Online Direct Is the Fastest-Growing Hotel Distribution Channel
Is that the most exciting statement you've seen today?!
Last week, market and consumer data specialists Statista obtained and released very interesting and exciting information in the realm of hotel bookings. It seems that online direct is officially the fastest-growing hotel distribution channel in Europe.
From 2017 to 2023, "online direct hotel bookings are forecast to grow by over 10% in Europe, whereas most other distribution channels, such as phone and walk-in are expected to see a decline."
Data also shows that the only other hotel distribution channel forecast for growth is online travel platforms (where a growth rate of 3.3% is predicted for the same time frame). Tripadvisor's revenue in the third quarter of this year was $459 million, up 51% year-over-year and exceeding Q3 of 2019 by $31 million. Expedia Group has also seen record profitability in Q3 of this year.
This news is very welcomed by hoteliers and it means that your book direct strategy is more important than ever, because every element of the user experience needs to be right in order for them to book directly with you.
There are so many benefits of a book direct strategy which include:
Direct bookings are also more favourable for your hotel because they reduce the commissions paid to third parties while helping you to form stronger, longer term ties with your guests.
It's good to remember that consumer expectations are also always rising. We have become used to increasingly personalised experiences when it comes to parting with our money in exchange for a product or service.
Consumers know that shopping around for the best deal is the smartest thing to do before clicking ‘pay’. They also want a more personal and direct relationship with the hotel, especially if they know they will be rewarded for taking this route.
When it comes to your offers, don’t just plan for key dates throughout the calendar year – try to also be reactive and keep your eyes open for ad hoc opportunities as the months progress. Be flexible in relation to your guests’ plans and needs – a third of global travellers desire the ability to freely cancel or modify a booking as a top-two priority, so flexibility is the name of the game.
You need a smart, high performing booking engine that is:
Review your rate plans & offers – always highlighting flexibility
Maintain online campaigns
Hotels who have maintained a brand presence throughout the pandemic maintained an advantage over the OTAs. It’s imperative to continue to protect your brand and positioning as restrictions continue to ease globally.
Google Ads
Social
Remarketing & prospecting
You can further support your offer by running dedicated rooms remarketing and prospecting campaigns on Facebook & Instagram
Lead Generation
Facebook Lead Ads are a great way to collate a refreshed database and increase newsletter subscriptions
Social proof your brand
‘Social Proofing’ occurs when we witness others do things which reinforces the message to us that something is worth doing.
Technology platforms
Invest in your book direct tools and email marketing systems so you can improve communication, upselling and the overall customer journey. Some useful tools to consider include the likes of The Hotel’s Network, Guestjoy, Revinate or AskSuite.
Continue being as flexible and agile as you can be. Get yourself a simple-to-use, beautifully crafted website paired with a fully capable booking engine, great digital marketing support, and you'll be on the way to maintaining and growing your direct bookings in 2023.