BookingSuite: A Lesson in Direct Revenue Strategy

Throughout my career in revenue optimization for the hospitality and travel industry, I have always stressed the importance of owning your digital assets. This means having control of your domain, your marketing campaign’s analytics and history, and especially your website.

As a strong supporter of open source technology, I have stepped in every time a marketing vendor (“expert”) started trashing new and innovative options for hotels. Of course, vendors will always favor their outdated proprietary systems over new technology. They have made a huge investment and have to keep selling. But being tied to old technology is never going to give your hotel an edge in the online marketplace.

WordPress is a perfect example. As a flexible, secure, and user-friendly website platform, it has been displacing proprietary content management systems worldwide. Threatened, some hotel marketing agencies starting publishing propaganda about WordPress; they said it was “unsafe” and did not include essential “marketing features.”

In response, I have steadfastly encouraged hotels to embrace open source and steer clear of fear-mongering by agencies trying to push their agendas. Of course the agencies want you hooked on their website platforms. It provides them with the security of you not leaving them. Know that when you do leave, you will be left with nothing but a zip file containing the remains of your most profitable channel and a “we are sad to see you leave” email. Good luck!

Case in Point: BookingSuite

In 2014, I wrote a detailed article on Priceline’s Acquisition of Buuteeq, in which I again outlined the importance of owning your digital assets. Buuteeq was run by smart people who tapped into the reluctance of hotels to invest in their own direct revenue strategy. They offered to relieve hotels of the headache of owning and maintaining their digital assets, starting at just $99/month!

They did a great job of marketing themselves and were able to successfully scale their own business by offering websites and marketing packages to hotels for a low monthly fee. At a crucial time when direct marketing investment was already a massive challenge for hotels, this approach was not doing the hotel industry any favors.

After the Priceline acquisition, I tried to make the strongest possible case for not renting your website and your marketing strategy from the largest online travel agency in the world. Priceline Inc. has its own agenda for growth.

If you were to look at their stock performance and revenue breakdown, you would see that they do not make money building websites or running your marketing campaigns. They make money when people use their suite of OTA websites to book a room. Surprise! They prioritize their own direct revenue channel over yours.

Read rest of the article at Words of Vikram