The relationship between OTAs and hotels is a complex one. While hoteliers often resent the steep commissions OTAs charge, they also rely on them for a large chunk of their bookings.
NB: This is an article from WebRezPro
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And for OTAs, well, without hotel inventory, they lose their most profitable business. The reality is that, for now and in the foreseeable future, OTAs and hotels need each other.
That said, increasing direct bookings and reducing reliance on OTAs is a smart strategy for any property. Direct bookings – whether through your property’s own website, phone, email, or front desk – are best. Not only do they eliminate commission fees, but they also allow you to establish direct communication with guests from the moment of booking. This connection helps you personalize the guest experience, harness upsell opportunities, and foster loyalty.
So, how can you convince guests to book direct? OTAs have earned a significant share of the market by offering a seamless booking process and attractive perks. You can do that too!
There are plenty of incentives you can use to win direct bookings, and many of these cost less than OTA commissions. However, the benefits are more than financial. Owning the booking from the start empowers hoteliers to grow customer loyalty – which is priceless.
Top Direct-Booking Incentives
The perks that work to win guests vary depending on your property’s unique selling points and target audience. Here are some proven strategies to inspire guests to book direct:
Easy Bookings
In 2023, 66 percent of travel bookings were made online, with 35 percent of those on mobile. If you want to increase direct bookings, your online booking process must be fast, simple, and mobile friendly.
Your online booking engine (OBE) should:
- Deliver a frictionless experience with minimal required fields.
- Allow guests to personalize their stay easily.
- Work seamlessly across all devices.
- Provide instant booking confirmation.
If the booking process is cumbersome, guests are more likely to turn to OTAs.
Free Room Upgrades
A free room upgrade is one of the most compelling direct booking incentives, with almost half of travel consumers saying it would convince them to book direct. This perk is especially easy to manage in low season when you have more flexibility with inventory.
Upgrade offers can be as simple as promising guests desirable features such as a better view, more space, or a balcony. Save your best rooms for direct bookers!
Free Cancellations
Offering free or flexible cancellations can be a powerful motivator. Not only are cancellations easier to manage when you are dealing directly with the guest instead of a third party, but the chance of rebooking is much higher.
