Hotel revenue optimisation - is it time to review your distribution strategy?
Distribution options
In hospitality, your strategic distribution game plan depends on many factors.
As with most things, extremes, such as full distribution control or full revenue outsourcing, rarely build an A-game strategy.
The trick is finding the perfect balance. This involves testing, optimising and nurturing, and it takes time.
When partnering with you to build your hotel's business revenue model, we consider location, competition, repeat bookings, upselling, cross-selling, referrals, and time frames.
Cheaper properties in a high-demand environment will always fight to compete against the bigger brands and sheer volume of options. Guest turnover may be high and repeat business low, so scaling towards OTAs makes sense, but direct bookings always play a role. You never want to give up complete revenue-generating control, especially when you have your own web property.
On the other hand, rural properties uniquely placed to showcase their USPs (whether 5-star luxury, spa facilities, walking, pet care, wedding venue or otherwise) are superbly placed to compete directly on Google and maximise direct sales. Still, again, it is all about balance.
Time stops for no man, and as the seasons turn, direct sales data helps build audience segments, reduce cost per acquisition, and nurture your hotel's understanding of who it appeals to, why, and how to satisfy these guests. This empowers you to offer real value and build on this.
Partnerships
This is where partners such as Book Direct come into their own. Our focus on a hotel's traffic acquisition, booking trends, Google Ads performance, and how your business communicates its USPs and brand values can dramatically decrease acquisition costs on an average booking value over time.