The global hotel industry’s leading cloud platform SiteMinder revealed that the average booking value hoteliers are making on their direct channels nearly doubles the value they are receiving from third-party booking channels.
The report is based on the 43.5 million reservations and US$16 billion revenue made through SiteMinder’s technology from July 2015 to June 2016. After analysis of the year-long data, the statistics showed that the average booking made on more than 350 largely third-party bookings websites was US$ 340, while the average booking made via the SiteMinder’s internet booking engine, implemented on hotels’ direct channels was US$ 600.
The findings not only underline the fact that hotels need to focus more on direct booking by improving their own website but also highlight the importance of maintaining parity between their own channels and OTA’s or other third-party channels to compete fairly.
According to Mike Ford, SiteMinder’s managing director “Hotels should invest heavily in ensuring they gave a balanced approach to distribution and that they are focusing on their direct booking strategy in order to maximise direct conversions and therefore profit.”
We strongly believe revenue optimization results from modernizing and improving direct channels with the latest technology. However, it is a fast-moving field, which requires constant attention, where OTA’s have already built up a huge position with high conversion. By making it harder for hoteliers to align practices, there is a current need to support them in terms of technology and knowledge in the transition from offline to online bookings.