Everyone knows that online hotel bookings have grown significantly in recent years. Voice reservations have declined, but there are still significant opportunities for all hotels regardless of their sectors and segments.
Certainly, the most significant opportunities to generate more revenue exist at resorts, boutique hotels, independents and non-traditional lodging companies. Hotels with a diversity of accommodations generate lots of calls from those who are experiencing “choice overload” and "fear of missing out." However, even at branded, select-service properties, there is a lot of money being left on the table when voice inquiries are overlooked.
Unfortunately, many revenue and marketing leaders buy into the myths such as that younger generations hate talking on the phone because they were raised in the digital era, and that it’s only the older folks, who are said to not be techno-savvy, that still call.
Being in the business of providing remote scoring of recordings of real-world reservations calls, our team at KTN has a unique opportunity to listen in on the actual conversations taking place at diversity of our lodging clients every day. Based on what we hear, I can say for sure that these myths need to be busted.
The motivation to call versus book online is driven more by the travel situation than birth year. In other words, even Gen Z and millennial travelers still call when they have special needs, requests or when they are emotionally engaged with their travel plans. For example, we have a lifestyle hotel brand where the average guest demographic is late 20s to early 40s, and the voice channel still contributes over 40% of the brand's direct bookings.
Similarly, don’t underestimate the tech skills of the baby boomer generation, because boomers are truly the ones who have grown up with tech, and who had to figure out how to make it work “plug-and-play!” Those 70-somethings know how to work their iPads, and when we hear them on the phone it’s obvious that they have already shopped online.
Another myth that’s begging to be busted is that those online reservations just magically show up, but the truth is that there’s an interplay between voice and online channels.
Again, there’s evidence in the recorded conversations where we often hear callers say “I’ve just got a quick question about …” rates, fees, parking, pets, location, room features or amenities.
Unfortunately, too many reservations and front-desk staff simply answer these questions, missing a huge opportunity to convert a caller who is shopping on an online travel agency, save a commission and win a book-direct guest for life.
The best way to verify the interplay of voice and online channels is to take what I call the “Doug Kennedy Challenge!” Simply pull 15 to 20 online bookings, then research the phone number in your cloud-based phone records. If you use a call recording or tracking platform, this is easy. If you don’t, chances are your 800 carrier can provide access online to records of inbound numbers. Chances are that most have called at least once.
If you manage a midscale hotel under a major brand flag and don’t have a direct 800 number, go and ask your front-desk staff how many calls they get with questions, and then remind your team that these are booking opportunities.
Or better yet try this: Have a friend call your hotel and say they are shopping on an OTA, and they have a question about a room type, then see how your staff handles this. Chances are they will simply answer the question rather than saying “I can secure that reservation for you right now.” Don’t believe me? Contact me directly for a free sample of shop calls. Often, our mystery shoppers even hear the front-desk staff politely suggest that the caller will find the best deals at OTAs.
There’s yet another reason why voice bookings are missed: Many web developers hide the reservations phone number or display it in a tiny font, especially on mobile websites.
Some brands even blatantly discourage phone calls, then claim to hotel owners and franchisees that they are doing all they can to encourage direct bookings. For example, while writing this article, I called Marriott 800 reservations. First, I had to endure an offer for a branded credit card. Then after confirming that I needed to book a new reservation, the prompt said something like: “I can send you a text message to quickly and easily book your reservations at Marriott.com. Hotel rates and availability are the same.”
Do they ever stop to consider where people get the 800 number before calling? The Yellow Pages? This is not only a bad distribution decision, but also, to me at least, it feels like an insult to the caller’s intelligence.
All of this should not be surprising, as many revenue and distribution managers spend a disproportionate amount of time focusing on electronic channels, inadvertently neglecting voice. Conferences for associations and brands rarely, if ever, have sessions on managing the voice channel. And yet, which channel produces the highest average daily rates? Which channel is best for upselling to higher-rated room categories and revenue-generating packages? Which channel, when managed well, can best be used to cross-sell amenities and services? Which channel provides the best opportunity to truly build brand loyalty for your individual hotel location?
As always, I shall end with some suggestions from our KTN training programs:
- Post your phone number prominently with a callout that says: “Contact Us Directly” or “Call Our In-House Team.”
- Train your staff to realize that “quick questions” are actually leads in disguise. Train them to ask “Do you already have a reservation? I can assist you with that right now.”
- Hire a professional mystery shop company to keep everyone focused.
- Calculate the potential value of a voice inquiry. Then consider the return on investment if each staff member booked even just one more per day.
- Consider adding an incentive for each direct booking. Even only a few dollars will be far less than an OTA commission, and you will secure a future book-direct guest.
Doug Kennedy is president of the Kennedy Training Network, Inc. Contact him at doug@kennedytrainingnetwork.com.
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