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The fight between hotels and online travel agencies (OTAs) can only intensify as hotels are not slowing their drive for direct bookings.
Understandably so, said Velly Bosega, CEO of Adclick Africa, as OTA commissions are hurting hotel revenues worldwide.
Speaking at the Direct Booking Indaba in Cape Town, Bosega said about 76% of hotel bookings were done through OTAs, which charged anything between 15% and 25% commission per booking.
“It’s not just about the commission and the revenue. When your guests are not booking directly, the relationship is not with the hotel. It is left with the OTA. That relationship is crucial for your brand development and brand value in the long run.”
According to Bosega, the prevailing assumption among travellers is that they can get the best hotel deals if they make their booking with an OTA.
“Research shows that some 52% of travellers, from their interaction with an OTA, still visit the website of the hotel they are interested in. They want to see what it looks like, if the hotel exists, what the facilities are, but instead of then booking directly, they revert to the OTA.”
Bosega said while this was a major challenge for hotels it was also an easy target market to grab back from OTAs.
“More and more hotels are realising that there is a major opportunity in keeping that 52% of traffic they are already pulling.” He said for hotels to entice travellers to book directly, streamlining websites to offer a more user-friendly service would be essential.
“OTAs offer a smooth, responsive, user experience that is pretty much flawless. It is easy and friendly. They have mastered the craft over the years and billions of dollars are spent on marketing and understanding traveller booking activity.”
He said many of the major hotel chains had realised the value of direct booking and several had been on drives to increase direct bookings.
“The relationship with the guest is probably the biggest benefit of direct booking followed by the ability to build brand value and brand ambassodors. It also plays a role in your ability to accurately innovate for the future.”
Practically, for example, when guests book directly the hotel has the ability to personalise rooms, meeting travellers’ direct needs and preferences. In light of the move towards experiental travel this becomes a significant capability.
Asked how smaller establishments could drive more direct bookings, Bosega said websites had to be easy and friendly to use, but also loaded with relevant and attractive content.
“When you are trying to grab the attention of travellers all over the world, then the right message at the right time to encourage booking is necessary. You have to engage with the guest in terms of information but then also create a service where the booking is seamless, flawless, responsive, fast and easy.”
He said hotels abroad were increasingly launching reward programmes as part of bigger loyalty strategies.
“Exclusive benefits and offers, points, and rewards are all about giving back to the guest and building that important relationship,” he said.
Bosega said a good example of an intensifying direct booking campaign was Marriott’s, which has for several years now been driving the message that it pays to book direct.
Source: tourismupdate.co.za
 can only intensify as hotels are not slowing their drive for direct bookings. Understandably so, said Velly Bosega, CEO of Adclick Africa, as OTA commissions are hurting hotel revenues worldwide. Speaking… "Pin It")