By Jeannie Zaemes
In the ever-evolving landscape of the hospitality industry, hotels face the challenge of reaching and engaging customers across a multitude of channels. Online Travel Agencies (OTAs) like Expedia and Priceline have 39% of the U.S. online booking market and that number is likely to increase as direct online bookings decreased from 79% to 67% in 2023.
With the rise of digital platforms and changing consumer behaviors, the need for a comprehensive and cohesive marketing strategy has never been more critical. This is where the omni-channel approach steps in, offering hotels a dynamic solution to maximize visibility, enhance customer experience, and drive bookings. In this blog post, we’ll explore why hotels should embrace an omni-channel marketing strategy to drive direct and OTA bookings.
Definition: An omni-channel approach refers to providing a seamless and integrated experience for customers across multiple channels or touchpoints. An omni-channel approach differs from a multi-channel approach which involves using multiple channels independently. Omni-channel strategies leverage multiple channels, but they prioritize seamless integration and consistency across all customer touchpoints.
1. Meet Guests Where They Are: Today’s travelers navigate a complex web of online and offline channels when planning and booking their stays. According to a new “2024 Travel Trends” report from Global Hotel Alliance (GHA), travelers often use a combination of search engines, social media, and online travel agencies (OTAs) to gather information and make reservations. Plus, travelers use a variety of tools to make those reservations, including websites and mobile apps. An omni-channel approach allows hotels to meet potential guests at every touchpoint of their journey, ensuring a seamless and consistent experience across platforms.
2. Show Up (And Shine) in OTAs: An omni-channel approach requires you to show up where your customers are. And many customers use OTAs for their initial travel research. Recent research in the International Journal of Hospitality Management showed that there are three important pieces of information you can influence on OTA sites: Hotel cover photo, informational badges (e.g. top booked, guest favorite), and booking terms and conditions (e.g. free cancellation, pay-later options). Ensure these three pieces of information are consistent with your branding and messaging.
3. Meet Guests Online: The same GHA report shows that survey respondents said they prefer using the hotel’s loyalty program website or app to conduct research, followed by OTAs. But in North America, they also like using the hotel’s direct website or app. 18% of North American respondents said they refer to the hotel’s direct website, app, or social content — the third-largest travel research tool used by North American travelers. An omni-channel approach doesn’t discount the direct travel booking experience; your website and app are valuable tools in getting people to book. An omni-channel strategy empowers hotels to drive traffic to their own booking channels by utilizing a mix of digital marketing, social media, and targeted promotions, ultimately reducing reliance on third-party platforms.
4. Leverage Ratings Across Platforms: Recent research confirms the importance of ratings, especially on OTA sites. Your ratings matter, especially to travelers with “low behavioral maximizing tendencies” or a lower-likelihood to research travel before booking. In short, they use ratings as social proof that your hotel is reputable, so an omni-channel approach includes OTA ratings and reviews for your hotel. Keep a finger on the pulse of your OTA ratings to ensure prospects don’t drop out of the booking process due to a fixable problem.
5. Enhanced Customer Experience: A 2023 report by McKinsey highlights that customers value a seamless and personalized experience throughout their interactions with a brand. Omni-channel marketing enables hotels to provide a unified experience, allowing guests to transition effortlessly from researching accommodations on social media to booking directly on the hotel website. This not only fosters customer loyalty but also enhances overall satisfaction. Ensure that the channels over which you have control are personalized and offer portals to other resources that the prospect may need to complete a booking.
6. Building Trust and Credibility: Research from Deloitte emphasizes the importance of trust in the hotel industry. They found that trusted hotels are 5.9X more likely to get a booking than untrusted hotels. A cohesive omni-channel strategy, incorporating consistent branding and messaging, contributes to building trust and credibility among potential guests. When customers encounter a unified brand image across various channels, it reinforces the hotel’s reliability and professionalism.
7. Data-Driven Decision-Making: Mews emphasizes the importance of data-driven decision-making in the hotel industry. An omni-channel approach facilitates the collection of comprehensive data from various touchpoints, allowing hotels to gain valuable insights into customer preferences, behaviors, and the efficacy of different marketing channels. This data-driven approach enables hotels to refine their strategies and tailor offerings to meet the evolving needs of their target audience. For instance, Marriott is leveraging tests to see how they can make the booking process more seamless for customers.
8. Adapting to Mobile Dominance: The increasing prevalence of mobile devices in the travel planning process is evident. A study by TravelPerk highlights that 60% of travel searches now come from mobile devices. Hotels that embrace an omni-channel strategy can optimize their presence across mobile channels, including mobile-responsive websites, apps, and social media platforms, ensuring they capture the attention of the growing mobile-centric audience.
9. Collect, Respond to, and Institutionalize Customer Feedback: An omni-channel approach dictates that you collect feedback across your various channels and then take action on it. Take mobile feedback, for example. Alchemer’s own research indicates that the number of mobile surveys brands send to consumers has increased 180% over the past five years but response rates have stayed consistent, indicating that consumers will share feedback when asked for it. Hotels that collect and respond to customer feedback — especially in mobile — will succeed with an omni-channel approach.
An omni-channel marketing approach is no longer a luxury, but a necessity for hotels striving to thrive in the competitive hospitality industry. By meeting guests where they are, enhancing the customer experience, building trust, optimizing direct bookings, leveraging data, and adapting to mobile dominance, hotels can position themselves for sustained success.
