6 Strategies to Increase Direct Bookings Without Conflicting Your Rate Parity Agreement
By Ashley Verrill Market Analyst, Software Advice | August 25, 2013
Online Travel Agencies such as Expedia, Priceline and Hotwire are extremely good at what they do: filling empty rooms. Unfortunately for hotel operators, they've become slightly too good at it, and travelers are now going straight to these deals sites for their booking needs. So how do hotel operators keep OTAs from cannibalizing business from customers that might have booked direct in the first place? This is one question I hear all of the time from companies that call me for advice on hotel automation systems.
Most OTA agreements require that hotel operators not advertise room rates for lower than what is listed on their websites. Fortunately, we worked with several hotel management and marketing experts to discover six ways hotel operators can bring customers back to booking direct, without conflicting with their OTA. Here's a summary of each:
1. Supply a Targeted Audience with Special Discounts
Parity agreements prevent hotels from offering deals publicly. However, this restriction doesn't apply to those offers hotels distribute to a limited audience. You can send a discount code to your Facebook fans, for example, or to customers who've opted into your email list.
2. Combine Add-Ons for Money Saving Packages
Rate parity only applies to offers for the exact room advertised on the OTA. This doesn't prevent you from packing that same room with other services for a value that is overall a better deal than what's on Hotwire, Priceline, or where ever. You could, for example, package a room with drink tickets and a shuttle ride to an event happening that weekend and provide savings that equate to more than what is on the OTA. Other Add-ons could include parking, wi-fi or a discount for room service.