The travel hospitality industry saw a reckoning beginning in 2015 in the form of book direct campaigns. In fact, they were so successful that, for well-known brands like Hilton, direct bookings now account for approximately one third of all of bookings made at their properties. Airlines and hotels discovered that with direct booking they were able to better service their guests by offering special accommodations and more beneficial loyalty programs. However, the biggest benefit was undoubtedly the ability to collect and analyze guest data directly – allowing them to tailor their offerings even further and turn every guest into a return customer.
While third-party reservation services have taken center stage in the restaurant industry for more than 20 years, it’s now time for restaurants to follow in the travel industry’s footsteps and start thinking strategically about how they can build direct relationships with their guests, utilizing third-party platforms as just one of many channels to reach their guests.
Costing More Than It’s Worth
Third-party booking services excel at attracting new guests and increasing brand awareness through strong consumer networks. These services can be valuable as marketing tools, but if used as the only channel, it means they own the guest relationship and all the data that accompanies it. Relying solely on third-party sites come at a steep cost — not only to your bottom line, but in hindering your ability to establish meaningful, long-lasting relationships with your guests that can turn tables of new faces into regulars.
In the travel industry, consumers began to lose trust in OTAs, or online travel agencies, because of the lack of personalization, robotic processes and even lack of data protection. In fact, more than 50 percent of travel fraud comes from OTAs. If restaurants continue down the path of third-party reservation platforms, they not only run the risk of high costs, but also dissatisfied customers. Direct booking will help bring flexibility and personal touch to guests from their first, and arguably the most important interaction: the reservation.
