Amid an increasingly fragmented distribution landscape, direct bookings have become hoteliers’ Holy Grail.
A guest who books directly on brand.com, through a brand app or by dialing a good-ol’-fashioned call center is a more profitable guest at the time of booking and a more valuable guest in the long run. (Hoteliers can extract valuable data from direct bookings they can use for targeting marketing efforts to drive repeat visitation.)
Hoteliers have known all this for a long time. The problem, however, is they weren’t doing anything about it, spending more time whining about intermediaries than offering guests reasons to book direct.
I’m happy to see that’s beginning to change.
The past two weeks have seen as many global chains announce key incentives to drive more direct bookings.
Marriott International kicked things off on 30 October with news it would provide free base Wi-Fi to all 47 million members of Marriott Rewards who book directly on Marriott.com, Marriott’s mobile app, 1-800-MARRIOTT or through a Marriott hotel. The change goes into effect January 2015.
More recently, Starwood Hotels & Resorts Worldwide launched SPG Keyless, a mobile, keyless entry system that allows guests to use their smartphone as a room key, thus allowing them to bypass the front desk and oft-tedious check-in process. As with Marriott’s Wi-Fi announcement, SPG Keyless is available only to members of the Starwood Preferred Guests loyalty program who book direct.
These types of incentives are not entirely new. InterContinental Hotels Group was one of the first chains to offer free Wi-Fi to loyalty members, and Hilton Worldwide Holdings previously has announced its own rollout of keyless entry.
Less important than who did what first is the fact that these 800-pound gorillas in the hotel industry have recognized what matters to guests (read: seamless check-in, tech-enabled experiences, free Wi-Fi) and are dangling those carrots to drive bookings.
It’s a sea change from even a year or two ago, when the best incentives to book direct were points—a devalued currency that appeals to only a segment of the traveling public. That arrogant, short-sighted strategy left the door open for innovative third parties such as Hotel Tonight to begin clawing away share with slick user interfaces that made booking a hotel not only easy but more affordable and fun.
Hoteliers should continue to offer more incentives to establish momentum during this up cycle. Room upgrades, value adds, the best prices, a more personalized experience—all are fair game. Train guests to look for them direct, and brand.com—not online travel agencies and other intermediaries—might become the first (and only) stop in the booking funnel of the future.
Now on to the usual goodies …
What’s making me happy this week?
Keyless entry. I couldn’t be more excited about Starwood and Hilton’s major move into this innovative frontier of hotel technology. Having wasted countless hours standing in line to check-in at various hotels around the globe, I relish the day (in the immediate future) in which I can bypass the front desk and go straight to my room.
Stat of the week
52%: Percentage of U.S. online hotel shoppers who visited brand websites before making a purchase decision. Price comparison websites were used second most by 23% of online shoppers.
This stat is one of many you can sort and filter in Google’s amazing Consumer Barometer. Once you get the hang of it, you can lose hours in this robust research tool.
Quote of the week I
“Yes, the mood is very confident at the moment, but there is a long list of variables out there, and perhaps we should temper any exuberance with the old adage, ‘If you’re not a little confused, you don’t fully understand the situation.’”
—Deloitte’s Nick van Marken, qualifying his glowing overview of the European hotel investment landscape, during a recent chat with HNN’s Terence Baker.
Quote of the week II
“It’s as frustrating for us as it is for you.”
—Belmond CFO Martin O’Grady lamenting the company’s tepid stock market performance (shares are down more than 25% year to date) during an earnings call with analysts.
Reader comment of the week
“What an insightful article and great idea to test it out personally to write about it. It sounds like they have a long way to go to perfect their model, but they are definitely here to stay (barring some legal action otherwise). Thanks for taking time to document your ‘experiment’.”
—Reader “Dwayne Johnson” in response to “A hotelman gives Airbnb a try,” which recounts consultant Sean Hennessey’s first foray into the hotel sharing economy.
Email Patrick Mayock or find him on Twitter.
The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to comment or contact an editor with any questions or concerns.