Hotel businesses are always looking for strategies to increase their own bookings and reduce those that have third-party commissions. One of the promotion schemes that contributes to this goal is the billboard effect. We tell you in detail what this industry phenomenon is about and what you should do to make the most of it.
What is the billboard effect?
You’ve probably heard this term in industry circles. It refers to the visibility impact that an advertisement can have on a business. In the case of hotels, it is a phenomenon that occurs when a hotel has an increase in direct bookings after being present on an online travel agency (OTA). This is because a potential customer finds it on the agency, but goes to the establishment’s own website for more information and decides to book there.
It seems like a contradiction, doesn’t it? You’d think that if a guest sees a hotel on an agency, that’s where they’ll make a reservation. But the billboard effect is a confirmed trend. Figures from specialized research indicate that 65% of customers who make direct reservations have visited an OTA before doing so.
This behavior is related to the fact that travelers do a lot of research before choosing their services. Expedia, one of the world’s leading OTAs, reveals that Americans make more than 100 visits to industry websites before booking. Of all these platforms, online travel agencies are the ones that have the most engagement with travelers. They get 30% of the visits.
How to take advantage of the billboard effect?
Expedia says that this impact is less effective if there are inconsistencies between what the hotel offers on the OTA and on its website. Therefore, it is key to treat these agencies as an extension of the hotel’s own website. But there are various practices that can be implemented to maximize the visibility they bring.
Optimize the direct booking process
The key element a hotel needs to take advantage of the billboard effect is a seamless direct booking experience. Everything must be done to ensure that a customer does not leave the business’s website without making a reservation.
The booking process should be:
- Clear and simple, with precise information about the hotel’s offer.
- Brief, to combat the risk that the client will find it too complicated and abandon the process.
- Don’t ask for too much information from the guest to secure a reservation.
- Avoid distracting the user with unnecessary data or information about other aspects of the service.
To achieve this, even the smallest property needs an efficient and comprehensive booking engine. At LobbyPMS you can access a demo to learn about the features and advantages of our booking engine.
Additionally, a successful direct booking system has an effective payment method. This should:
- Be completely safe and transparent, as well as simple.
- Provide the ability to view costs in multiple currencies.
- Enable multiple payment options for customer convenience. This includes instant online payment or payment at check-in. It is also advisable to offer flexible, refundable or non-refundable (but cheaper) options.
Operating an efficient and user-friendly website
One of the great attractions of OTAs for potential clients is their ease of use. If a person has searched for the hotel’s website because they saw it on the agency, it is vital that the platform itself is useful. Some non-negotiable aspects in this area are:
- Minimum loading time on each page.
- Intuitive navigation.
- High-quality content (images, videos, etc.).
- A web design that is functional on any device. This is achieved with a responsive design or a mobile website .
Business strategies
An additional mechanism to really take advantage of the billboard effect is through commercial strategies. It is necessary to offer a differential in direct bookings compared to those made through intermediaries.
One way to do this is to create packages to make the stay more attractive. An OTA may provide a discounted price, but the full price through the hotel may be seen as more valuable if it includes extras such as free parking, internet access or passes to a service such as a spa, etc.
Another way to secure direct bookings is to offer lower rates to specific groups of potential guests. This is the case of fans on social media or customers in the database, for example. The key thing is for the website to indicate that there are discounts or exclusive prices linked to direct bookings.
Extensive distribution network
Finally, the billboard effect is not limited to OTAs. While they are the sites that dominate, other online platforms can also lead to direct bookings. The main ones that a hotel should consider in its distribution strategy are metasearch engines, GDS systems and Google Business.
As you can imagine, managing all these channels efficiently is essential. To do this, a channel manager is a necessity. At LobbyPMS we integrate this and other key hotel tools into our system. Currently, you can access three months of service for the price of one! Get to know our system and use it to maximize the possibilities offered by the billboard effect.
