The operation is the same, but by changing the objective, our metrics change. The curious thing is that the big players in the sector, such as Booking itself, are going to set our minimum profitability objectives in the direct channel. Why? Because this is the cost of effortless booking .
What we will call from now on ” convenient booking “
Let’s think about it for a second: 12 or 17% on the reservation itself is quite high, but the truth is that it is very easy for the hotel to manage. It will be even worse if we resort to OTAs, where we can easily reach 18% or b banks that probably exce 20%. These are all reservations with a high commission, but without the effort and dication that would be requir if we want to acquire them through the direct channel .
So if we are going to invest in marketing
To strengthen the direct channel and make an economic and personal effort to make this investment work, what we should avoid is that our marketing office 365 database expenses are close to the cost of that comfortable reservation provid by suppliers. Working to earn the same would not make any sense for anyone.
To make it clear, the percentage of acquisition
Costs for the reservation in the direct channel becomes the initial metric to measure and follow . It is no longer so much about getting room in-store sales: 4 techniques to decipher your customers’ reservation days (which is also important) but about setting the goal of being well below the cost that this “convenient reservation” provid by the suppliers would entail.
A reservation on
The direct channel must be below 15% of the cost of obtaining it, without exception. And from there on, we must improve. And improve a lot, because although usa data there are cases and cases, in reality going over 5% should not be a good sign (because we must not forget that advertising costs must be add to the cost of the website, a possible commission from the search engine and personal work).