Looking Ahead to the Connected Hotelier and What that Means for You
The following white paper was created for HX by Rich Tuckwell-Skuda, president - North America, Avvio Inc., and a member of the HX Advisory Board and the HX Exhibitor Advisory Board. Avvio is a global technology provider and the developer of Allora, the world’s first booking engine that is powered by AI (artificial intelligence).
Here is an excerpt from Tuckwell-Skuda's "The Connected Hotelier-Buyer Behavior Versus Tech Developments Versus Guest Engagement:"
We come to the guest-facing technology in your booking engine and website. It is fair to say that there are many booking engines on the market today, and if the PMS is the brain, then the booking engine is the heart and the website the soul of the operation.
Hoteliers have to stop accepting poorly performing and converting websites and booking engines out of "ease."
The math is simple. Let's use the example of 100,000 visitors and an ADR of $100. Your poorly performing website is converting visitors at 10 percent, instead of 30 percent (which would be a solid conversion rate). And, your poorly converting booking engine is converting at 2 percent, instead of 6 percent (6 percent should be the acceptable low end).
A poor performing metric equals website traffic of 100,000 divided by 10, which equals 10,000 from website into booking engine. Now a poorly performing booking engine converts 2 percent of 10,000 lookers into bookers for a one-night stay of $100, which equals 200 guests and revenue of $20,000
A solid performing metric equals 30,000 from website into booking engine. Now a solidly performing booking engine converts at 6 percent of 30,000 lookers into bookers for a one-night stay of $100, which equals 1,800 guests and revenue of $180,000. Need I say more?
I would urge any revenue director or general manager who's reading this to pull the statistics from your website to check the conversion rate. If you're achieving below 15 percent, then you really need to change to a dynamic website that's A/B tested and has engagement functionality as a minimum. Check your booking engine conversion rates. If you're returning less than 4 percent, then swap out for a more dynamic booking engine that allows you to connect to guests' emotions, but also one that converts higher and starts lowering your OTA commissions' check value.
For example, if you spent $30k on a new website, increased the commission on your existing booking engine to five percent, installed a chatbot and an anti-abandonment tool, such as the features available from Triptease, I'd guess you'd still have only spent half of your first year's additional $180k from the 'solid performance metric' and you also definitely would have lowered your OTA commission in the mix as well.
Tuckwell-Skuda has been working within the tech and hospitality industries for over 15 years, providing cutting-edge software, guest engagement, experience mapping, emotive journey marketing guidance, and marketing consultancy advice to hotel owners and groups.