Why Most Hotels Are Missing Out on Website Conversion Rates and How to Turn It Around
Did you know that the average hotel website conversion rate—meaning the percentage of website visitors who actually make a booking—typically hovers below 2%? In other words, out of 100 people who visit a hotel's website, only two or fewer will make a reservation, while the remaining 98 or more will likely book elsewhere, either with a competitor or through an Online Travel Agency (OTA).
The situation is even more challenging for independent hotels, where conversion rates are even lower, ranging from 0.5% to 1.5%. What’s alarming is that many hoteliers aren't even aware of their property's conversion rates, leaving them in the dark about how effectively—or ineffectively—their websites are performing.
The Reasons Behind Low Conversion Rates
Why are these conversion rates so low? Several factors contribute to this issue, including:
Mobile-last Property Websites: In an era where mobile usage is dominant, many hotel websites are still not optimized for mobile devices, creating a frustrating experience for users.
Poor User Experience (UX): Complicated navigation, slow loading times, and cluttered designs can quickly drive potential guests away.
Sub-standard CMS and CRS Technologies: Outdated content management systems (CMS) and central reservation systems (CRS) hinder the website's functionality and the booking process.
Lack of Engaging Content: Low-quality visuals and uninspiring text fail to capture the visitor’s interest or compel them to book.
Absence of a Merchandising Strategy: Without a clear strategy and the technology to support it, hotels miss out on opportunities to upsell or highlight unique offerings.
No Reward or Guest Appreciation Program: Guests appreciate being recognized and rewarded. A lack of such programs can reduce loyalty and repeat bookings.
Market and Rate Disparity: Inconsistent pricing across different platforms creates confusion and distrust among potential guests.
Limited Special Offers: If there aren’t compelling reasons to book directly on the hotel’s website, potential guests will look elsewhere.
Many hoteliers are spending their limited marketing budgets on SEO, paid search, metasearch, online media, PR, and social media to attract visitors to their websites. Yet, they're allowing 98%-99.5% of these visitors to leave without making a booking—a significant waste of resources.
How Can Hoteliers Increase Conversion Rates in 2024?
For those struggling with a conversion rate under 2%, the solution is often straightforward: think like a booker.
Take ten minutes to step into the shoes of your ideal guest. Imagine their journey—from searching for your hotel online to making a booking. Go through the process yourself. What do you notice? Are there any frustrations or obstacles? What questions come to mind as you navigate the site? Would you be tempted to check prices on another site, like Expedia? This simple exercise can reveal surprising insights, helping you identify areas for improvement.
You can also ask a friend to go through this exercise while you observe. Watching someone else navigate your website can provide valuable feedback on the user experience.
Improving conversion rates should always be a priority, not just in 2024. Hoteliers often invest heavily in digital marketing—SEO, paid search, social media, and content strategies across various platforms—but the question remains: how can they improve bookings on their own site?
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Practical Strategies to Boost Direct Bookings
Guaranteed Best Price Policy: Implement a best price guarantee and communicate it prominently on your website and social media. If guests find a better rate elsewhere, honor it. This strategy can build trust and encourage direct bookings.
Offer Tangible Perks: Reward guests who book directly with perks like late check-out, early check-in, complimentary breakfast, or premium Wi-Fi. These benefits, often tied to loyalty programs, can be a strong incentive.
Enhance UX and Content: Ensure your website offers a seamless user experience with clear call-to-action buttons, compelling copy, and high-quality visuals. These elements are essential for converting visitors into guests.
The Central Role of Your Website in Driving Direct Business
Many hoteliers underestimate the importance of their website in driving direct bookings. Despite being the final destination for prospects driven by search, email, or social media marketing, hotel websites often present generic messages and pretty pictures rather than focusing on the visitor's needs.
Visitors come to your website for two reasons: they want to know something or they want to do something. To maximize conversions, your website should focus on providing the information guests need and enabling them to complete their desired actions quickly and easily. Anything else is simply a distraction that can lead to lower sales.
Focus on Solutions, Not Just Selling
Ironically, to drive conversions, hotel websites need to focus less on selling and more on offering solutions. By relentlessly prioritizing the customer’s needs, your website can transform from a passive digital brochure into an active driver of bookings and revenue.
In conclusion, improving your hotel’s website conversion rate isn’t just about implementing new technologies or spending more on marketing. It’s about understanding your guests, meeting their needs, and providing them with a seamless, satisfying booking experience.
