Hospitality Today Aug-Sep 2016 - Page 12

Value of direct website book is “nearly double” those thro 12 | Hospitality Today | Aug/Sept 2016 The average booking value hotels are realising on their direct websites is nearly double the value they are receiving from third-party booking channels, the cloud technology provider SiteMinder reveals this month. The finding is based on the 43.5 million reservations that passed through SiteMinder’s technology over the 12 months ending June 2016 to generate US$16 billion in revenue for the company’s 22,000 hotel customers around the world. An analysis of the year-long data found that the average reservation was US$340 through SiteMinder’s Channel Manager, which streamlines reservations made on more than 350 largely third-party booking websites, while the average reservation was US$600 through SiteMinder’s Internet booking engine, TheBookingButton, which facilitates bookings on a hotel’s own website. “Invest to maximise direct bookings” SiteMinder’s MD Mike Ford says the finding highlights that hotels should be investing heavily in ensuring they have a balanced approach to distribution and that they are focusing on their direct booking strategy in order to maximise direct conversions and therefore profit. “Our data shows that hotels globally are achieving 1.8 times more, on average, for accommodation booked via their own direct website than via OTAs and other third-party channels. While we can’t forget the reach these third-party sites provide to hotels, it’s important to note that direct bookings are not only achieving higher value overall but there is no commission payable on them so they are very much more profitable,” says Mr Ford.