In today’s competitive hospitality market, Vietnamese hotels often rely heavily on online travel agencies (OTAs) like Agoda and Booking.com to generate bookings. While OTAs bring visibility, they also bring hefty commission fees and limited control over customer relationships. To achieve sustainable growth and maximize profits, hotels need to prioritize direct bookings. But why exactly are direct bookings so crucial, and how can hotels encourage guests to book directly?
Why direct bookings make a difference
Direct bookings offer a host of benefits that OTAs simply can’t match. First, there’s the obvious financial advantage: lower costs. OTAs typically charge commissions of 15-30%, significantly reducing a hotel’s revenue. By driving guests to book directly, hotels can dramatically increase their profit margins.
Direct bookings also provide hotels with greater flexibility and independence. Want to boost occupancy during slow periods? Increasing your advertising spend can quickly drive demand. Conversely, if your occupancy rate is already high, you can reduce spending, easily controlling your demand. This flexibility isn’t possible with OTAs, where visibility often hinges on their algorithms and policies.
“Direct bookings give you full control over demand and profitability—something OTAs can’t offer.”
Furthermore, direct bookings allow hotels to establish direct relationships with guests, leading to increased guest loyalty and repeat visits. By controlling the guest experience from initial contact to post-stay follow-up, hotels can ensure higher satisfaction levels.
The power of storytelling to connect with guests
To attract direct bookings, hotels need more than competitive pricing—they need compelling stories that resonate with guests. Every hotel has a unique story, whether it’s a family-owned boutique property or an eco-friendly resort committed to sustainability. Highlighting these authentic narratives helps guests connect emotionally, making them more likely to choose your hotel over competitors.
Sharing your hotel’s history or personal stories of staff members who go above and beyond can humanize your brand. Guests love authenticity, and stories are far more memorable than price points alone. A guest who connects emotionally is far more likely to book directly—and become a repeat visitor.
“Stories create emotional connections, making your hotel unforgettable and more appealing to guests.”
Effective strategies to drive direct bookings
Driving direct bookings requires a combination of smart strategies and clear targeting:
1. Define and understand your target audience: Knowing exactly who your ideal guests are—and what motivates them—is critical. Develop clear guest personas based on their preferences, motivations, and desires. When you deeply understand your ideal guests, you can create personalized marketing campaigns that directly appeal to their interests, increasing your conversion rates.
2. Optimize your hotel’s website: Your website should be attractive, user-friendly, and optimized for both desktop and mobile visitors. Guests should easily find information about your rooms, amenities, and location, along with a seamless booking experience. Clear calls-to-action and engaging images significantly boost conversions.
3. Digital marketing and retargeting: Retargeting is a powerful tool for hotels. When potential guests visit your website but don’t immediately book, retargeting ads remind them about your property as they browse social media or other websites. Retargeting targets individuals already interested in your hotel, dramatically increasing the likelihood of booking.
Additionally, leveraging platforms like Facebook, Instagram, and Google Ads to create targeted campaigns for specific guest personas can help drive quality traffic directly to your booking platform.
4. Offer direct booking incentives: Providing exclusive perks—such as discounted rates, complimentary breakfast, room upgrades, or late check-outs—for guests who book directly through your website gives them a compelling reason to bypass OTAs. Clear communication of these benefits on your website and in your advertising significantly boosts direct bookings.
“Clearly defined guest personas and targeted digital marketing campaigns are key to increasing direct bookings.”
Case study: Best Western Sonasea Phu Quoc
A practical example of successfully leveraging direct bookings is Best Western Sonasea Phu Quoc. Initially, the hotel faced significant challenges with occupancy due to high competition and OTA dependency. We partnered with hotel management to clearly define their ideal guest personas. By focusing on specific target audiences—like Vietnamese families seeking comfortable stays, and international travelers looking for luxurious beach escapes—we created tailored digital marketing campaigns.
These campaigns highlighted key experiences and hotel features aligned with each guest persona’s motivations, such as family-friendly amenities and luxury beachfront relaxation. Coupled with strategic retargeting and targeted ads on social media, the result was a notable increase in direct bookings and improved occupancy rates, even amidst strong local competition.
“Tailoring your marketing to clearly defined guest personas delivers powerful results, even in highly competitive markets.”
Quick tips for driving more direct bookings:
- Clearly define your ideal guest personas and tailor your marketing accordingly.
- Leverage digital tools, including social media and retargeting, to engage potential guests.
- Make your website intuitive and optimized for conversions.
- Offer meaningful incentives exclusive to direct bookings.
- Regularly assess and adjust your marketing strategy based on guest feedback and analytics.
Understanding your guests is key
Ultimately, successfully driving direct bookings hinges on truly understanding your ideal guests. Knowing their preferences, motivations, and decision-making factors allows you to craft targeted marketing messages that resonate deeply. When guests feel understood and valued, they’re more likely to choose your hotel directly—resulting in increased profitability and stronger guest relationships.
“Knowing your ideal guests deeply allows you to market in ways that resonate and drive direct bookings.”
By following these proven strategies, Vietnamese hotel managers can confidently shift their dependency from OTAs to direct bookings, achieving sustainable growth, greater control, and a loyal guest base. Ready to start increasing your direct bookings? Your guests—and your bottom line—will thank you.
