Hoteliers are calling out the OTAs ‘Best Price’ Bluff

Top 2 value propositions OTAs have been selling to shoppers are :

1. OTAs offer most variety and options….maybe
2. OTAs offer Best Price….. now that’s a Bluff!

Shoppers, at least for the most part, are NOT aware of Rate parity provisions imposed by OTAs on hoteliers, putting hotels prices across channels, from the hotel’s own website to the OTAs websites in parity, offering hotel accommodation at the Same exact Rate = Price.

Some say Rate parity helps hotels avoid confusion over price points across different distribution channels. That might have been a positive point IF the cost of securing bookings across these channels was similar.

Problem is, with OTAs commissions ranging from 15-22%, their impact on revenue margins makes the OTAs distribution channels very expensive.

Rate parity is indeed an obstacle for a hotel that wants to differentiate between distribution channels, for example favoring a particular channel likeDirect Bookings on it’s own website, training shoppers to go there for the best price.

It is not a surprise that one of the hottest topics for Hotel Revenue managers now is, Increasing Direct Bookings on their hotel websites, and relying less on OTA bookings to improve revenue margins.

2 Important facts we know about online Shoppers for hotel accommodations:

A. Price is King: With 85% of travelers surveyed saying that PRICE is the most important factor when determining where to book. [according to a Google research]

B. They [Online Shoppers] are on YOUR website: 52% of shoppers will visit your hotel’s website after seeing you on an OTA [according to a Google research]

How do we make A+B above work for hoteliers: Call the OTAs Best Price Bluff!
We will show those 52% of shoppers that saw your hotel on the OTA a price comparison, proving rates are the same or higher on OTAs [remember Price Parity], removing their motivation to return to the OTAs to book with no savings. Why buy from a distributor or a re-seller when you can buy from the source, when you’re right there, on the hotel’s website, especially if the price is the same?

Solution:
BookingDirection’s technology works on your Hotel’s website to increase direct bookings by providing online shoppers the OTA web experience and price transparency they have grown to like — e.g. showing them “all” the prices in the marketplace, and proving that the hotel has the lowest price. In so doing, the need to comparison shop is eliminated.

Bottom line, EARN MORE by, increasing the percentage of website shoppers booking directly with you and reduce commission payout to OTA’s.

We’re in closed beta, helping hoteliers to get more direct bookings. Join the waiting list and we’ll contact you once additional hoteliers are added.

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Image by: Play Among Friends Paf

OTAs, Friend or Foe? How are They Killing your Direct bookings?

OTAs are dominating online travel booking, in many cases accounting for 76% of hotel bookings online and in some cases a lot more.

In this reality, many hotels rely on OTAs for booking rooms, which raises 2 questions:

What is the cost?
Is there alternative?

-Before answering these questions, for those who don’t know, let’s take a closer look at a some OTA facts:

Booking.com, owned and operated by US based Priceline. 
Booking.com offers online accommodation booking. It claims to have over 540,000 properties globally under contract and that it deals with more than 700,000 room nights reservations per day. In 2013, it accounted for more than two thirds of Priceline’s revenue. Booking.com is available in more than 41 languages [Wikipedia]
Some more figures:
Booking.com’s parent Priceline.com, with a US$ 52.79 Billion market cap, has an estimated annual revenue of US $8.5 Billion for 2014 [businessweek.com]
Expedia: with a US$ 10.56 Billion market cap, has an estimated Estimated annual revenue of US $5.7 Billion for 2014 [businessweek.com]
Orbitz, with a US$ 1.01 Billion market cap, has Estimated Estimated annual revenue of US $937 Million for 2014 [businessweek.com]

-Looking at these numbers, it is clear OTAs are highly specialized and effective online booking machines, backed by the financial strength a few hotels posses. Competing head to head with them on online traffic, at least in most cases, would be in the worst case scenario a suicide, otherwise a sum zero game.

Industry Facts:

Most shoppers BEGIN their shopping for hotel accommodations at the OTAs, who happen to control a substantial percentage of travel and hotel traffic online [=fill top search results] At 85%, PRICE is the most important factor in selecting a hotel.[according to a Google research] 76% of online bookings happen through OTAs leaving only 24% who book directly. [according to a wihp reserch] 52% of shoppers VISIT the Hotel’s website as part of their research, PRIOR to booking [according to a Google research]

Looking at both the OTAs and Industry facts, brings me back to the 2 questions at the top of this post,

Q: What is the cost?

A: OTA’s charge between 15-22% (And sometimes even more) commission for every booking, that translates to a big monthly check hotels cut and send to the likes of Booking.com, Expedia, Orbitz etc.

Q: Is there an alternative? 
A: Yes, Get More Direct Bookings
76% of online bookings happen through OTAs however 52% of shoppers will visit your hotel’s website after seeing you on an OTA and before making their reservation elsewhere. Why not stop them on your website and make them buy directly from you? Why pay commissions to OTAs for indirect booking?

Solution:
BookingDirection’s technology works on your Hotel’s website to increase direct bookings by providing online shoppers the OTA web experience and price transparency they have grown to like — e.g. showing them “all” the prices in the marketplace, and proving that the hotel has the lowest price. In so doing, the need to comparison shop is eliminated.

Bottom line, EARN MORE by, increasing the percentage of website shoppers booking directly with you and reduce commission payout to OTA’s.

We’re in closed beta, helping hoteliers to get more direct bookings. Join the waiting list and we’ll contact you once additional hoteliers are added.

Image by: haley7

2 Top Reasons Shoppers Prefer Booking with OTAs over Hotels Websites

Following hundreds of conversations with hoteliers in the past months, one pain was almost a constant: shrinking revenue margins due to OTAs.

Add to that, the following facts, OTAs are controlling hotel bookings online with their, huge marketing budgets and options & variety to shoppers, and that so many hotels rely on OTAs for an important, sometimes significant, portion of bookings.

The result:

Hoteliers and OTAs end up with a dysfunctional relationship that can be best described as one matching the ‘hate and can’t live without’ type.

Unfortunately for hoteliers in this fast paced online economy, at least for the foreseen future, OTAs are here to stay and Hoteliers need to learn how to better compete, to have a winning chance in direct-bookings.

Some more interesting facts:

76% of online bookings happen on OTA websites [according to a wihp research], however, the good news is 52% of shoppers will visit your hotel’s website after seeing you on an OTA [according to a Google research], you know, to get a better look at your location and facilities. Another industry fact, you guessed right, 85% of travelers surveyed said that PRICE is the most important factor when determining where to book. [according to a Google research]

Questions is: Why shoppers prefer booking with OTAs over hotels websites?

1. Shoppers believe that OTAs automatically have lower prices when it comes to hotel rooms as opposed to actual hotel websites.

2. Being the sophisticated, optimized and specialized multibillion [and million] online businesses they are, OTAs have created a shopping experience that leverages a smooth, responsive and multilingual user experience that is second to none.

So after bringing up boring facts that are, at least to some extent, known to most hoteliers, I would like to share with you a solution we have been working on,

BookingDirection’s technology works on your Hotel’s website to increase direct bookings by providing online shoppers the OTA web experience and price transparency they have grown to like — e.g. showing them “all” the prices in the marketplace, and proving that the hotel has the lowest price. In so doing, the need to comparison shop is eliminated.

Bottom line, EARN MORE by, increasing the percentage of website shoppers booking directly with you and reduce commission payout to OTA’s.

We’re in closed beta, helping hoteliers to get more direct bookings. Join the waiting list and we’ll contact you once additional hoteliers are added.

Image by: Dennis Skley

3 Easy steps for transforming Unknown prospects into Known and Engaged customers

Marketers are challenged daily with identifying and segmenting the interest and intent of their users and prospects.

Motivation here is clear,

• the Better you Understand your users and prospects,
• the Better you get in creating Relevant, custom-tailored Experiences for them

All that leads to more Efficient and Effective marketing campaigns and Higher Conversions and Sales.

 

Below, is an easy 3-step process, for building your company’s own system for transforming Unknown prospects and guests into Known, Loyal, and Engaged customers, a system that is both,

NECESSARY in this competitive marketplace,

and

DEMANDED by users and prospects whom have grown to expect it.

1. COLLECT AND IDENTIFY

Collect:

Social widgets and Social Login are known to increase website Opt-Ins and Registrations providing easy and fast alternatives for authenticating online users and collecting valuable permission-based, rich, first-party user data.

Social Widgets

Give your users and prospects a reason to Opt-In and Register on your website.

Identify:

Users that Opt-In and Register on your website will be authenticated and identified with the social networks

2. SEGMENT AND STORE

Segment:

Leverage valuable permission-based, rich, first-party user data collected via our Social Widgets to Segment users based on Identity data and behavior on your website. Gain insight and improved understanding of your users and prospects.

Store:

All the permission-based, rich, first-party user data is stored in an always current database of your users and prospects. We automatically update user records, to reflect changes made by the users.

3. ACT, TARGET AND ENGAGE

Rich, first-party user data enables segmentation which makes it possible to put the insight and improved understanding of your users and prospects to work: Act, Target and Engage users with Personalized experiences with your brand that takes into account their identity, interest and intent Increasing:

• The Efficiency of your Content and Campaigns

• Conversions and Sales

Come learn more about SeatID’s Social Login and Technology; We’d love to learn about your use-case and get your feedback.

- Schedule a call/ Demo

-Watch a 2-minute VIDEO

SeatID’s Technology enables Social Proof, Social Booking and Social Seating by leveraging easy opt-in of future customers on your website (Social Login) AND visibility into which of their friends and social circles have previously purchased from your company. Rolling out our solutions will remove obstacles standing between your brand and future customers, leading to improved engagement, conversions and more sales.

Implementation is easy and takes only a few hours.

Photo by: Rachel Carter

Grow your Opt-In House-list and Sales Faster

In our customer-centric economy, top-performing businesses are expected to:

1. Address their customers’ needs:

Better know the needs of their website prospects, customers and guests on-location thanks to customer insights and data.

2. Leverage the power of social media:

Gain new fans and customers by leveraging their friends behavior and selections, using Social Proof and Social Booking technologies.

3. Increase sales:

Create tailor made, effective, campaigns to convert, sell and keep customers coming back for more.

Importance of Building and Expanding Your Opt-in List
Businesses today use diverse methods for interacting with, acquiring, and retaining customers. The cornerstone of this effort is building and expanding an Opt-in 'House-list' for keeping in-contact, sharing offers and information via Email.
Email Marketing involves reaching customers with a marketing message or campaign via email.
Opt-In means the Customer or Prospect grants permission to the business to save their email addresses for future reference. This allows businesses to build their Opt-in 'House-list', which is a database of email addresses of customers and prospects interested in receiving offers and information from your business via email. [Unlike spam, which is sending unsolicited emails to prospects.]
Effective Marketing, email-marketing included, relies on segmentation and targeting, i.e. Personalization. By adding social profile data, in addition to the name and email, Personalized marketing campaigns can address customer and prospects with messaging specific to their targets Gender, Age, Martial status and more, increasing the effectiveness and results of the marketing campaigns.

With SeatID your business can address all three, automatically, collecting User social profile data, frictionlessly, via interactive social widgets on your website and on your WiFi network, providing your business a New opportunity, a new channel, to increase your reach, collect and learn valuable information about your most engaged users, customers and guests and the ability to use your SeatID account to Automatically send email campaigns to them.

Email campaigns can be customized with your current Offer, Information and any Advertising/ Marketing messaging to promote your business and Increase Sales and customers engagement & Satisfaction.

Come learn more about SeatID’s Technology, We’d love to learn about your use-case and get your feedback.

- Schedule a call/ Demo

-Watch a VIDEO

SeatID’s Technology leverages easy opt-in of future clients on your website (Social Login) AND visibility into which of their friends and social circles have previously purchased from your company. Rolling out your Social proof with SeatID will remove obstacles standing between your brand and future clients, leading to improved engagement, conversions and more sales.

Implementation is easy and takes only a few hours.

3 steps to protect yourself from Fake Social Proof?

Social Proof

Social Proof online comes in many forms, from likes, followers. reviews, testimonials, ratings, subscribers and the list goes on.

It’s too easy to fake

Problem is, that many of these are in fact fake, and yes, your customers suspect it. How many of those testimonials, reviews and rating on your website, were in fact provided by former customers?

2 Questions

Without diving deeper into these uncharted waters, there are two questions that have to be asked now:

A. Can you afford to get caught posting fake likes, followers. reviews, testimonials, ratings, subscribers and so on?

            -The answer of course is NO

B. How can you show authenticated social proof on your website, the kind your customers will immediately identify as authentic?

             -The answer is YES, and here is the solution:

3 steps to Validate REAL Social Proof

SeatID's technology provides you 3 circles of verification, ensuring that you social proof you are posting on your website is real, really.

1. Authentication: Using our integration with the major social networks (facebook, Google+, Twitter, LinkedIn), we are able to Authenticate a website user is who she/ he claims to be and collect her/ his social profile data in the process.
2. Validation: Tracking transactions on customer's websites and Geo-tagged activity + statuses across social networks allows us to Validate the user was indeed on location or made a transaction on a customer’s website.
3. User Validated: Your website users will immediately identify the names and faces of former customers that purchased from you previously, because SeatID displays details of former customers only if they are also within that specific user’s social or professional circles. This way, the user herself/ himself is validating this social proof is authentic! They know who their friends are.

Come learn more about SeatID’s Technology and Social Proof, We’d love to learn about your use-case and get your feedback.

- Schedule a call/ Demo

-Watch a VIDEO

SeatID’s Technology enables Social Proof by leveraging easy opt-in of future clients on your website (Social Login) AND visibility into which of their friends and social circles have previously purchased from your company. Rolling out your Social proof with SeatID will remove obstacles standing between your brand and future clients, leading to improved engagement, conversions and more sales.

Implementation is easy and takes only a few hours.

Photos by:  Lauren C and Wm Jas

3 steps to kickoff Website and Marketing Personalization with Social Login

Why Personalize?

Personalizing every interaction with prospects, future customers and customers is every marketer’s dream because delivering relevant content, messaging and offers, Increases conversions; Improves customer retention; Makes our marketing useful, and Finally, our prospects and customers Expect and Appreciate companies who make the effort to Personalize: know them, providing personalized experiences and offers, particularly ones that are predictive rather than reactive.

To add a final benefit, Personalization does all the above while maximizing our Efficiency in creating and managing marketing assets and utilizing our resources & budget.

Following are 3 steps to kickoff your company’s Website and Marketing Personalization with Social Login

1. Collect Rich User Data
When prospects and customers on our website register and authenticate with Social Login, AKA Social Sign-In, they give us permission to access rich, first-party social data (their social profile). Detailed profile information such as age, marital status, interests, demographics, education, industry, social connections and more can easily be collected to provide us a deep, rich profile we use to learn who our prospects and customers really are, beyond the name, email and phone number we may or may not have already.

2. Analyze and Segment based on Social Profile Insights
Studying and analyzing the rich user data stored on our prospects’ and customers' Social Profiles, uncovers valuable, actionable, information about them. These insights make it easy to segment our prospects and customers based on criteria that matters to our business, targeting specific attributes such as Age, Gender, Marital status, Language, Country, Industry, Interests and so on. Collecting this rich user data with Social login is easy.

3. Kickoff Personalization [Both, real-time on Website, AND marketing campaigns]

• Personalize your marketing campaigns: Create and deliver Personalized marketing campaigns, targeting your prospects specific attributes such as Age, Gender, Marital status, Language, Country, Industry, Interests and so on.
• Real Time Personalization on your website: Create and deliver real-time Personalized website engagements and offers, targeting prospects and customers based on specific attributes such as Age, Gender, Marital status, Language, Country, Industry, Interests and so on, while they are ON the website.

Come learn more about SeatID’s Social Login and Technology; We’d love to learn about your use-case and get your feedback.

- Schedule a call/ Demo

-Watch a 2-minute VIDEO

SeatID’s Technology enables Social Proof, Social Booking and Social Seating by leveraging easy opt-in of future customers on your website (Social Login) AND visibility into which of their friends and social circles have previously purchased from your company. Rolling out our solutions will remove obstacles standing between your brand and future customers, leading to improved engagement, conversions and more sales.

Implementation is easy and takes only a few hours.

Photo by: Erik Drost