Email Lists
The importance of growing your own database of customers, as well as a few home truths…
The biggest issue for accommodation providers is that as soon as you sign up to an online booking company and you start paying commission (currently around 12% on average) you have opened your business up to allow these companies to take direct bookings you would have normally received. It was my understanding initially that these sites were designed to attract new business not pirate the business you were already going to get…
Do you really know what you’ve let yourself in for?
Online Advertising Myth.
Once you’ve signed up with of the 3rd party booking sites you know doubt believe that you are making your business completely accessible to the online marketplace. And you are… but in name only! In reality, these sites hide your contact details and your e-mail address so that it’s impossible for customers to contact you direct.
The ‘Using Your Name’ Ploy
How many times do customers arrive at your premises thinking they have booked directly with you but actually they have booked via an agent’s site? Online booking companies, such as Expedia, will take the liberty to list you on other sites. You will know nothing about this of course, but if and when someone does book via these sites, you must pay them 12% commission
The Great Pay-Per-Click Con
Did you know that you may regularly be the victim of underhand PPC tactics designed to steal away your direct bookings?
Check this out for yourself: Google your hotel name and town and, hey presto, although your business may be listed, there’s a strong chance that above it, in a larger, sponsored link, is “booking.com/your hotel name”.
Now, imagine a Customer does exactly the same search. Unfortunately, although your Customer was looking for your business by name with plans to book direct, he or she will very possibly click the first obvious link and end up booking via Booking.com. It makes no real difference to the customer at this stage, however this stolen’ opportunity will cost you 12% for the pleasure!
The TripAdvisor Trick
TripAdvisor doesn’t automatically display your website details or phone number so that people can contact you! Why? Because this site is fully-owned and operated by Expedia – a tremendous touch of wizardry on the part of the world’s biggest online booking corporation!
If TripAdvisor truly was a consumer-driven site and completely unbiased in its approach, then surely it would include direct contact details or at least have weblinks for free? It also wouldn’t be reliant on advertising and affiliate income. But, hey! Parent company, Expedia, is one of the 12% or more bunch who work extremely hard to direct traffic to their or other high commission booking agents!
Even if you do pay the large fee to put your contact details on TripAdvisor, they place this above the compare prices box connecting to all those 12% agents!
What you can do….
Well up until recently there was quite a bit you could do if you were aware of your rights. However once a few businesses caught on that they could challenge the use of their business name as a keyword for paid Google adverts (PPC) by these 3rd party sites, Google changed the rules. You would need to do your own research , however what we believe is correct is that if you have a business name that is “copyright” then you can ask Google to stop allowing other parties using your business name in their Paid advertisements or as a keyword for searches. (Messy right!) This would at least stop them directly marketing to people/past customers who directly search for your business.
You could remove yourself from all of these types of sites, however that is almost impossible and currently detrimental to your business.
What I would be doing is ensuring you get the complete contact details from all of these types of bookings including email and mobile phone numbers when they arrive for their stay. By gaining complete contact details you then place your business in a position to actively market back to these guests for future bookings. Actively remarketing over time whether it be by email newsletters, email blasts or Mobile phone marketing (SMS) means you can at least gain an additional return from the commission rates you are currently paying.
Please note this is a not a gripe simply an eye opener for many in the industry. What you choose to do with this information is entirely up to you. Should you wish to discuss some of the issues above feel free to call or email me. To gain a further understanding of the power these organisations now hold have a look at this site http://fairerfees.com/ where some of the above contentwas sourced.
Get your copy of “The Official Internet Marketing Guide for Australian Hotel and Resort Operators” (valued at $697.00) FREE! Click Here and then Simply Enter Your NAME and EMAIL. On receipt of your details we will post a copy to you.
If you would like to know more about the other services we offer, then talk to our team. We pride ourselves on delivering “Done for You” Hotel and Resort Marketing Solutions that work.
It isn’t Sexy and it works … Increase your bookings with these simple steps
As I write this article I want you to do a bit of research before you read any further. Go back over the last 2 weeks and look at how many direct enquiries you have had to your business, the number of emails sent back to them and then of course the sales/bookings that generated as a result.
If you closed or converted 90% plus of your enquiries (Well Done), you are not charging enough!!
If you closed or converted around 50% then there is significant room for improvement!
Now what I believe the number most of you will see will be closer to 30% and possibly less…
Leads and enquiries are a critical success factor to any business and just as vital to your industry. So why do you treat them with such flippancy, not really placing value on them as you should? If you consider the amount of money you spend every month on marketing and advertising (which is considerable) do you think you are maximising the return from that spend? Here’s an example.
Imagine you spend $1000 a month on advertising. That spend generates 3 direct enquiries a day (approx. 90 a month) which means each lead is costing you $11.00. Now remember you haven’t got a booking yet!
Assuming the conversion rates to bookings above:
- 90% means you should receive 81 bookings so each booking costs you $12.34 (you all wish)
- 50% means you should receive 45 bookings at a cost of $22.22 each (maybe 20% of you)
- 30% means you should receive 27 bookings at a cost of $37.04 each (where most of you are)
This is not meant to dishearten, but simply to inspire as there are so many things you can do to increase your conversion rate. In fact the quickest way to grow your business is to focus more of your effort on the leads you are currently receiving rather than trying to attract a lot more.
If you assume that an average booking above was for $100. Then revenues just from your current leads would look like this depending on your conversion rate.
Case 1: $8100 Case 2: $4500 Case 3: $2700
The difference in revenue is huge. Now remember that the difference in income is only related to how well you handle the initial enquiry…
Let me ask you this question: What could you do right now at little or no additional cost to increase your conversion rate of enquiries to bookings?
Here is a small list to consider, and I would be prepared to guarantee if you put these in place into your business you will see bookings and revenues grow accordingly:
- Reply to all enquiries quickly (straight away if you can as people have probably sent out a number of booking requests)
- Make sure your email response includes additional information about the property not just rates. Use images, links back to the website as well.
- Update people on upcoming events to get them across the line.
- If you can – it will increase conversion rate massively, pick up the phone and call them.
- Schedule a follow up call or email follow up a couple of days after the initial email asking if they are ready to book or what additional questions they may have.
- Follow Step 5 until they tell you to stop (often can take up to 8 times before people decide)
- Place contact in your Database whether they book or not
- Ensure they receive at a minimum a monthly newsletter from you to maintain relationship
What we do know is that a lot of people who do enquire end up doing nothing so the stronger the relationship you develop with them the higher the likelihood of them booking with you in the future.
Now take some action – apply the key points above and monitor the changes.
I hope this has given you some insight into how to improve bookings from the enquiries you currently receive. If it’s more enquiries you need that is a different story, and one our business can assist you with.
Get your copy of “The Official Internet Marketing Guide for Australian Hotel and Resort Operators” (valued at $697.00) FREE! Click Here and then Simply Enter Your NAME and EMAIL. On receipt of your details we will post a copy to you.
If you would like to know more about the other services we offer, then talk to our team. We pride ourselves on delivering “Done for You” Hotel and Resort Marketing Solutions that work.
Make Your Website an Email List Building Machine
Everybody knows one-sided relationships never work. The same is true with websites. If a website is focused entirely upon you, you will lose any visitors that may stumble across it.
On the other hand, a website done correctly (one that focuses on the visitor) can easily become a lead capturing machine!
So as you are considering building or redesigning your website think carefully about how to collect people’s details when they visit your site. There are many schools of thought on how this should be done.
Now remember people are visiting your site for a reason and typically want to do something. Give your visitors something to do. Give them something free to download. Let them register for an online competition giveaway (eg Holiday promotion). Ask for their opinion on a blog entry.
Do something, anything, and once the person responds, you “Require” the following information: name, and email. Are they a qualified lead yet, maybe not but over time they may become a great customer through smart email marketing strategy. I’ll discuss auto-responders in my next blog.