How Can I Increase My Hotel’s Direct Revenue?

It’s been great to see the industry pick back up recently with many hotels across the country seeing record levels of revenue as lockdown lifted and the Eat Out To Help Out scheme kicked into action. 

However, with revenue once again returning, hoteliers face the ever familiar challenge of maximising their direct bookings. One of the big outgoings is commissions paid to online travel agents like Booking dot com (or Booking dot con as we have amusingly seen some hoteliers dub the Dutch travel giant). Of course, OTAs have a role to play in helping hoteliers drive revenue and occupancy. But do they really justify the huge commissions they charge?

Over the past few weeks, we are seeing a lot of hoteliers asking how they can drive more of their bookings direct. Below we have shared our three-step recipe for success which will ensure the bookings that you have worked hard to generate, come via your hotel’s own website rather than third parties.

1.      Rates

Are your website rates the same or cheaper than third parties? At a minimum, we would recommend you offer rate parity with other online distribution channels you are selling rooms through. Why not go one better and make your own direct web the cheapest place anyone can book a room at your hotel? 

2.     Incentives

Do you offer any incentives for booking direct? Guests love to feel like they are getting value for money. Non-monetary incentives such as complimentary upgrades and wine coupled with later checkout and earlier check in help are fantastic in ensuring guests book direct to take advantage of these amazing perks they wouldn’t otherwise get. When booking a room with an OTA is so incredibly easy (and trustworthy), you really have to go the extra mile to make it worth their while to book direct.

3.     Own Your Brand

When people search for your hotel in Google or Bing, you’re your own website come up first? Do you market the reasons to book direct clearly on the search results page? Running paid search advertising to target anyone looking for your hotel by name will help drive more bookings direct, at around 7% equivalent commission, as opposed to 15%+ which OTAs charge.

Driving bookings direct isn’t rocket science and if you get the three steps above right, you are well placed to save thousands of pounds each year in commissions. Think of what that money could be better spent on!

Get in touch to find out how much money your hotel could save each year through reducing the commissions you pay to OTAs.