Which Incentives Should Hotels Offer to Boost Direct Bookings?
The battle for direct bookings is one that continues to rage between hotels and online travel agencies (OTAs). While OTAs drive over 20 percent of total room bookings, hotels suffer from the 10-25 percent commission fees they must pay to be listed. Of course, getting customers to visit your site instead of an OTA is not without its challenges. But, once there, how can you convince them to book directly through your website?
We conducted a survey of more than 2,500 consumers to find out what perks hotels can offer to convince travelers to forego discounted OTA prices and book directly through a hotel’s website. Here are our findings.
● A free room upgrade is the top incentive that will convince customers to book directly;
● This room upgrade can be as simple as offering a balcony or better view;
● Free food and drinks (e.g. at on-site restaurant) are the second most effective incentive.