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Increase Profit Per Booking With TripConnect From TripAdvisor

13 Feb 2017

Direct guests away from OTA's and to your Hotel or Lodge's direct online booking site

 

 

 

Are you a Hotel or Lodge paying up to 25% in OTA commission to Booking.com, Hotels.com, Expedia or one of the other many OTA's?

 

Looking to increase direct bookings and reduce your commission to OTA's?

 

We recommend TripConnect from TripAdvisor.  TripAdvisor is the number 1 travel website with up to 81 percent* of guests referencing TripAdvisor before making a booking.

 

Benefits of using TripConnect, as experienced by Flourysh Clients

 

TripConnect allows direct bookings from your TripAdvisor Page to your online booking system, thereby bypassing OTA's.  By using TripConnect, an 'Official Site' Link is listed next to the other OTA's.

 

 

When a potential guest selects their dates and then clicks on the 'Official Site' button, a window opens with your online booking system displayed, allowing guests to book directly with your Hotel or Lodge.  The 'Official Site' link will only be displayed if your Hotel or Lodge has availability for the dates the guest has selected.

 

This allows Hotels and Lodges to save up to 25% compared to a booking by a guest made through an OTA listed on TripAdvisor. 

 

Costs:

 

TripConnect works on a Cost Per Click model.  Each time the 'Official Site' link is clicked by a potential guest, the Hotel or Lodge is charged a cost for the click.  This cost varies from market to market and the cost for clicks in total won't exceed your daily budget.

 

In our experience, working with clients in the hospitality industry, the Cost Per Click varies from ZAR R1.50 to ZAR 16.00 (USD 0.11 to USD 12.00).  

 

Aim for a daily budget which provides for 100% 'Global Coverage'

 

 

 

Comparison to other Cost Per Click Ad Options

 

The Cost per click compares favourably to Google Adwords, which also works on a Cost Per Click model.  For example Google suggests a bid of ZAR 14.40 (USD 1.08) for the keyword 'accommodation' when targeting South African guests.

 

Google Adwords recommends a cost per click of ZAR 14.40 for the keyword 'accommodation'

 

 

 

TripConnect has the advantage over Google Adwords in this scenario:

  • The potential guest is already viewing your TripAdvisor page and interested in staying at your Hotel or Lodge

  • The potential guest has selected dates for their booking

  • The potential guest then clicks on the 'Official Site' link and your Hotel or Lodge's Online Booking Form opens.

Flourysh recommends that clients first allocate budget to TripConnect. If a Hotel or Lodge has 100% Global Coverage on TripConnect (ie the 'Official Site' link is visible every time a person searches for dates on their TripAdvisor Page), then Google Adwords can also be implemented.

 

How to activate TripConnect:

 

 

 

To activate TripConnect:

  1. Login to your TripAdvisor profile

  2. Click on your name -> Your Business -> Name of your hotel or lodge

  3. Click Products -> TripConnect Cost Per Click (If TripConnect is not listed it means that your Online Booking System may not support TripConnect, or be incorrectly configured)

  4. Follow the prompts and enter your daily budget and credit card details

  5. Check that the 'Own Property' button is listed on your TripAdvisor page!

TripAdvisor then provides ongoing statistics for clicks by potential guests on the 'Own Property' button and costs incurred.

 

How does TripConnect Compare with Instant Booking from TripAdvisor

 

TripAdvisor has another option, Instant Booking which operates on a similar commission basis as OTA's.  Hotels & Lodges have the options of paying TripAdvisor a 12% or 15% commission per booking.  The 15% commission attracts a higher percentage of bookings.

 

 

Image Source: TripAdvisor.com

 

The commission for Instant Booking is still quite high and we recommend that Hotels & Lodges rather implement TripConnect.

 

What to consider when using TripConnect:

  • Check that your Online Booking System (e.g. www.nightsbridge.co.za) supports TripConnect.  Visit: https://www.tripadvisor.com/ConnectivityPartners to check Online Booking Systems which support TripConnect.

  • Keep an eye on Cost per Click and Daily Spend to ensure that online spend falls within budget

  • Increase your daily budget to improve the position of the 'Official Site' booking button on your TripAdvisor page.  

 

 

 

Increase Bid to be in first position ...

 

 

 

 

If budget allows, increase bid to achieve 1st position above other OTA's

 

 

  • OTA's will often drop their price, by reducing their commission, to ensure that they offer the guest the cheapest price.  If possible, aim for Price Parity whereby the 'Official Site' price is the same price as the OTA's.  Depending on your contract with the relevant OTA, you may not be able to offer a cheaper price however should be able to match the OTA's price.

* https://www.gulfshores.com/stats/TripAdvisor%20-%20Gulf%20Shores%20Digital%20Marketing%20Summit%202014.pdf

 

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