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Managing Guest Satisfaction Surveys: Best Practices

Guide

How to Connect with Travelers to Drive More Direct Hotel Bookings


Index

Introduction

Trends in Digital Hotel Marketing

• Trend #1• Trend #2• Trend #3

Strategies to Drive More Direct Bookings

• Key Hotel Marketing Strategies• Using Technology to Engage Guests• Top Tips for Communicating with Guests

Leveraging Technology to Drive Direct Bookings & Guest Loyalty

• Big Brands Leading the Change• Check-in via Mobile Apps• Improving Website Conversion Rates• Success Story: Opus Hotel

About Us

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Introduction

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As more intermediaries get between you and your guests and technology increasingly digitizes the guest experience,

building direct relationships with guests has never been more challenging or important for hotels and brands.

In this guide we discuss how hotels can utilize technology to connect with travelers before, during and after their stay to

enhance the guest experience and drive more direct bookings, profitability and guest loyalty.


Digital Hotel Marketing Priorities

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What’s your highest priority in digital marketing?

During ReviewPro’s recent webinar, Connecting with Travelers to Drive Direct Bookings and Loyalty, we asked attendees

what their highest priority is in digital marketing today. Of the hundreds of hoteliers in attendance, 63% named “more

direct bookings” as their highest priority. Clearly, if this is a priority for your hotel, too, you can rest assured that you are

not alone!

1%

63%

16%

1%

9%

0% 20% 40% 60% 80%

More bookings from online travel agencies

More direct bookings

Better traveler reviews and ratings

More engagement on social media channels

Getting through this webinar without being interrupted

Which of the following is the highest priority for you today?

http://resources.reviewpro.com/webinars/connecting-travelers-drive-direct-bookings-loyalty


Trends in Digital Hotel Marketing


Trend #1: Consolidation & Growth Among OTAs

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To stay competitive, it’s important to stay current with

changes in traveler behavior and technology. The year

2015 has seen a number of dramatic changes in the online

travel space that have had a direct impact on the ability of

hotels to attract direct bookings.

In recent years there has been tremendous growth and

consolidation among online travel agencies (OTAs). In

September 2015, the U.S. Justice Department approved

Expedia’s 1.3 billion merger with Orbitz. When combined

with previous acquisitions, including Hotels.com,

Travelocity, Trivago and Wotif, Expedia is now the world’s

largest online travel services company by bookings.

Meanwhile, Priceline too has been on a buying spree and

now includes Booking.com, Agoda, Kayak, OpenTable and

digital marketing services company BookingSuite, formerly

Buuteeq, among other brands.

Both of these companies have seen tremendous growth in

recent years. Priceline’s market value is now about U.S.

$70.5 billion, and its shares have increased by almost

7,000% in the past decade and by 20% in the past year

alone. Meanwhile, Expedia has performed even better; its

stock price is up by 50% this year.

Growth and consolidation is not good news for hotels

seeking to lower their dependency on OTAs. It means less

competition among OTAs, greater market share and more

power to negotiate with hotels. According to

PhoCuswright, as of late 2014, when combined Expedia

and Priceline account for 94% of the OTA market in the

U.S. However, travelers still use a variety of channels to

book hotel rooms. Online travel agencies account for only

about a third of the online travel market and generate just

16% of total U.S. gross bookings.



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Granted, a certain degree of bookings from online travel agencies is desirable for hotels, helping to fill rooms that may

otherwise go empty. There is also the so-called “Billboard Effect” - many travelers see hotels on OTA listings and then

book direct. But OTA business comes with a cost. Not only do OTAs charge relatively high commissions, ranging from

12% to 30% of room rates, they dominate paid search results, bidding on hotel brand names, driving up cost-per-click

rates and increasing the overall costs of acquisition for hotels.

OTAs also have a commoditizing effect on hotels, leading to less brand loyalty among travelers and more booking

decisions driven by price. Travelers often don’t know that they’re booking through an OTA and don’t understand that

they may benefit from booking direct.

Source: Traveler’s

Road to Decision,

Google, 2014

Managing Guest Satisfaction Surveys: Best Practices8

Why do travelers book on OTAs?

In a survey of 5,000 U.S. travelers in 2014 conducted by Ipsos

MediaCT on behalf of Google, respondents indicated that their

top reasons for booking on OTA sites included:

• Lower prices or better deals

• Past positive experience or recommendations for the site

• Familiarity with the brand name of the site

• Better tools and options on the site

• Loyalty and rewards programs

• “It’s what came up at the top of a search engine results”

It’s important to understand why travelers book through OTAs

because it provides insights into what it takes for hotels to

compete. Clearly there is a perception among travelers that

OTAs offer lower prices and better deals.


Best Price Guarantee on hotel bookings. Ifyou find a better price on exactly the samestay elsewhere we’ll match it


Trend #2: The Rise of New Intermediaries

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Another important trend is the rise of new intermediaries like

metasearch engines and new instant booking features on

TripAdvisor and Google. In some respects the emergence of these

players is good news for hotels because they act as competitors to

the Priceline-Expedia duopoly and give travelers more booking

choices. For hotels they provide new distribution channels. At the

same time, the distribution landscape has become even more

complex and fragmented. With limited time and resources, hotels

must be highly strategic about where they invest their time and

marketing budget.

Metasearch Engines

Metasearch engines like Kayak, Trivago and Skyscanner have been

around for a while now, allowing travelers to compare hotel rates

from a variety of sources on one page, including OTAs, direct

channels and other third-party resellers. Originally they operated

on a cost-per-click model but recently Kayak and Hipmunk have

begun to offer a direct booking option as well. Hotels can bid on

placement in metasearch engine results but currently paid results

are dominated by OTAs and big brands.

TripAdvisor for Hotels: How to Drive More

Reviews, Referrals & Revenue

TripAdvisor has never been more integral to the success of hotels. In this webinar our panelists, including Brian Payeafrom TripAdvisor, bring you the latest industry news, research and tips from TripAdvisor and show you how to boost your hotel’s ranking while driving revenue.

Watch Webinar

http://resources.reviewpro.com/webinars/tripadvisor-for-hotels-drive-more-reviews-referrals-revenue



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TripAdvisor Instant Booking

TripAdvisor has been busy rolling out its new Instant Booking

product, which allows travelers to book rooms without leaving the

site or mobile application. Hotels can bid for placement based on a

commission model of between 12-15%. When a traveler selects a

hotel, TripAdvisor passes the booking on to the hotel to complete.

Many of the major hotel groups have joined Instant Booking,

including Accor, Marriott, Carlson Rezidor, Best Western, Choice

Hotels, Wyndham and Preferred Hotels & Resorts, as well as

numerous independent hotels. According to TripAdvisor, more than

235,000 properties now participate in the Instant Booking program.

OTAs initially refused to participate, but in October 2015

Booking.com was the first major OTA to announce that it will be

joining the program.

As of September 2015, TripAdvisor Instant Booking was available to

all users in the U.S. and the U.K. The company plans to roll the

program out internationally. For more information visit TripAdvisor.

Source: TripAdvisor

http://www.tripadvisor.ca/InstantBookingPartners

http://www.tripadvisor.ca/InstantBookingPartners



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Google Hotel Ads Commission Program

Google recently announced that it has retired its

HotelFinder product and is integrating more booking

capabilities and amenity information into search results.

Google’s new Hotel Ads Commission Program allows

hotels to bid on placement based on what it terms as

“industry standard commissions” on actual bookings rather

than the usual cost-per-click model. These commissions

are reportedly similar to TripAdvisor’s, at between 12-15%

of room rates. As with TripAdvisor Instant Booking, Book

on Google allows travelers to book hotels right from

Google; Google passes the booking on to the hotel for

completion.

Google currently works with DerbySoft, Fastbooking,

Sabre, Seekda, TravelClick and Trust International and has

plans to integrate additional technology providers in the

future. Book on Google is currently available to all Hotel

Ads partners and works for users in the U.S. only. The

program is expected to be rolled out internationally. For

more information visit the Google Blog.

Source: Travel Flash Report, Criteo, 2015

http://adwords.blogspot.ch/2015/09/google-hotel-ads-makes-it-easier-for.html

http://www.criteo.com/media/1034/criteo-travel-report-sep-2014.pdf


Trend #3: Growth in Mobile Bookings

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Another major trend is the use of mobile devices by travelers to research and book trips. Criteo, a leading performance

advertising technology company, has analyzed over one billion travel bookings worldwide, and its recent Travel Flash

Report indicates that the share of mobile travel bookings compared to desktop bookings has almost doubled in the

past year, from 12% to 23%.

When it comes to mobile hotel bookings, the share of OTA bookings generated from smartphones is about three times

higher than bookings generated by hotel suppliers, according to Criteo. So here again OTAs are taking the lead.

Source: Travel Flash Report

Mobile bookings are growing faster than desktop

Tablets and smartphones accounted for most of

the growth of the online travel industry,

worldwide, across all categories and markets in

H1. Overall, there was a 20% increase in bookings

from mobile devices, compared to just 2% growth

in desktop bookings.

Seasonal growth of mobile bookings worldwide in H1 2014




Strategies to Drive More

Direct Bookings


Key Hotel Marketing Strategies

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So how can hotels keep on top of these trends and utilize

new tools and technology to drive a higher volume of

lower-cost, higher yield bookings? Here are some key

strategies to consider.

Diversify distribution

Experiment with listings and advertising on new channels

like metasearch and instant booking on TripAdvisor and

Google, where commissions are lower than OTAs, and

they pass the booking on to your hotel, enabling you to

manage the guest relationship almost from the beginning.

Calculate and compare the costs of acquisition

Analyze the costs of each channel and the value of the

guests they generate in terms of rate, length of stay, total

spend and profitability. Direct bookings on your website

may appear to be highly profitable compared to other

channels, but consider the costs of cost-per-click bidding

and other expenditures used to attract and service this

business. Once you understand where your greatest

profits are, invest more resources in these channels.

Manage relationships with OTAs

You’ve heard it before, but part of the reason OTAs have

become so powerful is because hotels agree to terms that

are not in their best interest. Hotels give OTAs liberal

access to inventory and allow them to offer lower rates

than those available through direct channels. It’s critical to

control both the price and the volume of rooms you make

available to OTA channels, to reduce dependency, to

review OTA contracts carefully and to negotiate the most

favorable terms possible. Most importantly, ensure that

OTAs never undercut your direct-booking rates.


Key Hotel Marketing Strategies

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Be mobile friendly

As more travelers turn to mobile devices to research trips,

communicate with hotels and share experiences, your

hotel needs to adapt with the times. This means ensuring

that your website is mobile friendly and giving guests the

option to communicate with your hotel and provide

feedback on mobile devices.

Focus on guest service

Expedia, Priceline and Google are technology companies

that invest their money in marketing and technology; they

can’t compete with hotels when it comes to customer

service. The better your service and the higher the quality

of the guest experience, the more likely your guests will

come back, book direct and recommend your hotel. This

includes ensuring that phone lines are adequately staffed

in order to capture all those booking inquiries from

smartphones.

Collect, analyze and use data

The volume of data available related to traveler behavior

and preferences is virtually unlimited, but you’ll need to

invest in tools and training to make sense of it. Tools like

ReviewPro will help you aggregate data, analyze it for

actionable insight, and use it to personalize marketing

campaigns and the guest experience. Display review

scores and guest survey scores on your website to show

transparency, increase traveler trust and drive a higher

conversion rate.

Utilize available tools and technology

A variety of tools are available to help hotels connect with

guests on mobile devices, increase conversion rates on

your website, offer pre-stay and in-stay services, and

solicit in-stay and post-stay feedback. We discuss how

hotel companies are utilizing some of these tools in the

next section.


Using Technology to Engage Guests

How Can Hotels Better Communicate with

Guests?

Another key strategy for driving direct bookings and guest

loyalty is to utilize digital technology to engage guests

prior to arrival and during their stay. Here Drew Patterson,

Co-founder and CEO of CheckMate, shares his top tips

for leveraging mobile technology to communicate better

with guests.

CheckMate, a ReviewPro partner, builds hotel

communications tools to deliver a better guest

experience from before check-in through to departure by

any means of communication - email, text or native app. Drew PattersonCEO CheckMate


As part of our Webinar, "How to Connect with Travelers to Drive

Direct Bookings & Loyalty", Drew Patterson shared his top tips for

communicating with guests:

• Enable messaging via today’s channels (SMS, email, social, app)

before, during and after stay.

• Use pre-arrival messaging to initiate conversations.

• Conduct in-stay service alerts to identify service issues.

• Support multiple forms of expression (text, images, emoji, maps,

documents, forms).

• Reach all guests (e.g. direct, corp, group, wholesale, OTA).

• Extend the personal touch (i.e. hospitality) into mobile channels.

• Create a single, shared in-box for the customer-facing team.

• Provide “operational” CRM profiles for front-line employees.

Better communication with guests, Patterson says, results in better

guest experiences, greater guest loyalty, stronger TripAdvisor scores

and more direct bookings.

Key Trends & Strategies for Hotel Marketers in

2015

Download our guide to hotel marketing trends in 2015 to discover tips by leading industry experts to improve your marketing activities and results. In this guide we discuss visual shopping, mobile strategies, retargeting, metasearch sites and much more.

Download Guide

Top Tips for Communicating with Guests

http://resources.reviewpro.com/guides/key-trends-strategies-for-hotel-marketers-2015


Leveraging Technology to Drive

Direct Bookings &Guest Loyalty


Now let’s look at examples of how hotels and brands are

utilizing technology to drive higher engagement with

travelers, more direct bookings and greater loyalty.

When it comes to investing in new technology, big brands

are leading the charge. While you may not have access to

big budgets like they do, it’s important to watch what

they’re doing in order to understand where the industry is

heading. You can strive to follow their lead in smaller ways.

Here are a few examples of recent technology initiatives.

Accor Hotels

In October 2014, French conglomerate Accor Hotels

introduced its five-year, 225 million euro plan for

“reinventing the customer experience through technology.”

The plan includes major investments in mobile marketing.

The company reports that more than 30% of its audience is

mobile and about 12% of its direct web sales are generated

by mobile, having increased by 60% in the first quarter of

2015 alone.

Today Accor brands operate 29 mobile solutions, but the

company is in the process of reducing this to one mobile

app for all brands and locations in their portfolio. In addition

to offering bookings capabilities through the app, the

company offers a number of guest services, including digital

check-in, in-stay services, local information and

newspapers. Accor plans to digitize the entire guest

experience in an effort to get more travelers to download

and use its app.

Also worth noting is Accor’s acquisition of digital marketing

company Fastbooking and the opening of its website to

independent hotels. This gives independent properties the

opportunity to access Accor’s sizeable audience of travelers

and to offer Accor loyalty points at lower commissions than

those charged by OTAs while still maintaining their

independence.

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Big Brands Leading the Charge


Hilton Hotels

Hilton’s HHonors mobile app allows loyalty club members

to search, book and modify their stay as well as use loyalty

points. Hilton hotels in the U.S. now offer digital check-in,

allowing guests to select their exact room prior to arrival.

The company expects to roll out these services

worldwide. The Hilton mobile app is used by over one

million people per month.

Starwood

Starwood’s SPG Keyless program allows loyalty members

to use their smartphone and their Apple Watch to check

in, get their room number and unlock their door.

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Check-in via Mobile Apps

Iphone App Apple Watch App


Marriott

Marriott is testing out beacon technology in some of its

hotels to push out on-property offers and information

specific to the hotel. Beacons are small transmitters

placed on property that send push notifications to anyone

who is signed into a dedicated app and comes within a

certain distance. Marriott is also educating travelers that

the best deals are found by booking direct and providing

strong incentives through its “It Pays to Book Direct”

campaign.

Jury’s Inns

Jury’s Inns, which operates 28 hotels in the U.K., Ireland

and the Czech Republic and is reputed for offering great

value and warm, friendly service, displays both TripAdvisor

scores and guest survey scores from ReviewPro’s Guest

Survey Solution on listings of all properties on its brand

website. This creates greater traveler trust and results in

higher conversion rates.

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Improving Website Conversion Rates


Success Story: Opus Hotel

Opus Hotel

So what can you do if you’re a small hotel with a relatively modest budget?

Here Nicholas Gandossi, general manager of the 96-room Opus Hotel in

Vancouver, shares how his hotel utilizes technology to build engagement,

loyalty and direct bookings with travelers.

Rated Four-star by Forbes and named one of the Top 5 Trendiest Hotels in

the World by TripAdvisor, Opus Hotel redefines the boutique hotel

experience, with vibrant design, sophisticated style and intuitive service.

The Challenges

Earlier this year, Gandossi and his team identified the following top

strategies for 2015:

• Increase the amount of direct bookings on the hotel’s website

• Gain a higher level of engagement with guests

• Build brand loyalty

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Nicholas Gandossi

General Manager,

Opus Hotel


We will develop a solution to any concern raised.”

Opus Hotel’s Top Strategies

1. Increase Direct Bookings

To increase direct bookings, Opus knew it had to find

ways to keep travelers from leaving its website to shop

around and to encourage them to book direct. This

required building trust with travelers and giving them the

confidence that they get the best rates by booking direct.

To help advance this goal, Opus invested in a software

tool called Triptease, which displays a widget on hotel

websites listing rates offered on various OTAs, much like a

metasearch engine. Opus also uses software tool

Guestfolio to manage email campaigns and to target

guests who booked through an OTA with an offer of a

10% discount to return and book direct.

2. Increase Guest Engagement

Another strategy for Opus Hotel was to further engage

with guests at different touch points in the travel journey.

The hotel wished to personalize the digital relationship

with its guests and create reasons for a stronger

connection. To advance this strategy Opus turned to

CheckMate, to enable them to connect with guests prior

to arrival and during their stay via mobile technology.

3. Build Loyalty

The third goal for Opus Hotel was to create compelling

reasons for guests to return and to become brand

advocates. To help achieve this goal, they put added focus

on providing a memorable experience and being unique

and fresh with product offerings and services.

TripTeaseWidget


Tips for Connecting with Travelers

Opus also turned to ReviewPro to collect guest feedback

and aggregate results to help them understand guest likes

and dislikes. The hotel posts genuine responses to online

feedback and takes action where changes are needed.

Opus’s Tips for Connecting with Travelers

Opus’s strategic approach to driving more direct bookings,

engagement and loyalty has generated very positive results.

Through the process Gandossi and his team have learned a

great deal about what works and what doesn’t work.

Here are Gandossi’s top tips for connecting with travelers

digitally:

• Keep it easy and simple; i.e., no download of apps

required.

• Listen to how your guests want to communicate.

• Make sure your communications are not overly sales

focused.

• Offer value to the guest for using any software.

• Don’t overload the guest with communications.

• Treat everyone like a VIP!A TripAdvisor review of Opus Hotel shows the value of guest engagement


About Us

ReviewPro is the leading provider of Guest Intelligence

solutions to independent hotel brands worldwide.

The company’s comprehensive suite of cloud-based solutions

includes Online Reputation Management (ORM) and the Guest

Survey Solution (GSS), which enable clients to obtain a deeper

understanding of reputation performance as well as

operational/service strengths and weaknesses. We provide

actionable insight to increase guest satisfaction, rankings on

review sites/OTAs and ultimately revenue.

The company offers the industry-standard Global Review

IndexTM (GRI), an online reputation score, which is used by

thousands of hotels worldwide as a benchmark for reputation

management efforts, based on review data collected from 161

online travel agencies (OTAs) and review sites in more than 45

languages. More than 19,000 hotel brands worldwide are

currently using ReviewPro’s solutions.

Request a Free ReviewPro Demo now

Learn More

The Leading Source of Guest Intelligence best practices and content for the Hospitality Industry

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