Asia-Pacific is fertile ground for ambitious hoteliers; more and more travellers are flocking there every day seeking new and unique experiences. A new report by Triptease focuses on one of the best ways to capitalise on that; finding new strategies to increase direct bookings.
The report, Spotlight on… Direct Bookings: Asia-Pacific, explains how the dominance of OTAs, which accounts for roughly 70% of the APAC online hotel market (according to Phocuswright), is affecting hotels in the region. The report states that on average, OTAs undercut rates on hotel websites by an average of 11.4%. A country-by-country breakdown reveals an even more dramatic problem in countries like Thailand, Vietnam, and Malaysia.
So, driving direct bookings continues to be a pressing concern for most hoteliers. The report provides insights and advice by industry experts, including WIT founder Yeoh Siew Hoon and Triptease’s own data, on how hotels can grow significant revenue through direct bookings.
Triptease’s data revealed the average undercut rates throughout APAC
One method that Triptease’s report focuses on is identifying instances of “OTA undercutting”. It is believed to not only reinforce the assumption that OTAs are cheaper than booking direct, but it also reduces consumer trust in a hotel’s brand. Instead Triptease recommends using its own Direct Booking Platform, which provides real-time log of price undercutting, and helps hotel to manage price parity more effectively.
Triptease also offers simple solutions to implement that could drive greater user engagement on a hotel’s own platform. For example, it explores how to succeed in mobile with a responsive site and optimised paid search campaigns. Plus, the report advises that hotels invest in better UX design (user experience), to find ways to make a website, app or other platform appealing and easy to use. It also recommends that hotels invest in presence on metasearch, particularly those that list the very OTAs that are siphoning off more share.
Beyond that, using chat to boost conversion and social to increase engagement on the most relevant platforms in each respective markets will do wonders to build brand awareness more generally.
Finally, Triptease lays bare the secrets to customer relationship management, whether your hotel has an advanced automated system or a manually updated database. Finding ways to collect and collate data on guests without resorting to old-fashioned surveys, then devoting time and resources to analyse this data is the perfect way to craft more personalised experiences, which could then foster loyalty. This could be crucial for winning over Asian millennials, a group that accounts for 60% of the world’s millennials and which craves personalised and unique experiences.
The Direct Booking Movement may have a long way to go in Asia-Pacific, but there is plenty hoteliers can do to ensure their future is a bright one. As Siew Hoon Yeoh observes, “There’s huge upside for growth coming from new markets in Asia-Pacific. These are exciting times for those willing to experiment and innovate.”
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