More direct bookings, more margin
The dependence on online travel agents (OTAs) and platforms like Booking.com and Expedia is a growing trend in the hotel and broader recreation sector. While OTAs provide access to a global audience, they charge significant commissions of up to 20% and limit control over pricing and customer data. Under pressure from regulators, Booking removed the rule prohibiting lower prices on own sites than on the platform in the European Union.
Changing dynamics through direct bookings
This adjustment makes it possible to compete on price with the many booking platforms on your own website. But even more important is that this can lead to a higher margin, better occupancy, and a more enjoyable connection with the guest due to direct communication. It offers a great opportunity to stimulate direct bookings. Direct bookings are, of course, financially more attractive due to lower commission costs and offer the opportunity to build direct relationships with customers and collect valuable customer data.
Impact of new regulations on your bookings
The European Digital Markets Act (DMA) introduces rules to ensure fair competition and limit the power of OTAs. This legislation forces platforms like Booking.com to allow you to offer better prices through your own channels. This gives all players in the recreation sector, such as holiday parks and bed and breakfasts, the opportunity to reduce your dependence on OTAs.
Strategies for direct bookings
Stimulating direct bookings requires a strategic approach. You can benefit from:
- Optimization of your own website, as a user-friendly and attractive website is crucial for realizing direct bookings
- Offering exclusive deals for direct bookings can motivate your guests to book directly with you
- Use of Meta-Search engines, platforms such as Google Hotel Ads and Trivago can help increase direct bookings
- Investing in digital marketing and booking technology can increase visibility and convenience for your guests
My vision on direct bookings
Shift the focus to your own efforts to secure bookings. This offers a good chance of increasing profitability and margin. But also better control based on the guest data obtained yourself. By effectively using this customer data, you are able to offer personalized experiences, build customer loyalty, and perfectly tailor the offer to your guest's needs.
Conclusion
So the shift towards direct bookings offers significant benefits for the entire recreation sector. Lower costs, better control over customer relationships, and access to valuable customer data are important advantages. By strategically leveraging this new dynamic, I expect you will strengthen your competitive position and reduce your dependence on OTAs. A crucial step forward in the evolution of the recreation sector in an increasingly digital landscape. This transition requires a proactive approach and investments in technology and marketing. By better positioning yourself, you can seize these opportunities and benefit from the growing trend towards direct bookings.