HotelsMag September 2019 | Page 53

SALES & MARKETING

scores

BRAND . COM

BIDS TO DRIVE DIRECT BOOKING THROUGH ENGAGEMENT , TECH AND CONVENIENCE ARE PAYING OFF .
Contributed by MEGAN ROWE

Online travel agencies : valued partner or bloodsucking frenemy ? Like many relationships , it ’ s complicated , but the dynamics are in flux — and hotels are getting the upper hand .

Efforts by some of the big players to funnel guests toward booking directly are yielding solid results . “ The brands have definitely moved the needle ,” says Cindy Estis Green , CEO of Rockville , Maryland-based Kalibri Labs and co-author
of a recently updated study on direct bookings . “ There is no question that the pace at which direct channels have grown has been a lot faster than the growth for third-party bookings .”
Tying reservations into loyalty programs seems to have had the biggest payoff . Kalibri analyzed its database of more than 7 billion guest stays to measure the impact of promoting book-direct loyalty on occupancy over the past several years . The study shows that these promotions are working .
“ The increase for Brand . com is 50 % more rooms sold per month on average compared to OTA rooms sold per month during the same period ,” Kalibri found .
Direct bookings matter , of course , because they lower customer acquisition costs . Reservations tied to member rates or loyalty programs result in 9 % higher effective ADRs . For a repeat guest who stays four times , compared with four different OTA customers , the average difference is about US $ 65 , Kalibri found .
Adding value is a powerful incentive to win initial direct bookings . “ It ’ s not about the points but a
seamless experience ,” Green says . “ They ’ re providing creature comforts that are more compelling — and they apply whether you ’ re a frequent traveler or not .”
Hilton ’ s “ Expect Better . Expect Hilton ” campaign , launched in fall 2018 , works the value angle . It provides a price match guarantee and Hilton Honors perks such as member-only discounts , free Wi-Fi , digital check-in with room selection — and points . “ A direct relationship with Hilton can reassure travelers they are getting the best deal , plus a personalized experience that allows us to build a more emotional connection with our guests in the long term ,” says Kellyn Smith Kenny , Hilton ’ s chief marketing officer .
Hilton Honors picked up
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