This piece is authored by guest blogger Michael Linton, Business Development Director at Travel Tripper.
Hotels in Las Vegas are facing a battle to convince customers to book direct.The Las Vegas Visitor Profile Study revealed that 68% of Las Vegas visitors used the internet to plan their trip, but just 41% of that group booked rooms on a hotel website. The remainder said they booked with an OTA or somewhere else.
Why are OTAs seemingly gaining such a large share of bookings? In large part, it’s down to the way they’ve mastered e-commerce strategy and the digital marketplace. Major players such as Expedia are spending millions on research and development to understand how consumers research and book travel online.
In contrast, many hotel websites still function like glossy brochures—full of fancy images and captivating copy but lacking the fundamental elements of e-commerce that drive direct bookings.
How can hotels win more direct bookings?
Convincing more customers to book direct might seem a daunting challenge given OTAs’ vast resources. But hotels can compete. Without huge investment, it’s possible to replicate the conversion strategies e-commerce sites have used so successfully.
Improving user experience
When a person visits a website, they want to find what they’re looking for with minimum fuss. That’s why simplicity of design and ease of navigation is fundamental to great user experience—qualities that sit at the heart of the e-commerce shopping experience.
In the digital marketplace, it takes zero effort for a customer to shop elsewhere. So e-commerce sites devote significant resources to ensure the browsing and buying process is streamlined and simple.
Hotels can replicate this strategy by designing a clean and clutter-free website, reducing customer friction by making their own websites easy to navigate.
Personalized booking experience
In a study conducted by Infosys, 86% of consumers said that personalization influences their purchasing decisions. Many OTAs have made it the centre of their shopping experience. For example, many OTAs use tracking information on what customers have previously searched for in order to make recommendations on where they might want to go to next.
The technology that allows the OTAs to create this sort of personalized booking experience is now becoming more available to hotels. Hotels can use such data to customize booking packages and offer unique perks for guests.
Conversion triggers
OTAs look to drive conversion rates by harnessing the power of urgency during the booking process. Instead of listing whether rooms are available or unavailable, OTAs such as Booking.com give specifics: how many rooms are left, how many people are looking at the same room, the amount of bookings made that day.
This strategy increases the motivation to book now by creating a sense of scarcity. Potential customers feel as though they could miss out if they hesitate on a booking. In addition, a level of social proof is added by indicating that a hotel is in high demand among other customers.
Reviews are also an important factor. A study by Econsultancy revealed that 88% of customers ‘sometimes or always’ consult a review when making a purchase. By featuring reviews more prominently, and in multiple areas throughout their website, hotels can influence decision-making and incrementally nudge customers through the booking funnel.
The technology that allows hotels to create urgency and show social proof are now available for hotels to use on their own site. The Stratosphere Hotel here in Vegas is one such example. The hotel links dynamically to its TripAdvisor page, as well as displays how many people booked in the last 48 hours.
Best rate guarantees
Travelers want to feel reassured they’re getting the best deal possible. OTAs understand this, which is why they implement best rate guarantees to keep customers on site. Some have even gone as far as displaying the rates of other booking sites just to prove their price is lowest.
This use of metasearch to showcase price transparency is now also readily available to hotels. Hotels can use price checking and rate matching tools to automate the best rate guarantee on their own sites, such as in the case with Stratosphere:
Time for an e-commerce evolution
In the Las Vegas market, a significant number of travelers are still choosing not to book direct with the hotel. The time has come to respond.
Modern hotel websites need to function like e-commerce sites, which means focusing on things like user experience, personalized booking experiences, conversion triggers, and best rate guarantees. By replicating how e-commerce sites convert passive customers into active buyers, hotels can optimize their own websites and begin to match the success that OTAs have already found.