The more important the trip, the more likely they are to pick up the phone.
Despite the pundits’ predictions, the phones continue to ring with incoming reservations leads even now in the mid-2020s, and yes, even at branded hotels across all segments. I’m sure some readers are thinking “Well not us. The majority of our rooms are booked online.”
Yet if you listen to real phone calls from real callers, as KTN’s QA team does daily through our remote call scoring process, you realize that many people call with questions before booking online, whether at an OTA or the hotel’s direct website. Other guests book first and then call with their questions, usually having the option of canceling if they cannot find the answers they are seeking. Perhaps this is part of the reason why hotels typically experience cancellation rates for OTA bookings in the 18%-25% range.
Let’s pause for a moment to think about how much money and effort hotels spend just to make those phones ring. First, consider the direct and indirect costs for website maintenance, pay-per-click, SEO, retargeting, and social media campaigns that drive those phone calls. Second, think about the payroll hours spent managing OTA relationships which, due to the “billboard effect,” also drive property-direct calls.
In the ideal world, website visitors hit the landing page and book on their own. But in the real world, quite a few actually call with questions and special requests. (Similarly, many also email or complete “contact us” forms, for which the response rate and quality are also very poor, but that’s a topic for another article.)
When you think about the huge investment in digital presence and marketing, if a website visitor is interested enough to actually call, why not make it easy for them to do so? Not only are these the hottest prospects, but after all, are we not in the hospitality business? If nothing else, properly responding to phone calls is a terrific chance to make a positive first impression and set the tone for the guest’s stay.
Yet when you look at most websites, many hotels seem to be hiding their phone number by displaying it in a small font or requiring an additional click to reveal the number. Instead, we should be trying to cash in on website visits by offering click-to-call or at least posting the number prominently. Further, if your hotel has in-house, onsite, or dedicated reservations staff, add a tag to say so!
Arguably, all lodging companies should pay close attention to their phones, but some should be particularly attentive because they have the highest “revenue per call” opportunities such as those with:
- Higher ADR.
- Longer ALS.
- Larger accommodations such as suites, villas, and homes that accommodate larger parties, which tend to generate more questions and requests.
- Revenue-generating outlets such as dining, spa, and activities, thus affording higher revenue-per-guest opportunities.
Now, one might wonder, WHY do people still call when there is so much information available online? Often, I take time to personally listen to the call recordings our team is scoring for QA and staff coaching purposes. I’ve heard real calls from real callers across a huge diversity of lodging companies, from midscale through ultra-luxury. Here are some sources of questions:
- Special bedding needs and dietary requirements.
- Clear up confusion about room configuration.
- Specifics on views and room locations
- Second-guessing booking decisions; FOMO.
- Concerned about comments they have read in online reviews.
- Double-checking rates to ensure they are getting the best deals.
Perhaps the biggest overall reason why people call before or after booking online is that they are emotionally connected to the travel experience they are planning. In other words, the more important the trip, the longer the stay, the more people they are traveling with, the more likely they are to pick up the phone.
So, what happens when potential guests do call these days? Most hotel brands have convinced leaders to send all calls offsite, and many brands have outsourced part or all of their central reservations operations to ultra-low-cost, offshore companies. Therefore, the person who answers has access to no more information than what the caller already saw at the website where they found the phone number.
Following are some training tips for leaders who recognize the huge opportunities that phone calls represent.
- Train your team to turn “quick questions” into leads by saying “Now that I’ve answered your questions, are there any dates I can check for you?”
- Ask all callers if they already have a reservation; if they say they are shopping online, ask “What website are you on?” and “Would you like me to double-check the best rates for you?”
- Offer to book the reservation now, explaining this will “lock in the rate and ensure availability.”
- Those working in-house, on-site, or perhaps working remotely but who are still dedicated agents, should always mention this to demonstrate credibility.
- When people call with questions about meeting or function space, or anything possibly related to a group or event, offer to connect them to your sales specialists. If after hours, offer to take their information and have someone contact them, versus telling them to call back during the sales department’s hours.
- If they do have a reservation, after reconfirming it, ask if they have any questions or requests and let them know you “Look forward to welcoming them very soon.”
I’m sure there are a few readers who are thinking “Well this sounds good but we just don’t have the budget.” Or perhaps, “Well our hotel is so large that we get so many calls…” So here are a few tips for leaders:
- First, consider this metric. What is the average revenue per booking opportunity? (Total annual transient revenue divided by total transient bookings.) Then post that number by the switchboard or desk phones.
- Measure the results. Add a source code or other tracking method to capture direct bookings taken by phone.
- Resorts and luxury properties, if you are not using one of the CRM’s designed specifically for hotel reservations offices, you are leaving money on the table. Contact me for a list of providers.
- Incentivize phone bookings. If you’re worried about costs here, just consider the cost of all those OTA commissions, or even just the per-booking CRS transaction fee. (No, direct website bookings are not free!) Instead, pay your staff a few dollars per booking and you will see the ROI right away.
