Profitability isn't about selling more, it's about selling better
Optimizing the direct channel lowers acquisition cost and raises margin. The 5 most frequent questions your hotel receives and how to answer them to convert more.
There's a very common mental trap in hospitality: believing that to make more money you have to sell more rooms.
The reality is different. Sometimes, selling better —with higher margin, through the right channel, to the right guest— is far more profitable than increasing volume.
The direct channel problem
When a traveler books through an OTA, the hotel pays between 15% and 25% in commission. When they book directly, that margin stays with the hotel.
The difference is not minor. In a hotel with an average rate of 100 USD and 50 rooms, going from 60% to 70% direct bookings can mean tens of thousands of additional dollars per year.
The direct channel isn't just more profitable. It also gives you more information about the guest, more control over the experience, and more capacity to build loyalty.
The 5 most frequent questions (and how to convert them)
We analyzed more than +2,000,000 conversations and the most frequent questions across all hotels are almost always the same:
- Do you have availability for dates X? — Respond with availability AND a value proposition, not just "yes" or "no".
- How much is the room? — Put the price in context: what's included, what advantage there is in booking direct.
- How do I book? — The process should be 2-3 steps at most. Every extra bit of friction loses conversions.
- Is breakfast included? — An upsell opportunity that most hotels miss.
- What time is check-in/check-out? — Another opportunity: offer early check-in or late check-out as an add-on service.
WeTalk: Online reputation with Álvaro Arroyal Cantera
In the next WeTalk we'll talk about online reputation with Álvaro Arroyal Cantera. A key topic: every point in your TripAdvisor or Google rating directly impacts the rate you can charge.
— Gonzalo Rioja
