5 steps to building a successful special offers strategy

Home Newsfeed FASTBOOKING News 5 steps to building a successful special offers strategy

Today’s distribution landscape makes it difficult for independent hotels to take back control of their own distribution and to stand out from OTAs. Price is the first decision criteria for travellers in the hotel reservation journey. They are looking for the best deal. Have you always wondered how to make special offers that will convert more travellers into customers?

 

Here are some simple tips so you can easily start your own pricing strategy and build profitable special offers that will help you to differentiate yourself from OTAs.

 

Let’s start by looking at what type of special offers there are:

> Discounts: offer travellers a price reduction, for example 20 percent off, or a free night
> Added Value: additional services or products included in your room rate , for example a free City Pass, free breakfast, free parking access
> Cashback reward: an amount of money or a voucher given to customers to enjoy a service, for example lunch in the restaurant, a discount voucher for an excursion that they get if they book in your hotel.

 

Based on that, let’s look at the steps you need to follow to build your special offer strategy:

 

STEP #1 Understand online travellers’ behaviours

Back to Basics! Today’s distribution landscape makes it necessary to effectively identify the main purchasing behaviours to properly address our potential customers. The act of purchasing really depends on the travel context.
Our research on more than 2000 city hotels shows that there are 4 main basic purchasing behaviours:

leisure vs business

 

For example, if you manage a city hotel this should be step 1 of designing a basic rate structure! Of course, it’s very much linked to your hotel’s strategy.

 

STEP #2 Identify your own Segmentation and create segmented offers

A simple way to define the ratio between business and leisure for your hotel is to isolate the bookings with single occupancy, naturally the majority of business travellers stay alone and the majority of leisure travellers stay accompanied. Then split those into room only and B&B to understand your guest behaviour.

image 2

 

STEP #3 Define efficient and segmented offers according to your target

Once you have more insights on customer behaviour you will be able to create segmented offers.

It is easy to make segmentation mistakes especially when we are designing a rate strategy. I remember a consulting session with a hotel located in front of Paris’s Montparnasse train station. The hotel manager thought giving free breakfast to all the clients would make a competitive advantage for the hotel, but after adopting this breakfast-included policy the reservations dropped significantly.
What happened?
That is a quite common segmentation error, since the hotel is located in front of the train station most of the clients have to catch a train before the breakfast is even open.

The hotel manager argued “but the breakfast is free” and I said, “nothing is free in this world and nobody likes to pay for a service which they cannot use, so part of your clients moved instead to a hotel where they can pay for the room only”.

Next day we reintegrated Room Only Rates and the situation went back to normal!

 

STEP #4 Build a consistent online rate strategy

You may be asking yourself: but if we only sell 4 basic rates, how can I integrate early booking, last minute or LOS discounts for marketing purposes?

Here are some simple tips to build special offers:

a. Long Stay offers: calculate the average LOS of your hotel, add 2 more days to the result and apply an extra discount.

 

b. Early booking Offers: calculate the average Lead Time of your hotel, add 10 days and apply an extra discount.

 

c. Last-minute deals. If your market has a last-minute tendency, it is important to display discounts during that pickup period to maximise results, just make sure the discount is less than the one proposed during Early Booking periods: you don’t want to make people wait for last-minute discounts.

 

image 3

 

In order to be effective, your special offers also need to be consistent – if you promise something to customers they should be able to find it in your Booking Engine. Your offer must be real and effective: that’s why you need to allocate enough inventory and enough available dates for the offer. If someone sees a communication regarding a discount, they must be able to find it. This is key to reassuring travellers during the booking process and engaging them to book on your website.

Moreover, to drive more direct bookings, you can easily create exclusive special offers only accessible with an access code, for example for corporate or even on Mobile-only to display a last-minute offer.

Last but not least: create offers not present on OTAs and only present on your hotel website to drive more direct bookings and ensure that your hotel website is more attractive.

 

STEP #5 Highlight and broadcast your offers

Highlight your special offers to show customers how much they will save, not only on your website, but also in your Booking Engine. You can also use stress marketing techniques to drive travellers into your booking funnel. For example, a countdown or a banner indicating the discount percentage or free benefits (SPA Treatment, free Parking …) you will offer them.

And remember: the magic formula is to effectively identify the different booking behaviours, establish your goals and design tailor-made offers to address each goal and of course don’t forget the cost and operational feasibility of your offers.

Screenshot

 

Let’s play!

Do you want to know more about how to easily manage special offers and stand out from OTAs? Contact us.

To help hoteliers drive more direct bookings and ease their special offers management, FASTBOOKING has launched the Marketing Campaign Manager:

More info about the Marketing Campaign Manager here

Published on: April 25, 2017
Author:
Antonio Anguiano

All post by this author

No comments yet

Newsfeed

0   1  

RT Milano 28 Febbraio 2019 - Starhotels Business Palace Stay tuned...

0   2  

RT ROYAL PLAZA MONTREUX & SPA new website is now live! powered by &

0   0  

This is DAY 3️⃣ for >> Hoteliers and partners, we are on the starting blocks at

header

Our tips to prepare your hotel website for 2019

Published on December 20, 2018

As you know, your hotel’s website is your online showcase. It is essential for your establishment’s reputation to… + Read More

As you know, your hotel’s website is your online showcase. It is essential for your establishment’s reputation to offer a web experience that meets the new habits of travelers, but that also meets SEO (Search Engine Optimization) criteria, so that you appear in a pole position on search…

Capture d’écran 2018-11-27 à 16.43.03

The Savoy launches its new independent website developed by Availpro Fastbooking Web Studio

Published on November 27, 2018

The Savoy trusted Availpro Fastbooking’s Web Studio to launch a mobile-first, fully custom, stand-alone website designed to enhance user experience,… + Read More

The Savoy trusted Availpro Fastbooking’s Web Studio to launch a mobile-first, fully custom, stand-alone website designed to enhance user experience, strengthen brand identity and showcase the hotel’s complete offering. Through striking visuals and compelling content, the new website reinforces The Savoy’s positioning message that; You don’t just Stay at The…

pcg

Pierre-Charles Grob appointed CEO of Availpro and Fastbooking

Published on November 20, 2018

Availpro and Fastbooking are continuing in their merger with the appointment of a new Managing Director. This summer, Pierre-Charles Grob… + Read More

Availpro and Fastbooking are continuing in their merger with the appointment of a new Managing Director. This summer, Pierre-Charles Grob took over as head of the two sister companies, subsidiaries of the AccorHotels group. Before taking up his new position, Pierre-Charles Grob had, since 2014, held the position of Managing…

Hotel Digital Lab Dublin: watch the conference replay!

Published on July 27, 2018

Distribution is crucial to the success of any hotel, and digital marketing for hotels is becoming increasingly sophisticated.
FASTBOOKING &…
+ Read More

Distribution is crucial to the success of any hotel, and digital marketing for hotels is becoming increasingly sophisticated.
FASTBOOKING & Availpro, in partnership with major Hospitality Industry specialists from Adroll, Facebook, Google and The Hotels Network, shared a different path for hoteliers to optimise their digital distribution to gain a…

20180706_092349

Hotel Digital Lab London – How to increase profit in a digital and data-driven world

Published on July 26, 2018

The day after Dublin, the Hotel Digital Lab 2018 edition’s European swing continued in London. Delegates converged on the plush Sofitel St… + Read More

The day after Dublin, the Hotel Digital Lab 2018 edition’s European swing continued in London. Delegates converged on the plush Sofitel St James hotel seeking advice on the best ways to leverage technology and digital marketing to increase hotel sales, and how to find a healthy balance between direct and indirect bookings.…

digital_tips_connectivity_EN

ENHANCE THE BOOKING SEQUENCE INFRASTRUCTURE RETAIN YOUR GUESTS

Published on April 11, 2018

FASTBOOKING and Serenata join forces to enhance Hotel’s Direct Booking with seamless connectivity and the best-in-class solutions.
FASTBOOKING and…
+ Read More

FASTBOOKING and Serenata join forces to enhance Hotel’s Direct Booking with seamless connectivity and the best-in-class solutions.
FASTBOOKING and Serenata join forces to enhance hotel’s direct booking with seamless connectivity all in one-stop. This collaboration will provide the hospitality industry with the best-in-class e-commerce and CRM solutions to drive…

Mockups Design

FASTBOOKING and Availpro release a “shopping guide” for ITB Berlin 2018

Published on March 5, 2018

FASTBOOKING and Availpro partnered up to deliver a first-rate guide for hoteliers shopping for new hotel marketing providers… + Read More

FASTBOOKING and Availpro partnered up to deliver a first-rate guide for hoteliers shopping for new hotel marketing providers at ITB Berlin 2018. “We’ve put together a list of the top criteria to look for when selecting the ideal hotel marketing providers in the ten most important hotel…