Why should hotels utilize the Direct Booking Engine?

As previously mentioned, world-renowned hotel chains like Marriott, Hilton, Hyatt are encouraging or stimulating reservations through their own websites or mobile apps by offering various benefits. ??

Many hotels are currently following this trend amongst the top hotel chains.

Why are hotels so keen on embracing direct booking engines??

First, they can build a robust brand sales structure by increasing customer loyalty and return rates.

Customers who primarily use OTAs usually exhibit low loyalty to a single brand. Since OTA searches are based on location, they are exposed to various hotels and can easily book elsewhere.

By offering benefits through direct booking engines and encouraging membership sign-ups, hotels can increase return rates. This fosters loyalty and turns customers into loyal fans, which is crucial for marketing activities.

In fact, global hotel chains like Marriott and Hyatt provide many benefits through direct bookings. Marriott offers a lowest rate guarantee when booking through its website. By joining the membership, exclusive rates and membership points are provided. It's an option that frequent hotel guests can't overlook.

Second, they can reduce dependence on OTAs and simultaneously save on commissions.

The higher the dependence on OTAs, the more challenging revenue management becomes. As more rooms are sold, the commissions paid to OTAs increase. Moreover, relying solely on OTA bookings makes it difficult to flexibly respond to issues or decreases in OTA channel visitors. Utilizing direct booking engines reduces the burden of OTA risk management and simplifies reservation channel management.

Third, they can increase brand awareness and revenue.

By emphasizing the unique value and differentiation of their hotel brands through their websites or mobile apps, hotels can leave a lasting impression on customers. Increasing positive perceptions can lead to increased traffic to their websites, thereby enhancing brand awareness. According to research by RMS specialist LYBRA, hotels can achieve up to 25% higher revenue by effectively utilizing direct booking engines.?

The Grand Hyatt Tokyo is currently running a party planning promotion event through its website. Not only rooms, but various facilities reservations can also be made through various sales channels.

Fourth, they can improve customer experience and satisfaction through simplified reservation processes.

Occasionally, duplicate bookings or overbookings may occur during reservation processes through OTA channels, causing confusion for customers. Direct booking engines streamline the reservation process and facilitate easier internal handling of issues, thus enhancing customer experience. Since many direct booking engines are optimized for mobile devices, reservations become even more convenient. Direct interaction with customers through booking engines can also lead to satisfactory customer experiences.

Fifth, they can propose upselling through customer data acquisition and utilization.

Direct booking engines allow hotels to securely acquire customer data, enabling them to propose upselling based on reservation details, preferences, and length of stay. Suggestions for room upgrades or recommendations for additional amenities can be tailored to individual preferences. This is often difficult with OTA channels where customer information may be limited. Through this each hotel can utilize all the data collected to provide special services and promote certain products to the guests, which means the hotel will have their own CRM tool.

This is what DOWHAT is currently growing with hotels, in order to improve revenue and provide a CRM marketing tool to hotels and resorts, by providing direct booking engines to collect customer behavioral and usage patterns.

If you don't have a direct booking engine yet or are unsure how to utilize one effectively, feel free to consult us!

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