Mr. Dass

Reservations / Online Pricing / Booking Engines

9 Important Questions to Ask Your Online Reservation Technology Partner

By Brian Dass, President & Co-Founder, Open Hospitality

Many independent hoteliers confess they know that doing a better job generating and managing online reservations is the single greatest source of untapped revenue. Yet creating an online site that actually simplifies bookings and transactions seems woefully out of reach for most in-house independent managers who don't have the luxury of an online staff.

This can be further complicated by the fact that reservation technology providers don't really approach the client partnership with a systems built with an intimate understanding of an independent property's challenges **or best interests. A great online reservation technology partner will work closely with hoteliers to identify the challenges of unique systems and circumstances; create solutions that go beyond booking a room online; and prove how their technology helps hoteliers do the job faster, better and in the most cost-efficient manner.

Here are some key questions to ask when you are sitting down with an online reservation technology vendor who is keen to secure your business, or meeting with your current partner to plan your 2008 online priorities.

1 - Does my reservation technology integrate with all the other components of my online efforts?

If you are marketing online you are spending some serious time and effort obtaining, validating and maintaining an email address database, creating slick email campaigns and spending marketing dollars on keyword search and Pay-per-click (PPC) as well as a CRM solution. Confirm in advance that your reservation partner is able to show how much revenue is generated by any of your marketing projects as well as which parts of your site are more profitable than others. Insist that your partner regularly provide you with a comprehensive approach to analysis of all Search Engine Optimization (SEO), organic or PPC and email conversion, as well as site traffic pattern analysis.

Find someone who is willing to actually advise you on what works and what doesn't -- and can help spot opportunities and flaws in your online marketing and is able to integrate all steps leading to the sale with the ultimate reporting provided on sales that are generated. It's just not acceptable in today's business environment to be told you "can't really tell if this email campaign or that PPC buy resulted in an online reservation because the two vendors don't permit tracking capability as they are not compatible or just won't talk to each other." Find a partner who integrates with all the components to make it easier to determine ROI on your efforts.

2 - Will your 'back office' functions make my life easier?

In focusing primarily on reservation technology, the majority of available products focus on one user: the consumer. It makes perfect sense to ensure your booking system is easy and intuitive for your end-user who may not book because they found the technology too intimidating. However, realize that you and your entire team are just as importantly an online reservation company's "end user." The right choice for you will be a company who understands your job intimately and knows how your back office needs to function daily.

Ask about features that incorporate best practices in yielding and growing your average daily rate (ADR). For example, how easy is it for your staff to load rates for all rate levels across all room types, and manage a year in one easy to manage booking window? Can I see at my fingertips where my business is coming from on the Web and qualify e-marketing opportunities? Can I tell in real-time my conversion and denials? Can I see and incorporate reports of my email campaigns and my conversion on these initiatives in detail? Remember, the "perfect" partner will know that you use their system too...and will work hard to design the back-end components, dashboards and wizards you use daily.

3 - Is your system in multiple languages?

As you work to leverage the growing trend of online reservations by international travelers your e-presence needs to be global. While many booking engine providers boast of the conversion of their system into multiple languages, they frequently use off-the-shelf translation software or automated online applications. These applications do not take into account the context, cultural and locality of the country the visitor is coming from. Make sure they provide quality, human language translation...a small error in wording can be all it takes to turn off the prospective guest who may decide to immediately go elsewhere to book.

4 - How does your team work with us?

Is your online provider's support reactive or proactive? If they do not proactively call you to advise and participate in helping you build your online revenues then they are only being reactive to your needs. The best way a provider can demonstrate being proactive is by customer support. Key areas to discuss include: analytical data on your conversion, advice on strategies and tactics of building packages and specials, and tweaking of the Website to make it easier to find on search engines. Most online providers do not have a pay-for-performance model so there is no incentive to help with increasing your revenues.

5 - Are you willing to work on a performance model based fee and include your services in the cost?

Most providers only want recurring fees or have a one-time "book-all-you-can-eat" model. The trouble with this model is that it creates absolutely no incentive for them to help you increase your revenues. It also opens up the door for what is called the "nickel and dime" approach. Every time you want to do something to increase or improve there are new "unbudgeted" costs/fees associated with their services. Do you really want to hire a company that only executes your orders because they can bill you for additional services? Chose someone who is constantly keeping a watchful eye out for your revenue and advising you (for free) on the best practices and ideas that are proven to increase bookings and ADR. Look for that special group of people whose entire goal is helping you with proven results; make your online reservation technology team your "in-house staff."

6 - How involved is your company in Industry organizations such as HEDNA, Open Travel Alliance (OTA), HTNG, and HSMAI?

Many online providers simply sit on the sidelines and do not get involved with the industry or become thought leaders. It's important that your provider is involved in all of the associations above because of their importance in the industry. Active companies promote changes and encourage standards and best practices. Valuable resources are available through these types of organizations that can only benefit you and ultimately your customer.

Are they actively participating in shaping the direction of reservation technology and distribution systems? Are they listening to hoteliers at industry forums in their role as an elected member of the board or as a committee chair? Make sure they have their finger on the pulse of the predictive trends that are impacting you. Are they mastering mobile technology applications, social media....online user generated content with reviews, international SEO? Find the partner that can best help you leverage these new trends by asking how they are preparing themselves and you for it?

7 - Are you partnered with other leading companies in the industry as well as known hotel groups in powering their booking engines and e-marketing?

Benchmarking is a useful exercise...make a genuine effort to find out how they are viewed by the pros... bigger players that your hotel or company may want to emulate. The above question if answered 'yes' helps lend validation to the hotel or prospective hotel considering a provider that the company has been chosen through their due diligence of others, perhaps a larger hotel organization as their provider of choice.

8 - What are you bragging about? Is your online reservation partner going to talk more about their success than yours?

You know how hotels determine success...and what the usual performance indicators are. Well, it is the same thing in the online reservation offering world. Press releases about how many new clients they have signed is great but its not going to impact your key performance indicators...ADR, occupancy etc. Bragging about how many new hotels signed contracts with them is useful if they are pitching Wall Street...or it may actually be a signal they are more worried about their bottom line than yours.

Ultimately, you want to know how often they helped clients build online booking revenue, whether they can establish and demonstrate increased online reservation volume across a span of time and increased conversions clients have seen online since they began using their system.

9 - How often do you provide transaction analysis?

A "good" online reservation partner will provide you detailed transaction reports and more to the point they will work hard to ensure you can read and understand and use the data as opposed to having more information overload than you may have already. A truly "great" partner will provide the above plus provide you with regular transaction analysis to help you learn why bookings are down - or up. If booking levels are good, find out what they can do to improve on "already good." Will they be proactive in coming to you with regular recommendations based on the way people are making transactions with your Website? Empty promises mean empty rooms. Make sure to choose a partner who is proactively trying to grow those volumes and rates even if the levels are good!

Brian Dass is President of Open Hospitality. The company provides Web reservation and management solutions for independent and boutique hotels. Including direct connection reservation systems; search engine optimization; email marketing, and online revenue conversion; all in one dashboard. Mr. Dass began his career at a four-star boutique hotel in New York. He worked on several multi-million dollar renovations. He is a member of HSMAI and is involved with organizations in the UK and Europe. He also spearheads business development and operations in the UK office. Mr. Dass can be contacted at 212-989-2417 or brian@openhospitality.com Extended Bio...

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