Return of Book Direct

Interesting article by PhocusWire this week on Book Direct. It's been some time the "debate" has come to the forefront. Last I was discussing this topic was at HSMAI Middle East ROC conference in December 2020.

I feel the push and goals for direct bookings has always been there for a while. The loyalty discounts (member rates) started in 2014-15 and was a way to get this going. Who remembers the Hilton groups #StopClickingAround campaign (one hell of a serious media campaign by a big brand). But in general it becomes difficult for the hotel companies to compete and sustain on the scale of media spending by OTAs and getting that mindshare from the customer.

At the end it's all about converting the mind share to market share. During current times with the pandemic still strong in some markets, the industry has been hit hard in particular and that has meant for the brands to cut down on media and marketing spend. Now that does impact the mindshare part. But at the same time it's also the times when brands are trying to go back to basics and focusing on loyalty. It's time to offer the true customer value and that by the way does not necessarily mean a discount and definitely not a 1-2% off!!

As always Airlines , that were also impacted, were the first to come up with change options, refund policies and customers do acknowledge that booking direct is the safest option here given the hassles to deal with an intermediator. And that also becomes a big plus point for the hotels to get the customers to book direct and get that much needed peace of mind.

Once travel bounces back and the marketing spend comes back to new normal, OTAs will again put up a tough fight. And then the customer has to decide if he wants to get carried away OR go with his new habit, book direct, get value and the peace of mind he deserves!!

In the interim, hotels have the opportunity to hit that reset button. Look at their channel mix again and build a strategy that aligns to their new vision. This is the time when there is no "dependency" on OTA. If you don't do it today, you might miss out completely. And remember there is nothing called good or bad here. The mix has to align to your objectives and you need to find that right balance that justifies the share vs your efforts on your own sales platforms, marketing and remember those visits to ITB, ATM, SAATE, etc.

So how will you define the "value" for your book direct customer or loyalty member?

(Views expressed our personal and does not represent brands that I have been affiliated with)