Why Independent Hoteliers should take note of hotel chains direct booking´s drive

Why Independent Hoteliers should take note of hotel chains direct booking´s drive

Over the past few months, we have started to see a shift in sentiment and resources from the major hotel chains to encourage their clients to book directly.  Loyalty programs that were once afterthoughts and in some cases did not have any meaningful benefits to its members are starting to be restructured to encourage and help guests, that chose to book from the brand website.  Over the past year, we had begun seeing compelling new ads from the chains actively seeking this, when once they were slightly cautious of going up against the all powerful Priceline & Expedia.  So much so that the former CEO of Priceline recently came out with warnings for the major chains, focusing on getting their guests to book directly, clearly a nerve has been touched.

Changing Times ahead

Hotel chains are focusing on direct bookings is due to a variety of reasons.

  1. Lower dependency on OTA´s
  2. Competition by OTA´s on loyalty programs,
  3. Millennials – with up to 64 percent stating that they sometimes book directly on supplier sites (Source: Phocuswright).
  4. More and more Business travelers are booking direct, 39% in the UK 33% in France and 35% in Germany and
  5. Potential threat from Airbnb.

We also see chains like Accor, openly targeting independent hotels to join their franchise programs.  With the technological purchases of companies such as Fastbooking they have made over the last 12-18 months, can now offer a credible offering to independent hotels looking to compete in the online travel space.  Accor´s CEO interview late last year is a compelling read

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As consolidation within the hotel industry continues apace, Marriott´s & Starwood merger can now offer the biggest selection of hotels who can benefit from their revamped loyalty program which drives direct bookings.  We are starting to see that not only loyalty program members getting free nights and other perks, such as free high-speed WIFI but also it allows the hotel chains to personalize pricing and marketing too.

Expedia must have seen the writing on the wall by the fact that Hilton & Marriott recent agreement with them no longer guarantees Last room Availability as well as a reduction in margins.  This has allowed the chains also to be bolder in actively targeting direct bookings.

Age of dependency for Independent Hotels

So for the independent hotelier, as I covered in a previous article are still sleepwalking into an age of increased dependency.  This though can be reversed if you take heed and start to learn from the chains, who are starting to take the OTA´s head on as well as introducing common sense practices to increase your direct bookings.

In reality, it could well be as loyalty programs become stronger along with the immense driving power of Marriott and their investment in content marketing strategies as well as personalized marketing, for some hotels in particular locations, joining as a franchise hotel to a chain could become the straightforward choice.

But what about if you want to remain independent, to provide that unique personal experience and differentiate from the rest?

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Then your choice could not be simpler.  You as a hotel have to map urgently out a clear marketing strategy that includes the answers to the following questions:-

  • Can Users find me online?
  • Does my web make it easy for a guest to book me?
  • Am I capturing guest data in the right way?
  • What am I doing to promote my brand online?
  • How to I communicate with my guests?
  • What incentive do I offer them to book direct?
  • What am I doing to convert OTA reservations into Direct ones?

Where I believe hotels, in general, have failed to do is to create value for their customers in the way they find you online and booking process for hotel rooms, with many solutions still aimed at appeasing the revenue manager rather than the client.

If hoteliers are going to start to turn the dial away from increased dependency, they firstly have to connect with guests and connect with the non-residents who already have an existing relationship with your hotel.  Technologies like Social WIFI and concierge apps are excellent tools in this area.

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Talking with a host of general managers, it is clear they pride themselves on the quality of service they provide to their guests.  It is something in their DNA which keeps them at the hotel to ensure that the Wedding or events goes off without a hitch and view those smiling happy faces of the participants.  Where independent hoteliers have failed though is showing the same pride for the first impression your give to any prospective client and which more and more of your guests are using – ONLINE 

The Major chains are starting the fight back, keep paying attention and learn how your hotel too can start moving the dial back in your direction, or risk becoming even more dependent on intermediaries and probably even irrelevant in the future.

Talk to our team at Hotelient today and let us help you devise your online fight back strategy! Email info@hotelient.net for further information.

 

 

 

 

Is bidroom.com, Europe’s fastest growing OTA about to disrupt Booking.com and Expedia’s stranglehold, by connecting hotels directly with guests?

Is bidroom.com, Europe’s fastest growing OTA about to disrupt Booking.com and Expedia’s stranglehold, by connecting hotels directly with guests?

As Priceline and Expedia continue their consolidation as the two dominant Ota´s, who are currently at present purchasing up all their competitors around them.  Dependency for hotels on these two major companies will continue, especially if the rumors of Priceline´s possible acquisition of Tripadvisor prove to come true.  So it was a breath of fresh air when I caught up with Michael Ros and Casper Knieriem who are the founders of a new and exciting company called Bidroom.com, offering hotels the opportunity to gain lower commissions reservations, which in some cases could be less than what hotels are paying for receiving bookings directly online.

I sat down with Michael & Casper to find out more:-

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Who are the founders and what are their backgrounds?

We are both entrepreneurs with a proven track record in the hospitality and travel industry. Having already founded a successful travel company together, TravelService, we possess a wealth of insider knowledge about the hotel sector and plenty of passion for driving the business forward.

(Michael) I have a lot of experience in negotiating at a corporate business level. I started my first company when I was 18. From the age of 24 I worked for four years for a large international enterprise and was responsible for a turnover of 45 million euros per year. After that, I founded the online travel agency Travelservice.

(Casper) After studying Business Administration at the Erasmus University in Rotterdam,  I started my outsourcing company for financial services, which I sold in 2007.  I also founded the online travel agency Travelservice along with Michael.

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How receptive have hoteliers been to Bidroom? 

Hotels are fed up with high commissions, restrictive contracts, and loss of control of their brands, and are desperate for alternatives to these domineering OTAs. Bidroom is the solution, allowing hotels to offer lower prices direct to customers and yet make more profit – a win-win for both sides. Bidroom can become the ‘white knight’ of a stressed industry, as well as the cheapest booking channel for guests.  Bidroom disrupts the high commission model by introducing a standard 2% commission for all hotels. Due to our exceptionally small fee, hotels all over the world have been eager to join our platform. Every day we are getting around 100 – 150 hotels who are signing up!

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What has been your progress to date?

We have launched a minimum viable product in January 2014 and received extensive press coverage and an overwhelmingly positive reaction from both hotels and customers. Since the launch, we have received international press coverage and was nominated for the Accenture Innovation Award, Sprout Challenger Award, Zoover Awards, and The Next Web Startup Awards.

There is clearly a need for a platform such as Bidroom. The pilot website covered only 60 cities. Hotels made over 12,000 offers to guests in 5 months – with no marketing spend at all. Bookings have been made, and we have clients who have used Bidroom several times. We have been working on a brand new website that addresses all the issues and recommendations of hotels and guests using our current pilot site, from January 2016 this new website was launched. Some figures:

Members using Bidroom: 432.000

Hotel which signed up:  +/- 12670

How are travelers discovering Bidroom?

Bidroom’s marketing is based on a cheeky but forceful message of ‘kicking out the middleman’ and getting the cheapest deals – direct from hotels. We will be the whistleblowers of this industry, following the marketing approach of companies like Transferwise.com (Foreign Exchange) and Uber. Online marketing will include Facebook advertising and promotions. Offline marketing will include in-flight magazines, trade fairs and guerrilla marketing campaigns.

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About Bidroom

Bidroom provides a platform that connects travelers in need of a hotel with hotels in need of guests. A platform that stands for simplicity, flexibility, and openness. A platform that brings an end to the hidden costs and hassle of traditional booking websites. No more frustration from comparing prices on multiple sites and searching the internet for the best deals. With Bidroom, guests always know they are receiving the lowest available rate for their booking.  Users are granted a direct overview of the prices listed on competitor websites so that they can make the right choice. Transparency is the core principle behind Bidroom.

We are on a mission to reinvent the way consumers book their stay. We believe that consumers always deserve the best prices. We believe hotels have the right to remain in control of their inventory and pricing. We strive to make the world of online booking a little easier by putting guests directly into contact with hotels.

Bidroom is a revolutionary hotel booking platform that connects travelers directly to hotels at no cost, so both sides get a better deal. Currently, when guests book a hotel online, up to 25 percent of the price they pay goes to the booking website, and not to the hotel. That’s just not fair, and it is time to put a stop to it. We are building Bidroom as a highly disruptive, transparent, global booking platform that is set to revolutionize the travel industry and finally create a fair, open way for customers to find great hotel deals, by decreasing removing the commission tot 2 percent and giving the middlemen the boot.

From speaking to Hotel Directors across Europe and their frustration at having little alternatives should get them signing up to companies like Bidroom over the coming months.  A new way of thinking for a new generation of reservations.

Visit Bidroom.com or email Michael michael@bidroom.com or Casper casper@bidroom.com for further information