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How hotels can leverage digital marketing to win the direct booking race, Skift
The tug-of-war between using direct channels versus online travel agencies (OTAs) has entered a new phase post-pandemic. The pandemic initially tipped the scales in favor of direct bookings due to safety concerns and the need for flexible booking options, but inflation and the current economic climate has led travelers back to third-party sites in search of better deals. But it’s important for hotels to leverage both direct bookings and third-party sites to meet travelers where they are.
- The hotel booking landscape has become increasingly crowded, and although there is traveler demand in the market, it is a more fragmented bookings landscape. Hoteliers now need to re-think how they are going to capture that demand.
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While hotels cannot match the scale of OTA marketing, they can ensure that their messaging highlights not just the property’s features like rooms or meeting spaces, but its overall experience and the destination.
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Pricing strategies are also key. Hotels need to offer competitive prices to maximize visibility on Google, where approximately 90 percent of bookings originate. Google’s role in influencing travel decisions has become glaringly obvious. While we think of booking.com and Expedia as major drivers, Google’s role has quadrupled in influence when it comes to how people research travel and their destinations.
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The single biggest competitive advantage hotels have is owning first-party data. First-party data isn’t a nice-to-have, it is essential for hotels to use moving forward. Access to rich guest profiles allows for crafting a tailored message across email, websites, and social channels.
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Ideally, we should see a shift in the industry’s perspective and reliance on OTAs. They provide the one-stop shop experience that appeals to consumers looking for simplicity in a fragmented market, but the goal is to move away from viewing OTAs as the primary booking channel and instead using them as a starting point for guests to explore options.
- Ensuring that the journey doesn’t end with OTAs but leads back to hotel’s own channels is key, where compelling stories and competitive pricing encourage direct bookings.
- It’s also more than collecting emails; every guest interaction is an opportunity to gather valuable data. Asking simple questions can enhance guest profiles and improve the overall experience.
Early Easter pushes spring break peak forward a week in 2024, STR
Spring break season is officially here, and tracking school calendar dates becomes critical during this time to predict travel demand. The swings in academic calendar patterns from year to year can generate substantial waves in hotel performance, as vacation scheduling directly impacts over 50 million public K-12 students and their families across the country. An average of 30% of students will be on break until the Friday leading into the Easter weekend. It’s also worth noting, of course, that higher expected travel around a holiday weekend does not always necessarily equate to higher returns for the travel industry, as many choose to stay close to home to spend time with family. In Sonoma County, we are closely watching advanced bookings data which indicate a moderate year over year growth in hotel bookings toward the end of March going into the first week of April. Similarly, the short-term rental segment in Sonoma County is expected to command a 6% higher average daily rate (ADR) compared to last year and maintain a 4% year over year increase in revenue per available room (RevPAR) toward the end of March.
Vacation rental management strategies to master for success, Key Data
As the short-term rental industry strives to overcome unique challenges and capitalize on drawing new guests, it is important to unpack the complexities of market trends, guest satisfaction, pricing strategies, technology integration and effective owner communication. They directly empower property managers to elevate their portfolio’s performance and ensure long-term success. Using data to pin-point emerging markets is key for growing the business sustainably. As short-term rentals continue to drive competitive rates, it’s important for listings to appear fresh with updated photos, descriptions, and amenities based on guest feedback and changes to the property. Seasonal updates can also attract different guests throughout the year. Smart home technology like keyless entry, smart thermostats, and strong Wi-Fi connection boosts convenience for guests, making vacation rentals more appealing. Positive reviews significantly impact a property’s attractiveness and helps to earn further trust with potential guests. Encouraging satisfied guests to leave reviews and responding professionally to negative feedback is equally important.
American Hotel and Lodging Association hotel survey findings, North Star Meetings Group
A new study from the American Hotel & Lodging Association shows that more than two thirds (67%) of hotels continue to experience staffing shortages. Approximately 12% of surveyed hoteliers indicate they are “severely understaffed”, meaning the shortage is impacting their ability to operate. The most critical staffing need is housekeeping, with 48% ranking it as their top hiring need. To help counteract this problem, hoteliers are offering more pay and added incentives to attract and retain talent. According to the survey of 408 hoteliers that was conducted in January 2024, 82% of respondents increased wages over the last six months, a record high for hoteliers. In addition, 59% of those surveyed said they are offering greater flexibility with hours, and 33% are expanding benefits. Still, roughly 72% say they are unable to fill many open positions. This comes as U.S. wide hotel demand contracted by 1% year-over-year in January 2024. Respondents to the most recent survey are attempting to fill an average of nine positions per property, nearly unchanged from May 2023 but higher than the seven vacancies per property average found in the January 2023 survey. Average hotel wages have increased faster than average wages throughout the general economy since the pandemic, and hotel benefits and flexibility are better than ever.
The 2024 guide to increasing guest loyalty, Amadeus
Understanding and implementing guest loyalty is critical in today’s competitive hospitality landscape. It is a byproduct of a customer’s positive experience across all interactions with the brand and works to create trust. Beyond perks, points, and rewards, guest loyalty represents an emotional relationship between the guest and your brand. It is the culmination of the entire brand experience which yields a positive sentiment. The result is repeat business and greater revenues from guests, increased direct bookings, positive word of mouth which can attract new guests, high ratings on travel review websites, and cultivating lasting relationships. Furthermore, it can cost businesses between 5 to 25 times more to acquire a new customer than retain a current one. Beyond looking solely at cost per customer acquisition, it’s also important to consider the profitability of each customer over time, or customer lifetime value (CLV). And due to the pandemic, guest acquisition and retention has become even more vital. Not all loyal guests are of equal value. Calculating guest loyalty involves metrics such as: average booking value; booking frequency; profitability per order; repeat booking probability; repeat booking rate; guest retention rate, etc. A practical easy step is to leverage post-stay guest surveys to assess overall guest satisfaction and understand ways to optimize the guest experience and subsequent loyalty.
How to reach young event and meeting planners, Cvent
Across the U.S., group demand registered its strongest year-over-year increase of 9% since March 2023. A significant growth in the meetings market is the rise of millennials and Gen Z entering the workforce. They’re not just changing the way we interact with each other, but the way we do business.
- One area where hotels can play an integral role is in experience creation since millennials have an affinity toward experiential trips. Approximately 74% of Americans prioritize experiences over products or things. While all generations value experiences, the kinds of experiences people are looking for vary widely by age. Nearly half of millennials regularly extend their business trips for leisure, so connecting them to the local culture and providing off-site programs can be a profitable way to entice younger professionals and planners. This is also an excellent way to earn coveted word-of-mouth reviews that will help win future business.
- By focusing on features that make the venue special, bringing elements of the County indoors, and infusing every interaction with unique local flavors is a great way to build memorable experiences. It doesn’t always have to be an extravagant offering—something as simple as providing local coffee and house-made treats in your café or lobby can be a signature memorable touch.
- Managing stress and mental health is one of the most important health and wellness concerns for younger generations. With an increasing number of Gen Z and Millennials entering the workforce, wellness benefits could help your venue stand out to planners who are looking to cater to the mental health needs of their attendees.
- Younger planners are also more likely to use social media platforms for sourcing venues, so it’s important to showcase your hotel’s unique atmosphere and offerings with an attention-grabbing social media profile. Highlighting art installations, games, mood music and unique “out-of-the-box” rooms stimulate meeting attendee’s imaginations and help ideas come to life.
International travel update, U.S. Travel Association and Visit California
Across the U.S., International arrivals are still 17% below 2019 levels. In California, as of January 2024, inbound international arrivals are at 83% of pre-pandemic levels. California accounts for approximately 23% of all international inbound visits to the U.S., and 21% of all international visitor spending in the U.S. The notable rise in traveling as a family with kids is also prevent among visitors coming to California from Australia, U.K., Canada, Mexico, and China. In February 2024, the average length of stay among international visitors in Sonoma County was 6.1 days and 92% of them stayed overnight, with visitors from Canada, U.K., Germany, and Mexico making up the largest share of international visitation.
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