93% of hoteliers agree that increasing direct bookings is one of the most important objectives to the futures of their hotels, according to the 2015 TripAdvisor TripBarometer. The same study found that 95% of hoteliers agree that increasing repeat business is also an objective of top importance.
It makes sense for hoteliers to prioritize these objectives. With increasing consolidation in the online travel agency (OTA) market, hoteliers have fewer competitive options for distribution. Newer channels such as Book on Google and TripAdvisor Instant Booking will surely disrupt the market further. As a result, hotels may soon see fewer direct bookings and higher commissions. Unless hoteliers take action now, middlemen will soon own the relationship with their guests.
Direct Channels = Direct Bookings
The good news is, the environment is ripe for hotels to take control of their guest relationships through direct channels like email. Let’s look at some numbers: According to Experian, for promotional mailings, personalized emails generate transaction rates and revenue per email that is more than six times higher than non-personalized emails. For brands in the travel space, the case is even stronger – personalized subject lines can result in a 65% lift in unique open rates.
Clearly, consumers respond well to brands that make an effort to get to know them and talk to them based on their specific needs, interests, and preferences.
An example of success in this arena? The Royal Garden Hotel is having great success with targeted email promotions. A luxury city center hotel in the heart of London, the hotel uses Revinate Marketing™ to send targeted email promotions to specific segments of guests.
The results? This recent anniversary campaign was sent to the hotel’s database of past guests. It helped drive 51 reservations and over £30,410 in revenue. By doing this kind of promotion, the Royal Garden Hotel can build loyalty and create special relationships with past guests, as well as drive business for particular periods of time when they might need to increase occupancy.
With Revinate Marketing, hotels can drive direct bookings to increase revenue and reduce OTA commission spending.