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Marriott , Hilton incentivize direct bookings to drive loyalty . by Brittany Farb , associate editor
It may be time to add direct booking promotions to the OTAs ' list of enemies .
Last month , Marriott International began offering lower room rates to Marriott Rewards members who book directly on the company ’ s website , the mobile app , call center , and with “ select ” corporate travel professionals and travel agents . In fact , if a prospective guest finds a lower rate within 24 hours of booking , Marriott will not only match the rate , it will also discount it by another 25 %.
The campaign follows Hilton Worldwide ’ s launch in February of “ Stop Clicking Around ,” a marketing campaign that awards HHonors guests who book directly through Hilton ’ s channels with cheaper rates and amenities such as free Wi-Fi , as well as the ability to check in and choose rooms online . Hilton ’ s philosophy is similar : Offer customers compelling reasons to have a direct relationship with the company .
In both cases , the move not only helps drive loyalty but lowers costs for owners and operators . " This is just one of the steps that contributes to more direct business ," says Patrick Landman , CEO and co-founder of Xotels , a Netherlands-based hotel consulting and revenue management technology firm . " Hotels have to level the playing field and offer the same perks that OTAs do to make sure direct business does not shift to third-party distributors ."
“ Offering direct booking discounts is only a very small tactical tool in a far bigger picture .”
Max Starkov , president and CEO of HeBS Digital , a New York-based hotel Internet marketing and strategy consulting firm , agrees that hotel companies need to take additional steps that include adopting a “ direct is better ” top-down strategy , investing in digital technology and marketing to generate more direct bookings , and implementing an effective merchandising strategy that allows hotels to sell on value instead of only selling on rate .
“ Offering direct booking discounts is only a very small tactical tool in a far bigger picture ,” Starkov says . “ The direct booking discounts are a direct response to a troubling trend in the industry . So what Marriott or Hilton are doing is nothing new . Other major hotel chains have always offered perks to their direct bookers and loyalty members to entice them to book direct .”
OTAs respond , for now Soon after Hilton ’ s launch of “ Stop Clicking Around ,” Priceline ’ s CEO expressed disapproval on the company ’ s fourth quarter 2015 earnings call . Similarly , following Marriott ’ s announcement of its program , Expedia CEO Dara Khosrowshahi warned that both Marriott and Hilton risk losing a share in the OTA ’ s marketplace if they don ’ t offer their best prices . Booking . com describes hotel direct booking initiatives as “ annoying .”
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May 2016 hotelsmag . com 47