Value of direct website book
is “nearly double” those thro
12
| Hospitality Today | Aug/Sept 2016
The average booking value hotels are realising on their direct websites
is nearly double the value they are receiving from third-party booking
channels, the cloud technology provider SiteMinder reveals this month.
The finding is based on the 43.5 million reservations that passed through SiteMinder’s
technology over the 12 months ending June 2016 to generate US$16 billion in revenue for
the company’s 22,000 hotel customers around the world. An analysis of the year-long data
found that the average reservation was US$340 through SiteMinder’s Channel Manager,
which streamlines reservations made on more than 350 largely third-party booking
websites, while the average reservation was US$600 through SiteMinder’s Internet booking
engine, TheBookingButton, which facilitates bookings on a hotel’s own website.
“Invest to maximise
direct bookings”
SiteMinder’s MD Mike Ford says the
finding highlights that hotels should be
investing heavily in ensuring they have
a balanced approach to distribution and
that they are focusing on their direct
booking strategy in order to maximise
direct conversions and therefore profit.
“Our data shows that hotels globally are
achieving 1.8 times more, on average, for
accommodation booked via their own direct
website than via OTAs and other third-party
channels. While we can’t forget the reach
these third-party sites provide to hotels, it’s
important to note that direct bookings are not
only achieving higher value overall but there
is no commission payable on them so they are
very much more profitable,” says Mr Ford.