The Rise of Direct Hotel Bookings
The hotel booking landscape is poised for a shake-up. According to Skift Research’s latest Hotel Distribution Outlook, direct digital channels are set to eclipse online travel agencies (OTAs) as the main distribution method for hoteliers by 2030. With an impressive $400 billion in potential bookings from direct channels against $333 billion from OTAs, this forecast has stirred vigorous debate in the industry about the future relationship between hotels and OTAs.
To explore these shifting dynamics, we spoke with Jaques Coetsee, Group Director of Sales and E-commerce , and Jadine Venter, Head of Marketing at BON Hotels. They offer insights into how they plan to harness these evolving opportunities by focusing on direct bookings, personalised guest experiences, and strategic marketing initiatives.
Q: What recent changes in the online booking space are particularly impactful for hotels like BON Hotels?
Jaques: The big shift is with Airbnb and Booking.com’s adjustments to their commission structures. The rate parity ruling that required us to keep the same rates across all platforms is gone, and this is a major opportunity. Our direct bookings have always been our cheapest channel, and with this change, we can offer better deals directly to our guests than on OTA platforms. This gives smaller hotels a fair chance to retain more value from each booking.
Jadine: It’s liberating because it provides flexibility in setting our rates, which was previously impossible due to the stronghold OTAs had with their market power and reach. This shift finally allows smaller hotel groups like us to effectively compete by highlighting the added value we provide, not just in terms of price, but also in the personalised service we offer directly. It’s an exciting shake-up in the playing field for all of us.
Q: How does BON Hotels’ Second-Stay Strategy fit into your approach amidst these changes?
Jadine: Our ‘Second-Stay Strategy’ leverages OTAs as a tool for initial guest acquisition and turns those guests into direct bookers for future stays. We’re focused on building relationships from the first visit, making sure guests see the benefits of booking directly with us in the future. It’s about converting an initial stay into a long-term guest relationship.
Jaques: Training is really critical. Our staff are skilled at profiling guests and tailoring their experiences from the very first interaction. By offering a highly personalised experience during their initial stay, we build loyalty and future direct bookings. The strategy uses that initial OTA booking as a stepping stone to enhance guest loyalty and direct engagement.
Q: How are you using data and technology to improve your direct booking strategy?
Jadine: Technology is an enabler for us. That’s why we’ve chosen Profitroom as our booking engine. It allows us to have effective communication with guests, offering upsells and extra services that enrich their experience before they even arrive. It’s not just about securing a room; it’s about personalising their entire stay.
Jaques: Beyond just making reservations, these tools enable us to trigger automated communications, such as reminders about check-in, dining options, or special amenities available during their stay. This personalisation ensures guests feel valued even before they arrive, which OTAs simply can’t match, and it supports our efforts to maintain a personal touch.
Q: What are the unique advantages that South African hotels like BON Hotels have over OTAs in providing guest experiences?
Jaques: A standout advantage is offering authentic South African cultural experiences and personal guest interactions. OTAs lack the on-the-ground presence and personal touch that we prioritise heavily, allowing for intimate and attentive engagement with guests.
Jadine: Booking directly with us supports the local economy, keeping more money within South Africa. This enables us to invest continuously in community projects, staff, and service standards that elevate the guest experience and sustain high standards within our hospitality sector.
Q: How do you empower your staff to enhance guest experiences?
Jadine: Empowering our staff is essential, and it involves appropriate training to help them identify upselling opportunities and deliver tailored services. Our front office team, in particular, needs to be adept at recognising guest profiles and responding accordingly, ensuring the service they provide is personalised and adds value.
Jaques: We’ve equipped our staff with the resources and autonomy to make real-time decisions – such as offering room upgrades when available. Every staff member is integral to delivering the brand’s promise and making sure that each interaction transforms into an opportunity for a memorable guest experience.
Q: Some travellers are hesitant to book directly due to the dominance of OTAs. What’s your message to them?
Jadine: By booking directly, travellers not only secure the best rates but also support local businesses. It’s about more than just a transaction; booking with us assures a high level of service and enriching experience from the initial interaction to check-out.
Jaques: Direct bookings forge stronger connections with our guests. They enable a direct line of communication and service customisation that supports local economies by retaining revenue within the community. It enhances the entire travel experience, benefiting both the traveller and the local economy.
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