Balancing Online Booking with Traditional Channels

There is no doubt in anyone’s mind that the travel landscape is forever changed. We’re not even talking about the emergence of the internet here, a lot of changes have occurred even after that. Previously, all the hospitality or travel company needs to do is to set-up a website. Then the users will flock into it to book their travel itinerary. Drastic changes in social media have further changed their buying behavior.

For example, on a typical day, the potential guest will look over his iPhone, browse Facebook for the latest hotel deals, and read reviews on Yahoo Travel before booking his stay. Already, there are several possible obstacles before you can boost hotel profitability. If your website is not mobile SEO ready, your establishment may not be found. Similarly, if consumers don’t see any of your special offers on Facebook but notice that of your competitor, that is a sale lost.

Statistics reflect the importance of social media in hotel booking. Internet sales now represent about $2 billion in hotel revenue according to the research from PhoCusWright. Despite these trends, it will be a mistake to ignore the Global Distribution System (GDS). It continues to play a major role in yield management. To see increase hotel sales, this channel needs to be strengthened alongside web technologies.

Travel agents continue to be important in some markets. They rely on their GDS to see information on air, hotel, and car rental availability. That’s why it’s important for these hospitality firms to provide accurate and useful information to the agent. If these criterions are met, more agents will turn to the system. Ultimately, it is not a question of whether a hotel revenue manager should forego one medium at the expense of another in the quest to generate hotel sales.

Rather, the key is to have the right mix of booking channels. The combination depends on a large part on the individual hotel. Using strategies such as Pay-Per-Click Advertising, Search Engine Optimization, and leveraging on Social Media are important. So is strengthening your ties with other players in the industry.