In today’s competitive hotel industry, every property is looking for ways to increase direct bookings. But with the rise of Online Travel Agencies (OTAs) like Expedia and Booking.com, that’s easier said than done. OTAs have created their own loyalty programs that often make it tempting for travelers to book through them instead of going straight to the hotel’s website. In this post, we’ll dive into how OTA loyalty programs impact direct bookings and what hotels can do to turn the tables in their favor.
The Downside of OTA Loyalty Programs for Hotels
While OTAs can bring in lots of bookings and exposure, their loyalty programs can pose a real challenge for hotels trying to boost direct reservations. Here’s how:
1. Shifting Customer Loyalty to OTAs
OTAs offer travelers rewards like discounts, free upgrades, and special deals that make it hard to resist booking through them. As a result, guests may prefer to stick with the OTAs they’ve been loyal to, reducing the chances that they’ll book directly with your hotel next time.
2. Getting Hooked on OTAs
Every time a guest books through an OTA, it strengthens their loyalty to that platform. The more they use an OTA’s loyalty program, the less likely they are to think about booking directly with your hotel. This can make it tough for hotels to create lasting relationships with their guests.
3. The Ease of Price Comparisons
OTAs make it super easy for travelers to compare prices across multiple hotels. This means they’re likely to choose whichever platform offers the best price or loyalty rewards. Since OTAs often have deals and perks tied to their loyalty programs, it can be tough for your hotel to compete if you’re trying to encourage direct bookings.
The Silver Lining: How OTAs Can Help Hotels Get More Direct Bookings
While OTA loyalty programs are certainly a challenge, they don’t have to be all ba
d. There are ways they can help boost your hotel’s direct bookings too:
1. Increased Exposure
OTAs can help put your hotel on the map, especially if you’re a smaller property or independent hotel. Travelers may find you on an OTA platform and, after their stay, remember your hotel for future visits. Once they’ve discovered you, there’s a good chance they’ll come back to book directly with you.
2. The Appeal of Exclusive Perks
While OTAs have their own loyalty programs, many travelers prefer to book directly with a hotel if it means earning rewards that are specific to that brand. Hotels can offer their own loyalty benefits, like free breakfast, upgrades, or special treatments, to make guests more likely to book directly next time.
3. Rate Parity and Added Benefits
Most hotels maintain rate parity with OTAs, meaning the price is usually the same whether you book through an OTA or directly with the hotel. So, if you offer perks like free Wi-Fi, better cancellation policies, or room upgrades for direct bookings, it can give travelers enough incentive to skip the OTA and book straight with you.
How Hotels Can Compete With OTA Loyalty Programs
If you’re a hotel looking to overcome the challenge of OTA loyalty programs and boost your direct bookings, here are some tips to help you stay ahead:
1. Build Your Own Loyalty Program
A great way to combat the influence of OTAs is by creating a loyalty program that rewards guests for booking directly with your hotel. Consider offering points for each stay, which guests can redeem for discounts, free nights, or special perks. A strong loyalty program can keep customers coming back for more direct bookings.
2. Sweeten the Deal With Exclusive Perks
Give travelers a reason to book directly with you by offering perks that aren’t available through OTAs. Think free breakfast, early check-in, late check-out, or discounts on hotel services. These added benefits can make direct booking more attractive than using an OTA.
3. Promote the Perks of Direct Booking
A lot of guests don’t even know the perks that come with booking directly through your website. Use your website and email marketing to let them know about the benefits—whether that’s lower rates, better customer service, or special treatment like room upgrades. If they know there’s something extra in it for them, they might be more likely to book directly.
4. Make the Booking Experience Smooth and Easy
One thing OTAs do really well is offer a simple, fast booking experience. To compete, make sure your hotel’s website is easy to use, mobile-friendly, and quick to navigate. The easier you make it for guests to book directly, the more likely they’ll choose your website over OTAs.
Wrapping It Up: Turning the Tables on OTA Loyalty Programs
It’s no secret that OTA loyalty programs have changed the booking game, but they don’t have to be a roadblock. By creating your own loyalty program, offering exclusive perks, and promoting the benefits of booking directly, you can reduce your reliance on OTAs and build a loyal customer base that keeps coming back to you.
In the end, it’s all about standing out. Whether through unique offers, personalized service, or a smoother booking process, there are plenty of ways to convince guests to book directly with you. The more value you offer, the more likely travelers will see booking directly as their best option.
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