How do you balance your direct and indirect bookings and reduce your commission costs?

1 Know your distribution channels

The first step to balance your direct and indirect bookings is to understand your distribution channels and their performance. You need to analyze your data and track key metrics such as occupancy, average daily rate (ADR), revenue per available room (RevPAR), and customer acquisition cost (CAC). You also need to identify your target segments and their booking preferences, behavior, and loyalty. This will help you determine which channels are more profitable, which ones are more effective in reaching your ideal customers, and which ones are more suitable for different seasons, rates, and promotions.

2 Optimize your direct booking strategy

The second step to balance your direct and indirect bookings is to optimize your direct booking strategy and make it more attractive and convenient for your customers. You can do this by enhancing your website design, functionality, and content, as well as by offering incentives such as discounts, freebies, loyalty programs, or flexible cancellation policies. You can also use social media, email marketing, and online reviews to build trust, engagement, and awareness among your potential and existing customers. Moreover, you can leverage technology such as chatbots, mobile apps, or voice assistants to provide personalized and seamless service and booking experience.

3 Negotiate with your indirect booking partners

The third step to balance your direct and indirect bookings is to negotiate with your indirect booking partners and find ways to reduce your commission costs while maintaining a good relationship. You can do this by reviewing your contracts and terms regularly, and by seeking opportunities to renegotiate or adjust them according to your needs and goals. You can also explore different types of partnerships, such as commission-based, net rate, or merchant model, and choose the one that best suits your business model and budget. Furthermore, you can collaborate with your indirect booking partners to create mutually beneficial campaigns, packages, or bundles that can increase your exposure and revenue.

4 Monitor and measure your results

The fourth step to balance your direct and indirect bookings is to monitor and measure your results and make adjustments as needed. You need to use tools such as analytics, reports, or dashboards to track your performance and compare it with your objectives and benchmarks. You also need to collect and analyze feedback from your customers and partners to identify areas of improvement or opportunities for innovation. Additionally, you need to stay updated on the latest trends, best practices, and regulations in the hospitality industry and adapt your strategies accordingly.

5 Educate and train your staff

The fifth step to balance your direct and indirect bookings is to educate and train your staff on the importance and benefits of direct bookings, as well as on the skills and techniques to encourage and convert them. You need to involve your staff in your revenue management decisions and goals, and provide them with the tools and resources they need to perform their tasks effectively. You also need to motivate and reward your staff for their efforts and achievements, and create a culture of teamwork and collaboration among them.

6 Experiment and innovate

The sixth step to balance your direct and indirect bookings is to experiment and innovate with new ideas, methods, or technologies that can help you increase your direct bookings and reduce your commission costs. You can do this by testing different rates, offers, or channels, and by measuring their impact and return on investment (ROI). You can also do this by adopting new solutions or platforms that can enhance your direct booking capabilities, such as metasearch engines, direct booking engines, or blockchain-based systems. Moreover, you can do this by creating unique and memorable experiences for your customers that can inspire them to book directly with you or recommend you to others.