July 2023 Newsletter
July 2023 Newsletter
In the July 2023 Newsletter, we have a line-up of exciting news and operation methods. Firstly, we look at how OTA’s compare to direct bookings across the entire industry, and how to encourage guests to book direct. Our blog article for this month further emphasises the importance of your property’s online presence, with specific solutions to attract more direct bookings. A guide on how to create a promotion on GuestPoint is included. We look at our property of the month and Rockhampton’s number-one stay! The management tip of the month is why running an extras report is important to utilise, and finally, we conclude this newsletter with some fun accommodation trivia!
Industry News
A Trillion Reasons to Book Direct
According to The Business Research Company’s Online Travel Agent market report, the global travel market is expected to surpass a trillion Australian dollars this year. OTA revenue is projected to reach an astounding $US 1,060.01 billion by 2027. In Australia, OTAs control an estimated 85 to 90 per cent of all accommodation bookings, leaving many local providers frustrated by the significant commissions that can swallow more than half of smaller operators’ profits.
Despite public campaigns, Australian travellers continue to flock to OTAs to compare prices and search for accommodations. OTAs offer convenience, a wide range of options, and the promise of competitive deals and flexible cancellation policies. However, it’s crucial to emphasise the advantages of booking directly with accommodations.
As independent operators, we can offer the best price when guests book direct. The challenge lies in raising awareness among potential future guests, as multinationals with huge budgets, like Booking.com dominate search engines, results through substantial advertising and marketing. Nevertheless, there are management tips and strategies we can adopt to encourage guests to choose direct bookings:
- Highlight the Benefits: Educate guests about the benefits of booking directly, such as the most competitive rates, personalised customer service, and exclusive perks that might not be available through OTAs.
- Strengthen Online Presence: Invest in building a strong online presence through social media, search engine optimisation (SEO) on your property’s website, social proof (guest reviews), and targeted advertising. This enables you to compete with OTAs and engage directly with potential guests.
- Loyalty Rewards: Create loyalty programs or special offers exclusive to guests who book directly. Rewarding their loyalty encourages repeat bookings and word-of-mouth recommendations.
- Transparent Communication: Clearly communicate the impact of OTA commissions on pricing to guests. Many are unaware of the hidden costs and deception employed by OTAs. By providing transparent information, we empower guests to make informed choices.
- Support Local Businesses: Highlight the value of supporting local accommodations and keeping money within the community. Emphasise the positive impact guests can have on local economies and foster a sense of pride in contributing to local communities.
Blog Article
Importance of Your Property's Online Presence
Potential guests rely heavily on online platforms to research and plan their holidays. This is where Online Travel Agencies (OTAs) play a vital role. OTAs provide a convenient platform for travellers to compare prices, read reviews, and explore different accommodation options all in one place. With just a few clicks, potential guests can access a wealth of information about hotels and motels, making it easier for them to make informed decisions about their holiday plans.
While establishing a robust online presence is essential, hotel and motel managers must also consider the financial implications of working with OTAs. Commission fees charged by OTAs can impact a property’s profitability. These fees are deducted from the revenue generated by each booking made through the OTA’s platform. Therefore, it becomes imperative for managers to carefully evaluate the commission structures of different OTAs and select those that not only enhance their online presence but also deliver the highest profit margins.
Your website serves as a virtual storefront for your motel. It is often the first interaction potential guests have with your establishment. A visually appealing and professional website design can leave a lasting impression and instil confidence in potential guests. Ensure that your website reflects the unique character and atmosphere of your motel, using high-quality images, clear branding, and an intuitive layout.
With GuestPoint Pay, you can enjoy fast and reliable settlement, ensuring your funds are deposited promptly into your designated account. This helps maintain a steady cash flow, enabling you to meet financial obligations and focus on delivering exceptional experiences to your valued guests.
Read more about the influence your website can have on direct bookings here:
GuestPoint Guide to:
Creating a Promotion in GuestPoint
Promotions on GuestPoint can either be a percentage off, or a fixed amount off the nightly rate. Each promotion you run has a unique code entered when a new reservation is added. In this guide, we’ll show you how to create a new promotion in GuestPoint, and how to use GuestPoint promotions to your advantage!
Step 1: Setting-Up Promotions
Firstly, go to the management tab, select ‘Setup’, select ‘Standard Rates, Extras & Promotion’, then select ‘Promotions’ at the top.
Once you are here, select ‘New Promotion’ to start creating a promotion that will attract guests!
Step 2: Details
Code: You need to assign your new promotion a code. Typically, these are 4-8 characters (e.g. WINTER51, PROMO32).
Name: Give your promotion a name so it is easy for you to identify (e.g. Corporate Guest Special May 2022).
Limit Quantity: If you want to limit the number of guests that can use the Promotion Code, set a limit here. GuestPoint will let you know when you reach your limit. If the Promotion is unlimited, just leave it blank.
Book Period: Enter the date range in which a new booking must be made to qualify for this special promotion.
Stay Period: Enter the date range in which a guest must stay to qualify for this special promotion.
Web Description: If a guest enters the Promotion Code into your online booking page, they will see this description appear. You can use this to describe the promotion and any terms and conditions.
Step 3: Settings
Rate: Select the Rate(s) that the promotion applies to.
Select Promo Days: If you wish to exclude day(s) from the stay date range (e.g. weekends), you can remove the highlight on selected days of the week and the promo code will not apply on those selected days.
Discount Type: Select whether the discount is a percentage or a discount amount or a set nightly rate and enter the value.
Apply Discount To: Select whether the discount is applied to your Standard or Dynamic Rates (note this does not apply to promotions with a discount of a Set Nightly Rate).
Minimum Nights: Set the minimum number of nights applicable to the promo code.
Step 4: Save
Just click ‘Save’ to save your new promotion.
You can also remove promotions at any time by clicking the ‘Delete’ button. Once the promotion is saved, it will generate a link that you can copy by clicking ‘Copy Link’. You can paste it into emails and social media posts. Guests who click on this link will be taken directly to your booking page with the promotion details displayed.
🎉Congratulations, you have successfully created a booking promotion for your guests. This promotion will help incentivise guests to book directly through your website, rather than through OTA’s.
Promotion Idea:
We highly recommend implementing a similar promotion to the “BOOKDIRECT” Promotion to enhance your direct bookings and drive revenue growth for your property. By offering guests a 10% discount on their stay when they book directly through your website using the promo code BOOKDIRECT (or similar), you can unlock numerous benefits for both your guests and your property.
Benefits for Guests:
- Significant Savings: Guests are always on the lookout for the best deals. By providing a 10% discount on direct bookings, you create a compelling incentive for guests to choose your website over third-party online travel agencies.
- Personalised and Hassle-Free Experience: Direct bookings allow guests to enjoy a more personalised and seamless experience. They can easily communicate their preferences and special requests, such as room preferences, dietary restrictions, or additional services, ensuring a tailored stay that exceeds their expectations.
Benefits for Property Managers/Owners:
- Cost Optimisation: The BOOKDIRECT Promotion helps optimise costs by reducing or eliminating the commissions paid to OTAs. By encouraging guests to book directly, you retain a higher portion of the booking revenue, increasing profitability for your property.
- Guest Data and Relationship Building: Direct bookings provide you with valuable guest data, including contact details, stay history, and preferences. This information empowers you to create personalised marketing campaigns, target specific guest segments, and cultivate long-term relationships. By nurturing these relationships, you can encourage repeat bookings, drive direct referrals, and strengthen your brand reputation.
- Enhanced Revenue Potential: Increasing direct bookings directly impacts your property’s bottom line. With fewer commissions to pay, you can reinvest those savings into enhancing guest experiences, improving facilities, or implementing additional marketing strategies to attract even more direct bookings. This virtuous cycle of direct bookings and reinvestment can significantly boost your revenue over time.
Incorporating the BOOKDIRECT Promotion is a powerful strategy to boost direct bookings, reduce costs, and enhance guest satisfaction. By providing guests with an attractive discount and a more personalised experience, you position your property as the preferred choice for travellers, ultimately driving revenue growth and establishing a loyal customer base.
Property of the Month
Casa Nostra Motel
Rockhampton’s Top-Ranking Accommodation.
Discover the Casa Nostra Motel, Rockhampton’s finest accommodation choice. With 38 spacious rooms and villas spread across 38 acres of land. This well-managed property offers a home away from home. Enjoy free Wi-Fi, ensuite bathrooms, and undercover parking. Excitingly, the motel is expanding, adding 20+ rooms with individual kitchens.
Ranked 1st in Rockhampton by TripAdvisor, Casa Nostra Motel sets the standard for exceptional service and guest satisfaction. Experience comfort, luxury, and tranquillity at this remarkable property.
Management Tips & Tricks
Extra's Report
An Extra’s Report would typically provide information on the number of guests who availed themselves of each extra service, the revenue generated from these services, and any associated costs. By analysing this data, hotel management can gain insights into which extras are most popular among guests and which ones are financially viable or profitable for the hotel.
The “extra’s report” helps hotel managers make informed decisions regarding the pricing, promotion, or modification of these additional services. It allows them to focus on offerings that are well-received by guests, optimise their revenue streams, and ensure that the hotel’s resources are allocated effectively to meet guest preferences and maximize profitability.
Accommodation Trivia
In Which Country is the oldest Hotel in the World Located?
Clue:
I stand tall, weathered by time’s embrace, Centuries of stories I quietly embrace.
In the land of the rising sun, I reside, Where ancient hospitality takes its pride.
Seek me where hot springs flow, a serene delight, A retreat of relaxation, a beacon shining bright.
Where am I, this ancient abode? The world’s oldest hotel, history bestowed.
Answer:
Koshu Nishiyama Onsen Keiunhan in Japan is named the oldest hotel in the world.
The hotel is over 1300 years old, and the same family holds ownership for over 50 generations.
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