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Are hotels leaving money on the table by ignoring direct channel?

Date:2018-05-14 12:02Source:ChinaTravelNews ReadingNumber: Times

Hotels can make the biggest impact to their bottom line with an optimized direct channel, but report found most independent properties are underinvesting and undervaluing this.

In “Hotel Distribution Data Management And Analysis,” HEDNA discovered that just 48% of independents look closely at cost of distribution. Independents were also the least likely to use analytics to make decisions about distribution (67% relied on them), compared to chains (81%) and management companies (72%).

Overall, the paper revealed something crucial: a lot of hotels just aren’t focused on the cost of distribution, or growing their direct channel. In the following post, we’ll explain why that approach can prove costly. We’ll also provide actionable strategies to help you drive more traffic and increase booking revenue through your own channel.

Put simply, if you optimize your hotel’s distribution costs, you’ll bring in more profit. But hotels commonly focus only on revenue and number of bookings, and ignore other important metrics. As a result, the direct channel becomes far less effective. Potential profits are left on the table.

Most hoteliers understand that bringing in more direct bookings (compared to relying on high-commission OTA bookings) will ultimately help increase profits. But there appears to be a general disconnect in how to achieve this goal.

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