Most hotels, lodges and guesthouses in Namibia get between 70% and 90% of their bookings through DMCs and tour operators, who in turn get them from their international agents.
Lodgings pay between 20% and 40% of their rates to DMCs and tour operators and further fees for so-called ‘familiarisation trips’ or ‘catalogue participation’ can also apply. This means that more than half of a lodge’s rate is handed over to someone else.
This not only presents a great risk due to one-sided dependency, but also means the lodging business needs to operate on very small margins.
The staggering statistic is that, of the approximately 2 100 registered lodgings in Namibia, only between 150 and 200 are listed with OTAs (Online Travel Agents) and receive bookings from the likes of booking.com and Expedia etc.
These are bookings from guests who cannot be reached through the traditional route of DMCs and tour operators. The more bookings one can gain via OTAs, the more tourists we can bring into the country. Also, you only give away 15-20% with an OTA. The profit per booking, compared with a DMC booking, is about 23% higher.
From September 1, 2017, Google Hotel became available in Namibia.
With Google Hotel, lodgings receive direct bookings at rack rate in their own reservation system (Nightsbridge for example). Unlike with DMCs and OTAs, all relevant guest data is transparently conveyed to the lodgings and therefore they own the customer, which is not the case with DMCs and OTAs.
Bookings can be made directly through the Google search page, Google Maps or another Google service. Profit per booking is about 23% higher than with DMC bookings as well.
Rainmaker, Google Hotel Integrator and Google Agency in Southern Africa, can now directly link up lodges, hotels, guesthouses and guest farms to Google Hotel to gain more profitable bookings.
There is not just one successful marketing channel for your lodging. There are five. Each one has its purpose, as it addresses special goal markets and market segments. Successful lodgings manage their optimal marketing mix between DMCs, local tour operators, OTAs, Google Hotel and direct bookings through their own website.
The rainmaker team supports lodgings by optimally designing their sales and marketing mix. This achieves a 20% to 30% improvement in occupancy and revenue and a 40% to 80% increase in profit.
The rainmaker Marketing Academy
The rainmaker Tourism and Hospitality keeps you up to date with the most recent developments in Digital Presence, Optimisation, Reputation and Distribution Management. Every month we publish a dedicated marketing tip or highlight certain travel and consumer trends for the tourism and hospitality industry.
Rainmaker is the brainchild of some of the most experienced hospitality, tourism and digital marketing veterans in the industry. We bring 50 years of experience in the hotel, tourism, sales and marketing fields, as well as more than 15 years digital marketing experience to your project.
This is enhanced by over seven years of in-depth research and involvement in the Southern African hospitality and tourism industry, giving us peerless insight into the various source markets, market segments, value chains and market dynamics.