The Insider’s Guide To Taking Back Your Bookings From OTAs

The Exact Strategies You Need To Increase Direct Bookings And Profits For Your Accommodation Business LIVINGONLINE.COM.AU © LIVING ONLINE

 / 2 The rise of online booking aggregators

It was in 1996, that Microsoft, In 2008 another disruptor driven market. the most high-profile was to enter the hotel With heavy fees and technology company on the market; the launch of commissions associated planet at the time, unveiled AirBedAndBreakfast (soon with these OTAs and its attempt at an Online changed to Airbnb) provided booking aggregators, Travel Agency (OTA); with property and house owners it’s now more important this, was born in the with the ability to rent out than ever for those in the USA. The launch of Expedia whole places or rooms to a accommodation industry to set the pace for countless rising new breed of travellers focus on growing their direct imitators and the beginning who were looking for a bookings, allowing more of of the travel industry’s move different way of seeing a their revenue to go straight into the digital age. destination. into their own pockets, and not into those of these 2001 and the 9/11 tragedy Now, 11 years later, hotels aggressive online giants. was a pivotal moment in the are facing an online history of online travel, not domination of OTAs and So the question is, what just for the United States alternative accommodation can you do to increase your but world-wide, including providers. The OTA direct bookings? Australia. For the first time, systems originally the whole travel industry designed to sell excess OTAs or Online had to deal with new inventory in times of Travel Agencies are security measures and how slow demand are now the travel websites that to cope in a downturn in primary source of hotel specialise in the sale both leisure and business bookings. The online world trips. Suddenly OTAs has become a battle of the of travel products became marketplaces for booking aggregators, where to consumers. hotel suppliers to try and individual accommodation The average OTA offload huge amounts of providers are struggling to unfilled inventory. make their mark directly commission is with guests and differentiate around 18% of the themselves from a price booking value.

3 /  A new type of guest

As a result of online review platforms and increased competition across all types of accommodation, guests are now driving the success or failure of hotels and accommodation providers.

Guests are expecting providers to exceed expectations, which means additional staff training, room renovations, and increased costs for high quality room products. Today, even the budget room is expected to be up to a high standard. Little issues like WIFI not working can cause guests to leave low star reviews and make it harder to compete within individual OTAs.

With booking aggregators allowing payment on arrival, free cancellation periods, and rewards for repeat bookings through their systems, hotels, resorts and even caravan parks are having to provide similar options and even more benefits to drive direct bookings.

 / 4 There is a place for OTAs, but use them wisely

Hoteliers and other A successful marketing OTAs are good for gaining accommodation distribution strategy reach to certain markets providers must analyse balances distribution; you such as: both distribution and should not put all your eggs • Non-brand loyal marketing costs. According in the OTA basket, but you travellers to PhoCusWright, hotels should consider how you • Young travellers spend on average 6-9% of use it in the marketing mix. • Package travellers their revenue on sales and For example, OTAs marketing, whereas OTAs provide resources that OTAs are often the first spend approximately 35- most hoteliers don’t have stop when travellers are 40%. It is wrong to assume access to, in particular researching travel plans, a booking made through an their extended reach. OTAs and they can offer value to OTA would have happened create culturally appropriate consumers at all stages of without OTA participation, online experiences including the buying process. but it is also wrong to currency conversion, assume that those bookings language support, and As a rule OTAs should only do not create future direct a personalised booking drive 30% of your revenue; booking opportunities. experience based on if you are currently getting previous history. a larger percentage from OTAs then you need to find out where your site isn’t optimised and where your online marketing is failing to bring the balance back into your favour. The higher the percentage of your customers coming from OTAs, the more money you are losing out on directly. Only 30% of revenue should be driven by OTAs

5 /  Monopolise the ‘Billboard Effect’

“As per a recent Google survey, 50% of travellers will visit your hotel’s website after seeing you on an OTA.”

When guests discover hotels on OTAs, most of them then do further research about the hotels using search engines. This is when 20% your website, your direct of direct consumer marketing, your bookings are social media channels, and your own managed online from OTA presence become integral to referrals converting those searches into direct bookings.

The user gets frustrated if they don’t find the same room types, names, pictures and cancellation policies that they’ve seen on sites like booking.com. This frustration then causes the user to leave your site and head back to the OTA where they will either “ WIHP conducted a make the booking there, or use it to find a different three-year survey on the accommodation provider. billboard effect. We found that over 20% of direct bookings occurred after the guest found the hotel on an OTA. ”  / 6 But why aren’t people booking direct? The number 1 reason is that travellers think they can get a cheaper price elsewhere, but there are some other key reasons they might not be booking directly with your property. Here are the top 6 reasons that aren’t price-related.

1. YOU DON’T HAVE REVIEWS ON YOUR WEBSITE

People want to know what other people have to say about you. If you don’t include reviews on your site, the user is going to go somewhere that does… like an OTA. In this age, reviews and testimonials are a critical part of the research process, so if you are failing to provide these, you are failing your prospective customers’ needs.

2. THEY WANT SPECIAL OFFERS

The guest of 2019 is used to getting value-adds and personalised experiences when it comes to travel. Make sure you consider this with your website offers and make these clear and easy to find. See what special “perks” your competitors are offering, both on their own sites and via their OTA profiles, and see how you can one-up them to make your property more appealing.

3. YOUR WEBSITE LOOKS OLD OR CONTAINS OUTDATED EVENT INFORMATION

If your website contains ‘upcoming events’ from 2012, that’s a sure-fire sign that your content is not updated and users will think that everything on the site is irrelevant or incorrect. Internet users are used to receiving real-time information on their phones and desktops, so make it a regular occurrence to review your site and ensure you have the most up-to-date / 7 information and a modern web presence. 4. NO INCENTIVE TO BOOK DIRECT

If you want people to book direct you need to educate them on the benefits of doing so – are these better rates, extra inclusions, VIP treatment, upgrades, or simply that you match the payment and cancellation options of OTAs but make it quicker and easier to complete the booking directly on your website? If you don’t have a determined incentive yet, it’s critical you think of one as soon as possible, then promote it on your website and social channels.

5. SLOW, MOBILE-UNFRIENDLY SITE

More people are using their phones to research holiday options and booking on the run – it is therefore incredibly important that your website works well on mobile and loads fast. Customers are impatient; if they don’t get what they want fast, they will leave and go to the OTAs who have teams of people working to provide these customers with an A-Grade user experience.

6. YOUR WEBSITE ‘BEST RATE GUARANTEED’ ISN’T ACTUALLY YOUR BEST RATE

4 out of 5 people will leave your website to check on an OTA site to see if they can get a cheaper rate. If the OTA lists the same room with the same inclusions and benefits but for a lower price, they won’t come back to you. Again, it’s important to be continually reviewing your room prices across different OTAs and booking aggregators to ensure there haven’t been any competitive price decreases that you aren’t  /.aware8 of So how do I get direct bookings?

There are many factors and platforms which lead to driving more direct bookings for your business. Because of this, it is integral that you approach direct bookings with an integrated digital marketing campaign. Your business needs to have a strong presence in owned, paid and earned media to provide you with the best platform for direct booking success.

9 /  Own your brand online 1. Protect your brand & differentiate yourself Even if people are searching Use your own social media, Is your property relaxing, for your brand name directly website, Google My Business in a unique location, have through a search engine listings, YouTube accounts, an exclusive menu, or such as Google, you might and Google Hotel Ads architecturally uncommon? be invisible in the search campaigns to ensure your Define what makes you results until halfway down own online assets are top different to ensure you the page as a result of the of brand related and local clearly present this message aggressive paid advertising searches. across all your social by OTAs and now Google’s media channels, website own booking system. By solidifying your brand, and online marketing who you are, and what your campaigns. This means that it’s critical unique offer entails, you can you ensure your brand and differentiate yourself against UNIQUE property is more than just your competitors and LOCATION an option on an OTA list of drive more direct and OTA available hotels. bookings. EXCLUSIVE MENU

2. Know your typical guests and POPULAR what they are looking for FOR COUPLES Does your property It is important that you dominate the business understand who your market? Is it a relaxing customers are and why they holiday destination? choose to book a room at Remember, Or is your property a your hotel. This will help conveniently-located stop drive the direction of your if you try to for passing travellers? online marketing, which Are your main customers channels to use, what sort appeal to families, singles, couples, or of content to produce, and groups? where your next potential everyone, direct customers may be lying in wait. you’ll appeal to no-one.

 / 10 3. Build your online presence through social media Travellers often visit the Building valuable content Update your social platforms social media channels of that interests your key with new content regularly accommodation providers guest personas is also – if you visit the Facebook on a search for more photos, essential to a successful page of a “luxury, modern reviews and information, social channel that drives resort” but see that the most especially if your offering is bookings – cover topics like recent post was several prestigious or experience- local activities, where to eat, years ago, you’re getting based such as a remote eco- and upcoming events. This the vibe of an old, dated resort or relaxing destination includes making sure you property – this seemingly luxury hotel. encourage and promote simple mismatch in your user generated content on brand messaging and your Social media is about all your channels. social media profiles could engagement, so users want very easily be losing you to see your brand engaging large numbers of potential and communicating on customers. these platforms; they should not be used as a one-way Around 52% of post board. Make sure you Facebook users say have the resources allocated that their friends’ to respond to enquiries and photos inspire keep interactions alive. their travel plan – Hotelogix, 2019

11 /  4. Implement direct booking options on all your owned digital assets

In order to drive direct Also let users book directly bookings, you need from social media by to make it as easy as integrating your booking possible for your potential engine with your Facebook customers to find your page to allow direct booking engine. On your bookings without leaving website, make sure that the platform. your booking engine is simple to find at any point on the site, is responsive, and can be used on any device or location.

5. Dominate in Paid Search Advertising Paid advertising such as While this helps drive direct engine like Google, the Google Ads, Bing Ads, and traffic and bookings, it can entire first screen is nearly all now Google Hotel Ads also help with a rise in your paid ads by OTAs. doesn’t have to be restricted property becoming top-of- to big and rich hotel mind and receiving more If you don’t have a paid companies. bookings through OTAs Google Ads account, you run as well (let’s face it, some the risk of getting lost in the It is, in fact, a very viable people just like to package noise, or having somebody option for independent up their flights, cars, and click through to one of the hotels on a pay-per-click hotels through OTAs). third party booking sites and basis, and when managed being distracted and swayed by the correct agency it is As we’ve discussed before, by other accommodation completely measurable. if somebody is searching providers that are appearing for your brand in a search there.

To ensure you get your paid search campaigns right, make sure you download our free guide “Google Ads Secrets – The 10 Most Important Tactics Your Competitors Are Using To Beat You In Paid Search”

 / 12 6. Grow your presence on metasearch engines

According to research from The most popular examples travel consultants PACE of metasearch engines Dimensions where they are Google Hotel Ads, analysed the top 10,000 TripAdvisor, , and travel websites, metasearch . sites account for more than 45% of global unique Metasearch advertising visitors in travel. This is allows you to promote greater than the proportion your direct pricing against of unique visitors for OTAs, the OTAs and drive clicks both globally and in the US. directly through to your website. As promotion on Metasearch engines help metasearch is based on cost travellers compare all per click (CPC) campaigns, mentions of the hotel bids must be managed and other property room smartly and not left as ‘set rates across various OTAs and forget’, the same way and your own property you should manage any website. These booking other Paid Search campaign. aggregators pull all the booking site data into one When used correctly you place, and this is why they can reach valuable guests are growing in popularity. first and take control of your website traffic acquisition. 7. Embrace the power of email marketing

Once happy customers You should be able finish their stay with you, to manage your it shouldn’t be the end of targeted marketing and service. Make sure to keep in communications by using touch with enticing offers on guest data from your PMS special occasions like long system to personalise weekends, Valentine’s Day, your communications Mother’s/Father’s Day, their and automate your email birthdays, or anniversaries, outreach. and incentivise them with discounts or offers by booking directly. 13 /  Optimise your OTA listings

As we mentioned, OTAs should still be considered one channel of your marketing mix as it still is an incredibly effective way of gaining new customers; to remove yourself completely from these platforms would be a detriment to your overall marketing strategy. Because of this, you need to focus on optimising this channel so that your hotel is on the shortlist of the ones travellers will then research further and eventually book to stay with.

1. OTA optimisation The 4 key areas of optimisation:

Keep inventory Be clever with UP-TO-DATE PROMOTIONS

Accurately manage your inventory – the Cleverly manage your rates and promotions availability of your rooms will fluctuate due to – Guests often use OTAs for last minute deals non-peak and seasonal changes, so ensure and offers (there’s even an OTA called Last you are maintaining accurate inventory and Minute going specifically after this market). using OTAs for their original purpose (to By using time-sensitive promotions you will provide bookings for surplus inventory) in have more chance of being noticed and filling order to maintain a high occupancy rate. the remainder of your rooms by attracting more guests to your profile for last minute bookings.

Be excellent at Be accurate with REVIEWS DESCRIPTIONS

Be careful with review responses – Only 14% Keep your rooms and descriptions in parity of consumers trust traditional advertising with OTAs and KISS – Make sure what the user but 92% respect reviews on sites such as sees on the OTAs (the room types, amenities, TripAdvisor. Reviews on OTAs are seen as images and names) match up with what’s on particularly reliable because guests can your website. If the user gets to your site and only post a review after they’ve stayed at the the ‘Family Suite’ they saw on an OTA is now property. It is important to do an efficient job called ‘Eagle Suite’ then they are likely to go of managing online reviews and addressing back to the trustworthy OTA to complete the concerns and complaints as well as booking. In the same token, cute or fancy recommendations. room names might sound fun, but often they only confuse customers and make it harder to determine what’s an upgrade and what the price difference means –so keep it simple!  / 14 2. Don’t ignore your OTA guests

According to a SmartBrief study sponsored In fact, it may even benefit you to take by The Wall Street Journal, the biggest factor note of the guests and whether they have in guest loyalty is personal experience. Make come from an OTA or directly via your your guests feel at home and ensure your staff website. This way your staff can put extra adopts that personal touch that will turn one- emphasis on converting the OTA-booker time visitors into loyal guests. into a direct booker.

Just because a guest originally books through You could even go so far as to leave a an OTA doesn’t mean they are a lost cause for note on their bed to thank them for direct bookings. Make sure you treat them booking through their selected OTA, and as you would any valued customer and work invite them to receive a discount if they towards converting them into a direct guest for book directly next time. their next stay by including them in remarketing and email marketing campaigns.

15 /  Give users a complete and amazing website experience Your property website is your virtual business card. The more detailed and appealing the presentation is, the less need travellers will have to visit other sites, and the more enticed they will be to book directly with you.

1. Make your website a compelling, user friendly experience Before we get into anything – the more you make your • Clear and concise offers. else, it’s paramount to note website seem as though it’s If you have multiple that the most important speaking to your individual offers make sure it is easy aspect of your website is website visitor, the better to understand what they that it is fast and mobile chance you will have of are and who they are responsive. converting them directly on aimed at. your site. • Search engine optimised Research by Google shows (SEO) – your website that 53% of visitors will leave Other key factors that will should be ranking a website if the loading make or break your website well organically in the process takes more than 3 experience are: search engines both for seconds. Today’s website • The quality of your company name, visitors are demanding and images – make sure and for relevant high impatient. Make sure your to use professional value search queries, website is fast, especially on photography and videos e.g. “boutique short- mobile. and replace outdated stay accommodation images with dated fremantle”. Another aspect that is furnishings and bed important to the modern coverings. and millennial-minded • A visually attractive According to a traveller is a personalised design. Phocuswright report of US experience with dynamic • Easy to find booking online travellers in 2018, offers based on their engine with ‘book now’ over 68% shopped for travel interaction with your buttons available at all on a smartphone or tablet website. There are a range of times. over the past 12 months. plug-ins and apps that you • Easy to use navigation They were also more can add to your website to and search functionality. inclined to travel frequently, allow for this customisation • Well-structured content. internationally, and spend more on travel.

 / 16 2. Be transparent with rates Ensure you are transparent It may also be helpful to with your rates on your show the OTA comparison website. If your rates are rates on your own site. This better than what you sell provides even less reason your rooms for on different to leave and investigate if OTAs then make this clear your rates really are the best, so they don’t have to leave and it will help them decide to continue searching and faster whether to book find out. If you offer the directly. most competitive rate direct then make sure they know and can see this. $

3. Integrate reviews into your website Reviews are critical to the reputation without needing Finally, you need to make it booking decision during the to wander off to another easy for your guest to leave a search and booking phase website or OTA. review for your hotel on your for visitors, so properties chosen review platform. should embed review You can also use rich Decide where the most widgets on the site. snippets to help incorporate valuable location for your this review data into your combined reviews will be This gives users a organic search results and and prompt visitors to leave complete overview of the increase your organic traffic their reviews there. accommodation provider’s click through rate.

17 /  4. Reward loyalty, but forget the classic loyalty programme if you’re an independent hotel or accommodation provider

Classic loyalty programmes Another option could be Make sure you have set work great for chain “VIP benefits” where, in up strategic remarketing hotels in particular, with exchange for them signing programmes, email loyalty members driving up to your email database marketing automations, and 56% of the hotels system- (where you can nurture have encouraged all visitors wide occupancy rates them into loyal customers), to follow you on social for Brand name hotels in you can offer them a range media in order to maximise 2016. However, they have of benefits that would your chance of repeat visits been less successful for suit their need. This could or referrals to friends visiting independent hotels. How include free late check-out, the same location. likely are your customers to discounted airport transfers, come back regularly enough a welcome drink, free or to earn the points needed to discounted upgrades, and Cost of sales redeem their rewards? more. to an existing A second factor is that If a customer does return consumers nowadays though, make sure you guest can are looking for an instant make them feel special with reward, and are less inclined a ‘welcome back’ email or be as little to save up points or credits a personalised greeting on over the course of months arrival. as 30% of or years. So why not simply give them a 5% discount Lastly, it’s important to note the cost of option to sign up for. And that just because someone’s make sure it is available first booking with your hotel acquiring a directly (don’t let them wait is through an OTA, this for the sign-up confirmation doesn’t mean you can’t get new customer email). their next booking direct. -Hotelogix 2019  / 18 Keep track of why your potential customers are leaving your site and do something about it

The most common reasons for booking abandonment according to Hotelogix are: ••PRICE IS TOO HIGH – 37% ••RESERVATION PROCESS IS TOO LONG – 13% ••ENCOUNTERING TECHNICAL ISSUES – 9%

1. Track booking Tools like abandoned cart 2. Collect all the stats abandonment emails and website surveys available A Skift report found that in can also help you gather Data is your friend and the travel industry there information as to why you knowing how to interpret were US$1.78 trillion in might not be converting this data is even more incomplete bookings in potential guests and will give important. All the systems 2014, which was more than you a clue as to what you you use should be integrated three times the value of can do to win travellers over so you can gather all the confirmed bookings. next time. insights from your visitor’s journey through your By tracking booking Hot tip: use visitor website and other online abandonment, you can recording software to assets. How long are people discover where, and why see how your potential staying on your site, what your potential guests are customers navigate your rooms or offers are being leaving your website. Is it website, find where they looked at, and what sources at the search stage or when are falling off, and see are your website visitors they get to the ‘Pay’ section what issues they are coming from. of your booking form? By encountering on their identifying these areas you journey around your site. The more data you have can work to improve the There are plenty of great available, the better conversion funnel and retain options available, but we equipped you are to evolve more prospective bookings recommend HotJar as an and optimise your direct in the future. easy-to-use software. bookings.

19 /  Case How we made it work for a Study Perth Caravan Park

A Perth caravan park was looking for a way to increase the number of reservations without having to rely as heavily on Online Travel Agents and booking aggregators like Booking.com, Expedia, and , which took a large chunk of their revenue in fees and commissions. 57%

Living Online used a strategic multi-channel approach to increase direct online bookings by 57% in less than 6 months.

131% 70% 100%

Direct Booking Revenue Direct Booking Market Share Direct Booking Nights

Following the campaign changes, the Since implementing the changes to the Nights booked through the website direct booking revenue has increased website, direct booking revenue has has increased by 100% compared to by 131% compared to the same period driven over 70% of all revenue. the same period last year, the highest of the previous year. of any booking channel.

“Within a few months of working with Living Online, we saw a dramatic increase in direct bookings. Our direct bookings revenue has gone up 131% compared to the same time last year and now accounts for over 70% of our total revenue. We reduced our reliance on OTAs and our total revenue is up 39%. Thank you to all the team at Living Online. I would highly recommend them for your business.” — Ornella Sialstis - Owner of Perth Central Caravan Park

 / 20 The Direct Booking Optimisation Quiz.

How optimised is your property to gain more direct bookings?

Complete the following checklist to quickly identify how primed your property is to take direct bookings.

Overall ☐ You have a direct booking marketing strategy and plan

OTA optimisation ☐ OTAs drive less than 30% of your revenue ☐ The property information (room types and amenities) on your OTA listing match the information on your website

Brand positioning ☐ Your property has a unique selling proposition (USP) to differentiate you from competitors ☐ Your USP is clearly visible on your website and other owned channels ☐ You know who your ideal guests are (target market)

Use of Social Media ☐ You have social media channels ☐ You are posting regularly on these channels ☐ You are actively engaging with the community via social media

21 /  Booking accessibility ☐ Users can book directly with you through your Facebook page ☐ Your website has an inbuilt responsive booking engine

Other marketing activities ☐ You use Paid Search advertising or Google Hotel Ads ☐ You use metasearch CPC advertising ☐ You have automated email marketing setup ☐ You engage with previous visitors via email communications ☐ You engage with non-converting website visitors via remarketing

Your website ☐ Your website is updated regularly with new content ☐ Your website imagery is recent and presents your property in the best light ☐ Your website loads quickly ☐ Your website is mobile friendly ☐ Your website is easy to search and navigate ☐ Your offers are clear and specific ☐ Your website is Search Engine Optimised ☐ Your website uses structured data for enhanced Organic Search results ☐ Your website rates are the best available ☐ Your website incorporates reviews ☐ You reward loyalty for direct bookings

Tracking ☐ You can track abandoned bookings ☐ You have access to website analytics ☐ Your bookings are tracked through ecommerce analytics to identify where they originated from

How did you do?

If you ticked them all, then congratulations, your property is well optimised for direct bookings. If you are still not receiving the volume you want, it could be worth getting an audit of your current setup to identify areas of improvement.

If you are missing some ticks, then perhaps it is time to focus on the areas you are lacking and make sure you are covering all the bases to improve your direct bookings.  / 22 Need help? Implementing a successful direct booking campaign yourself is not always easy. That’s why companies like Living Online exist to help property owners achieve their goals.

Based in Western Australia, our digital marketing team provides a unique blend of strategic marketing consultants and hands-on digital specialists.

Our team is different from other agencies you may have come across. We work together to bring our combined skills to the table and offer our clients a well-rounded service that benefits from the expertise of all consultants.

We don’t have traditional account managers or segregated SEO and Google Ads specialists, instead our Digital Marketing Consultants are skilled to provide you with a complete digital service. That means the person you talk to day to day is the person who understands every aspect of your business and goals.

Best of all, we offer our clients no long-term lock in contracts. Our clients stay with us because they get great results. So you can feel confident knowing that you have nothing to lose when you give one of Australia’s best digital teams a chance to prove our worth.

Want to know what we can do for you? Let’s have a chat.

www.livingonline.com.au | (08) 9388 8778

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