Direct bookings refer to the process where guests make their reservations directly with the hotel, without using any third-party websites or booking platforms. In other words, guests contact the hotel directly through their website, phone, email, or other means, and book their stay without the involvement of an intermediary. Direct bookings are beneficial for both hotels and guests. For hotels, these are the 3 most important reasons to pursue direct bookings:
- The hotel is able to achieve a greater share of the revenue for each booking (and thus profitability), as opposed to having to pay considerable commissions to any third-parties.
- Direct bookings enable hotels to establish a direct relationship with their guests by offering personalized booking experiences, loyalty programs, exclusive discounts and complimentary services. This can influence significantly guest satisfaction and loyalty, leading to more repetitive sales.
- Finally, direct bookings allow hotels to capture valuable customer data that they can use to better understand customer preferences and behaviors
Seeing this from the perspective of the hotel guest, the motivation for seeking direct bookings, is the expectation to attain lower prices, better room options, and more personalized services, as they can communicate directly with the hotel staff and place specific requests.
Where does the hotel and accommodation industry stand now?
The percentage of direct bookings in a hotel’s sales mix can vary significantly depending on the size of the hotel, its location, and the type of guests it caters to. Generally speaking, direct bookings typically account for about 40% of total hotel revenue. However, this portion can be higher or lower depending on the circumstances.
This percentage is expected to increase in the future due to a number of factors – including the 3 reasons why hotels should pursue more direct bookings. Hotels are increasingly investing in technology and marketing strategies aimed at increasing direct bookings, and travelers are also becoming more comfortable utilizing digital channels to book their hotel stays. Additionally, many hotels are offering more and more incentives towards this direction. As a result, it is likely that this trend will continue in the years to come.
This is how Travel2Fit helps your business increase direct bookings
As already mentioned, travel technology can play an influential factor in securing more direct bookings for hotels. Travel2Fit’s commission-free proposal and quoting platform, can help modern hoteliers, property managers and accommodation professionals increase direct hotel bookings, through:
- instantly and easily built
proposals and quotes that impress even the most demanding travelers, thus, boosting conversion rates.
Don’t loose the opportunity to increase your hotel direct bookings! Sign-up for Travel2Fit’s 21-day free trial period now and start improving your revenues now!