Technology : Channel management
How we ’ re boosting direct bookings
Michael innocentin
executive director , digital marketing
Frhi hoteLS & reSortS , toronto
What methods are being used to increase direct bookings ?
Search is a critical component of a direct booking strategy in hospitality and is the single largest source of referral traffic for most brand websites . Increasing direct bookings online requires an investment in many areas . First and foremost , having the proper analytics and testing tools is critical . Through the use of A / B and multivariate testing tools , brands can significantly improve their conversion rates by enhancing the user experience . This will allow them to do a better job of maximizing business from existing site visitors . Additionally , investments in mobile and tablet-optimized sites are a must for all brands .
When does the cost of acquiring a direct booking exceed that of an ota booking ?
If you are managing your marketing dollars appropriately this should not happen , but it is very easy for this to occur if you are not an analytics-driven organization . For example , metasearch sites often work on a cost-per-click auction model similar to bidding on search engines . Unfortunately , the bidding technology is quite new and not as sophisticated as search tools . If marketers are not actively monitoring performance , campaign costs for some properties could exceed the cost of obtaining business through other indirect channels . OTAs also have the potential to be more cost-effective in markets where the brand can ’ t support language or doesn ’ t have a local presence .
“ seven out of 10 bookings that take place on our Websites start on google , and We have seen a lot of business through tripadvisor ’ s hotel price ads .”
– Chetan Patel , Onyx hOsPitality GrOuP
chetan Patel vice president , strategic marketing and e-commerce onyx hoSpitaLity group , BangKoK
What methods are being used to increase direct bookings ?
We use online marketing , email marketing , our loyalty program and social media to increase direct bookings . The highest proportion of our marketing budget goes to digital marketing . The investment pays off handsomely . The ROI is upwards of US $ 8 for every US $ 1 spent , which works out much better than the cost of third-party channels . Seven out of 10 bookings that take place on our websites start on Google , and we have seen a lot of business through TripAdvisor ’ s Hotel Price Ads .
When does the cost of acquiring a direct booking exceed that of an ota booking ?
When a new property opens a lot of investment is made in advertising that generates awareness , as opposed to generating direct bookings . For a few months these costs in aggregate may be more than the average cost of getting business from an OTA .
Michael leong vice president , digital marketing
Shangri-La hoteLS and reSortS , hong Kong
What methods are being used to increase direct bookings ?
We use a multitude of digital marketing initiatives to drive direct bookings online including search engine marketing , display advertising , metasearch and retargeting .
The most important source of direct bookings are search engines . Although paid search is also important , organic SEO delivers a greater volume of visitors — and ultimately bookings — to our website than paid search .
Baidu , Soso and Google China play a crucial part in our online marketing strategies , as China is a major source of business for us . That being said , online conversions from Chinese visitors tend to be lower than the rest of the world as the “ shop online , book offline ” trend is still quite prevalent in China .
54 HOTELS May 2014 www . hotelsmag . com