Unlocking the power of your hotel website
Published: 19 Mar 2008
By Dr Des O’Mahony, co-founder and managing director, Bookassist
For accommodation providers, the direct guest is always the best guest. Unlike bookings through intermediaries, the direct guest ( booking through your own website) incurs little overhead and represents lowest cost of sale. With stiff competition, hotels need to move more to direct business and lower their dependence on indirect sales. Utilizing proper technology and online marketing can unlock the power of a hotel website to maximize that business.
With travel portals, a hotel is listed in categories and risks becoming “commoditised”, unable to project its individuality appropriately, which may lead to its unique brand being eroded. Effectively the hotel does not own the customer relationship in this case. While hotels may get significant business from these channels in the short term, the long term consequences for the hotel business and brand is at risk if the hotels fails to build a comprehensive direct online strategy. When selling directly, the hotel lowers its booking costs, remains in control of their brand projection online and the customer is their customer, thereby improving return business.
Gearing up for online business
With over 50% of leisure bookings to be made online by 2010 (PhocusWright), the direct business is there for the taking if hotels embrace the internet and give it due priority. The US-based Marriott group boldly invested millions in their online presence and now generate over 80% of their business directly through their website. This could be the norm, but the majority of hotels have yet to wake up to the potential they can realize.
The key requirements for a hotel are:
Good quality, attractive, customer-focused website that provides real information and is regularly updated.
Effective optimization of the website content and structure to ensure search engine natural listings placement.
Customer-targeted and constantly monitored online advertising.
Leading edge booking system that not only facilitates quick customer booking with ease, but crucially projects confidence and security to the customer.
Systems that report back and allow you to plan and adjust
It’s all about visibility
Hotels need their website seen before they can take on the challenge of growing their direct business. Search engine optimization (SEO) is critical to ensure hotel websites are properly constructed for best search engine placement. Additionally, search engine marketing (SEM) is key to ensuring effective online advertising. However, it is all critical that these activities are reported on and monitored for return on investment, making it important to chose a technology solution that incorporates these services.
Towards the Future
The online customer is rapidly evolving and Web 2.0 phenomena such as social networking are making their presence felt in the travel sector as it moves to embrace the technologies with what’s termed the Travel 2.0 revolution. A recent (November 27, 2007) Sunday Times Top 100 travel sites was dominated by travel review sites and blogs – not the usual travel portals - as online users increasingly want to converse about their experiences and book direct. Ultimately, the customer is the business driver and nowhere more so than in Tourism.
Dr Des O’Mahony is co-founder and Managing Director of Bookassist, a leading hospitality booking engine provider and on-line marketing partner provider. He received the Irish Internet Association’s NetVisionary award for Online Trade in 2005.
You can find out more about hotel distribution and reservation technology at EyeforTravel’s Hotel Technology Forum, taking place at The Travel Distribution Summit on 21st May at the Business Design Centre in London. The forum will be free to attend for hotels and more information will be available shortly. In the meantime, please email simon@eyefortravel.com for agenda details
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