In the fast-evolving world of hospitality, mastering online hotel distribution has become crucial for hoteliers aiming to stay competitive and profitable. Shoaib Ali, National Sales Head for India for STAAH delves into the intricacies of how hoteliers can successfully navigate this dynamic landscape.
As the industry faces the challenge of balancing guest satisfaction and room occupancy, the rise of online travel agencies (OTAs), metasearch engines, and direct booking strategies offers fresh opportunities and obstacles. With technology and data at their disposal, savvy hoteliers are now tasked with optimizing their distribution strategies to maximize revenue, enhance visibility, and build lasting customer loyalty. In this interview, Shoaib shares insights on leveraging these platforms, boosting direct bookings, and embracing the distribution revolution to stay ahead in the competitive hotel market.
Why hoteliers need to master the fascinating world of online hotel distribution!
Shoaib Ali, National Sales Head, India – STAAH Hotel owners are constantly seeking innovative and cost-effective strategies to keep their rooms occupied throughout the year, while ensuring their guests leave so satisfied that they keep coming back! The big challenge, however, is striking this delicate balance. That’s where the captivating world of hotel distribution steps in to save the day!
Think of the hotel business as a high-stakes game of chess, where every player is strategizing a new move to outplay their competitors. Especially in a market flooded with options, and driven by digital dominance, travellers today are spoiled for choice. How do you, as the owner of a stunning property, ensure that your hotel is one that travellers simply cannot resist, and seem different both online and offline?
Today, the hotel industry is in the midst of a distribution revolution, and it’s time for tech savvy hoteliers to strap in and enjoy the ride. Gone are the days of relying solely on travel agents and your own website to fill those guest rooms. The online world has opened up a dizzying array of channels to reach potential guests – from the online travel agency (OTA) giants to the ever-evolving metasearch engines.
It’s a lot to keep track of, but the hotels that master this new distribution landscape will be the ones laughing all the way to the bank. So, let’s dive in and explore how you can optimize your hotel’s distribution strategy for maximum impact.
Mastering the OTA landscape:
When it comes to OTAs like Expedia, Booking.com, Agoda, GoMMT etc. They are a double- edged sword for hoteliers. These platforms, which account for a large percentage of hotel bookings globally, provide unmatched exposure by connecting your property to a worldwide audience. However, the trade-off is often the high commission fees. The key lies in finding the right balance—using OTAs strategically to complement your direct bookings. Consider leveraging OTAs during off-peak seasons or for markets you may not otherwise reach.
Wholesalers, on the other hand, act as intermediaries that sell hotel inventory in bulk to travel agents and tour operators, often at deeply discounted rates. While they can help fill rooms quickly, it’s crucial to monitor pricing parity to avoid undercutting your direct booking rates. Hoteliers need to invest in strategies to shift frequent OTA bookers to direct bookings, enhancing your profit margins over time.
How can you boost some commission-free direct bookings?
For forward-thinking hoteliers, shifting frequent OTA bookers toward direct bookings should be a top priority. Not only do direct bookings come with zero commission fees, but they also allow you to build stronger relationships with your guests. By optimizing your website, streamlining the booking process, and offering enticing loyalty programs, you can encourage more travellers to book directly and keep that hard-earned revenue in your pockets. But the distribution revolution doesn’t stop there. Don’t forget the importance of mobile bookings either. Ensure your website is mobile-friendly, implement secure mobile payment options, and consider offering special rates for mobile users to drive more direct bookings on the go.
The Metasearch madness:
Metasearch engines like Trivago and Kayak have emerged as essential players in hotel distribution, allowing travelers to compare prices across multiple platforms. These metasearch giants have become the new battleground for hotel visibility, as travellers increasingly turn to these sites to find the best deals. Ensuring your property is prominently featured on these platforms is crucial to boost your bookings.
Harnessing the power of data:
Of course, none of this would be possible without the power of data and analytics. Today’s hoteliers have access to a wealth of information that can help them make informed decisions about their distribution strategies. From understanding customer preferences to optimizing pricing and inventory, data is the key to unlocking the full potential of your hotel’s online presence.
To help hoteliers navigate this evolving landscape, we’ve released a new eBook – Hotel Online Distribution 2.0, a comprehensive guide to mastering modern hotel distribution strategies. Download your copy today to discover how to leverage OTAs, metasearch engines, and direct booking tactics to boost revenue and occupancy rates.
As the industry continues to evolve, embracing the hotel distribution revolution is not just an option—it’s a necessity.
As the hotel industry continues to evolve, it’s clear that the distribution landscape has become more complex than ever before and embracing the revolution is not just an option, but a necessity. The hotels that rise to the challenge will outperform the competition, increase revenue, and build lasting guest loyalty. So, what are you waiting for? It’s time to rev up your distribution engine and take your property to new heights!
