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littlehotelier.com

How to play the online channels like a profor small accommodation providers

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Did you know that online travel agencies (OTAs) and meta search sites are the second most used channels in terms of hotel bookings, accounting for almost 20% of all bookings online?Partnerships with online channels can help hotels of all sizes gain a foothold into lucrative markets. Their global reach and big marketing

budgets can make travelers far and wide aware of your small hotel - and even drive direct bookings to you!

Keep reading to learn how to build positive relationships with online channels, working with them in ways that will reap benefits for your small

hotel.

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Table Of Contents

Part 1: 4 / Why small hotels need online booking sites

05 / Using booking sites to reach your ideal guests

12 / The top 10 booking sites for small hotels in 2014

14 / Taking advantage of ‘The Billboard Effect’

Part 2: 19 / How to drive reservations through online channels

21 / Tips from industry leaders Booking.com & TripAdvisor

28 / Partnering with Booking.com

31 / Partnering with TripAdvisor

Part 3: 35 / How technology can help you drive online reservations

36 / Overcoming inventory challenges

41 / Choosing the perfect channel manager

48 / Small hotels share their stories

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Why small hotels need online booking channels

Part 1.

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Why Small hotels need online booking sites

It’s an operational imperative to include online channels in your distribution plan, if you want to generate the highest possible revenues and increase occupancy rates!

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1. Travel consumer booking habits have changed Today, travelers want to be able to book affordable accommodation, quickly and with minimal effort.

› When planning a trip, 58% of travelers used booking sites as their chosen search engine to research

travel in 2013 (according to a recent study by MMGY Global/Harrison Group).

› Booking sites are the second most used channel in terms of hotel bookings,

accounting for almost 20% of all bookings online! (source)

If your property is not listed with the major, or leading booking sites then you’re sacrificing a large portion

of your potential online revenue.

TWEET THIS

TWEET THIS

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2. The billboard effect The billboard effect refers to the boost in direct reservations a small hotel

experiences as a result of being listed on booking sites. OTAs like Booking.com and

meta search sites like TripAdvisor have considerable marketing budgets and website

traffic.

Aside from the bookings they generate for hotels, they also inadvertently help to

direct “travel bookers” to a hotel’s own website. A 2009 Cornell report showed that

hotels who list their rooms on OTAs also experience an increase in bookings made

through their own hotel website.

In fact, the study showed up to a 26% increase in revenues earned from non OTA

channels just from being listed. It goes without saying that the billboard effect will

be more significant, the more popular the channel.

We’ll talk more about the billboard effect later.

YourHotel

TWEET THIS

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3. Paying commissions isn’t great, but empty rooms are worse Many independent hoteliers hesitate to list their rooms on OTAs because of the

commissions they have to pay. Although some may argue that 15 -35% of your

booking rate is a high price to pay, think about it this way: would you rather be

earning 65% of your room rate, or 0% if your room sits empty?

The majority of respondents would obviously rather earn money from their rooms,

which is another important reason to include OTAs in your hotel’s distribution

strategy.

Through an all- in- one reservation management solution, you can connect to

multiple OTAs, maximising your online exposure, without the fear of double

bookings.

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4. Meta-search engines & TripAdvisor are increasing in popularity As you have probably heard, meta-search engines like Hotels Combined, Google

Hotel Finder and TripAdvisor are becoming more popular with travelers, as they

collect all available online room rates in a single list.

The same MMGY Global/Harrison Group study showed that a growing number of

US travelers are using meta-search engines to book travel (up 28% from 15% in 2010).

And this number will just keep growing.

Over the coming months, we predict that one particular meta-search engine will

greatly increase in popularity; TripAdvisor.

TripAdvisor combines trusted consumer reviews with a comprehensive list of rates

from a variety of OTAs, making it a one-stop shop for consumers booking travel.

Why would you go anywhere else given the option of a single site for booking start

to finish? This is definitely one meta-search site that we suggest including in your

online distribution strategy.

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Using booking sites to reach your ideal guests

Each channel will have access to specific audiences, so before you choose which sites you want to partner with, you have to decide what kind of guests you want to attract to your small property.

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littlehotelier.com?Ask yourself the following questions.

Are there certain locations you would like to target?

Do you notice a pattern with your ideal guests being from a certain location? How can you make sure you increase your reach in that region? Or

maybe you’ve seen that travelers from a certain location are on the rise. One example is China which is probably the hottest market in travel right now.

Ctrip, eLong and Zanadu would be ideal OTA channel partners.

Are there certain age groups you would like to target?

Millennial travelers are a great market to invest in, because they are set to outnumber other generations by 2030 (Skift).

Whether they’re traveling for business or leisure purposes, millennials are known to be tech-savvy and have high expectations. To cater to them, you

will need a mobile optimised booking engine. Most OTAs will support this but make sure your website’s booking engine can also be via mobile.

Are there any deal sites can you partner with?

The best deal sites for small hotels are ones that offer last minute bookings. OTAs like Latestays, Lastminute, and Laterooms are great for deal -seeking

travelers. Of course, all three integrate with Little Hotelier, so all you have do is partner with them and we’ll manage the inventory for you.

When you know who you want to target, the rest is easy. Before you sign an agreement, make sure that you ask the OTA which markets they have

reach into, and whether they have a lot of small properties listed on their site. The more small properties they have, the higher the chances of actually

being booked through them.

Contact us if you want some more tips on which OTAs cater to which regions and target markets.

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GLOBAL

#10 - Hotelbeds

#9 - Ctrip

#8 - HRS - Hotel Reservation Service

#7 - Orbitz

#6 - GTA Travel

#5 - LateRooms

#4 - Agoda

#3 - Hostelworld

#2 - Expedia

#1 - Booking.com

These are the booking sites that generated the most reservations for our global customers in 2015.

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littlehotelier.com““The Billboard Effect

As a small hotel owner, you will undoubtedly come across the term ‘the billboard effect’. The ‘billboard effect’ is the ideal situation that all hotels aim to achieve when working with booking sites. It

means that even if guests discover you through an OTA or meta search site, they may ultimately decide to

book directly with you. The benefit is you raise awareness from the channel marketing your property, but

the booking is commission free.

For example, Ivan Drechsler of the Tubac Country Inn feels that the increase he has seen in his direct

bookings can be attributed to ‘The Billboard Effect’ triggered by his amplified online presence.

YourHotel

“While we have recently added another channel, we haven’t received any bookings through it yet.

However, we’ve stimulated enough interest for guests to call us, and our direct bookings from the

website are certainly more than those from the OTAs.”

Research also supports the fact that this works. When four hotels in the JHM Hotels US chain appeared on

the first page of destination results of Expedia, they saw a rise in reservations through their own websites

(between 7.5% and 26%).

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How does The Billboard Effect work?Here’s an example of your guest’s journey...

A guest uses an OTA as a search

engine to find out what properties

are available in the area

The guest filters based on price

and any other factors they feel

are important

The guest goes to TripAdvisor and

social media to find out what your

past guests are saying about you

The guest goes to your own

website to find out more

information (compare price,

see bigger photos)

The guest books with you directly

on your booking engine or calls

you up to make their reservation

That’s why it’s so important to build and manage your reputation online.

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How can you encourage The Billboard Effect?

Signing up to OTA websites helps you to be seen everywhere, but if the experience on your website is

lackluster, then you will fail to drive more direct bookings through it. Here’s what you can do.

Improve the booking process

The ease of booking directly with you needs to match if not be smoother than booking with OTAs.

Make sure it’s easy to understand what rooms are available and at what rate (don’t overwhelm with too

many choices), and that it looks and feels secure to make a booking with you.

Lower your rates to a limited audience

While you can’t publicly advertise lower room rates in order to drive direct reservations, you’re allowed

to do so to a limited audience. This means that to drive direct bookings you can offer deals to:

› Facebook fans

› Twitter followers

› Your email database

› Phone enquiries

Remember to invite people to join these audiences through calls to action on your website. Tell them

they can get special discounts and promotions unavailable elsewhere.

Package your rooms to make them more appealing

You can enhance your direct offering by adding elements like free parking, wifi, and tickets to a local

event. Your OTA may be selling the room at a discounted price, but with your full price there are extras

that are more valuable than the discount your guest would be getting if they booked with the OTA.

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How can you improve your OTA ranking?Hotel Executive reports that most travelers look through 2 3 pages of listings on OTAs.

If you’re beyond those few pages, then you risk not being seen at all.

Here’s some tactics you can use to climb to the top of the OTA ranks!

littlehotelier.com

Build up reviews

Small properties can’t rely on the solid reputation of a big brand name. This is

why positive reviews can drive OTA ranking and bookings.

Take the example of Distrikt Hotel; Review Pro reported that the hotel went from

being buried in search results to being listed on page 1 because travelers were

searching reviews and sorting by guest ratings.

It makes sense – hotels with no reviews will get less bookings, because travelers

want to hear from each other. In fact, hotels with over 50 testimonials are 1.4%

likely to get booked.

Update your content

OTAs like to rank complete profiles highly because travelers are more likely to

book them, so your small hotel’s profile needs to be as complete and up to date

as possible.

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According to Expedia,

› Full room and property descriptions (as opposed to partial descriptions)

increase your take-up rate by 5% and average daily rate (ADR) by $5.

› When you double the number of pictures you have on OTAs, it can increase your booking

rate by 4.5% and increase your ADR by $3.50. Don’t skimp on high resolution photography!

Another thing to keep in mind is the fact that OTAs will allow travelers to filter by categories like ‘free wifi’ and ‘free parking’. Make sure you are included on the appropriate filters. This ensures that travelers who are

searching for those amenities by applying a filter are more likely to see your hotel at the top of the listing

page.

Work with your market manager

OTAs usually assign market managers to you to help you get more bookings. Market managers are

chalk full of expertise and market knowledge. Remember that they work with a wide range of hotels

and they know what is and isn’t working.

Your market managers can...

› Update you on the hottest trends in your region.

› Make sure you are included in travel packages that target your preferred audiences.

› Help you with your paid advertising campaigns between your hotel and the OTA (eg. Advise you to

increase spend during high season).

This is why small accommodation providers should seek to meet with market managers regularly to

figure out the best way to accomplish their goals.

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TWEET THIS

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Tips from industry leaders Booking.com & TripAdvisor

Tips from industry leaders Booking.com & TripAdvisor

How to drive reservations through online channels

Part 2.

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The world’s largest travel site

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How can small hotel owners drive occupancy from online channels in 2015?

Booking.com:

A small hotel owner needs to ensure their property has as much visibility online as possible via their own website and through

using trusted 3rd party sites that can attract traffic. From there they need to make sure that their property is in a position to

convert this traffic into bookers. Having excellent content is crucial, understanding what the main selling points of your property

are and having clear copy and high definition photos to back this up. Ensuring that your rates and availability are kept up to

date is simple, but often gets overlooked.

TripAdvisor:

According to TripBarometer, two thirds of travelers (59%) booked their last holiday online, so it is imperative for businesses to

maximize and optimize their online presence. However, the cost and complexity of executing online marketing strategies and

optimizing online bookings can be daunting or even inaccessible for small, independent hotels.

To address this problem, TripAdvisor has developed a suite of tools and resources that allow hotels to leverage TripAdvisor’s

marketing expertise and technology to reach millions of travelers across the globe.

Upon registering their listing with TripAdvisor, all businesses are provided with a range of free tools including analytics, information resources and

promotional collateral such as widgets and stickers, all aimed at assisting businesses to enhance their listing.

In addition to the free resources provided through the Management Centre, TripAdvisor also has a suite of marketing products available to businesses

which provide further opportunities to engage with potential guests and drive bookings.

TWEET THIS

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Can you please provide us with tips on how to attract and convert travelers online through your booking site?

Booking.com:

One of the biggest tips we can give is to

provide excellent photographs of your

property. We have seen that properties

with great pictures get higher click

through rates and conversions. We usually

ask our hotel partners to provide us with

TripAdvisor:

There are a number of ways for

small hotels to improve their guest’s

engagement and conversion online.

Firstly, hotels should also be harnessing

the power of the TripAdvisor brand and

making use of the free widgets, tools

at least 24 pictures that include a bed, bathroom, lobby and other

facilities and they should be at least 2048 x 1536 pixels.

Also, the better the service at the hotel, the better the guest review

will be, which in turn will help give your hotel a higher ranking on the

Booking.com site.

and webinars TripAdvisor offers all businesses. Millions of travelers

visit TripAdvisor every month so it is critical for hotels to optimize

their TripAdvisor listing, ensuring that they have correct and current

information displayed and that they are actively managing their

online reputation.

But these days, not only is it essential to monitor what travelers are

saying about your hotel business; it’s also important to encourage

guests to share their experiences and write reviews. To facilitate this

effort, TripAdvisor offers Review Express, a free review collection

service whereby hoteliers can upload their guests’ email addresses

and send them a customizable email asking them to write a review

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TWEET THIS

about their stay (all information is private and will not shared).

Fresh content is deemed more valuable by travelers who want to read about a guest’s experience

from a few days or weeks ago, rather than from someone who visited the hotel last year and using a

service like Review Express means not only more reviews but also, more recent reviews.

Responding to reviews is one of the most important things business owners can do and is another

free tool available on TripAdvisor. A study released by TripAdvisor last year revealed that hotels

providing a management response to reviews are 21% more likely to receive a booking inquiry

via TripAdvisor than those who don’t respond to any reviews. And properties that respond to over

50% of their reviews increase their likelihood of receiving a booking inquiry by 24% (compared to

properties that do not respond to reviews).

For Business Listings subscribers, the top tips would be to ensure that they are utilizing all of

the benefits. Develop and promote special offers, use the announcements feature to spotlight

important news, display direct contact information and showcase beautiful images. Hotels should

also be using the property dashboard to gain competitive insights and make educated marketing

decisions based on the comprehensive traveler, competitor and market data and trends provided.

Now with the introduction of the TripConnect Instant Booking feature, TripAdvisor also offers

a powerful new booking channel enabling travelers to book directly with the hotel through

TripAdvisor. The bonus of this new feature is not only that the hotel owns the guest relationship from

the moment of booking but also that hotels only pay for completed stays, in a pay- per- booking

commission model.

Hotels using Little Hotelier’s Channel Manager are eligible to access this new service.

TWEET THIS

TWEET THIS

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What are the key traveler trends to look out for in 2015 for small accommodation businesses?

Booking.com:

Mobile is transforming the travel

industry by allowing bookers to be

increasingly spontaneous in planning their

accommodations. We have seen a steady

increase in mobile bookings overall and

particularly in last minute bookings made via

mobile. This led us to develop our new app

TripAdvisor:

TripAdvisor recently released the 2015

edition of TripBarometer, which looks at

the Global Travel Economy. According to

that survey, the key traveler trends small

accommodation businesses need to be

aware of in 2015:

1. Amenities continue to be an opportunity to win bookings.

Price, travel reviews and convenient location are most influential

for travelers when booking an accommodation. However, 77%

say amenities are also influential during the decision process.

Amenities that travelers find most influential when booking an

accommodation:

1. Free in room Wifi – 74%

2. Free breakfast – 60%

3. In room amenities – 58%

4. Free shuttle service – 35%

Booking Now, which allows customers to find accommodation that suits

their specific preferences in any location within 48 hours of staying there.

In 2014 we saw that more than half of all bookings within 48 hours

were made via mobile.

It is therefore important for hotels to ensure their availability and prices

are kept up-to- date on Booking.com in order to meet the demand of

customers who are booking spontaneously, no matter what platform

they book from.

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TWEET THIS

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5. Staff who speak the traveler’s language – 35%

2. Local exploration is a main motivator for choosing destinations.

When travelers worldwide were asked why they picked a particular

destination, many said that local activities, experiences and culture

are highly influential.

Common reasons for visiting a specific place in 2015:

1. It’s somewhere I’ve always wanted to go – 42%

2. It suits the holiday activities I want – 33%

3. There’s a particular attraction I want to visit – 33%

4. I love exploring the area – 29%

5. I love the local cuisine – 23%

3. Travelers are more likely to splurge on sightseeing.

Compared to other holiday expenses, sightseeing is the most

common “special treat”. In fact, more travelers are likely to spend

more on sightseeing than on shopping, souvenirs and nightlife

combined.

Here are the most common things that travelers are willing to spend

more on as a treat:

1. Sightseeing – 53%

2. Special dining experiences – 41%

3. Accommodation – 41%

4. Activities – 35%

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5. Shopping – 24%

4. International leisure trips are expected to increase by 15%

We asked travelers how many international trips they took in 2014, and how many

they plan to take in 2015. Globally, the average number is set to increase by 15% this

year.

Travelers from these countries are especially planning to increase their trips abroad

in 2015:

1. Turkey – up 58%

2. India – up 45%

3. New Zealand – up 39%

4. South Africa – up 38%

5. Brazil – up 37%

5. Twice as many travelers plan to spend more on travel in 2015.

32% of travelers plan to spend more this year than they did last year, compared to

16% who plan to reduce travel spending.

Which countries have the highest percentage of travelers increasing their budgets?

1. New Zealand – 52%

2. Thailand – 49%

3. South Africa – 47%

4. Australia – 45%

5. Argentina – 44%

TWEET THIS

TWEET THIS

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Are there any offers small hotels should consider to get more customers over the line?

TripAdvisor: Three quarters of travelers say that hotel promotions and discounts influence their booking decision, according to the

TripBarometer Global Travel Economy report. Nearly half say that special offers also have a big impact on their selection.

Business Listings subscribers can post customizable special offers on their TripAdvisor page. Considering the important role

special offers and promotions play in travelers’ booking decisions, here are a few tips for creating a successful Special Offer on

Booking.com:

There are certain options that Booking.com can offer to help get a property to get more customers over the line. There

is a service we offer called Booking Button – something hotels can add to their property website to access the booking

reservations engine. This service allows for more real- time bookings, increases revenue without any commission costs and

includes access to 24/7 customer support – all for free. Secret Deals is another option that allows our hotel partners to offer

deals to an exclusive and loyal group of Booking.com customers across various channels including Booking.com account

holders, newsletter subscribers and all mobile app users.

TripAdvisor:

Use offers to generate traffic – special offers appear on high visibility pages on TripAdvisor

Include real value – appeal to travelers’ wallets or offer an useful value add

Promote your signature amenities – highlight the best your hotel has to offer with a discounts or value adds

Make your offer easy to redeem – link guests directly to the relevant web-page

Track your results and test – learn which offers are delivering the best conversion

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Partnering with Booking.comStephen Thresh, Regional Director APAC, Booking.com

I have over 13 years’ experience in the online travel industry, starting with Active Hotels in the UK before it became

Booking.com, part of the Priceline Group. For Booking.com I managed the UK & Ireland hotels team before moving

to Sydney in 2008 to start up Booking.com Australia, New Zealand & Pacific Islands. In 2013 I moved to Singapore

as a Regional Director for Booking.com APAC. In this role I oversee the teams based in local offices across South

Asia, South East Asia and Oceania, working with our Area Managers to ensure Booking.com provides the best

service to our hotel partners.

What differentiates Booking.com in the online space from other providers?

The idea behind Booking.com is very simple. We provide an online platform where hotels and other types of

accommodations make their rooms available to prospective guests, and to facilitate the resulting reservations.

Booking.com is unusual in the online accommodation reservation sector. Unlike most competitors, we leave

our accommodation partners to manage their relationships with customers. Booking.com delivers its service

according to an ‘intermediary model’, meaning that:

› Properties remain the sole vendors of their own services.

› Prices are set exclusively by property owners, who enter and update them directly on the platform.

› In general, guests pay for their stay at the property.

› Properties only pay commission to Booking.com once the room has been stayed

in and paid for – which facilitates the properties’ own cash flow.

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This differs from the ‘merchant model’ used by many other providers, in which the provider buys rooms

from hotels and other accommodation types and sells those rooms on to customers, on the

provider’s terms. Independent hotels and other accommodation types tend to prefer Booking.com’s

approach over the traditional merchant model, which limits their flexibility.

How can Booking.com assist small accommodation owners with their overall distribution strategy?

Booking.com allows consumers worldwide to compare and choose between over 600,000 different

accommodations, including hotels, resorts, villas and guest houses. All accommodations, big or small, can

sell rooms through Booking.com for a reasonable cost.

Each of our hotel partners receives:

› Listing on an online reservation system accessible 24/7 everywhere in the world.

› A description on both the website as well the various mobile apps of their property and services

in up to 42 languages, giving a global reach otherwise impossible for many properties.

› Powerful online marketing tools to increase their visibility to a global audience. • Verified consumer

feedback in the form of reviews (about 70 customer reviews per accommodation on average).

› Access to new emerging distribution channels, such as mobile apps.

Find out how to get your property listed on Booking.com here.

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Partnering with TripAdvisor

Heather Leisman, VP Industry Marketing, TripAdvisor for Business

Heather Leisman is Vice President Industry Marketing for TripAdvisor for Business. Heather leads global marketing

to the hospitality industry, further building the sector’s understanding of what TripAdvisor can offer and helping

hospitality professionals take an active role in managing their customers’ experience.

Heather brings more than 19 years of travel industry experience to this role. Before joining TripAdvisor, Heather

served as Managing Director, EMEA for HotelTonight where she led the strategic direction and day- to- day execution

of HotelTonight operations in EMEA. Previously, Heather served as Vice President of Partner Development and

Operations at Jetsetter, where she was responsible for sales, operations and customer service. Prior to Jetsetter,

Heather worked as Senior Director of Merchandising at Orbitz Worldwide.

A travel and adventure enthusiast, Heather holds a Bachelor of Science in Economics from the University of

Pennsylvania’s Wharton School of Business. Heather resides in Boston, Massachusetts.

What differentiates TripAdvisor in the online space for small accommodation providers from other providers?

TripAdvisor is the world’s largest travel site, with 340 million unique users every month and domains in 45 countries worldwide. Now in its 15th year,

TripAdvisor is a brand that travelers recognize and rely on when planning and booking their perfect trip.

According to the recently released TripBarometer survey, 88% of global travelers say reviews on TripAdvisor are influential when choosing where to book.

The hospitality industry has understood the importance of this trend as well, with 92% of global hoteliers stating that reviews on TripAdvisor are important

for generating bookings.

Looking at stats like these, it’s clear that TripAdvisor plays an essential role in today’s travel research and planning process, both for consumers and

businesses.

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TripAdvisor is a great platform for small accommodation businesses as it provides a level playing field for all providers to access potential guests. Small

accommodations can take advantage of their presence on TripAdvisor to market their property to a huge, international audience of potential guests who

are searching for a place to stay. And regardless of the size of their marketing budget, TripAdvisor’s highly qualified traffic makes it one of the most efficient

ways a small property can attract and retain guests.

With TripAdvisor, it doesn’t matter if you are a large hotel chain or a small independent property, if you provide excellent service, you can rise to the top of

the ranking.

How can TripAdvisor assist small accommodation owners with their overall distribution strategy?

TripAdvisor offers small accommodation owners with a platform to reach and influence the booking decisions of millions of travelers worldwide.

TripAdvisor’s suite of paid marketing products are designed to be powerful channels that help convert browsers into bookers. A Business Listing

subscription allows hotels to capture direct business by putting all of the relevant property information at travelers’ fingertips: direct contact information,

special offers, announcements. It also offers a full suite of analytics tools, which help owners to get a deeper understanding of their properties’

performance on the site and identify new audiences.

TripAdvisor is also partnering with hotel technology providers, such as the Little Hotelier channel manager, to offer travelers a seamless way to book a

room directly from their chosen hotel’s TripAdvisor property page via certified connectivity partners.

TripConnect instant booking is a way for hotels to capture bookings from their TripAdvisor page, enabling bookings directly, increasing conversion,

and improving the customer experience for travelers looking to select a property and complete their reservation without leaving the familiarity of the

TripAdvisor website and experience.

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Are there any tactics like Re-marketing or abandoned reservation re- engagement tactics that TripAdvisor uses as part of your offering?

We’re always exploring new ways to enhance the user experience on TripAdvisor, both for travelers using the site to plan and book their trips and for

business owners promoting their properties to potential customers and guests.

Why is it important to use TripAdvisor in a small hotel’s online distribution strategy?

We know that independent hotels and bed & breakfast owners are interested in getting more direct bookings, but this isn’t always easy to do:

› Hotels wants to drive more bookings through their own website, but getting potential customers to their site requires

marketing – search engine optimization, advertising, social media, rewards programs – which requires dedicated spend

› For small properties, it isn’t always possible to optimize their websites for multiple languages, multiple currencies and multiple platforms

› Many independent property owners are busy running a business and don’t necessarily have

the time to manage new channels or unfamiliar marketing strategies

Small hotels can take advantage of their presence on TripAdvisor; where they can reach a huge, international potential client base who are searching

for a place to stay; where their property pages are already optimized in 28 languages and across all platforms (mobile, tablet and desktop); and make

use of the same technology provider that powers reservations on their own websites to acquire more bookings on TripAdvisor.

Hoteliers using Little Hotelier’s channel manager are eligible to participate in TripConnect instant booking on TripAdvisor by adding this as a channel

through Little Hotelier. More information about TripConnect instant booking can be found on TripAdvisor Insights.

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How technology can help you drive online reservations

Part 3.

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Overcoming inventory challengesSmall accommodation providers usually start off by selling directly to guests and

connecting to just one or two online booking sites.

But for your revenue to grow, you need to expand your distribution strategy by having more online sales channels. The trouble with ongoing channel management is it can go bad without the right tools in place!

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Bad Channel Management

Symptom 1. Tons of double bookings.

For whatever reason your inventory isn’t efficiently updated across

channels when a new booking is made.

Side effects:

› Unhappy guests, who are angry that

they have been double booked.

› Lost revenue, because you allocated 3 rooms to one of your

booking agents, but only 1 room was filled, and you turned

away 2 guests who wanted to book directly with you.

Treatment:

An all -in -one reservation system that supports channel management.

It must be tightly integrated with your distribution channels using

a pooled inventory model so you so sell the most rooms possible,

through as many channels as possible – without double booking.

Symptom 2. Incorrect booking information.

For whatever reason, you don’t get the information you need when

an online booking is made. You could get the wrong information, or

no information at all.

Side effects:

› Unhappy guests, who have lost faith in your systems

and are more than ready to leave you a bad review.

› A tarnished reputation, with travelers refusing to book

with you because of the hassle it’s caused another guest.

Treatment:

An online reservation solution that integrates tightly with a wide array

of booking sites. Ask all the right technical questions to put your mind

at ease, and speak to some of the software vendor’s customers.

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Why look for a system that integrates with lots of booking sites? The more sites you sell your rooms through, the less

chance a bad review has of making a large negative

impact on your revenue.

As you can see, attempting to distribute your rooms

across OTAs manually results in unnecessary headaches.

It’s just too difficult to effectively distribute your rooms

without a system geared for small hotels!

Let’s take a look at a couple scenarios to see how an

all- in -one booking solution fixes all of those problems.

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Scenario #1 Updating your room rates and availabilityManually:

You spend hours updating multiple websites for changes in rates and inventory, and it’s not a one- off job. In

fact, each time a booking is made on one of your sales channels, you have to make sure your availability is

reflected correctly on all of your booking sites.

What’s worse is sometimes you’re not quick enough. Things get really busy and you don’t get a chance to

update everything until hours later. You end up with unhappy, double booked guests. You consider hiring

an extra person just to make sure everyone is on the same page.

Automatically:

An all- in -one online booking solution like Little Hotelier will have channel management features, giving you

one place where you can update your rates and apply stop -sells at a click of a button.

In terms of updating availability, you don’t have to worry about it anymore. Using a pooled inventory model,

the system will automatically reduce availability when a room is booked on any one of your sales channels.

All your booking sites will display the right inventory without you having to adjust a thing! There’s no lag

time in inventory updates, so double bookings are a thing of the past.

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Scenario #2 Rescheduling guestsManually:

First of all, the reason you’re rescheduling guests in the first place is probably

because you double booked them. Your booking sites didn’t have the correct

inventory, and allowed your guest to book at the wrong time.

You try to schedule your guest in for another date – but within that time you received

another booking that wasn’t updated on your calendar! So the cycle continues. You

have to contact the guest that just booked, apologise profusely, and repeat the

process.

Automatically:

Rescheduling guests is easy, because you have full faith that the availability on your

reservations calendar is correct and up to date.

With Little Hotelier, to change a booking, all you have to do is drag and drop it to

another date or another room and it’s all done! The channel manager then updates

your inventory on all the other websites automatically, and in real time. Just like that

your rooms become available or unavailable across all of your booking channels.

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Choosing the perfect channel manager

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What is a channel manager?As the name suggests, channel managers allow properties to efficiently manage the

different online distribution channels that their property sells through.

They allow small properties to give booking sites their up to date rates and inventory,

using a pooled inventory model. This means that no matter where a booking is made

– be it direct on your website, through a third party booking site, or at your point of

sale – inventory is always up to date and you are never overbooked.

Channel managers give small accommodation providers two main benefits:

› Ability to sell the most rooms possible through as many

channels at possible (without risk of overbooking).

› Reduced admin by managing inventory and room rates from one central

place (no need to log into the back-end system of each booking site)

For travelers, channel managers allow them to instantly confirm a booking from third

party websites – typically trusted OTAs that have special rates, and whom they feel

comfortable booking with.

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How do channel managers help you?A channel manager will give you your hours back

A channel manager maintains your property’s rates and availability across numerous channels, including

your own website, simultaneously and seamlessly. It allows you to manage your bookings with ease,

change your rates and inventory, and effortlessly update inclusions for all sites, from one single point of

entry.

You might be thinking that technology like this has to come with a hefty price tag – but on the contrary, it is

completely affordable. The days of spending hours supervising calendars on multiple booking sites should

be long gone for small properties.

With a channel manager, there is no need to log into all of the booking sites you use, and fret about

ensuring you have distributed your room availability correctly or avoiding duplication. You can have

complete ease of mind as bookings occur on your various distribution avenues, as your availability is

automatically adjusted on all your sites, in real-time, with a channel manager.

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A channel manager will attract global guests for you

Giving your guests multiple ways to book your property is an essential part of increasing your occupancy.

Utilising booking sites, such as Booking.com, for example, opens the doors to global travel customers. In

fact, the ‘billboard effect’ stipulates that if you list on booking sites you have a higher chance of getting

booked directly on your website. To support this, a recent study revealed that hotels had between a 7.5%

and 26% uplift in direct bookings when listing on Online Travel Agency (OTA) websites.

Because channel managers automatically update your availability, you can distribute your entire inventory

on each of your preferred booking sites, thereby maximising your chance of selling all your rooms online

without having to worry about double bookings.

A channel manager manages your rates and availability alongside your booking engine

Facilitating the ability to book your rooms in real -time, and having confidence in instant updates of your

property’s availability, is also an essential part of increasing your occupancy.

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What should you look for in a channel manager?

Booking engine integration

The channel management software should integrate with your booking engine

so that there is one view of inventory and bookings at any point in time.

Booking engines, which are commonly known as ‘book now’ or ‘booking

buttons’, are another vital aspect of amplifying your online presence. They

consolidate and convert your direct web traffic into actual bookings.

The capability to add a booking engine to Facebook and other social media sites

is a standard feature that will provide another direct booking avenue for your

business, so make sure it is on your list.

The channel manager component will be able to manage your rates and

availability over your booking engine, alongside the other channels you use.

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Suitable long term costs

Something to keep in mind is how much this piece of technology will cost you.

There are two business models:

““

“With our old reservation system, when we wanted to branch onto anything it was an

additional add-on to the amount we contracted them for. Every time we wanted to

add another channel, it was $200 for the initial setup, and $20 per month from then on

for the connection. It was just too expensive.”

Ivan Drechsler, Owner-operator of Tubac Country Inn, a Little Hotelier customer.

› Plug and play - This is where you pay a flat fee and gain instant access to the

channel manager’s existing integration. Little Hotelier is one example. You do not

need to pay each time you want to link your inventory to any of the hundreds of

channels that Little Hotelier integrates with. You simply pay Little Hotelier a flat fee

per month for access to the technology and it is included in the cost.

› Add on - This is where you have to pay your vendor a fee each time you want to

link your inventory to a booking channel. This can be very expensive in the long run.

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Connection to lots of booking channels

Many modern hotel booking engines already have channel managers attached, but you need to make

sure that it supports the booking sites you already sell through, and also that it connects you to a heap

of new booking sites that reach different markets. For example Little Hotelier connects to hundreds of

channels.

This ensures that you will connect to as many sites as possible without ever worrying about overselling

your rooms.

Playing the web like professional online marketers becomes easy with channel management

technology. It makes distribution as simple as logging into your emails, and will change your life – for

the better!

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Small hotels share their stories

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Tubac Country Inn

“The value that we’ve seen is we’ve had more direct bookings – both over the phone and online – and a reduction in OTA bookings.

We pay our OTAs 15% commission, and we’re cutting that in half right now because more people are booking direct. That’s exactly our

strategy, so we’re very pleased about it.”

Boreale Ranch

“The biggest way Little Hotelier has helped is by saving us time and stress – and when you own a small business, there’s never

enough time. Now, everyone is on the same page because we’re all using the one system. Compared to how we used to manage our

online inventory, it’s like night and day! I love it.”

Woodman Inn

“I needed a system that could connect to external channels and make it easy for guests to find and book Woodman Inn. Little Hotelier

was much simpler to use compared to other systems and most importantly, not as costly!”

Briars Cottage Holiday Rental

“We don’t have to worry about updating reservations from our OTAs manually. Little Hotelier talks to all our Channels. Little Hotelier is

my booking engine but also my single source of truth. I couldn’t function without it.”

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Avocado SunSet B&B

“We are delighted with Little Hotelier, for us it was the final piece in the puzzle to having a fully integrated front desk and online

booking system for our B&B. It brought together email/phone bookings, web booking engine and third party booking sites under the

one recorded system. We now have all our guests’ bookings in one simple to use online management tool, giving us much better

sales and information data so we can better analyse our business.”

Cocos Castaway

“Swapping to Little Hotelier has streamlined my time in how I manage my reservations. Approximately 70% of my bookings come

through my own website or via online channels, Little Hotelier enters these bookings directly into an easy to use reservations calendar.

Little Hotelier saves me time as I no longer have to manually enter these bookings into my current booking system. As soon as I have

entered a booking into the system it updates the reservations calendar to all online channels – making it easy to keep track of my

reservations and preventing the possibility of a duplicate booking.

Paradise Motel

“We chose Little Hotelier because of its affordable pricing. There are a lot of front desk systems with channel management features,

but Little Hotelier is good value for what it costs – especially when compared to the option of trying to build it ourselves.”

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