- No Commission to OTAs
One of the biggest reasons why hotel reservation systems have emerged as such a valuable part of the hospitality industry is because direct bookings are more profitable for hotels than bookings made through online travel agencies (OTAs). This is because direct bookings do not require hotels to pay a commission fee.
When customers book a hotel room through an OTA, a percentage of the money they pay is taken by the OTA as a commission fee. This is seen as a worthwhile expense for hotels because OTAs can help them to increase distribution. However, hotels should always prioritise direct bookings when they can, in order to maximise revenue and profit.
- Better Control Over Information and Pricing
Another reason why a hotel reservation system can be so valuable to a hotel is because it provides a greater sense of control over information and pricing. Using a hotel reservation system, clear rules can be established for setting room rates, allocating discounts, and either upselling or cross-selling.
A good reservation system can also be integrated with a property management system. This combination of hotel reservation and PMS software can then help to update information across other platforms for greater consistency and can centralise the process of setting room rates, or making changes to hotel and room descriptions.
Additionally, customer information from direct bookings can also be retained by the hotel, rather than being obtained by a third-party OTA. This then allows hotels to deliver a greater level of personalisation for each customer and allows the hotel to target customers with pre and post-arrival communications.
- Greater Customisation and Branding Potential
Through the use of a hotel reservation system to facilitate direct bookings, hotels have greater opportunities to utilise the customisation tools to brand the customer journey and present their own unique voice and perspective.
As a result, customers experience a greater level of consistency, see the booking process as more professional, and become more likely to complete the process and book a hotel room. Customers who are taken to a booking engine that does not reflect the hotel website they came from may find the experience jarring and less trustworthy.