Every month, when I read my market segment report I get very excited because direct bookings seem to be in the rise. We trade with an average occupancy of 79% a year and like any other resort in the Maldives, a big chunk of business comes from intermediaries (tour operators, consolidators, travel agents, third-party websites etc etc). Over the last three years more and more customers are booking their holiday directly with us through our website or calling us directly.

Now the trend has gone up from 2% to an astonishing 32% of the total occupancy. Now, you may be wondering what we are doing differently – well, many things. But I will not be able to talk about it here and leave it for you to find (if you can) through your market intelligence. In the Maldives we don’t openly talk about business trends, risks, implications, profits, losses etc. In this case, it might be difficult to find about what is happening in the market place, but there is no looking back for you need to know, everything and anything you can, about the industry to propose and execute a successful business plan.

While I leave you wondering, I thought of sharing this article to refresh your mind;

Unlocking the power of your hotel website
For accommodation providers, the direct guest is always the best guest. Unlike bookings through intermediaries, the direct guest (booking through your own website) incurs little overhead and represents lowest cost of sale. With stiff competition, hotels need to move more to direct business and lower their dependence on indirect sales. Utilizing proper technology and online marketing can unlock the power of a hotel website to maximize that business.

With travel portals, a hotel is listed in categories and risks becoming “commoditised”, unable to project its individuality appropriately, which may lead to its unique brand being eroded. Effectively the hotel does not own the customer relationship in this case. While hotels may get significant business from these channels in the short term, the long term consequences for the hotel business and brand is at risk if the hotels fails to build a comprehensive direct online strategy. When selling directly, the hotel lowers its booking costs, remains in control of their brand projection online and the customer is their customer, thereby improving return business.

Gearing up for online business
With over 50% of leisure bookings to be made online by 2010 (PhocusWright – US), the direct business is there for the taking if hotels embrace the internet and give it due priority. The US-based Marriott group boldly invested millions in their online presence and now generate over 80% of their business directly through their website. This could be the norm, but the majority of hotels have yet to wake up to the potential they can realize.

The key requirements for a hotel are:
Good quality, attractive, customer-focused website that provides real information and is regularly updated.
Effective optimization of the website content and structure to ensure search engine natural listings placement.
Customer-targeted and constantly monitored online advertising.
Leading edge booking system that not only facilitates quick customer booking with ease, but crucially projects confidence and security to the customer.
Systems that report back and allow you to plan and adjust

It’s all about visibility
Hotels need their website seen before they can take on the challenge of growing their direct business. Search engine optimization (SEO) is critical to ensure hotel websites are properly constructed for best search engine placement. Additionally, search engine marketing (SEM) is key to ensuring effective online advertising. However, it is all critical that these activities are reported on and monitored for return on investment, making it important to chose a technology solution that incorporates these services.

Towards the Future
The online customer is rapidly evolving and Web 2.0 phenomena such as social networking are making their presence felt in the travel sector as it moves to embrace the technologies with what’s termed the Travel 2.0 revolution. A recent (November 27, 2007) Sunday Times Top 100 travel sites was dominated by travel review sites and blogs – not the usual travel portals – as online users increasingly want to converse about their experiences and book direct. Ultimately, the customer is the business driver and nowhere more so than in Tourism.