Online booking systems

Replies to This Discussion

Permalink Reply by Jose Ruiz on June 16, 2009 at 6:34pm

HI Claudia,
here in the UK several hotels groups use a loyalty system (Hilton, Park Plaza). I am not sure to what degree it is successful though. Have you considered other initiatives with online advertising? You can find great opportunities at a fraction of the cost with online marketing. I can ask some of my former colleagues, who use loyalty systems to get back to you if you want.

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Permalink Reply by Bartolomeu Lança on June 19, 2009 at 12:09am

Hi Claudia,
From what i learn from my hotel colleagues, its about quality of service, personalisation, profile the customer, anticipate him, surprise them with small details.

As an example, one 4* hotel was on the race to receive a group, during the inspection visit, the hotel manager having previous knowledge about the group leader preferences, asked to a local street artist for some paintings theme with horses (because she knew the majority of the group were people that love horses). The result was that the hotel was the chosen one to receive the group, against all odds.
Competitors were from 5*, had lower prices, better rooms, bigger restaurants, more amenities, and the negotiation was made directly without the "middle man".
The group report was "GREAT" and they booked the next year stay in advance.
Oh, and the paintings are nowadays for sale at the hotel, some are decorating the lobby, meeting rooms and so on.

What other's have, that you don't have? How can you make a difference? What can you do to deliver more value?

"There is never a second change to generate a first good impression."
(don't know this cliché source)

however

"The greatest impression is not the first, it's the last that remains."
(Aldo Novak)


warm regards
Bartolomeu

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Permalink Reply by Claudia on June 19, 2009 at 12:15pm

Jose Ruiz said:

HI Claudia,
here in the UK several hotels groups use a loyalty system (Hilton, Park Plaza). I am not sure to what degree it is successful though. Have you considered other initiatives with online advertising? You can find great opportunities at a fraction of the cost with online marketing. I can ask some of my former colleagues, who use loyalty systems to get back to you if you want.

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Permalink Reply by Claudia on June 19, 2009 at 12:21pm

hello Bartolomeu,
thank you for your reply. Actually, we do many of those things you are suggesting and people keep coming back. However many continue to book through the internet systems like hotel.de or HRS because it is more convenient for them, that is what we would like to change. They must have an incentive to book directly at the hotel. The booking systems are great to generate new costumers but I don't see the point to pay commission for somebody who wants to come to our hotel because he has already been there or because it had been recommended by someone else.
kind regards
Claudia

Bartolomeu Lança said:

Hi Claudia,
From what i learn from my hotel colleagues, its about quality of service, personalisation, profile the customer, anticipate him, surprise them with small details.

As an example, one 4* hotel was on the race to receive a group, during the inspection visit, the hotel manager having previous knowledge about the group leader preferences, asked to a local street artist for some paintings theme with horses (because she knew the majority of the group were people that love horses). The result was that the hotel was the chosen one to receive the group, against all odds.
Competitors were from 5*, had lower prices, better rooms, bigger restaurants, more amenities, and the negotiation was made directly without the "middle man".
The group report was "GREAT" and they booked the next year stay in advance.
Oh, and the paintings are nowadays for sale at the hotel, some are decorating the lobby, meeting rooms and so on.

What other's have, that you don't have? How can you make a difference? What can you do to deliver more value?

"There is never a second change to generate a first good impression."
(don't know this cliché source)

however

"The greatest impression is not the first, it's the last that remains."
(Aldo Novak)


warm regards
Bartolomeu

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Permalink Reply by Claudia on June 19, 2009 at 12:25pm

hello Jose,
thank you very much for your reply. I would be happy to learn more from your colleagues who use these loyalty systems and how they proceed. We have already thought about it, but it must be also easy to apply for the co-workers at reception. That is my main concern because it must be "fool-proof" and fast so it won't slow the check-out procedure.
Kind regards,Claudia

Jose Ruiz said:

HI Claudia,
here in the UK several hotels groups use a loyalty system (Hilton, Park Plaza). I am not sure to what degree it is successful though. Have you considered other initiatives with online advertising? You can find great opportunities at a fraction of the cost with online marketing. I can ask some of my former colleagues, who use loyalty systems to get back to you if you want.

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Permalink Reply by Bartolomeu Lança on June 20, 2009 at 6:32pm

"...many continue to book through the internet systems like hotel.de or HRS because it is more convenient for them, that is what we would like to change."

Claudia, is a fact that bringing a customer for the first time can cost 6 times plus than maintaining him.
Cutting the relation with reservations centres, it looks like buying a "war", i'm quite sure you wont want that, if you do, prepare for impact, because it will cost big numbers.
So, why don't you ask your clientele what they think about it? Positively they will give you an impressive amount of answers and information that can help you to find out where and how to go. After all, it's about them that you should care.

Anyway, the huge amount of commissions paid for online booking systems, probably, can be similar to the cost of a dynamic customers survey.
But like i said, probably.


Reservation on line systems, provide information that any hotel will do, the prices of other hotels around yours, among other small details that represent high value to customers. This would be my answer to a hotelier question about why i book throughout an on-line booking system, as a customer.

As a tourism professional, and from my small knowledge from hotel management, the amount of different tariffs, it's very confusing, and i hardly can understand the "why" about Rack rate, Full rate, TO rate, Group rate, FIT rate, any other special rate. This mess about prices, leaded my company to adopt the fixed priced of Events Management, we don't take anymore commissions from any provider, but we supply our clients with the most accurate possibilities of hotels on the destination they're looking for, it's about their choice to book on-line, by the phone, by a booking system or directly.

regards
Bartolomeu

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Permalink Reply by Gavin Pereira on June 22, 2009 at 8:33pm

Hi Claudia,

I have been recently pondering over the same thought of the impact of online booking systems to an individual property's revenue. My opinion over this issue is:

Generally speaking most independent operators rely on regular guests to keep business going, as there is only a small percentage *25- 28% of new guests visiting the property, out of chance who then may or may not go on to become regular guests(weekly, yearly, etc). A sizeable chunk of regular guests are recruited from online marketing (via agencies) and bookings which were first made via 3rd party websites.

These 3rd party websites go a long way in increasing the exposure of an independent property to the global customer. As we all know the dependency on 3rd party websites is not very high on the agenda for the big chains that have their own group funded marketing resources.

In my experience at a Holiday Inn Airport hotel I use to work at, offering a 10% discount voucher to every departing guest who booked the Park & Stay package proved very successful, not only in getting the customers to then book direct but also offering them great value – i.e. 10% less the published price on 3rd party website, etc.

I do not think it would be feasible to offer a room discount for all guests, but I believe offering a voucher which hold some exclusivity and contains simple booking instructions can entice a customer to book directly.

Gavin Pereira.

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Permalink Reply by Sean Marsh on June 23, 2009 at 8:38am

Hi Claudia.

I work for Great Hotels Organisation and we specialise in providing and training on online booking engines, GDS systems and hotel specific web development for the hotel industry. I'm happy to have one of my colleagues contact you to give you some hints and tips of how to optimise your direct bookings from utilising these services effectively. ?

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Permalink Reply by Claudia on June 23, 2009 at 10:54am

I am afraid this discussion leads in another direction. I don't plan to abolish online booking agencies. They are important and generate many new costumers. I was only wondering how we could establish a kind of loyalty program for costumers who want to book our hotel anyway and make it through the internet agencies because it is more convenient from them (Convenient in this case means it takes them less time because they have an automatic booking confirmation at once.)

@Bartholomeu Claudia, is a fact that bringing a customer for the first time can cost 6 times plus than maintaining him.
Cutting the relation with reservations centres, it looks like buying a "war", i'm quite sure you wont want that, if you do, prepare for impact, because it will cost big numbers.
- I don't plan to cut the relation with reservation centers
So, why don't you ask your clientele what they think about it?
I know that they book through these engines because it is more convenient for them (see above)
Reservation on line systems, provide information that any hotel will do, the prices of other hotels around yours, among other small details that represent high value to customers. This would be my answer to a hotelier question about why i book throughout an on-line booking system, as a customer.
Yes, that is right, if you don't know yet where to go. As it happens, many call if they won't get the rooms online because we had few left and so blocked the systems already.
@ Gavin
In my experience at a Holiday Inn Airport hotel I use to work at, offering a 10% discount voucher to every departing guest who booked the Park & Stay package proved very successful, not only in getting the customers to then book direct but also offering them great value – i.e. 10% less the published price on 3rd party website, etc.

I do not think it would be feasible to offer a room discount for all guests, but I believe offering a voucher which hold some exclusivity and contains simple booking instructions can entice a customer to book directly.
Did you take off the 10 % directly or did they receive a voucher for a future stay?

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Permalink Reply by Gavin Pereira on June 23, 2009 at 8:22pm

They recieved a voucher for future stay. The uptake was very good(sorry dont have any numbers).

Claudia said:

I am afraid this discussion leads in another direction. I don't plan to abolish online booking agencies. They are important and generate many new costumers. I was only wondering how we could establish a kind of loyalty program for costumers who want to book our hotel anyway and make it through the internet agencies because it is more convenient from them (Convenient in this case means it takes them less time because they have an automatic booking confirmation at once.)

@Bartholomeu Claudia, is a fact that bringing a customer for the first time can cost 6 times plus than maintaining him.
Cutting the relation with reservations centres, it looks like buying a "war", i'm quite sure you wont want that, if you do, prepare for impact, because it will cost big numbers.
- I don't plan to cut the relation with reservation centers
So, why don't you ask your clientele what they think about it?
I know that they book through these engines because it is more convenient for them (see above)
Reservation on line systems, provide information that any hotel will do, the prices of other hotels around yours, among other small details that represent high value to customers. This would be my answer to a hotelier question about why i book throughout an on-line booking system, as a customer.
Yes, that is right, if you don't know yet where to go. As it happens, many call if they won't get the rooms online because we had few left and so blocked the systems already.
@ Gavin
In my experience at a Holiday Inn Airport hotel I use to work at, offering a 10% discount voucher to every departing guest who booked the Park & Stay package proved very successful, not only in getting the customers to then book direct but also offering them great value – i.e. 10% less the published price on 3rd party website, etc.

I do not think it would be feasible to offer a room discount for all guests, but I believe offering a voucher which hold some exclusivity and contains simple booking instructions can entice a customer to book directly.
Did you take off the 10 % directly or did they receive a voucher for a future stay?

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Permalink Reply by Jose Ruiz on June 23, 2009 at 9:48pm

You may want to try and think about added value benefits instead of vouchers as many are already doing this. For example:

- Priority booking service for direct bookings
- Dedicated VIP check in
- Free upgrades (subject to availability)
- Best rate guaranteed
- Call back service for direct bookings

I am sure that you could come up with several other ideas if a few of your team put their heads together.

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