews or customer relations. There’s no way to say what the future holds but with only one source you will have to follow their rules without any backup relationships.
Each of the biggest three worldwide travel websites (and they keep growing), Expedia, TripAdvisor and Booking.com all have their own customer databases and their own advertising strategies. By working with more than one you both maximise your exposure and diversify sources of potential customers. Remember that some customers only ever book with Expedia and others only Booking.com so by working with both you get seen by them all.
Customers also visit many websites during their research process so featuring on the big three means you have more chance of catching their eye. Again each of these booking sites will place a different emphasis on your property so you will appear in different positions and places on different searches and pages.
Having only one OTA is a bit like a farmer getting a giant contract from a major supermarket. The initial glow wears off when you have had to turn down all other distribution opportunities and tailor your processes to that single source, and then you realise that losing the contract would likely mean instant business failure. It’s a horrible question to ask but an important one, if your biggest OTA stopped working with you would your business survive?
Fortunately in the accommodation business you can spread your risk far more easily than some farmers can. You can share your availability across multiple channels and benefit from a bigger and more diverse spread of bookings whilst increasing your negotiating position. Then, if at some future date one OTA ever demands something you don’t want to give you can always move business to another.
A good healthy business mix includes plenty of direct bookings so your OTA policy should always go hand-in-hand with a strategy to increase direct bookings. In our next blog we cover ways to increase direct bookings, so you can make the most of the existing customers that have booked via the OTAs.
A huge amount of internet change is currently impacting independent accommodation providers.
Online travel agent (OTA) consolidation puts the vast majority of bookings into the hands of just 2 or 3 players. Together they dominate the online space through aggressive marketing and huge pay per click spends with Google and other high volume websites. This continues to make it increasingly challenging for independent accommodation owners trying to maintain the same volume of direct bookings.
If you find yourself in this situation the best strategy is to avoid over reliance on a single OTA as that level of dominance creates obvious business risks, no business wants all its eggs in one basket. So make sure you have a spread of booking sources and always be on the look out for new, more efficient ways to distribute.
Don’t be afraid to invest in technology that improves your direct commission free bookings and also enables you to diversify your booking sources i.e. a channel manager and booking engine that connects to all three big players…Booking.com, Expedia and TripAdvisor.
Remaining fiercely independent and open to multiple sources of bookings becomes more crucial as the dominance of the biggest grows. In other words the most successful strategy will be diversified and independent – keep your eggs in baskets you can trust.
It’s great to see so many small businesses flourishing on TripAdvisor with the recent Certificates of Excellence. What does it take to get one? We are privileged to have a special view of the accommodation business chatting to thousands of owners across the world. On the whole customers openly share their success to help others get ahead.
When you look around at the independent B&Bs and guest houses that are winning there are a few things that seem to make all the difference to their guests.
Their welcome is warm, friendly, unique – it sets the tone for the stay. You, the host, make all the difference…. unlike some large corporate hotel chains where you’re “checked-in” by a machine ! That’s a huge advantage straight away, use that encounter to understand the guest, they are all different – some want to chat, take advice etc. others may not.
They have a small “flourish” at check-in that’s worth it’s weight in gold….a fresh pot of tea, some home baking, interesting events for them to see, something local ?
Their “wow factor” often comes from plain old attention to detail. Having everything spotless is a good starting point and then its lots of very small things done well….that add up. In elite sports it’s called “marginal differences” i.e. the type of bed the athlete sleeps on, the liquids they drink, the make up of their diet, added together all of these 100s of things can mean the difference between a gold or silver medal on the day!
They are “great” at something (most people are!) and they show it off, differentiating themselves from the “crowd” and creating a memorable experience…something guests want to tell their friends about. It could be flower arranging, local history, gardening, baking bread, carpentry, telling jokes….
They think of their guest all the way, anticipating their needs….if they are in a “walking area” they provide advice or maps, if guests need to eat out they know which restaurants do what food best. By spending time with their guests they are better able to understand how to make their stay just that little bit more memorable.
If you do all this you need to understand that although this level of “service” is natural to you it is also a real part of your marketing plan, so make the most of it. Ask for a review and respond to them on TripAdvisor (all types), it shows you care but it’s also a fantastic source of marketing information. You will find out what “made the difference” in the eyes (and words) of your guests.
Essentially, “the host” seems to make the difference, not the free wi-fi or parking, so organising your time around the guest is critical. The best in the game know this, they clear their “admin” desk, use technology to the max – they don’t waste time processing bookings, typing in payments, updating booking systems …. instead they invest the time saved delivering a friendly, unique and memorable experience… it pays off!
Some winning accommodation owners case studies for further reading
Many accommodation businesses are confused about TripAdvisor’s direct bookings, are you one them? Let’s try to explain, so find a nice quiet spot to sit down with a glass or mug of your favourite drink.
In the last year TripAdvisor has changed its business model a number of times leaving many potential customers confused and even locked out. We have created a couple of videos to help you understand these changes (skip to these at the foot of the article…if you like) but it’s probably worthwhile seeing some of the basic facts first. Like them or not, here they are;
TripAdvisor is a booking website used to book accommodation online.
Accommodation businesses can receive bookings directly from the TripAdvisor website using a booking engine i.e. Freetobook.
If you are already working with an OTA (Online Travel Agent) like Expedia or Booking.com you may find that the OTAs advertise your availability on TripAdvisor. These bookings will come through the OTA (not directly from TripAdvisor) and look like any other OTA booking and you pay your agreed commission to the OTA, as usual.
The OTA pays to advertise on the TripAdvisor website, each OTA decides if they want to advertise your availability. You have no control over this.
TripAdvisor lists availability and prices prominently so properties that don’t have online rates will be more difficult to find and if they are found they’ll be surrounded by images and popups directing customers to nearby available properties.
Available to accommodation owners worldwide except if you have a holiday rental on HolidayLettings or FlipKey
In short, if you don’t have online rates you will receive less traffic and fewer bookings than in previous years.
If you do want bookings this way then you choose your route, direct with TripAdvisor or through an OTA – either way there is no requirement for any fixed upfront costs, no subscriptions or annual fees.
To get bookings direct you will need an account with TripAdvisor and an approved booking engine (or connectivity partner i.e. freetobook). Simply login to your TripAdvisor account and setup your direct advertising via their TripConnect service. Most approved booking engines charge for this service but with us it is completely free.
To advertise directly on their website you will need to pay TripAdvisor. In their wisdom they have created two models for payment (hence our two videos mentioned earlier).
Model One: Pay Per Click
Here you pay TripAdvisor a click fee each time a customer clicks on your advert, on a Cost Per Click (CPC) basis. However, you DON’T pay for a search, you only pay when the customer searches AND then clicks on your available price. If you are not available on the dates the customer searches or they don’t click the price then you don’t pay.
Cost Per Click model facts:
You pay when a customer clicks on your available price.
TripAdvisor sets the click costs and from feedback they are generally quite low (but we can’t see or know the cost, they are only visible in TripAdvisor).
You can vary what you pay per click (your bid). If you bid too low then TripAdvisor will remove the advert and you would have to increase your bid to show again.
If you work with an OTA they might also advertise alongside your CPC advert.
You set the budget and pay TripAdvisor and can switch it on/off as you please.
In this model you pay for the advertising and you measure the bookings that come from the clicks. Bidding higher for clicks will make you show at the top of any adverts on your property and bidding too low will mean you don’t show. You make the judgement as to the cost effectiveness of your advertising by totalling up the bookings versus the click costs. Ideally that return has to better than any other booking options i.e. OTA commissions.
Enjoy the youtube video on the Cost Per Click model.
Model Two: Pay Per Booking model (Instant Booking)
In this model you only pay TripAdvisor for bookings. There is no cost for each click, instead you pay a commission amount on realised bookings. You set this up by logging into TripAdvisor account and activating an Instant Booking campaign. You pay TripAdvisor a commission fee only after the customer has completed their stay. At the time of this blog Instant Booking is not available to all properties. Use the Instant booking link below to check.
Pay Per Booking model facts:
You pay either 12% or 15% commission after the customer has stayed.
If you bid 12% then TripAdvisor will show your advert 25% of the time.
If you bid 15% then TripAdvisor will show your advert 50% of the time.
No other OTAs will show if your advert is showing.
There is no payment/commission due on bookings that cancel.
Enjoy the youtube video on the Pay Per Booking model
By now you are either asleep or completely up to speed on direct bookings from TripAdvisor….. that is before it changes (only joking!) As always, please share your experience of this service or any other relevant news, let us know how it has or hasn’t worked for you.