The hotel market is particularly competitive, which independent hoteliers know better than ever. In such a competitive market, independent hotels need to stay on top of the game if they want to compete with the big names out there.
The introduction of online travel agencies (OTAs) makes the market even more difficult for independent hotels. This means that in order to compete, you need to make sure that you have a solid marketing strategy that focuses on direct bookings. Most independent hotels will probably try to stay away from OTAs because of how expensive they are. In order to keep up with the chains you’re probably already keeping your prices low, so to lose another 20 per cent or more in commission will see you gaining no profits whatsoever.
So, how are you going to boost your direct business? Well one strategy that’s extremely simple is to offer incentives to returning guests. You’d be surprised how much people will jump at the chance to save money or bag something for free – even if they didn’t know they wanted something in the first place. If you’ve got customers who’ve previously booked through an OTA, why not offer them a discount if they book their stay directly with you the next time? Or maybe you could throw in free breakfast or a bottle of wine? Seriously – everyone loves a freebie.
Another idea could be to look at partnerships with other local businesses. Perhaps you could share offers with local events if ticket-holders stay with you, or you could pair up with a restaurant to target customers. Think about what it is that you’re offering customers that your much larger competitors aren’t. Some independent hotels are dedicated to art or music, or they’re in a unique location. Whatever it is that you have, use that niche to sell to customers.
Now, you and I both know that booking directly with a hotel brings about benefits in itself. However, the customer probably doesn’t know this. So it’s down to you to let them know. A simple retargeting campaign on social media could offer people a discount for booking directly and show them the benefits. A direct booking allows you to create a better relationship with your customer. Let them know – and prove it. As a smaller operation, you can offer a much more personal service which could well be what someone is looking for. However, with all of this in mind, you can’t entirely discount partnerships with OTAs.
They’ve so heavily infiltrated the market, that by ignoring their existence you could be losing out on business. Many customers now go straight to OTAs, even if just to research hotels, so to work with them can still be beneficial. Just make sure you have the strategies in place to get direct bookings too, because this is your main moneymaker.
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