10 Ways to Boost Direct Bookings and Increase RevPAR
By Gino Engels Co-Founder, OTA Insight | April 2019
All revenue is not created equal. Hotels know this more than any other industry. When factoring in the cost of acquisition, each booking has a singular profitability profile that depends on wholesale commissions, retail commissions, transaction fees, discounts, advertising expenses, loyalty investments and technology costs.
The popularity of third-party channels remains high, as customers appreciate the price-shopping nature of OTA sites. OTAs also spend considerable resources making it simple for customers to book online, investing in the technology to deliver a smooth, pleasant shopping experience. And, of course, these channels spend tremendous amounts of money on marketing to pull leads into the funnel.
As intermediaries spend more money, commissions paid out by hotels has also risen. Cost inflation has therefore pushed direct booking to the top spot of most hotels' priority lists. Hotels pursue more business through the lower-cost direct channel, in an all-out effort to preserve the profitability of each booking.
The cost associated with direct bookings is much lower, per Kalibri Labs data.
As your hotel looks to direct bookings to mitigate against rising distribution costs, consider these tips to produce more direct business and increase your hotel's revenue per available room.