Last Minute Strategies to Maximize Direct Sales on your Hotel Website
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November 12, 2024
In a market as competitive as the hotel industry, where last-minute bookings can make the difference between meeting or missing occupancy targets, a robust and well-thought-out strategy is essential. Impulsive bookers are a key segment that can contribute significantly to your hotel's performance, especially in periods of low demand. Here's how you can implement tactical actions to stimulate Last Minute sales through your direct channel, maximizing occupancy and revenue per stay.
1. Offering Discounts on Existing Public Rates
One of the easiest and most effective ways to incentivize last-minute bookings is to apply a direct discount on already available public rates. This not only attracts customers looking for a good deal, but also creates a sense of urgency, especially if available rooms are limited. It is important to emphasize the timeliness of the offer to motivate customers to act immediately. You can use tools such as a timer on your website to highlight this urgency. Examples of messages that can increase conversion include: "Today only...", "Flash offer", or terms such as "Bargain", which are effective in capturing the customer's attention and converting visits into bookings.
2. Create an Exclusive Rate for the Last Minute Campaign
Developing a new, exclusive rate designed specifically for the Last Minute campaign is another effective tactic. This rate could include additional benefits such as free breakfast, spa access, parking, or a room upgrade, in addition to an attractive discount. The design of this rate should focus on offering added value that stands out from the competition while incentivizing conversion. As an exclusive offer, it not only increases the attractiveness of the proposition, but also generates a sense of exclusivity and urgency, crucial aspects to convert visitors into bookings. Examples of names for these rates could be "Last Minute Rate" or "Getaway Promo".
3. Device, Channel and Market Discount Strategy
In an environment where mobile devices are increasingly prevalent, it is critical to segment your discount strategy to maximize its effectiveness. For example, offering additional discounts for bookings made from mobile devices can capture those customers looking for quick deals while on the go. This approach not only improves conversion rates, but also reinforces your hotel's mobile presence. In addition, adjusting discounts according to channel (direct on the web, social media, etc.) and market (domestic or international) allows you to customize the offer according to the customer profile, which is essential to optimize conversion in different segments.
4. Temporarily Close Non-Refundable Rates and Promote Flexible Rates
To maintain a competitive ADR (Average Daily Rate) and avoid excessive rate devaluation, one may choose to temporarily close non-refundable rates and keep flexible rates open with Last Minute discounts. This approach not only protects the hotel's profitability, but also offers guests a more attractive and secure option, especially for those who prefer to have the option to modify or cancel their reservation if necessary. This change in rate structure can be especially attractive in times of uncertainty, where travelers value flexibility.
Remember that it is crucial for hotels to comply with current regulations, such as PSD2which has a direct impact on payment management and security in online transactions. Roiback offers solutions such as its payment management platform that ensure compliance and optimize direct sales.
5. Optimization of the Booking Process
A critical aspect for Last Minute conversion is the ease and speed with which a customer can complete their booking. A complicated booking process or one that requires too many steps can result in lost sales. Make sure your website's booking engine is optimized for a smooth and frictionless booking process. Implement simplified forms, fast and varied payment options, and ensure that the mobile version of your website is perfectly optimized. The user experience must be a priority to engage the customer at that critical decision point.
6. Inventory Management in the Direct Channel
A well-structured inventory management strategy is essential to maximize direct sales, especially in the context of Last Minute offers. By using advanced tools such as Wavyssa RMS (Wavycat)which apply artificial intelligence to optimize pricing and manage demand, an effective tactic is to manage inventory availability dynamically based on hotel occupancy. For example, when the hotel reaches a certain percentage of occupancy, such as 70% or 80%, you can close the sale of rooms in external distribution channels (such as OTA's) and reserve the last units exclusively for direct sale through the hotel's website.
This strategy not only encourages direct bookings, which are often more profitable, but also allows you to better control the average daily rate (ADR) and avoid dependence on intermediaries. By channeling last-minute demand to your own website, you can offer slightly lower rates or add exclusive benefits that appeal to customers, without the need to pay commissions to third parties.
In addition, by limiting availability in other channels, you create a perception of scarcity that can incentivize quick action on the part of the customer. The key is to constantly monitor occupancy levels and adjust availability across channels to maximize both occupancy and profitability.
7. Effective Communication of the Last Minute Strategy
Implementing a Last Minute strategy is not enough if it is not properly communicated. To maximize impact, it is crucial to use various communication channels:
- Newsletter: Segment your database and send personalized newsletters highlighting the offer and providing a direct link to the booking engine with the specific dates of the promotion. Remember to omit from the mailing list customers who already have a confirmed reservation to avoid unnecessary cancellations.
- Positioning on the Web: Make sure the offer is well positioned on the hotel website through pop-ups, banners, or a specific offers section. Visibility is key to capture the attention of visitors.
- Marketing Campaigns: Integrate the Last Minute offer into the hotel or chain's marketing campaigns, using ads on social networks such as Instagram, TikTok and YouTube, which are sources of inspiration for many travelers, and of course on Google Ads, trivago or Tripadvisor, to drive qualified traffic directly to the booking page. Campaigns should be designed with a focus on urgency and exclusivity.
8. Analytical and Continuous Tuning
You can't improve what you don't measure. Be sure to use analytics tools to monitor the performance of your Last Minute campaigns. Look not only at conversion rates, but also at customer behavior, such as time spent on page, cart abandonment rates and the most effective traffic sources. Based on this data, adjust strategies in real time to maximize results. This measurement and adjustment cycle is critical to optimizing the effectiveness of your campaigns.
9. Adapt the Strategy to the Needs of your Hotel
It is vital that each hotel evaluates its specific needs before launching a Last Minute campaign. These campaigns should only be implemented in periods where occupancy does not reach the desired levels. They should also be of short duration, to maintain exclusivity and avoid becoming the norm, which could affect the perception of the hotel's value. The real strategy lies in identifying the dates when a hotel needs to fill rooms and then acting with precision, implementing the right tactics and communicating them effectively to attract Last Minute customers.
Conclusion
Last Minute sales can be a powerful tool for your hotel if managed correctly. Offering strategic discounts, creating exclusive rates, segmenting by device, channel and market, temporarily locking in non-refundable rates, and managing inventory wisely are just a few of the tactics that can help maximize last-minute bookings without sacrificing ADR. However, the key is to effectively communicate these offers and tailor the strategy to the specific needs of each hotel.
By implementing these strategies with precision and agility, your hotel can make the most of its direct channel, optimizing occupancy during those critical moments when every booking counts.
Thousands of hotels have already seen a significant increase in their direct bookings by implementing these strategies, as shown in Roiback's success stories. Roiback success stories. If you need help, do not hesitate to write us and we will be happy to boost direct sales on your hotel website through these and other strategies, always guaranteeing the best conversion with the right booking engine for your needs.