Direct Booking versus Using Online Agents? A Survey Among Hotel Users and Hoteliers
UK hotels generally prefer guests to book direct. It’s more profitable and allows hotels to be in more control of their business. The problem is that many hotel users are not aware that the best deals are obtained by booking direct than through the online booking agents. It is important, therefore, that the UK public be “educated” on the benefits of direct booking. UK Country Hotels is the hotel guide that is leading this movement. We encourage visitors to our website to book direct, we are not a booking agent.
We recently commissioned a survey among both hotel guests and hoteliers to provide “hard” evidence on the current hotel booking situation in the UK. This report shows our main findings. We hope you find this useful.
Direct Booking versus Using Online Agents? A Survey Among Hotel Users and Hoteliers
A. Background Much debate is taking place today on what’s the best way for the UK public to book hotels. People who book hotels are naturally looking for the best deals. Hoteliers want to offer their guests good rates and excellent service but also want to ensure that they are profitable and viable. This is especially true of the smaller, independent properties. To assist in this discussion UK Country Hotels Ltd recently commissioned a survey among both hotel guests and hoteliers. The survey was conducted by Research For Travel Ltd.
B. Report Evaluation and Recommendations 1. Our survey clearly shows that the best way for the UK public (and overseas visitors) to get the
best hotel deals is to book direct. However the majority of these hotel users are not aware that the best deals can be had by booking direct, rather than through an online agent. These agents have done a very effective job of convincing the UK public that they offer the best deals
2. To change this situation the UK public need to be “educated” on the benefits of direct booking. Hotel guides can play an important role in this development and UK Country Hotels is one online guide that actively encourages visitors to book direct. Hopefully other hotel guides will join in this process.
3. Hotels themselves can play a vital role in driving the change towards direct booking. Reservation and reception staff in particular can help more people to book direct. They must have the knowledge and authority to offer deals to hotel users when they make direct contact.
4. The two most important factors when guests make a booking are (i) getting a good deal and (ii) a quick and easy booking process. Your staff must be able to meet these customer needs.
5. This survey has shown that the ideal way for a guest to get the best deal is via telephone contact with a hotel. As such your staff who answer the phone must be prepared to offer deals. Ideally this should be a combination of discounts off published rates and room upgrades. Staff should be aware that people making direct contact with your hotel are actually doing you a favour and enabling you to improve margins. They should be treated accordingly.
6. Many potential customers now visit booking.com, hotels.com, trivago.com etc. before they make contact with your hotel. They know the rates advertised on these websites and will be looking for you to offer something better. Your staff will hopefully have the “ammunition” to deal with this.
7. There are many hotel users reluctant to make direct telephone contact with a hotel and “negotiate”. These will often make contact with you either via your own online booking system or by email, and both these facilities should enable guests to access good deals.
8. Special offers and late deals play an important part in the direct booking process especially as this is something which the online agents cannot offer. All hotels should have an exciting range of special offers shown prominently on their websites, and also made available to online guides such as UK Country Hotels. Hotel staff must make enquirers aware of such deals
9. Many people make contact with a hotel because they like the personal touch and are often seeking further information. Your reception/reservation staff play a vital role in such dialogues and should be trained in handling guest enquiries and should have all the relevant information to answer questions and secure direct bookings.
10. Incentives for people to make direct bookings are proving very effective. A significant 85% of the hotels that offer incentives say they are successful. The two most popular are room upgrades and discounts off rates. Yet only 49% of the hotels we contacted currently offer incentives. We encourage these hotels to start offering incentives.
B. Main Survey Conclusions 1. Guests in our sample book a UK hotel 3.7 times a year on average. When booking a hotel the
most important factors are (i) they want a good deal and (ii) the booking process is quick and easy.
2. The most common ways of booking a hotel are (i) via a booking agent (56%) (ii) online direct to the hotel and (iii) telephone call direct to the hotel. 66% of our respondents say that they use online agents as they believe this gives them the best deals
3. However the hotels themselves state clearly that the best way to get the best deals are to contact them direct. 51% of hotels state that telephone contact provides the best deals and 29% say the best way is via the hotel’s own online booking facility. Only 1% of hotels state that the online agents offer the best deals.
4. Hotels can offer better deals to direct customers as they do not have to pay commissions to the agents. As a result they can offer guests discounts on room rates (often 10%) and room upgrades as well as free drinks, meals and even free car hire and free rail tickets. These incentives are proving very effective.
5. It is clear that the online agents have done a great job of convincing the UK public that they offer the best deals. However our survey has shown without doubt that the UK public should contact a hotel of their choice direct, ideally by phone. Those hotel users reluctant to “negotiate” with a hotel on the phone should make contact either via the hotel’s own online booking system or by email. They should remember that by contacting a hotel direct they are doing that hotel a favour and should expect something in return, ideally a discount and room upgrade.
6. The many thousands of independent hotels, B&Bs and pubs with rooms up and down the country tell us that they are very happy to offer their direct customers the best deals. They are very aware that the online booking agents have convinced the majority of the UK public that they offer the best deals but they know this is not the case. They are telling us that hotel users in the UK (and overseas) need to be “educated” on the benefits of direct booking.
7. UK independent hotels value the business they get via the booking agents but would like to increase the amount of direct bookings they receive. UK Country Hotels is helping them in this process as we are a guide to hotels, not a booking agent. We enable our visitors to find the hotel of their choice easily and quickly and we then encourage them to make direct contact to get the best deals.
C. The Survey
1. Hotel Booking – The Guests’ Views
The table below shows that what’s most important to hotel guests when making a booking is to get a good deal – a discount off room rates, room upgrades, free drinks etc. Others are looking for a quick and easy booking process and many like to book online. Only 17% of our sample want negotiate the lowest rates.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
OtherI like to negotiate to get the best rates
Getting the lowest room ratesI want to be able to speak to someone
I want to book onlineThe booking process is quick & easy
Getting a good deal
11%
6%
11%
14%
29%
42%
83%
Table 1: What's Most Important To You When You Make a Hotel Booking?
Their preferred method of booking is via the online agents such as booking.com, laterooms.com, agoda.com etc. They believe these organisations offer the best deals. Only 18% of our respondents are aware that direct telephone booking provides the best deals yet the majority of UK hoteliers confirm that they offer the best deals to those making direct contact.
However a significant number of hotel users are aware of the benefits of direct booking, especially in terms of getting the best deals and offers. But only 31% contact the hotels by telephone, presumably because (being British) they are reluctant talking to someone and having to “haggle” about room rates.
0% 10% 20% 30% 40% 50% 60%
Email direct to the hotel
Telephone call to the hotel
Online direct with the hotel
Via an online booking agency e.g. hotels.com, booking.com
8%
31%
41%
56%
Table 2: How do you prefer to book hotels in the UK?
0% 20% 40% 60% 80%
Email direct to the hotel
Online direct with the hotel
Telephone call to the hotel
Via an online booking agency e.g. hotels.com, booking.com
4%
12%
18%
66%
Table 3: Which booking method enables you to get the best deals?
2. Hotel Booking – The Hoteliers’ Views
The table below shows how hoteliers view the importance of the booking agents who provide a very significant amount of business to the hotels. Hoteliers’ own online booking facility is not seen as popular. However direct contact either by phone or email are important ways by which people make a booking.
The hoteliers believe very strongly that guests should book direct either by the hotel’s own online system, by phone or email. These direct methods suit the hotels as they don’t have to pay commissions to the agents, they are more profitable and they enable hotels to be in more control of their business. However these hotels also state that they can offer guests better deals if they make a direct approach. Only 5% of our sample want people to book via the online agents.
0% 10% 20% 30% 40%
OtherI don't like booking online
I like to talk to someone at the hotelI find out a lot more about the hotel this way
Its quicker and easierYou can take advantage of deals/special …
You get the best rates this way
3%
4%
17%
23%
25%
28%
29%
Table 4: Why do you prefer to book DIRECT?
0% 10% 20% 30% 40%
Other
Via our own online booking facility
Direct with us by email
Via online booking agencies
Direct with us by telephone
3%
5%
21%
34%
37%
Table 5: What is THE most popular way by which people currently book your hotel?
The table below is very important in showing clearly that the best hotel deals are obtained by direct booking. Only 2% of the hotels contacted state that the online agents offer the best deals
0% 20% 40% 60% 80%
By letter
Via an online booking agency
Email direct to your hotel
Telephone call direct to your hotel
Via your own online booking facility
3%
5%
36%
64%
69%
Table 6: How do you PREFER people to book your hotel?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Some people don't like booking onlineIt's quicker and easier for the guests
Guests can access our deals/special offersIt's quicker and easier for the hotel
It's more profitable for usWe are more in control of our business
People like to talk to someone at the hotelWe can offer guests the most attractive rates
It's more personal and friendlyWe don't pay any commissions to agents
21%
38%
38%
46%
49%
51%
52%
54%
59%
85%
Table 7: What are the advantages of people booking DIRECT with your hotel?
Hoteliers are now offering incentives for people to book direct. 51% of our sample offer incentives, mainly room upgrades and discounts off room rates, but also free drinks, bottle of champagne on arrival etc. It is important to note that 85% of hotels state that these incentives are successful in attracting more direct business.
0% 20% 40% 60%
Via online booking agencies
Direct with us by email
Via our own online booking facility
Direct with us by telephone
1%
19%
29%
51%
Table 8: Which booking method should people use to get the best hotel deals?
51%49%
Table 9: Do you offer incentives for people to book DIRECT with your hotel?
YES
NO
We asked those hotels NOT currently offering incentives for direct booking whether they would so in the future. A significant 38% said they would. Again the incentives offered would mainly be room upgrades and discounts off room rates.
Based on the above analysis it would appear that the majority (70%) of UK hotels will be offering incentives for direct booking in the future.
0% 20% 40% 60% 80%
OtherFree meals
Discounts on drinksDiscounts on meals
Free breakfastBottle of champagne
Discounts off room ratesRoom upgrades
13%
5%
5%
15%
16%
16%
63%
79%
Table 10: What incentives do you offer?
85%
5%
10%
Table 11: Are incentives successful in attracting DIRECT bookings?
YES
NO
DON'T KNOW
3. Importance of Direct Contact – The Guests’ Views
Hotels in the UK should be aware that many of their guests like to make direct contact with them before they make a booking. They are mainly looking to secure a good deal but also many simply want more information about the hotel. As such it is vital that hotel reception staff are excellent at dealing with customer enquiries and have sufficient information and authority to offer good deals when requested.
38%
43%
19%
Table 12: Would you happy to offer incentives for people to book DIRECT with your hotel?
YES
NO
DON'T KNOW
43%
57%
Table 13: Do you like to make personal contact with a hotel before you book?
YES
NO
4. Sources of Information Used When Making A Booking
The table below confirms the important role that TripAdvisor plays in the UK hotel booking business. A hefty 73% of our sample use this organisation when planning a hotel stay. Information provided by the online agents is also significant
0% 20% 40% 60%
OtherInformation on security
Information on single roomsInformation on the restaurant
Information on facilities for elderly/disabled …Iinformation on facilities e.g. spa, sports, …
Information on bedroomsTo find out a lot more about the hotel
To negotiate the best rateTo see what deals are on offer
6%
8%
12%
12%
18%
19%
30%
35%
41%
42%
Table 14: What are the main reasons for contacting a hotel?
0% 20% 40% 60% 80%
OtherMr & Mrs Smith
JohansensMichelinSawdays
The AA Hotel GuideThe Good Hotel Guide
UK Country HotelsLocal Tourist Board
Online booking agenciesTripAdvisor
8%
1%
3%
4%
6%
14%
14%
15%
23%
48%
73%
Table 15: What sources of information do you use before you book a hotel?
5. Survey Methodology UK Country Hotels Ltd commissioned Research For Travel Ltd to undertaken a survey of hotel guests and hoteliers. Respondents were interviewed online in December 2015 and January 2016. The sample of respondents was
Hotel Guests – 327
Hotels – 114
All hotel guests had made at least one UK hotel booking in 2015 as shown in the following table.
Hoteliers were independent hotels, B&Bs and pubs with rooms located in the UK countryside and by the sea. We excluded city centre hotels and those operated by the major chains
For further information contact Roger Thomas [email protected] or Roger Preece [email protected]. Telephone: 07984 022200 or 020 8747 4658
