In the modern hospitality industry, hotels receive reservations from many places, online and off. The source of a reservation is known as its booking source, and all hotel booking sources fall into one of two primary categories: direct and indirect sources.
NB: This is an article from Cvent
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Direct vs. indirect booking sources
Direct booking sources are offered by the hotel directly. Guests and clients may reserve guestrooms and event space using hotel booking software on your website, calling the hotel, or simply walking in. Adversely, indirect booking sources are much more diverse and utilise outside services to drive hotel reservations, typically at an additional fee or cost to the property.
While indirect booking sources are popular amongst travellers and vital to hotel success in many markets, direct bookings are considered most beneficial to hotels, as they do not result in additional fees or commissions paid to agents or other third-party sources. Direct and indirect booking sources exist both online and offline.
Online vs. offline booking sources
Online booking opens your hotel up to consumers 24/7, making it possible for guests to reserve rooms at any time. Online booking sources work on behalf of the hotel, increasing revenue by capturing reservations at all hours, even when staffing at the hotel is limited. Using third-party booking sites and other online channels, hotels can sell rooms at a broader range of price points and appeal to more customers at once.
Online booking channels offer more convenience for many guests, domestically and internationally, allowing clients to book travel when it fits their schedule, using their preferred language and currency to pay. While offline booking sources can significantly impact hotel occupancy, there is a catch: properties must pay for their services.
Understanding various hotel booking sources
Potential guests may encounter information or advertising for your hotel in many different places. From a billboard to a brochure to online video content, practically anything can be a booking source. Still, hotels receive the majority of their business through easily identifiable booking and distribution channels, such as:
