Techniques for reducing reliance on intermediaries to maximise direct sales

Reducing booking costs and creating a direct and authentic link with clients is every hotelier’s dream. Whenever a reservation goes through intermediaries such as OTAs, tour operators or travel agencies, the costs that the hotel incurs can amount to as much as 25% of the total booking, eroding profits and limiting the hotel’s potential.


The main key to reversing this trend is maximising disintermediation, that is reducing reliance on intermediaries: a mix of strategies aimed at increasing direct bookings and encouraging guests to book via the hotel’s website or another direct channel. It is not just about savings: it is an opportunity to build a personal and lasting relationship with the client by customising their experience from the first click.

Contrary to what you might think, disintermediation does not mean excluding OTAs from your online distribution, as these portals provide important opportunities for visibility: the true goal of disintermediation is to exploit the potential of all available channels, while offering advantageous conditions in favour of the direct channel.

Offering a better rate on your own website than on intermediary channels is the first crucial step towards disintermediation. However, it is important to find the right balance in defining this advantage: if the gap is too narrow, it may fail to incentivise direct bookings, while too great an advantage may mean excessive reduction in the rate on your official website, losing the opportunity to sell at the correct rate and optimise revenues.

To support hotels in defining the correct advantage, Blastness has developed the Dual Revenue Management module in its RMS system within Blastness Suite. The objective of Dual Revenue Management is to dynamically apply the correct tariff spread between direct and intermediate sales, with ‘correct’ meaning effectively achieving the hotel’s two main objectives: moving a booking from intermediary to direct, thus significantly saving on commissions, while also optimising the hotel’s total revenues.

Considering the multitude of operators present in the market, another fundamental aspect for an effective disintermediation process is constant tracking of rate distribution. To support this activity, Blastness offers advanced tools that help the hotel monitor prices across different channels:

• Parity Check OTA and Distribution Health: this tool allows you to easily and immediately track the prices on the hotel website compared to those offered by the main OTAs for any future date. A colour system (green for correct prices, red for disparities) allows you to quickly identify any critical issues, so that we can intervene and restore the correct rate reduction in favour of direct channels. The Distribution Health module also gives a quality index (or ‘health’ index) for online distribution, helping hotels to keep a constant check.
  
  
• Parity Check Metasearch: this tool extends the monitoring of the website advantage by comparing the rates of the direct channel with those of all the online channels covered by the main rate comparators. This is essential in order to identify any resales of B2B rates typically distributed by tour operators or wholesalers at lower prices than those published.

In addition to definition and monitoring of the competitive advantage, effective disintermediation also involves a series of strategic actions aimed at making the official website increasingly visible, attractive and effective for users.

1. Online visibility campaigns: active marketing campaigns on search engines and price comparators (metasearches) are essential to improve the visibility of the hotel website. The more users visit the site, the greater the possibility of conversion to direct bookings.
2. A high-performance website: the site must be visually attractive and, above all, optimised for conversion. This means it must offer a smooth browsing experience, be mobile-friendly and load quickly, providing visitors with an easy path towards booking.
3. Integrated booking systems: it is essential to have a booking system that is well integrated and equipped with tools to customise the offer. Smooth booking with tailored options increases your chances of success.
4. Exclusive terms for direct channels: Another key aspect to making the official site the best option for users is to offer exclusive terms for direct bookings with regard to rates, availability, packages and payment, or cancellation. This may include, for example, rate reductions, more flexible terms or free additional services that are not available through intermediaries.