The travel industry is experiencing exponential growth, with online sales at the heart of the boom. But, with marketplace bookings increasing by 184% over the past year, and direct bookings being struck by an 81.3% abandonment rate, the question is: who’s benefiting from this growth? Follow us as we take a look at why indirect hotel bookings are limiting your hotel’s potential, and how to drive more direct hotel bookings with email.
The internet has revolutionised the way we book and sell travel - with online travel agents (OTAs) and marketplaces, in particular, exposing hotels and locations to a broader audience than ever before. But while these indirect hotel bookings can increase your customer numbers, they come at the unfortunate expense of:
Holiday marketplaces and OTAs charge a hefty commission on all bookings made through them - directly eating away at your profit margin.
Customers booking through OTAs or marketplaces are exposed to and build trust with, the branding and customer journey of the marketplace - not yours.
Finally, travellers who book your hotel indirectly, form a direct relationship with the OTA, who can then use loyalty schemes and email marketing to encourage repeat custom through them instead of directly through you.
But OTAs and marketplaces have large budgets, huge branding, and industry dominance - how do you drive traffic away from their website and onto yours? Luckily, it’s not a case of attracting customers to your website - your hottest leads are already there. The answer to driving more direct hotel bookings is recovering those hot leads who have been lost through:
However, knowing which leads to recapture is only part of the solution; you need to know how to recapture booking leads efficiently, effectively, and cheaply - and this is where emails shine.
Cart abandonment emails have the power to recover anywhere between 10-20% of lost bookings and browse abandonment emails can boost sales by a further 3-7%. But driving direct hotel bookings require more thought and attention than simply sending an email.
A successful reservation abandonment email campaign requires:
Speed is of the essence when it comes to reservation abandonment: send an email too soon, and your customer is still busy researching the best Disney fast pass to buy - send an email too late, and your customer has already booked elsewhere and packed their mouse ears. At CartStack, our extensive research shows that emails sent within 20 minutes of abandonment are three times more likely to be opened. Add to this, a cycle of follow-up emails, and you’ll stay at the top of the booker’s mind while they carry out their research.
If that doesn’t work, don’t sweat it. 80% of travellers take longer than four weeks to complete their holiday booking – some people just need time. Plug the leads from your reservation abandonment software directly into your CRM or marketing software using Zapier, and you can continue pushing your brand until they’re ready to book.
But what are you going to say to bring back your hottest lead in those crucial twenty minutes? The content of your reservation abandonment email is your tool to impress, entice, and remind customers why they should book directly with you - and this requires:
You’re in their inbox, you’ve spoken directly to their emotions, but they’re still not budging. What else can your emails do to get someone to book directly with your website?
When 87% of lost customers would consider returning to their booking (33% within the same day), a reservation abandonment email campaign is a no-brainer. You’ve spent time, money, and effort attracting customers to your website in the first place - don’t let OTAs and marketplaces relish in your hard work. Capture leads, send emails, and split test the results using reservation abandonment software and start benefiting from direct bookings (who incidentally spend more – bonus!).