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What are the best ways to increase direct bookings and reduce commission fees?

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As a hospitality manager, you know how important it is to attract more direct bookings and reduce the commission fees you pay to online travel agencies (OTAs). Direct bookings not only increase your revenue, but also allow you to build a stronger relationship with your guests and offer them a more personalized service. However, competing with OTAs can be challenging, especially when they have larger marketing budgets and higher visibility. How can you increase your direct bookings and reduce commission fees without compromising your occupancy rate? Here are some of the best ways to do so.

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Optimize your website:

Ensure your site is user-friendly, visually appealing, and offers a seamless booking experience. Implement SEO strategies to improve your search engine ranking and attract more direct traffic.### *Offer exclusive incentives:Create special deals and loyalty programs available only through direct bookings. This not only boosts direct reservations but also enhances guest satisfaction and retention.

本摘要由 AI 和以下专家提供支持

Nutsa Monadirishvili

Experienced Sales and Revenue…
Tommaso Rossi, CRME

Cluster Revenue Manager for Hilton |…

1 Optimize your website

Your website is your main channel for direct bookings, so you need to make sure it is user-friendly, attractive, and functional. Your website should have a clear and catchy value proposition, a responsive design that adapts to different devices, and a fast and secure booking engine that offers multiple payment options. You should also use high-quality photos and videos, engaging content, and social proof to showcase your property and entice visitors to book. Additionally, you should implement search engine optimization (SEO) strategies to improve your ranking and visibility on Google and other search engines.

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Nutsa Monadirishvili

Experienced Sales and Revenue Management Professional
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Besides optimizing brand web (which is not an easy task for smaller brands) an important factor in increasing direct bookings lies in fencing OTAs during high demand. parity issues are outweighed by profit from direct business.

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Tommaso Rossi, CRME

Cluster Revenue Manager for Hilton | Accor | Marriott | IHG
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Website optimisation should aim to increase visibility on direct channels, which will drive higher volumes of bookings. If the hotel is part of large group/chain, this should be easier and less expensive, while non branded properties will need to invest more. We need to consider also how busy is the hotel and the market in which it operates. An "average" hotel with no USP, operating in a busy city with high competition, will clearly need to invest more in web optimisation to gain visibility and its market share compared to a quality hotel in a smaller market and less competitive. In addition, an increasing number of hotels is using TripAdvisor Business Advantage and other metaserch to increase direct visibility and reduce OTAs' dependency.

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Vishwas Saxena

Revenue Growth Strategist | Driving Profitability & Client Relationships
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Well, everyone wants maximum business from their brand websites but very few (barring the big brands) invest on their brand websites. Brand websites are the window to your property, they must have the entire content available which may or may not be available on any other online channel to give more detailed insights to the end consumer. In today's world on GenZ's who are hooked on the various apps, making your website stand in front of those is certainly a bigger task which needs investments as well as lot of work to keep it updated and information and feature rich.

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2 Offer incentives and rewards

One of the most effective ways to increase your direct bookings and reduce commission fees is to offer incentives and rewards to your potential and loyal guests. You can create exclusive deals, discounts, packages, or add-ons that are only available on your website or through direct contact. For example, you can offer free breakfast, late check-out, spa vouchers, or room upgrades to guests who book directly with you. You can also create a loyalty program that rewards repeat guests with points, free nights, or other benefits. These incentives and rewards will not only increase your direct bookings, but also enhance your guest satisfaction and retention.

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3 Leverage email marketing

Email marketing is a powerful tool to increase your direct bookings and reduce commission fees, as it allows you to communicate with your guests before, during, and after their stay. You can use email marketing to send personalized messages, confirmations, reminders, surveys, and newsletters to your guests. You can also use email marketing to promote your incentives and rewards, share your latest news and offers, and encourage referrals and reviews. Email marketing will help you build trust and loyalty with your guests, as well as increase your repeat bookings and word-of-mouth.

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4 Use social media

Social media is another great way to increase your direct bookings and reduce commission fees, as it allows you to reach a large and diverse audience, showcase your brand personality, and interact with your followers. You can use social media to post engaging content, such as photos, videos, stories, tips, or testimonials, that highlight your property's features, amenities, and experiences. You can also use social media to run contests, giveaways, or campaigns that drive traffic to your website or booking engine. Furthermore, you can use social media to respond to comments, questions, or feedback from your guests, as well as monitor and manage your online reputation.

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Vishwas Saxena

Revenue Growth Strategist | Driving Profitability & Client Relationships
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In terms of direct marketing, I am more of an opinion that it has to be very up-close and direct / personal in order to connect the customers directly. As we all live in the connected world through social media and IM apps like Whasapp / Telegram, we have to be adaptive and market out offerings on these channels. Understand your target audiences / groups and by using marketing tactics strategically by targeted campaigns, the message can be shared loud and clear which will help benefitting the business.

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5 Partner with local businesses

Another way to increase your direct bookings and reduce commission fees is to partner with local businesses that offer complementary products or services to your guests. For example, you can partner with restaurants, bars, attractions, tours, or transport providers that can enhance your guests' stay and offer them discounts or vouchers. You can also partner with local events, festivals, or organizations that can attract more visitors to your destination and increase your exposure. By partnering with local businesses, you can create value-added packages, cross-promote your offers, and generate more direct bookings.

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6 Monitor and analyze your performance

Finally, to increase your direct bookings and reduce commission fees, you need to monitor and analyze your performance and results. You need to track and measure key metrics, such as website traffic, conversion rate, booking value, occupancy rate, revenue per available room (RevPAR), and guest satisfaction. You also need to compare your performance with your competitors and the market trends. By monitoring and analyzing your performance, you can identify your strengths and weaknesses, optimize your strategies, and improve your outcomes.

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Vishwas Saxena

Revenue Growth Strategist | Driving Profitability & Client Relationships
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Apart from the server / domain analytics, do check the Google analytics as well which will have a detailed report of the brand website performance. Check the overall performance from number of hits vs conversion to understand how much conversion of the bookings happening on your website. Check which all pages the guest have gone by and how much time a customer spend on your website. These are some of the key elements which needs to be analyzed deeply to understand the customer behaviour and what they are trying to say from their browsing history and patterns of your website.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best ways to increase direct bookings and reduce commission fees?

1

2

3

4

5

6

7

1 Optimize your website

2 Offer incentives and rewards

3 Leverage email marketing

4 Use social media

5 Partner with local businesses

6 Monitor and analyze your performance

7 Here’s what else to consider

Hospitality Management

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What are the best ways to increase direct bookings and reduce commission fees?

1

2

3

4

5

6

7

1 Optimize your website

2 Offer incentives and rewards

3 Leverage email marketing

4 Use social media

5 Partner with local businesses

6 Monitor and analyze your performance

7 Here’s what else to consider

Hospitality Management

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