The greater the size of a hotel, the greater the dependency on OTAs, travel agents and wholesalers in order to have high occupancy rates. The bottom line is not to have a full hotel, rather to have profitability. Commissions for travel agents usually start at 15% and can be as high as 30% for wholesalers. The benefit of getting a direct booking is immense.
Back in 2014, Le Palace Art Hotel wanted to increase direct bookings and thus founded the Loyalty Club in order to do so. Benefits for booking direct are the following:
So the hotelier is giving incentives to the guest to book direct. It should be noted that all these benefits offered cost less than a commission paid to an OTA. For example, by offering a free coffee break or special rate for car park, the hotelier benefits from the direct booking, the guest is saving money, so it is a win-win situation.
After 5 years, the hotel has increased the direct bookings six-fold, cancellation rate is only 7% and direct online revenue almost matched that of the dominant OTA.
Contact us if you want to start you own Loyalty Club and start seeing your direct bookings sky rocketing.