Running a hotel in India’s competitive hospitality industry is challenging. With rising competition from online travel agencies (OTAs) like MakeMyTrip, Yatra, and others, hotel revenues are often strained. While OTAs provide a useful booking channel, over-dependence on them eats into profits with commissions of 15-25%. The key is to get more direct bookings through your hotel’s website and other channels.
Direct bookings allow hotels to avoid OTA commissions. They also provide full guest data and outline customer preferences. With direct bookings, hotels can directly market to guests to generate repeat business. No wonder industry experts estimate hotels can increase gross operating profit per available room (GOPPAR) by 9-14% by focusing on direct bookings.
This article outlines actionable and proven strategies Indian hotels can use right away to boost direct website bookings and drive greater revenue.
1. Offer Exclusive Discounts and Deals for Direct Booking
One of the most effective ways to incentivize direct hotel bookings is to provide discounts, deals, and offers exclusive to your website. For example, you can offer 10% off on all direct bookings or throw in a complimentary breakfast for guests who book on your site.
These exclusive deals make booking directly much more appealing. Guests are motivated to book directly to enjoy savings they won’t find on any OTA. The discounts don’t have to burn a hole in your pocket either. You can bake the discount costs into your normal room rates and margins.
Hotels like the Hilton and Marriott often highlight “Direct Booking Deals” on their websites to nudge people to book directly. Identify your hotel’s slow periods or excess inventory and offer special seasonal packages. Diwali, New Year’s, or long weekends are ideal times to boost direct bookings through discounts.
You can promote the exclusive deals through email campaigns, social media, and display ads. Generate buzz around the deals by using countdown timers showing the deal’s deadline. The fear of missing out will convince many impulse buyers.
Exclusive direct booking deals strengthen customer loyalty. According to HP’s study, 72% of customers recommend a company to others after receiving a personalized offer. So use deals to make guests feel valued while earning their direct business.
2. Enable Easy Online Booking on Your Website
Clunky, confusing hotel websites are a direct booking killer. Invest in building a user-friendly, intuitive booking engine on your website. The easier and faster it is for guests to book directly, higher the conversions you will see.
Here are key considerations for your website booking flow:
User-Friendly Interface
The interface must be clean, uncluttered, and responsive. Guests should be able to navigate seamlessly and find booking widgets/buttons easily on any device. Provide intuitive navigation aids like site maps or breadcrumbs. Use chunky buttons for Call-to-Actions.
Mobile Optimization
With 60% of hotel bookings done on mobile, mobile optimization is critical. Test speed, navigation, forms, etc. thoroughly on mobile. Address pain points.
Availability and Rates Display
Show available room categories, rates, and key details upfront for desired dates. Allow easy date changes. Display room features, photos, floor plans, etc. to enable informed selection.
Secure Payment Gateways
Provide multiple payment options – card, net banking, UPI, cash on arrival, etc. Ensure PCI compliance for security. Autofill and guest logs ins can expedite repeat bookings.
Booking Confirmation and Support
Send instant booking confirmation emails and SMS with all essential info. Provide 24X7 support channels like call, chat, WhatsApp in case guests need assistance.
By ensuring a frictionless direct booking experience, you make it the automatic first choice over OTAs. Keep testing and improving the booking UX based on guest feedback and analytics.
3. Highlight Unique Selling Points of Your Hotel
While OTAs rely on generic listings, your direct hotel booking channel can showcase unique amenities, experiences, and strengths guests can ONLY enjoy by booking directly with you.
For example, highlight services like:
- Complimentary airport transfers or sightseeing for direct bookings
- Access to an exclusive hotel lounge or swimming pool
- Free upgrade to better room category
- Priority allocation of rooms with best views
- Exclusive wellness therapy or spa packages
- Private romantic candlelight dinners
- Local heritage walks with in-house experts
Communicate your differentiating strengths across channels – website, brochures, social media, travel agent partners, etc. Train staff to promote direct bookings by talking up what makes your hotel special.
Creating exclusive experiences around your hotel builds lasting memories that guests cannot enjoy if they booked via an OTA. This makes direct booking indispensable. Identifying and promoting your unique selling proposition also allows you to command higher rates and lower commission dependence.
4. Focus on Email and Social Media Marketing
While walk-ins and OTAs bring some business, smart digital marketing is invaluable for driving direct bookings. Two particularly effective channels are email and social media marketing.
Email Marketing
Collect guest email IDs and build an email subscriber list. Email enables personalized, targeted communication with past guests or potential guests who showed intent by visiting your site.
Send promotional emails with:
- Last minute deals for unfilled rooms
- Offers like get 20% off for your next direct booking
- New room packages or amenities
- Upcoming festivals, events, or deals
Track open and click-through rates to optimize your emailers. Personalized emailers have open rates of over 20% versus just 2-3% for generic bulk emails as per Experian. Send triggered emails when guests abandon bookings and provide email support.
Social Media Marketing
Social media allows hotels to stay top-of-mind by showcasing their appealing visuals, events, offers, etc. Have an active presence on major platforms like Facebook, Instagram, Twitter, etc. to engage your audience.
- Share real photos and videos to give a taste of the hotel’s ambience
- Use promos like “Book directly and win a free couple spa session”
- Showcase guest testimonials and reviews
- Run contests like sharing a post for a chance to win a free weekend stay
- Reply promptly to queries and guide them to book directly
Track clicks to your website from social media posts. Optimization can improve conversions.
5. Partner with Local Businesses and Organizations
Tie-ups with local companies, clubs, associations, colleges, etc. located around your hotel can generate referrals and group bookings directly, bypassing OTAs.
Offer special corporate rates, discounts or additional benefits for partner organization’s members, employees, students, etc. This provides them incentive to book directly.
You can even offer discounts to guests referred by your partners. Referral guests are more likely to book directly on your website due to the existing trust.
Partner marketing expands your hotel’s visibility and reach. For partners, discounted hotel rates add value for their organization’s members or employees. It’s a win-win.
6. Use Referral Programs
Word-of-mouth is an effective way to get direct bookings from new guests. Referral programs encourage existing satisfied guests to spread the word about your hotel.
Some ways to leverage referrals:
- Offer a discount code or cash credit for referring friends and family
- Provide complimentary stays or upgrades for bringing in groups
- Share referral links – tracking codes let you reward successful referrers
According to Nielsen, 92% of consumers trust referrals from family and friends above all other forms of advertising. So use your happy guests to drive trusted referrals and direct bookings for you.
Beyond discounts as rewards, recognize top referrers through your loyalty program with elite status, badges,titles like “Brand Ambassador” etc. Gamification keeps guests engaged while promoting your brand.
7. Analyze Booking Data and Continuously Optimize
To maximize direct bookings, you need to track key metrics to identify what’s working well and what’s not.
Analyze data from your website, CRM, surveys, etc. to understand:
- Direct booking conversion rates vs. OTA conversion rates
- Top referring channels – search, email, social, partnerships, etc.
- Seasonal or day-of-week booking patterns
- Most effective promotions and offers
- Common customer pain points impacting conversions
- Customer demographics, behavior, booking preferences
Audit your website analytics to identify weaknesses in site navigation, payment gateways, etc. that cause drop offs.
Use insights to fine-tune your direct booking strategy. Doubling down on high converting channels and offers while fixing poor performing areas.
Keep optimizing based on latest trends and data. A/B test offers and web pages. Solicit customer feedback. Recognize direct booking patterns and seasons to allocate marketing budgets efficiently.
Conclusion
Direct hotel bookings are invaluable for boosting revenues by avoiding hefty OTA commissions. India’s savvy hotel guests are deal-seekers, so offers like discounts and freebies incentivize direct bookings.
Streamlining the online booking process, promoting unique hotel strengths, targeted digital marketing, partnerships and referrals help hotels direct bookings surge. Tracking performance metrics and continuously optimizing based on insights take the results higher.
While the Indian hospitality sector is going through a turbulent period, hotels that focus on building their direct booking channels will gain a competitive edge and emerge stronger. The time to lay the foundation is now.
