The hotel industry today can no longer rely solely on walk-in guests or sales from conventional travel agents. Changes in traveler behavior have made online hotel sales a crucial factor in increasing occupancy and property revenue.
Prospective guests now search for hotels on Google, compare prices across various platforms, read reviews, view social media content, and make reservations in just a few clicks. Therefore, hotels need the right hotel marketing strategy to compete amidst increasingly fierce digital competition.
However, many hotels still make mistakes in managing online sales. Not only does this result in a decline in bookings, but it can also increase marketing costs without generating maximum revenue. Here are some common fatal mistakes that should be avoided.
1. Relying Solely on OTAs Without Direct Bookings
One of the most common mistakes in managing hotel online sales is relying too heavily on Online Travel Agents (OTAs) like Booking.com, Agoda, or Expedia.
OTAs do provide significant access to the global market and help hotels gain visibility. However, relying solely on OTAs can cost hotels direct bookings.
Every transaction through an OTA typically incurs a commission. If the majority of reservations come from OTAs, the hotel's profit margin can become smaller.
Hotels need to start developing a direct booking strategy through their official website, digital campaigns, and optimizing the customer journey to give potential guests a reason to book directly. Some strategies you can implement are:
- Providing special benefits for direct bookings
- Optimizing the hotel website for user-friendliness
- Running Google Ads to capture potential guests who already have booking intentions
- Using remarketing to re-engage potential customers
In the world of hotel ecommerce, a website is not just about providing property information; it must be a sales engine capable of generating revenue.
2. Hotel Websites Not Optimized for Conversion
Many hotels have attractive websites, but they don't necessarily generate bookings effectively. Common problems include:
- The booking button is difficult to find
- Incomplete room information
- Photos are unattractive or don't meet expectations
- The website is slow when opened on mobile
- No special offers for direct bookings
Most travelers conduct hotel research via smartphones. Hotel websites should be designed with a sales approach, not just as a digital catalog. Each page should help potential guests make a decision. For example: The room page should explain the stay experience, amenities, advantages over competitors, and why guests should choose that room. This is a crucial part of a hotel marketing strategy that many properties often overlook.
3. Not Understanding Data and Campaign Performance
The next mistake is implementing marketing without understanding data. Some hotels still focus on the number of clicks, likes, or impressions without considering whether these activities actually result in bookings. When managing hotel online sales, several metrics need to be considered:
- Website conversion rate
- Cost per booking
- Revenue from each channel
- Return on Ad Spend (ROAS)
- Customer booking behavior
For example, a Google Ads campaign might generate a lot of traffic, but if it doesn't result in reservations, the strategy needs to be evaluated.
Data helps hotels determine which channels are generating the best revenue and which are simply wasting budget.
4. Not Utilizing Paid Search Ads to Capture Demand
Many hotels focus solely on creating Instagram content or running awareness ads, but forget about potential guests who are already actively searching for hotels. In fact, someone who types:
“best villa in Ubud”
“hotel near Seminyak beach”
“luxury resort Bali”
has already shown a higher interest in making a booking. Through Google Ads and SEO, hotels can reach potential guests while they are in the purchasing decision stage. This strategy is a crucial part of hotel ecommerce because it helps connect marketing activities with actual transactions.
5. Content Not Built Around the Customer Journey
Another common mistake is creating content solely based on promotions or prices. However, tourists don't always buy because of low prices. They buy because they want an experience.
For example: Instead of simply displaying “20% Off Room Rate,” a hotel could reframe it as: “Wake up with tropical views and enjoy a relaxing Bali getaway.” Content should address potential guests' needs:
- Why should they choose this hotel?
- What unique experiences does it offer?
- What differentiates this hotel from its competitors?
The right content strategy can increase awareness and aid the booking process.
6. Ignoring Reviews and Reputation Management
Online reviews have a significant influence on booking decisions. Before making a reservation, many guests will check:
- Google Rating
- OTA Reviews
- Previous Guest Comments
- Other Customer Experiences
The mistake hotels make is focusing solely on obtaining reviews but neglecting to manage that feedback. Hotels need to:
- Respond to reviews professionally
- Identify common issues
- Use feedback as insight into service improvement
Online reputation is part of a hotel's digital assets that can impact long-term revenue. Hotels that optimize their digital channels and e-commerce will have a greater opportunity to increase direct bookings, reduce reliance on OTAs, and build more stable revenue.
In an increasingly digital hospitality industry, having the right hotel ecommerce strategy is no longer an option, but a necessity. To help hotels improve online sales performance, ecommerceloka.com provides digital hospitality marketing solutions, from channel strategy and booking optimization to revenue-driven campaign management.