System saturation in combination with OTAs and the use of disintegrated tools are shaping the lack of coherence and personalisation in guest communication. In this series of presentations we explore how hotels can stay competitive and relevant in today’s technologically dependent hotel industry by taking a holistic approach to guest communication.

1. The Broken Guest Communication Series
OTAs are fundamentally breaking guest communication
and hotels accept it.

2. The Facts

3. According to KalibriLabs1, in 2011, there were 4.3 room nights
booked directly for every indirectly booked room night. In 2015,
however, that number dropped to 2.7 direct room nights for
every one indirectly booked room night – a nearly 40
percent drop.
1. www.todayshotelier.com/2017/01/01/otas-vs-direct-creating-a-healthy-mix/

4. 2016 was the first year when OTA lodging bookings in
the US exceeded total hotel website gross bookings2.
2. www.phocuswright.com/Travel-Research/Research-Updates/2017/Hotels-vs-the-OTA-World

5. Much has been talked about the art of creating a healthy
mix of business, where a moderate proportion of rooms are
sold through a mix of channels.
But now it seems like this balance has gotten out of control
and today the drawbacks of being present in OTAs may
outweigh the benefits.
What was before sold as a way to gain control, has
become an unhealthy dependence for hotels.

6. Reports show that an average of 76% of online
bookings go through OTA sites, which typically charge
commissions between 15% and 30%3.
3. hotelmarketing.com/index.php/content/article/
how_hotel_marketers_can_shift_bookings_from_otas_to_the_hotel_website

7. A big part of revenue is not everything hotels end up missing
on during their complicated love/hate relationships with OTAs.
Shifting relationships and a loss of customer
information are two other factors that hotels have started to
become more and more aware of as OTAs have started to take
full ownership of the direct communication with hotel guests.

8. In 2015, booking.com announced that they will no longer provide
hotels with their customer’s email addresses.
OTAs seem to have a clear strategy.
Are hotels equally ready for the challenge?

9. Until now, hotels have focused on strategies such as:
1. Strengthening loyalty programs.
2. Putting more weight into marketing efforts.
3. Improving the booking experience in websites.
4. Offering perks when booking directly.
But it seems like in the middle of all the clutter of tips, hotels have
forgone the very root of hospitality.

10. The Very Root of Hospitality

11. Hotels don’t have the marketing resources of Expedia and
Priceline, and neither do they have the technology expertise in-
house to match those multi-billion-dollar companies.
But hotels do control the very aspect of the rooms, the guest
experience and the hospitality.
Hotels that grasp the power that lies within using what they
already are good at in their communication are the ones that
will end up winning.

12. Breaking the OTA Pattern

13. TODAY
Guests are hooked to the pattern of booking through the same
channel time after time.
Consumers feel they make a more rational decision when
having all the choices laid out with comparison parameters as
nicely as OTAs do it.
OTAs are even convincing guests their price is better compared
to booking on the hotel’s own website.

14. It is in the hands of the hotel to break these habits of repeat
booking though OTAs, and this is where implementing the right
measures to keep a communication flow that is both targeted
and personalised is key.

15. In order to know guests better, hotels will have to regain the
ownership of the direct contact with their guests.
But how?
1. Having the systems in place to collect as many guest
emails as possible is the first step.
2. Learning as much as possible from the guest throughout
the whole guest journey.

16. According to a study by IBM4, hotels leading the way in the
next decade will be those that:
1. Embrace standardisation in their processes.
2. Have all systems in place to recollect customer data and
use it in the most optimal way.
4. barrachd.co.uk/wp-content/uploads/2015/05/Hotel-2020-The-personalization-paradox.pdf

17. It is time to acknowledge that OTAs are stealing the control
of, and breaking the communication with the guests.
Those hotels that are able to form new guest habits by truly
getting to know their guests will be the ones to see a shift from
the growing trend of OTA bookings to a growing trend in guest
loyalty and satisfaction.

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