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This scalability is especially valuable for hotels – as more information is collected about guest behavior, booking trends , and occupancy patterns the more precise rate adjustments, inventory management, and marketing strategies will be in the future. Why it’s important for hotels? Why it’s important for hotels?
The data covers key hotel performance indicators such as occupancy, RevPAR, booking lead time, length of stay, international and domestic travel, direct and OTA bookings, as well as upsell performance to forecast trends shaping the hotel industry in 2023. Some of the findings: Direct bookings are on the rise.
The right sales tactics can help increase revenue, boost occupancy rates , and ensure guests have a positive experience. Maximize Direct Bookings to Reduce Dependence on OTAs When guests book through Online Travel Agents (OTAs) like Booking.com or Expedia, hotels often have to pay hefty commission fees, sometimes up to 20%.
It acts as a virtual concierge, answering common questions, sharing booking links, promoting special offers, and even upselling services without staff intervention. It can also share booking links, promote special offers, and upsell services all within the same conversation. How does Visito support guest messaging across platforms?
Revenue management tools are software and systems that help hotels optimize pricing, control cost , maximize occupancy, and increase profitability. Guest actions Who makes direct bookings versus through OTAs, and how can you influence them? It monitors guest reservations, room occupancy, and overall performance metrics.
Hotel managers and revenue managers use data analysis and revenue management tools to determine the optimal price for each room based on various factors such as occupancy rates, booking trends, and competitor rates. On the contrary in low season, in order to ensure revenue, you can charge lower prices in order to increase occupancy.
Effective hotel distribution strategies enable hotels to target the right audience, optimise occupancy rates, and enhance revenue management. Hotels have worked with third parties such as airlines, travel agents, online travel agents (OTAs) and the Global Distribution System (GDS) for decades.
Direct bookings are reservations guests confirm directly with a property without using an online travel agency (OTA) or 3rd party intermediary. Direct bookings are beneficial because they connect lodging businesses directly with potential customers and increase hotel revenue through money saved from OTA commissions.
From online travel agencies (OTAs) to direct booking engine , hotels must effectively manage distribution channels to maximize revenue and minimize distribution costs. This agile approach ensures that hotels can optimize revenue by maximizing occupancy levels and avoiding revenue losses due to underutilized inventory.
A basic strategy might involve listing your property on a few key online travel agencies (OTAs) like Airbnb and Booking.com and leaving it at that. By strategically analyzing revenue booked, occupancy rates, acquisition costs, and guest segments, hotels can build an advanced distribution strategy that delivers real value.
According to De Ponga, hotel software solutions such as channel managers and revenue management systems (RMSs) have democratised the practice, owing to the rise of online travel agencies (OTAs). “I I can’t imagine our job without a channel manager given all the OTAs out there. RMSs allowed us to go deeper in analysis,” De Ponga shares.
Booking promotions serve multiple strategic purposes: Increasing occupancy rates: Promotions can help fill rooms during low-demand periods and help a hotel “piggyback” on subjects that are already front of mind for their audience. Here are just five examples of hotel promotions you can run to increase occupancy and revenue when needed.
For example, during peak travel periods, an efficient reservations manager using a modern property management system (PMS) can swiftly allocate room blocks for group bookings or special events, maximising occupancy without overbooking. Efficiently managing OTAs and direct bookings is key to maintaining high occupancy rates.
Many hoteliers question if it’s worthwhile investing in a direct booking strategy or if they can solely rely on online travel agencies (OTAs) like Airbnb, Booking.com, or Trip.com to fill occupancy. Upsells and add-ons. If you rely too heavily on OTAs, you risk giving away your profit in commissions. Deals and promotions.
How many direct bookings are you losing to OTAs due to poor integration? Double bookings , incorrect charges, and missed upsell opportunities can result in revenue loss and negative guest reviews. Integrates with global OTAs and channel managers —ensuring real-time rate updates. Manual processes lead to costly errors.
Learn more Yield management vs revenue management The goal of yield management is not merely to increase room rates or occupancy; rather, it’s to maximise your hotel’s revenue by forecasting your room supply and demand across a variety of key factors. This strategy aims to ensure maximum occupancy.
Understanding future demand trends, their causes, and the guest segments driving them can help hotel revenue managers adjust room rates to boost occupancy and sales. The bold line represents the average occupancy rate for the competitive set. Each point on the chart shows a specific day’s occupancy for the hotel.
That said, one has to ask: why are so many hotels’ margins still being eroded away by OTAs ? The growth of metasearch OTAs often outperform individual hotels in metasearch positioning and cost-per-click (CPC) performance. Some OTAs still use cached pricing.
eCommerce sites include hotel websites and booking engines , online travel agencies (OTAs), metasearch engines , and other online platforms where hotels advertise and sell rooms. Metasearch advertising can be an effective way to reach these travelers, compete with OTAs, and generate direct bookings.
Train your staff to identify and capitalize on upselling opportunities. Sell via multiple OTAs and focus on selling via your hotel's website and social media pages for incremental direct bookings. Targeted marketing campaigns: Run campaigns during off-peak periods to boost occupancy.
Of course, you must maintain rate parity (the same rate on your website as on the OTA) but try making booking direct a more attractive method by offering guests value-added services. You can use a tactic known as the Billboard Effect to link your website to your OTA profiles, convincing guests to check you out.
Discount pricing is a revenue management strategy where prices are lowered temporarily or for certain conditions to attract guests and boost occupancy rates. Monitoring market demand and adjusting discount pricing accordingly can help maximise occupancy and revenue. OTAsOTAs are a double-edged sword.
For example, if your PMS is integrated with a channel manager , the interface will ensure that when a room is booked through an OTA, your PMS updates automatically. Your PMS should simplify day-to-day tasks by connecting all your systems—whether it’s handling guest check-ins, updating pricing in real-time, or syncing with OTAs.
Hotelogix Web Booking Engine Integration Hotelogix offers a robust web booking engine that can be seamlessly integrated with Google Ads to enhance your hotel’s online presence and booking capabilities: - Direct bookings : Hotelogix’s booking engine allows guests to book directly on your website, reducing commission costs from OTAs.
They can also be known as distribution channels and are crucial for ensuring your hotel maintains a healthy occupancy rate and revenue stream. Travellers are now predominantly booking their accommodation online, making it more crucial for hotels to focus on capturing bookings via their own website, OTAs, metasearch, and other online channels.
This decreases your overall number of third-party bookings and your reliance on OTAs to drive occupancy. Decrease the high commission bookings from OTAs and increase direct bookings, which come at a lower cost to you. This allows you to optimize rates and sell relevant deals to boost revenue and occupancy.
Promote and upsell activities easily with Little Hotelier Little Hotelier’s direct booking engine lets you sidestep OTA commission fees while increasing the value of every reservation. By upselling guests with paid activities as part of your custom booking process. Learn more Why are guest activities important in hotels?
By drawing in more visitors, raising occupancy rates and enhancing profitability, a thoughtful pricing strategy can help hotels maximize their revenue. Even if occupancy rates do not rise, this can help hotels raise their profit margins. A Rise in Profitability: Effective pricing strategies can also boost a hotel’s profitability.
When you see seasonal peaks and annual events affecting occupancy rates and reservation types, then you can adjust room pricing, add-on services, and staffing to achieve the most efficient, profitable combination. Value-Added Services and Upselling Armed with data about your customer base, targeting guests with upsell opportunities is easy.
Independent hotels, despite having fewer guest rooms and less complex operations, are recognizing that these systems improve pricing strategies, occupancy rates, and Revenue Per Available Room (RevPAR). Conversational commerce More messaging options translate to more interactions with guests and more opportunities to upsell.
In the case of those hotels using multiple OTAs, the right booking engine should also synchronise these details across every other channel in use. Moreover, instant confirmation emails can serve as a platform for upselling additional services, further boosting revenue.
Here’s a list of 8 simple tactics you can try at your hotel to increase ADR: Focus on increasing the spend from high-value guests – Your OTA channel partners will have data on which guests deliver higher ADR on average, such as business travellers or couples travelling for leisure. You can then strategise how you target these segments.
Meanwhile, midweek occupancies aren’t looking as good as companies are loathed to give up the huge cost savings from the video-conferencing boom by returning to the days of overly generous corporate travel budgets. Or maybe your automated pre-arrival email-based upselling isn’t working, but SMS offers sent out three days prior are converting.
These sites may vary to include online travel agencies (OTAs) such as Booking.com , Expedia, Tripadvisor, or Agoda; travel metasearch engines such as Google, Kayak, and Trivago; GDSs such as Amadeus and Sabre; bed banks such as Hotelbeds, or online marketplaces such as Airbnb, Vrbo (former HomeAway), etc. The same happens with a cancellation.
Don’t Forget About Upselling: Train your staff to upsell guests to higher room categories or add-on services. LEARN MORE CONTACT US LEARN MORE CONTACT US Real-World Example A hotel in a popular tourist destination noticed that their occupancy dropped significantly during the shoulder season.
Here are some of the ways in which hotel PMS solutions can aid a hotel in improving daily operations: Increase RevPAR via Direct Bookings Online travel agencies (OTAs) allow hoteliers unlimited access to a large pool of potential guests, charging a commission for every booking made through them.
Financial analysis When EBITDAR is combined with other metrics, such as ADR (average daily rate), occupancy rate, or RevPAR (revenue per available room) , it can help dig deeper into financial metrics. F&B or events), tap into new market segments such as corporate or family groups, and implement upselling/cross-selling.
These channels may include the hotel’s website booking engine, online travel agencies (OTAs), the global distribution system (GDS), wholesalers, and metasearch sites. When travelers book on your website, you can upsell them to premium rooms and cross-sell onsite services and add-ons like breakfast, dining, spa, and recreation.
Don’t Forget About Upselling: Train your staff to upsell guests to higher room categories or add-on services. LEARN MORE CONTACT US LEARN MORE CONTACT US Real-World Example A hotel in a popular tourist destination noticed that their occupancy dropped significantly during the shoulder season.
Don’t Forget About Upselling: Train your staff to upsell guests to higher room categories or add-on services. LEARN MORE CONTACT US LEARN MORE CONTACT US Real-World Example A hotel in a popular tourist destination noticed that their occupancy dropped significantly during the shoulder season.
Ensure real-time OTA distribution with a Channel Manager OTAs are a significant source of bookings, and you must work with multiple OTAs to drive more indirect bookings. A channel manager automates and synchronizes your hotel's rates and inventory across all OTAs in real time.
For example, GAC is typically higher in low seasons when room rates and occupancy are lower, and lodging properties spend more on marketing campaigns. For example, if you found that your GAC for OTA bookings is 41%, whereas your GAC for direct bookings is 7%, where would you want to prioritize bookings?
This can include a hotel’s website, its social media platforms, phone or email reservations, metasearch engines, or OTAs. The Billboard Effect shouldn’t be underestimated, as a study by Cornell estimates that being listed on an OTA corresponds with a 7.5-26% 26% increase in hotel reservations. 26% increase in hotel reservations.
Booking source Document the source profile of your guests, whether they booked via an OTA, a travel agent, or your direct booking site. For example, if a guest booked through an OTA, send a post-stay offer encouraging them to book direct next time, with added perks, like a free or discounted meal at your restaurant.
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