By Pamela Carvell, Life President, Hotel Marketing Association, October 2024
The Hotel Marketing Association (HMA) recently held an event ‘The direct channel masterclass’, chaired by HMA Community Chair , Harry Fielder and with a panel consisting of Lotti Bruce of The Pig, Sarah Came of GuestRevu, Pete Stevens of Clockwork Marketing and Matt Willacy of For-Sight. We were given useful advice and insights into how hotels can maximise direct bookings and essentially take ownership of the guest. In this article I summarise some of the strategies suggested by this panel of experts. However, rather than quote panellists, this is my takeaways from the event and my opinions, with additional insights I have gleaned elsewhere. Hearing from Lotti Bruce of The Pig, how they achieve 85-90% of their business direct gives every hotel Marketer something to aspire to!
BACKGROUND
Online Travel Agents (OTA’s) burst on the scene in the early 2000’s, and with their multi-billion dollar advertising budgets and huge investment in tech many hotels worldwide became dependent on them for business, in spite of the very high commission rates that they charged. Breaking this stranglehold seemed like a distant pipe dream to most independent hotels, until along came far-reaching marketing platforms like Twitter (now X) & TikTok, more affordable & cloud-based tech, and innovative ways of driving traffic to your own website.
With chains like Premier Inn claiming over 85% of their business comes direct, The Pig setting out with a clear strategy to drive all their business direct and independent hotels such as the Watergate Bay Hotel in Cornwall and the Coniston Hotel & Country Estate, Skipton achieving 90%+ of their business direct, we can see that a hotel does not have be dependent on OTA’s for business in 2024.
Recent data released by Visit England shows that not-surprisingly 27% of people are reducing the number of overnight stays they plan to take, because of the cost of living crisis, and that Value For Money (VFM) is still the top driver of destination. Hotels need to deliver VFM, no matter whether they operate in the budget or luxury sector, and reducing the cost of securing business, by achieving it direct, can contribute to keeping room rates competitive.
THE PIG
Product is one of the P’s of Marketing and most Marketers believe that Brand is an integral part of product i.e it sits within that P. As such, developing your brand identity, positioning, strategy, personality, values, mission and essence are key to a successful brand & product.
The Pig is a brand with very clear values that are at the heart of its marketing strategies and its success as a company. And more than that, it drives 85-90% of its business direct, without even any paid advertising! Driving business direct was an integral part of its strategy from the GetGo. So how does it achieve this? With very clearly defined brand values that are lived by all staff and in every component of service delivery 24/7 and as such a Marketing Strategy that reflects all of those values.
What makes their Marketing so powerful?
They work extensively with partners, especially locally and with community partners.
They believe in the power of newspapers – still!! Newspapers are important to their demographic.
They believe in the power of PR, rather than paid-for advertising.
They create stories to talk about. This is an essential contributor to success in PR and Social Media.
They also care about ‘the extra 5%’ in everything they do. It isn’t specifically defined, but is understood by all!
So, what are your brand values, what is your offering and very importantly, what is your story – day after day?
MARKETING STRATEGIES TO DRIVE DIRECT BUSINESS
Your Marketing strategies need to be specific to your business and great advice was also given by the other 3 panellists. Here are my take-aways:
Use all possible data to get to know your guests, their behaviours, their likes, what they enjoyed about their stay and how they prefer to be communicated with. Typically 30% of the contacts on your database will be unengaged, according to For-Sight.
Use guest feedback as part of your future marketing strategy. Word of Mouth (WoM) has always been a powerful marketing tool and this is especially the case on Social Media. Useful advice from GuestRevu is to ask a guest for feedback before you ask them for a review. Careful management of online reviews is essential as over half of customers are less likely to book if they see a bad review.
AI is a valuable tool to use to go through all your online reviews and identity what really delighted guests about their experience and which of your brand values really resonate with them. These can form part of future marketing messages which will really resonate with customers.
Don’t underestimate the power of SEO, driving traffic to your own website. Your website is your shop window displaying your brand values, but it is also where you can tell stories and interact with customers. Online chat is now an expected part of that customer website journey & a valuable conversion tool.
Email marketing is still a powerful marketing tool for all demographics, not just because of its relatively low cost, but the ability to personalise messages and offers. Personalisation is the new standard!
30% of hotel searches start in Google maps, Pete of Clockwork reminded us, so ensure you enhance your Google Business Profile.
LEGISLATION
Matt Willacy made us aware of 2 very important new pieces of legislation, that all Marketers would do well to familiarise themselves with the significance of:
The Digital Markets Act in Europe https://commission.europa.eu and the Digital Markets, Competition & Consumers Act 2024 which has just received Royal Assent in the UK. https://bills.parliament
FINAL ADVICE
Know who your customers are & know what they like and expect from you.
Make use of the multitude of data at your disposal, and include reviews in this.
AI is your friend when it comes to analysing and using data.
Remember the power of 2 basic marketing tools in SEO and email marketing.
Stay true to your band values and mission.
Guests may not always repeat the experience but they will always remember it!
CONCLUSIONS
It is feasible for any hotel to drive over 85% of its business direct, using today’s cloud-based, integrated systems and modern marketing channels and platforms and thus removing dependence on OTA’s.
Talk to providers who can help you achieve this aim. Have a clear long-term marketing strategy and plan in support of this aim.
Invest in tech and marketing, as it will make financial sense in the long-term.
Have clear brand values and USP’s and stay true to them.
AUTHOR
Pamela Carvell is Life President of the Hotel Marketing Association (HMA), the marketing arm of HOSPA. She has spent her entire career in Marketing and many of those years have been in the hospitality industry.
This article may be shared in part or in full, so long as full credit is given to the author and the HMA and a link to the full article is also shared.
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