Hoteliers eye online channels to boost occupancy, revenue

With competition among hotels increasing, many hotels have started focusing on marketing through online solution providers.

The hoteliers, who were limiting their online activities to having their hotel´s webpage and relying on business from some online travel agents (OTAs) until a year ago, are now entering into agreements with online booking solution providers and getting direct online booking. Online booking channels like agoda.com and booking.com are drawing interests of flashy star hotels and small tourist class hotels alike.

FastBooking, a French Firm which introduced service to Nepal through Voyage Villa less than a year ago, is already associated with more than two dozen hotels. The firm is focusing more on independent hotels and is helping hoteliers manage all their online marketing and sales and improve the hotel´s website visibility.

Santosh Upadhyay of Tibet International Hotel said they were receiving around 50 percent of booking through online channels. “In the initial years, we are focusing on our webpage only. Now, we have started exploring other channels and looking into ways to boost our online visibility,” he said, adding that the easy access of Internet and affordable gadgets were making online booking easier for guests.

Hoteliers said one of the major reasons behind focusing on online marketing was the stronger revenue side. Pratik Shanker, manager at Shanker Hotel, said although the overall booking was not so encouraging, the business was stable because of FITs movement mainly received through online channels. “Guests, who book through online channels, get better rates as they pay directly to the hotel. It is beneficial for both sides,” he added.

Raj Kumar KC, operation manager of Hotel Barahi, Pokhara, said the hotel was focusing on online marketing not just to increase occupancy but also to ensure timely payment and better tariff. “As the guests coming via online channels make advance payment, there is no problem in payment collection,” he said, adding that guests were also getting better tariff as hotels won´t have to put aside margin for travel agents.

Although online booking channels are bringing only FITs, hoteliers say they are one of the major contributing factors in their overall business.
“Although we are still relying on travel agents when it comes to group movement, the online marketing has already become an integral part of hotel industry," KC added.

source: republica,10 March 2013