Insider Secrets to Increasing Your Hotel Direct Bookings
Proven Strategies to Drive More Revenue, Bypass OTAs, and Build Stronger Guest Relationships
Zerf Team
Sep 26, 2024
TABLE OF CONTENTS
Maximizing direct bookings is crucial for any hotel's revenue growth and brand control.
While Online Travel Agencies (OTAs) offer exposure, they often come at a significant cost to hoteliers.
In this guide, Rodrigo Perez Garofalo, Zerf’s Head of Product, explores the key advantages of focusing on direct bookings and how hotels can leverage Zerf’s technology to enhance their results.
The Hidden Costs of OTAs
When hotels rely on OTAs like Expedia or Booking.com, they pay hefty commissions ranging from 15% to 30% per booking. Paying higher commissions might seem like a necessary trade-off for visibility, but as Rodrigo notes, "The trade-off isn't there. OTAs dilute your brand, limit customer engagement, and lock you into a price-driven battle."
Relying heavily on OTAs reduces a hotel's ability to create a lasting impression and control the guest's booking journey.
Key Drawbacks of OTAs:
High commissions - Between 15% to 30% of the booking revenue goes to the OTA.
Brand dilution - Hotels are reduced to a commodity in a price-driven marketplace.
Limited upsell opportunities - OTAs restrict direct communication with guests, limiting options for offering value-added services like upgrades or experiences.
Loss of control over the guest journey - OTAs manage key customer touchpoints, often leading to missed engagement opportunities.
Key Benefits of Direct Bookings for Hoteliers
Shifting focus toward direct bookings allows hotels to regain control over their brand, enhance customer engagement, and ultimately boost their bottom line.
Brand Control
When guests book directly, hotels have complete control over the messaging, imagery, and offers they present. Unlike OTAs, which provide limited space for customization, a direct booking system allows hoteliers to create a personalized experience from the first interaction.
“It doesn't make sense to build your hotel on rented real estate,” says Rodrigo, emphasizing the importance of owning your digital space. Hotels that control their websites can implement changes and updates without waiting weeks for a third party.
Better Customer Experience
Hotels can deliver a more personalized, tailored experience when they own the booking journey. With direct communication, hoteliers can offer unique services, such as:
Customized room upgrades
Exclusive spa or dining packages
Special in-room amenities or welcome gifts
Rodrigo explains: “There's no easy way to sell upgrades or invite guests for value-add experiences when OTAs are in the middle.”
Revenue Growth
Direct bookings can lead to significant savings by eliminating OTA commissions. Additionally, by controlling the user experience, hotels can encourage higher spending through upsells and add-ons. Over time, a hotel that converts more visitors directly benefits from reduced acquisition costs and increased loyalty.
Challenges in Implementing Direct Hotel Bookings
While the benefits of direct bookings are clear, implementing them successfully requires attention to several key areas.
Website Ownership
Rodrigo highlights a critical issue: “If you don't own your website, forget about testing or making quick changes.” A hotel’s website is its digital real estate, and not having complete control can hinder everything from content updates to integration with other systems.
Technical Integration
Hotels often face challenges when integrating multiple tools and systems into their websites.
Critical systems such as Property Management Systems (PMS) or Central Reservation Systems (CRS) must seamlessly connect with the website for smooth operations.
Key integrations to consider:
PMS - Allows hotels to track guest preferences, booking history, and more.
CRS - Centralizes room availability and pricing across channels.
Communication tools - Streamlines guest communication via WhatsApp, iMessage, or email.
Rodrigo emphasizes: “Being flexible and integrating the best tools will give you a competitive advantage, allowing you to move faster and serve guests better.”
Conversion Rate Optimization
Improving your website's conversion rate is essential to making direct bookings work. According to Rodrigo, minor improvements in conversion rates can have a profound impact on revenue. A jump from 0.5% to 1% can double the number of bookings without increasing marketing spend.
“Testing and optimizing your website is the winning strategy,” he says, encouraging hoteliers to invest in A/B testing and data analytics to ensure their website performs at its best.
YOU MAY ALSO ENJOY: Key Elements of High-Converting Hotel Websites
How Zerf Can Help Your Hotel Succeed
Zerf’s comprehensive approach to hotel technology helps hotels tackle the challenges of direct bookings head-on. We have expertise in:
Website optimization
System integrations
Analytics and data-driven insights
Zerf empowers hotels to take control of their online presence and drive more direct bookings. We tailor our solutions to each hotel’s unique needs, ensuring that every aspect of the digital guest journey is optimized for success.
Direct bookings aren’t just a trend—they are the future of sustainable hotel revenue. By reducing reliance on OTAs, hotels can improve their margins, engage more deeply with their guests, and control their brand’s narrative. With Zerf’s technology and expertise, hoteliers can build a seamless, personalized booking experience that delivers long-term growth.
FAQs
Q: Why should hotels focus on direct bookings instead of OTAs?
A: Direct bookings allow hotels to avoid high commissions, maintain control over their brand, and deliver a more personalized experience for their guests. While OTAs offer exposure, they often dilute a hotel's unique value and lock it into a price-driven marketplace.
Q: What challenges do hotels face when implementing direct bookings?
A: Common challenges include maintaining full ownership of the website, integrating key systems like PMS and CRS, and optimizing the website for conversions. Without proper management, hotels may struggle to leverage direct bookings effectively.
Q: How can hotels improve their website’s conversion rate for direct bookings?
A: A/B testing and continuous optimization are essential. Hotels should test different website elements and compare their performance over time. Small conversion rate improvements can significantly boost revenue without increasing marketing spend.
Q: What tools and systems should hotels integrate into their direct booking system?
A: Hotels should prioritize integrating their Property Management Systems (PMS), Central Reservation Systems (CRS), and communication tools to streamline the booking process and enhance guest interactions.
Q: How does Zerf help hotels increase direct bookings?
A: Zerf provides expert solutions in website optimization, A/B testing, system integrations, and data-driven insights. Our tailored approach helps hotels regain control of their digital presence and drive more direct bookings.
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