As travel returns to some sort of normality, online travel agencies are gaining some of the traction they lost during the last 18 months of the COVID-19 pandemic.

This is according to Theresa Prins, founder of Revenue Resolution – which provides revenue management strategy and services to the hospitality sector – who pointed out that prior to COVID, OTAs had become the most popular booking option for people looking to get away. 

However, this changed with the arrival of the pandemic, with a GlobalData poll recently revealing a significant shift in consumer preference towards booking holidays directly with the establishments. 

Siteminder's Top Booking Channels list for 2020 showed further that direct bookings between April and December of 2020 ranked second, whereas in 2019 this was only the fifth-highest channel.

“For a period during COVID we experienced a phenomenon where direct bookings with hotels exceeded bookings from third-party vendors like Booking.com. This was directly related to trust from the potential clients, as opposed to convenience,” explained Prins.

She said potential customers had a need to connect directly with the establishment they wanted to book at in order to make sure that their wellbeing was being taken care of. Guests needed assurances that, if they could not travel for whatever reason, they would not lose their money.

Yet, as more people return to travel, they are increasingly turning to OTAs again as a quick and convenient means to book their holiday.

But, cautioned Prins, this doesn’t mean that establishments must let go of the hard work done during COVID to drive direct bookings. “It pays to invest in direct bookings from a profitability perspective, as well as for brand loyalty. OTAs play a significant role in a hospitality businesses acquisition strategy, but as part of an ongoing customer retention strategy, and for the sake of future survival, it is important that those in the hospitality sector increase direct bookings while making the most of what online travel agencies have to offer.”

Hotels need both direct bookings and OTAs

Prins said OTAs had changed the way people booked travel. They not only streamlined the way travellers shopped for accommodation, but they forced those in the sector to evolve to become more competitive. OTAs provide a necessary marketing platform with access to a massive consumer segment and are able to reinforce brand awareness – hotels still benefit if travellers use OTAs for research before switching over to direct bookings. 

“When hotels collaborate effectively with OTAs, they can reduce their number of empty rooms and boost revenue, especially during off-peak periods.

“To nurture and grow their share of the market, hotels must continue to capitalise on their direct booking offerings by investing in direct marketing, brand awareness and creative selling techniques,” said Prins.

According to her, a great direct strategy starts with a good website, and a good website must drive conversion to your booking engine. A well-functioning booking engine can compete with the convenience of an OTA booking site, with bookings on request or enquiry forms being a huge no-no as customers want instant results. 

“When it comes to driving direct bookings, hotels should consider how a powerful story can tip the balance. Customers using an OTA site to decide on a hotel often then visit the brand's website and so it is essential to showcase all available amenities – with high-quality photographs to build a strong visual identity,” said Prins.

She said a stand-out website helped create a price/value equation that justified market pricing, which in turn could help win the booking from a competitor. Prins advised that other ways to drive potential customers to the website was through direct marketing initiatives like emails and social media campaigns, as well as indirect marketing initiatives like metasearch listings.

“The combination of compelling direct marketing and broader distribution via OTAs provides a two-pronged strategic approach for hotels to maximise bookings and revenue income,” she commented.