Looks like we might have been going about this all wrong.
The thought that a guest’s primary travel concern is saving money is an assumption that needs to be reexamined.
According to JD Power & Associates’ North America Hotel Guest Satisfaction Index Study, guests are more likely to be dissatisfied with their hotel experience and come across more problems (like canceled reservations or last-minute changes) if they book through a third-party, such as Travelocity or Expedia.
So, what does this mean for you?
It’s time to change the overarching hotel industry strategy from emphasizing price parity to tapping into consumer fears of OTAs.
Instead of obsessing about Best Rate Guarantees, we all need to start focusing instead on how reservations, cancellations, changes, room selection and refunds are perceived by consumers when they book direct vs indirect.
Many consumers (especially older ones) have preexisting concerns about third-party bookings and fear that one mishap with an OTA could unravel their travel plans in seconds.
Meanwhile, hotels offer two vital things that OTAs do not: a secure, direct reservation and a dedicated staff that truly cares. (Smart marketers like Hilton have taken this dynamic to another level by enabling loyalty members to select their own rooms. This is a powerful differentiator, which adds even more peace of mind and diminishes OTA value.)
Trust Issues: Many Consumers Don’t Like OTAs
It doesn’t take much to prove how unhappy customers are with OTAs.
Both Expedia and Priceline have consistent and dismal 1-star ratings on a popular review site: Consumer Affairs. There are legions of horror stories by guests left in a lurch when they arrive to their hotel with an OTA reservation in hand, only to discover their hotel is sold out and there are no more rooms available. Or, even worse, that the hotel has no record of the reservation at all!
The internet is flooded with examples of angry OTA customers, such as this family who spent almost 7 hours on the phone with Expedia customer service reps to get a partial refund when their reservation was canceled due to overbooking at the hotel.
Or, this traveler who booked a room in New Orleans on Priceline, only to have Priceline switch his reservation to a hotel of lesser standards, without an option to cancel.
How to Take Advantage:
The best hotel marketers have learned how to appeal to guests’ emotions, rather than rationale. Emotional messaging resonates more than simply selling physical amenities.
One way to leverage emotional messaging is to reposition OTAs in a guest’s mind. In Positioning: The Battle for Your Mind, marketing gurus Jack Trout and Al Ries teach businesses to build messaging around their competitor’s weaknesses.
For example, Tylenol went after the aspirin business by adopting this message: “Aspirin can irritate the stomach lining, trigger asthmatic or allergic reactions and cause small amounts of hidden gastrointestinal bleeding… Fortunately, there is Tylenol.”
In the case of hotels vs OTAs, we should remind prospective guests at every opportunity that booking direct is the safer play. That your family vacation, business trip or long-awaited romantic weekend is too important to risk in any way!
Hotel marketers should communicate this critical message in key touchpoints with prospective guests during the research phase of their purchase journey:
- On your direct hotel website home page
- In your search/PPC ads
- In your retargeting display ads that follow consumers after they visit your website
- In social media posts
- In call/reservations center training
- Inside your booking engine, where more than 95%+ of date searchers will abandon before booking
The Bottomline:
Price parity is important, but tapping into consumer fears of booking with OTAs provides smart hoteliers with ample opportunity to migrate bookings back to the hotel direct.
Hotels should remind prospective guests at every opportunity that their direct websites and call centers are 100% dedicated to handling the needs of their property… While OTA booking engines and call centers are servicing tens of thousands of properties (including your compset’s)!
