Webinar - How to improve direct on line room sales and manage ot as reservations

How to improve your direct on line room sales and manage the OTAs

reservations

Sysdat Turismo Sysdat Turismo spaspa

Online Travel Agency

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www.hotel.com

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Ø Sysdat Turismo Spa is more than 35 years as one of major companies in the field of Information Technology in Italian territory.

Ø More than 1500 installations and more than 100 employees specialized in providing optimum services and customer care are the power of Sysdat Turismo.

Ø Steadily updated and continuously developed the company has obtained one of the highest positions with our global 360° solutions starts from the PMS to Web Solution, Accounting management, food and beverage management and human resource administration are fully interfaced with advanced Business intelligent systems.

Ø With Hardware devices of the whole infrastructure technology of the property we form a complete turn-key offer.

Ø A unique supplier that gathers all the necessary information to help the property to enhance and optimize future sales strategies.


Hatem HassanØ

Ø Web marketing consultant and system integration specialistØ Responsible for the configuration and supplying full training of the

Booking Engine and Channel Manager system.Ø Bachelor degree in “Hotel Management” in Cairo University.Ø Assisted in Pre-opening of different hotels in Milan as Shift Leader

and Assistant Front office ManagerØ Working in Sysdat-Tourismo since 2005. Started as Technical Support

Representative where I was Responsible for the installation, settings and set-up of PMS Sys-Hotel Genius and the training of front and back office staff members.


How to improve your direct on line room sales and manage the OTAs

reservations


Online Travel Agency

A

www.hotel.com

B

Ø Increasing on line direct sales:

“how to increase the direct on line sales” … wherever you go this the most topic and argument among the hotelier these days, it does not matter which conference you attend or who you are speaking to.

“The best rates are always booked with the hotel brand” a strategy that should always be kept.... however!!


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Ø Why OTAs can obtain more reservations than Hotel websites?

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There are two main strategies that OTAs care for to achieve their targets:Ø Getting New Clients.Ø Maintaining active clients.Ø

Factors to take into consideration to achieve these targets (what OTAs do):Ø Family and friends recommendation (positive experience counts ).Ø Personalized offersØ First time purchase offerØ Positives ReviewsØ Mobile applicationØ


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Ø Search Engine & CPC

Some hotel owners and consultants

place mistaken hope in the replacement of OTAs with the search engine and marketing campaign thinking that things would be better with direct online sales via search engines.

“For an overnight booking of average100 €, a hotelier pays BOOKING.com a commission of approximately 18%. Google charges an average of 50 cents per click, making it more expensive after the 36 visitor who does not book”



Ø Figuers and FactsØ Number of rooms: 50 roomsØ avrage room rate including all vat: 100€Ø Occupancy : 70 %Ø Gross accommodation revenue per year: 1,277,500€Ø Net accommodation revenue per year: 1,009,225€Ø Online share: 40% € 403,690Ø revenue per year via OTAs aveage (80% ): € 322,952Ø Net revenue per year on hotel own website: 20% €80,738Ø Average commission to OTAs 18% : €58,131

Should these net online distribution costs of €58,131 be too high, this 3* hotel must generate the OTA revenue €264,820 from elsewhere at lower cost.

Ø Search engine & CPC

The website conversion rate [number of bookers divided by visitors] should be around 2%. From our point of view, hotels of large and main cities should aim for up to 8%.

The question is Do hotels seriously have conversion rates up to 8% on their own websites?


If direct online sales are to solve all the problems, the hotel must be able to professionally deal with multiple issues including:

Ø Website: Keeping technical and content elements updated, generating and managing reviews.

Ø SEO :(Search Engine Optimization): constructing a technically flawless website, creating and updating content.

Ø Paid online marketing: activating search engine marketing (CPC), feeding price comparison sites, advertising in external newsletters.

Ø Unpaid online marketing: creating regular newsletters, hiring the email marketing technology, managing all relevant social media channels.

Ø Booking engine: Integrating a booking engine, measuring, analyzing and optimizing conversions.

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Ø Channel manager : where you can manager your rates and availability in easy way , saving time and have rate parity rule maintained

Ø Controlling: measuring, analyzing and optimizing parameters for every channel on a daily basis (traffic, bounce rate, conversion, bookings, revenue per booking, cost per booking, revenue, costs and profit margin.


Ø Replacing the third-parties costs money Who you can hire for this job? A specialist who can fully take charge of

the information technology and online marketing and optimizing conversion. An expert eye with enough experience is unlikely to cost less than the €58,131 otherwise spent on OTA commissions annually.

The other option would be outsourcing the entire project to web marketing agency, which is cheaper than an in-house solution

and in the same time have the necessary experience to manage the on line marketing aspects.


Ø Yet hoteliers should not be put themselves down with the costs and commissions of online distribution, rather they should be questioning how each and every invested euro can generate a profit.

Ø Of course we should give credit to every successful hotel website, and I encourage every hotel to take up the challenge of dealing with the online world.


Ø What hoteliers should do instead .. hoteliers should focus 100% on what they are capable to do, rather

than getting into the complex online world. Focus on their product, branding, quality, services and the guest, and how they can generate additional revenue.


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Ø Enhance the hotel’s individual charm. A better concept and clear branding allow for higher prices.

Ø Work on your own hotel website as the main marketing measure in your distribution strategy. Here are some tips to get a better performance for your website:

1. Display your real hotel images2. Do not display outdated information or expired offer.3. Use a content management system4. A strong call to action is required.5. A fast and easy booking procedures.


Ø Monitor the profit margins generated by each distribution channel (length of stay, food & beverage, your repeat guests), rather than just commission percentage.

Ø Generate higher revenue onsite through appropriate extra services, dynamic packages and qualified personnel.

Ø Stay in contact with your guests through newsletters, social media, mailing, giving them a reason to stay again offering competitive offers such as upgrade, extras or discounts.

Ø Use your satisfied guests in recommending your hotel to friends. Guests attract guests when they’re satisfied and rewarded for it.


Ø Position your hotel on different distribution channels. Do not depend on one web site.

Ø Fair play for all distribution channels. Keep the parity rate strategy maintained as possible as you can.

Ø Don’t create a useless traffic with every new marketing method. Ask yourself if the innovations can really bring extra revenue or can contribute to another clearly defined target.

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Questions?


Sysdat Turismo spa

For Further information:

Ø Hatem Hassan§

Ø Tel. +39 02 96718.473 - [email protected]

www.sigesgroup.itwww.ilcomputel.it

Sysdat Turismo spa

Thank you for your attentionWe wish you all a Merry Christmas and happy new year