The problem of guests canceling their hotel bookings and instead opting to book through Online Travel Agencies (OTAs) poses a significant challenge for hoteliers. This trend not only disrupts occupancy forecasts and revenue management but also diminishes direct bookings, which are more profitable for hotels. Guests often perceive OTAs as offering better deals and more flexibility, leading them to cancel direct bookings in favor of OTA reservations. This behavior is fueled by the aggressive marketing strategies and perceived convenience of OTAs, which can include last-minute discounts and broader visibility. As a result, hotels face increased commission costs and a weakened relationship with their guests, undermining efforts to foster loyalty and enhance the guest experience.
We have developed a number of ways hotels can reduce cancellations as much as possible.
Meta Ads to People Who Have Converted Before Their Stay Day to Highlight the Benefits of Booking Directly:
Steps:
- Audience Creation:
- Create a custom audience in Meta Ads (Facebook and Instagram) from your customer database, focusing on those who have previously booked but have not yet checked in.
- Use data such as email addresses or phone numbers to match these users on Meta platforms.
- Ad Content:
- Highlight benefits such as loyalty points, exclusive discounts, complimentary services, or flexible booking policies.
- Include testimonials or reviews from customers who enjoyed these benefits.
- Ad Format:
- Utilize carousel ads to showcase multiple benefits.
- Use video ads to create engaging content explaining the benefits.
- Timing:
- Schedule these ads to run in the weeks leading up to the customer’s stay to keep the information fresh and relevant.
Meta Ads to People Who Have Returned to the Site After Booking but Before Their Stay:
Steps:
- Audience Creation:
- Use website custom audiences to track users who have visited your site after booking.
- Implement Meta Pixel on your booking confirmation page and all subsequent pages to capture this data.
- Ad Content:
- Promote upsell opportunities such as room upgrades, special packages, or dining reservations.
- Provide useful information like local attractions, events, or travel tips.
- Ad Format:
- Dynamic ads that personalize content based on the user’s previous interactions.
- Single image or carousel ads highlighting different upsell opportunities or useful information.
- Timing:
- Trigger these ads immediately after they revisit the site to capitalize on their current engagement.
Cancellation Intent Popups with Offers:
Steps:
- Implementation:
- Install an exit-intent popup tool on your website that triggers when users navigate towards the cancellation page or exhibit behaviors indicating they might cancel.
- Offer Design:
- Provide offers such as a discount on their current booking, free add-ons (e.g., breakfast, spa access), or flexible cancellation policies.
- Messaging:
- Craft persuasive copy that addresses common cancellation reasons (e.g., cost, uncertainty) and highlights the value of the offer.
Email Triggers for People Returning to the Site After Booking but Before Staying:
Steps:
- Automation Setup:
- Use your CRM or email marketing tool to set up automated email triggers for customers who revisit your site after booking.
- Email Content:
- Provide information on available services, special deals, or things to do in the local area.
- Encourage add-ons or upsells with personalized recommendations based on their booking details.
- Personalization:
- Use dynamic content to tailor emails to each guest’s preferences and booking history.
- Timing:
- Send these emails shortly after the user returns to the site to keep the interaction relevant and timely.
In Summary:
You can never get rid of cancellations entirely but you can do a lot to reduce them. Not all cancellations are lost to the OTA’s but the vast majority land up there. Trip stacking, OTA trust disparity and OTA offers are the biggest root causes but these strategies help a lot to overcome a lot of these challenges!
