Technically Ready, part 2
In the last post I examined the critical features of the Independent hotelier’s website highlighting how it was the bedrock of the hotels digital marketing strategy. In that article I referred to the need for a dynamic website that drove business directly to the hotel rather than through third parties. This of course can only be achieved if there is a really good online booking engine, (OBE), installed. The question is of course, what constitutes a good Online Booking Engine?
In conversation with industry partners it is apparent that there are a number of OBE solutions available, some really great, others less so. Hotels that are successful in capturing the lion’s share of their rooms business directly all have one thing in common. Their OBE provider is a partner in their business and share in their success. I have spoken with hoteliers that have a flat fee arrangement with their OBE provider. The effect of this is immediately apparent, such OBE’s are delivering less than 10% of the hotel’s business whereas some that have a dynamic commission-based OBE are capturing in excess of 50%.
Even then however some OBE’s are better than others and the optimum combination is when your website developer also provides your booking engine. This is when you take a step up from simply commissioning a website and some software, now you have a digital marketing partner, somebody who will do all they can to drive business and engagement to your website as that in turn generates sales through their OBE.
So lets look now at ;
The Booking Engine
The next most important part of your tech stack is your Online Booking Engine (OBE). When considering your OBE there are a number of key features that just have to be in place to make this a dynamic part of your digital marketing effort.
How easy is it to book?
Guests must have a frictionless transaction, preferably as few as two clicks to book. If there are a number of opt in or out propositions offered, or upselling offers prior to confirming a booking there is a much greater likelihood that the guest will not complete the transaction. Upselling is very important, but you can only upsell to a guest who has booked. Close the sale!
Does it offer the opportunity to Buy More
Once the guest has booked their room, they should have the option to book a table, purchase flowers, champagne, chocolates etc. Better still they should have the option to buy an upgrade to a superior category of room. Again, these steps should be simple and intuitive with as few clicks as possible.
Does it keep the guest connected to you?
Many booking engines obviously take the booking process away from the hotel site. Your book now button should maintain your brand and logo, the guest must remain connected to your property and not have an experience of being diverted to a third party.
Is your booking engine on your Social Media page?
When running digital marketing campaigns through your Facebook page is the Book Now option available to the guest just as it is on your website?
How quickly does the guest receive confirmation?
The guest should receive immediate confirmation on the site that their room is booked, and an auto response email confirmation should simultaneously appear in their inbox. This offers the guest assurance and generates a relationship allowing further pre-arrival engagement.
Does it provide for strategic promotions?
Can you load special offers and enticement to book time sensitive offers or value-added promotions when you need to turn them on in response to weak booking patterns? Early booking discounts?
Are you displaying Best Rate Guarantee?
There are over 500 OTA’s out there all trying to convert guests from booking directly with you to book through them. You have to ensure that the guest understands that there is no material value to them booking with an OTA.
Does your OBE generate reports and analytics?
The data generated during the booking process is gold. You should be able to access reports on lead time, revenue by day, month and year to date. It should offer analysis by rate booked, what packages etc. Can it report on a year on year basis? Can you see if your number of bookings are up or down on same period previous year? Is it integrated with your website allowing reporting on conversion rates and value of online sessions?
Is your OBE easily Integrated?
If you want to be agile and effective in managing your rate and availability your OBE must be integrated with your PMS and Channel Manager. The key to protecting your rate is to be agile and fast. You do not want to spend lots of time implementing your pricing strategy. Once you have decided what is an appropriate pricing decision then this decision must be quickly implemented. Your OBE must allow integration with your Channel Manager, Central Reservations System and PMS so your responses are immediately implemented. This allows you time to focus an guest experience and delivery. Ensure your OBE is also integrated with Google Maps and Bing Maps, your guests should have all impediments to booking directly with you removed. The easier it is for them to find you and know that they have directions to your property is just another reason for them to stay within your booking channel.
Rate Parity
It is essential that you maintain rate parity between your booking engine and the Online Travel Agents, (OTA’s) otherwise all your efforts are wasted, the OTA will win every time. However, having the same rate available on your OBE as that offered by the OTA’s is often just not enough to capture the business. Some unscrupulous OTA’s will discount the rate below yours, sacrificing some of their commission, just to get the booking.
Does your OBE promote Loyalty
Your OBE should have a loyalty module built in. You must maintain rate parity online however you can, if required, offer an inducement to book by asking the client to join your Loyalty Program and avail of a further % discount. This may not be required by some highly successful hotels who hold their own against the OTA’s however, for those that need it they are discounting by an amount less than the OTA commission. There is also the added advantage of establishing a direct relationship with the booker. This is invaluable for marketing purposes (Data is King) and provides opportunity for pre-arrival offers, up-selling etc.
How expensive is your OBE?
When negotiating with an OBE provider the cost per booking should be linked to the volume delivered. I have already stated that I am more in favour of the commission based model rather than a flat fee as this ensures it is in the OBE provider’s interest that you secure more direct business, however, you need to consider the cost.
When you start with a new OBE it is understandable that the commission per booking may be of a slightly higher rate as the provider recovers some of their up-front costs and the volume of business may be starting from a lower base. However, as your direct business grows then the OBE provider should have a reducing percentage commission charge. This is only fair as the growing volume will be driven by your investment in Online advertising such as Pay per Click, Google Hotel, and Facebook ads. The return on investment from these campaigns is, in general, very good, but it is your advertising spend that is driving it.
In conclusion
You will see from this article and the previous that I am strongly of the view that a website and a booking engine are only as good as the people driving them. These technologies cannot be static, they must be dynamic and agile which is why I am a proponent of the partnership principal. If your digital partner does not provide you with an account manager and if that account manager is not chasing you for content, images, video or offering new initiatives online, you need to ask yourself, why?