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INSIGHT / TECHNOLOGY > > > > > > > > > > > >
TOP 3 W
CHALLENGES
We look at the toughest challenges you face, but more importantly, how to deal with them.
hen you were just start- ing out, a booking was a booking – you didn’t care where it came
from. But as your accommodation business grows, you realize that while third party bookings are valuable, they are also expensive! As a small accommodation pro-
vider, how can you increase your share of direct online bookings versus your other paid channels? Having that bal- anced split between your booking channels is a healthy part of running a bed and breakfast, small hotel, inn or guesthouse. Here we discuss the biggest chal-
lenges to increasing your share of di- rect online bookings, and what you can do today to start tipping the scales in your favour.
1. Third party sites are increasing their market share
Online travel agencies (OTAs) are
investing a ton of money into captur- ing guests, and it’s paying off. In fact:
• Many independent hotels will see a 10:90 split in favour of OTAs within the
next 3 years (HeBS Digital)
• In Europe, almost 50% of all hotel bookings come from online channels,
with the dominant OTAs (Priceline, Expedia, and HRS) owning 90% of the online travel space in that region (eRevMax)
• 45% of European travellers use metasearch sites to compare rates,
FROM INCREASING DIRECT BOOKINGS
and 43% read reviews before making a booking decision (eRevMax)
• And now, metasearch sites are fol- lowing suit – posing a greater chal-
lenge for small accommodation pro- viders. TripAdvisor,
Google, and now
Trivago are beginning to offer direct bookings through their website. The ‘stickier’ these websites are, the more travelers will choose to use them over your small hotel website.
What can you do about it?
• Start to invest in your own website, because it is imperative that you work
on improving your online booking pro-
cess. The ease of booking directly with you needs to match if not be smoother than booking with OTAs. Make sure it’s easy to understand
what rooms are available and at what rate (don’t overwhelm with too many choices), and that it looks and feels se- cure to make a booking with you.
2. You probably don’t have a clear strategy to improve direct bookings
Small accommodation providers
are pressed for time as it is – you’re busy trying to get everything done as opposed to thinking about how you can do more for your distribution strategy. There’s simply not enough time or
STOPPING YOU
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