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.
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.
Knowing the secrets of success with the Online Travel Agents OTAs can boost your direct bookings. Their web coverage is so massive that any single property will find it hard to get noticed without them. In reality the chances are that any potential customer visiting your website has already checked out your listing on the OTAs, so take a moment to learn how to leverage that coverage to your advantage.
The big OTAs like Booking.com and Expedia are experts at online promotion and sales, they act a bit like a supermarket, giving customers significant choice, relevant information to help compare and an opportunity to buy simply and quickly. They have mastered the art of great online marketing, continually optimising their websites and spending billions on advertising to generate millions of bookers. Ranking high on search engines and also listing on the most popular websites like TripAdvisor make it almost certain that anyone searching for accommodation online will come across them.
The great news is that although customers visit OTAs during their search for accommodation most still choose to book direct. Take your OTA presence seriously by investing time and care to ensure it works for you. Do not be fooled into just a switching it on and letting it run, you have to drive it in the right direction.
1. Look Special: Ensure you are “attractive” on the OTA websites by having great images and plenty of them. These images must “connect” with customers on an emotional level….can they see themselves in those images? Highlight your strengths, you will be compared. By standing out you increase your chances of getting booked.
2. Know Your Targets: Understand what types of customer are finding you on the OTAs – why not ask them when you see them? Then grab the attention of those customers with the right content, your business customers may want to see free wi-fi, car parking, proximity to their destination etc. Enhance your own website to attract these customers.
3. Make Improvements: Refresh and fine tune your presence on each OTA, learning and improving all the time – nothing is static on the internet! Simplify the process of managing OTAs by using a channel manager, then spend the time you save by getting more from the connection…. put an end to tedious rate and availability updating, rather spend the time saved to add real value.
4. Drive Direct Bookings: You must have a great website, invest in fantastic images and rich content – go the extra mile. Place your online booking process at the heart of your website, it’s got to be so easy to find and book. Customers want it to be simple don’t confuse them or appear to offer less. Extract the maximum value from all customers, capture repeat business or referrals direct.
5. Returning Customers: Once a customer comes to you via an OTA make sure you get to know them, offer them a loyalty discount so they come back via a direct booking next time. Add the customer to your mailing list or social media channels and engage them directly.
6. Create your own Mini OTA: When you can’t beat them make your own. Why not join up with other properties in your area to work together. You could create a website for customers to book accommodation in your location and compete with the chains and save commission using your mini OTA.
Smaller independent properties have limitations on their time and marketing budgets so it’s critical you make the most of them. The biggest advantage owner run and managed businesses have is the direct contact with their guests, it’s not something the chain hotels and OTAs can replicate.
Freetobook is a Internet Booking Engine and channel manager with many added services and connections to the world’s biggest sales systems like TripAdvisor TripConnect, Booking.com, Expedia, HostelWorld and many others. Using freetobook can greatly improve your worldwide distribution and add bookings to your bottom line : find out more about freetobook on our home page.
To find out more about what the freetobook channel manager can do for you, click the link below.