SPECIAL REPORT
The DIRECT DEBATE
IN A WORLD OVERFLOWING WITH DISTRIBUTION OPTIONS AND CURRENTLY EMPHASIZING DIRECT BOOKING , FOUR INDUSTRY LEADERS DISCUSS THEIR DISTINCT STRATEGIES AND POINTS OF VIEW .
By JEFF WEINSTEIN , EDITOR IN CHIEF
Whether direct booking programs are the best and cheapest route to capture businesss and drive loyalty depends on who you ask and what research you want to believe , because the data seems to cut both ways . Considering the cost of SEO , SEM , social media activity , hosting fees , photography , marketing automation and more , the cost of a direct online booking could actually end up being more than the typical 20 % charged by the OTA ( closer to 12 % if you are a behemoth like Marriott International ). At the same time , brands argue that once guests become loyalists and go the direct route , booking costs contract exponentially .
So , it should come as no surprise that Hyatt Hotels Corp . in late July leveraged its direct booking plan to strike a new deal to keep working with Expedia . At the same time , it would have been hard pressed to walk away when data suggests hotels get 31 % of online bookings , while OTAs dominate with 69 %.
To gain further clarity on the “ direct debate ,” HOTELS talked to top dog Marriott about how its direct booking strategy is working , and then asked Red Lion to explain the value of its plan to drive business and loyalty via a unique partnership with Expedia . We also asked distribution consultants what they consider the best plan going forward as multi-channel strategies are here to stay . We hope these four points of view help hoteliers decide the routes best suited for them .
32 hotelsmag . com September 2017