They are waiving with the money and screaming: Take my money!

This keeps happening to me. Not just in Czech Republic or Germany, where I live …

I’m standing at the hotel reception, having confirmed on Booking-com that they have a room available. I walk directly to the reception because I won’t make a reservation through 3rd party. After all, I’m in the business😉.

Then, the receptionist quotes me a price of €160. I tell her that on Booking-com, the price is €145. She starts explaining that to get that price, I need to book through Booking-com.

Now, it’s not customary to negotiate hotel prices directly at the desk, but clearly, if someone is taking the time to get the same or a cheaper price directly from your hotel without a middleman, you’ve WON! You’ve got a client you can own.

However, the receptionist stands her ground. She has her price list, and it doesn’t budge. €145 only through Booking-com. And no matter how much I empathize with the hotel, I also have common sense. So, while she’s preparing the key, I’m tapping on my phone and booking the room through the biggest hotel sales giant. I’m buying a room in the hotel I’m currently standing in.

For the hotel, it’s a loss of €22, which they’ll pay as a commission they didn’t have to pay. The total potential loss is €37. How many times does this happen in a week? A month? A year? How many reservations?

And yet, it’s just about:

• Price parity with Booking-com. Not just standard rates sent to OTAs, but prices after all the Genius and mobile discounts, which are applied in 99% of reservations today. If you can’t handle it technically, we’re here to help😉. It’s not easy, I know🤯😳. Anyway, I am fan of DISPARITY towards our own website and it means I am advocating with all my heart and soul for MORE direct bookings.
  
• Making the manager aware that they need to prepare the reception for this scenario. Train their team and give them the authority. I know, this isn’t a given.
  
• Constantly checking that this is happening at the reception. Yes, if everyone did what they were told, it would be easier😉.

All three reasons are the real cause. So, hoteliers, please don’t throw money out the window🙏. Every penny saved can go towards salaries, a new sauna, a kids’ corner, or a team-building event😉.

So the biggest take away? The key is to master your customer acquisition costs (CAC)
Understanding and optimizing your customer acquisition costs (CAC) is crucial for your hotel’s profitability. Here’s a quick guide:

Channel-Specific Costs:

1. Direct Bookings: Website, SEO, direct ads.
2. OTAs: Commission fees per booking.
3. Social Media: Ad spend, content creation.
4. Email Marketing: Email service costs, design

Segment-Specific Costs:

1. Leisure Travelers: Social media, travel blogs.
2. Business Travelers: Corporate partnerships, LinkedIn.
3. Repeat Guests: Loyalty programs, personalized emails.

How to calculate it?

Benefits:

1. 1. Optimize Spend: Focus on cost-effective channels.
   2. Increase Profitability: Lower costs, higher margins.
   3. Improve Strategies: Tailor approaches for better results.
   4. Regularly analyze, track, and adjust your strategies.

Need help? We’re here for you 🫶😍.