Increasing direct bookings

Hotel group

Commissions paid to booking platforms were reducing contribution. The project aimed to grow direct bookings.

Approach

1. 01

   Frame

   We had to choose a booking strategy with an initial investment of $48,000 CAD. New annual spending had to stay below the savings and the contribution obtained.

2. 02

   Investigate

   Bookings, commissions and 300 reviews revealed two distinct uses: some guests discovered hotels on the platforms, while regulars booked there out of convenience.

3. 03

   Explain

   Two causes were examined: a little-known brand, or a less convenient direct booking path. For the existing customer base, the second problem was the one that dominated.

4. 04

   Build

   We compared a large direct discount, an awareness campaign and a simplified booking path with an offer for regulars, using the current reliance on platforms as the reference point.

5. 05

   Test

   The path was tested in two hotels for eight weeks. The threshold set in advance was an acquisition cost below $25 per booking, with no increase in cancellations. The cost came in at $24, and the direct share rose by seven points, versus one point in the control hotels.

6. 06

   Decide

   Management rolled out the path and limited paid campaigns. It kept the platforms for the guests who actually discover the hotels there.

7. 07

   Steer

   At six months, the acquisition cost had climbed back to $27. The least profitable campaigns were suspended, and monitoring was extended to cover a full season.