A woman holding a laptop while booking a hotel room, with a phone held to her ear in her other hand

Why Hotel Businesses Are Switching to Online Bookings

  • November 13, 2024

Evolving with Time in the Hotel Business: Lessons from Kodak

Kodak’s bankruptcy in 2012 is a warning about the dangers of reluctance and not adapting to the digital age. Even after inventing the first digital camera in 1975, Kodak’s leaders stuck to their film business and ignored the rise of digital photography.

For hotels, the message is clear: embrace the digital age and switch to online hotel booking system. Use online services, adopt hotel technology and respond to changing customer needs to flourish in hotel business and stay competitive.

The online hotel booking market in India

The online hotel bookings market in India is projected to grow from USD 8.12 billion in 2024 to USD 13.23 billion by 2029, at a CAGR of 10.25% during this period. This growth has been driven by increased smartphone and internet use, a growing middle class, and the impact of Online Travel Agencies (OTAs) and accommodation aggregators that make booking services more accessible for travellers.

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Guests can now book rooms easily from the comfort of their homes. This is due to technological advancements like online hotel booking system, property management system and affordable internet services. This is leading to the growth of online hotel booking services.

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Why Are Travelers Shifting Towards Online Hotel Booking?

  • Convenience: Travelers can book hotels anytime and anywhere using their phones or computers.
  • Easy Comparisons: Online sites let users quickly compare prices, features, and reviews to make better choices.
  • Instant Confirmation: Online bookings usually give immediate confirmation, so travelers know their reservations are secure.
  • User Reviews Reading reviews from other guests helps travelers feel more confident in their hotel choices.
  • Special Deals Travellers can save money as many online platforms offer exclusive discounts and deals.
  • Variety of Options Guests can choose from variety of options like budget hotels to luxury hotels on online booking sites.
  • Flexible Payments Travelers can use different payment methods. This makes online booking easier.

Online and Offline Hotel Booking System: What are the key differences?

Aspect Online Hotel Booking System Offline Booking System
Definition Allows hotels to manage bookings and room availability through websites or OTAs (Online Travel Agencies). Updates information in real-time with PMS (Property Management Systems). Involves traditional ways to book, like phone calls, emails, or in-person visits.
Booking Method Guests can book online using hotel websites or OTAs. Reservations are made by phone, email, or in person.
Real-Time Updates Shows current availability and prices automatically through PMS. Staff must manually track bookings, which can lead to errors.
Error Susceptibility Fewer mistakes due to automatic updates from PMS. More chances for mistakes because staff handle bookings manually.
Efficiency Faster booking process for guests and hotel staff. Takes more time as staff need to handle each booking one by one.
Guest Convenience Guests can book anytime from anywhere with internet. Guests must contact the hotel, often waiting longer for a response.

Why Hotels Should Focus on Online Bookings

01

Expansion in reach

Hotels can attract more and more guests if they focus on online bookings. If a hotel builds a strong presence in the digital space, people from all over the world can easily find that hotel's website. They can book rooms using travel sites and hotel booking systems. Thus, the hotel can expand its market reach by going beyond local customers if they use online hotel booking system.

02

Higher Return on Investment (ROI)

Hoteliers can save money if they use online hotel booking system as it automates the reservation process. When there is better and efficient allocation of resources and less dependency on manual process, it really saves money and leads to higher Return on Investment. Hoteliers can increase revenue using cross selling too. Example: During online booking they can promote additional services online like breakfast or spa packages etc.

03

Minimization of Manual Efforts

Why waste time and effort of staff on answering phone calls and handling manual reservations! Automation allows staff members to focus on more productive things like providing better service to guests. This increases the reputation of the hotel, develops the hotel business and generates higher revenue.

04

Guest convenience

One of the greatest benefits of online booking system is that guests can book rooms anytime and anywhere. This adds to the comfort and convenience of travellers as people nowadays prefer quick and easy transactions.

05

24*7 Availability

Online booking systems work 24*7. So, people book rooms even at 3 in the morning and it does not matter if the staff is not available offline. Thus, the hotel can capture bookings at any time even at late night. This increases the overall number of bookings to a great extent.

How Can Hotels Shift Focus to Online Bookings?

01

List on Multiple OTAs

Today hoteliers have the opportunity to list their properties on OTAs like Booking.com, Expedia, and Agoda. Now, these platforms have access to millions of people on a daily basis. Tying up with these online platforms means you also have the access to these potential guests. Thus, you can drive your bookings easily.

02

Tie up with Online Booking System or Property Management System

A good Property Management System makes sure that the hotel’s room availability and pricing are updated in real time across all platforms. This reduces the risk of overbooking. At the same time it ensures optimum booking thereby boosting revenue.

03

Increase Direct Bookings

Hotels owners nowadays have the opportunity to get a Booking Engine for their hotel website. A booking engine reduces the dependency on third party platforms and OTAs. It also saves money as the hotel owner does not need to share profits in the form of commission fee. In short, direct bookings through hotel’s website means higher revenue and increased branding of the hotel. Hoteliers can lure guests to book directly from their hotel website by giving special discounts or special services free of cost.

04

Utilization of Social Media Pages

Social Media Platforms like Facebook and Instagram are one of the best tools for branding in today’s times. Hotels should update attractive posts and give advertisements regarding special promotions on these platforms. This can drive traffic to your online hotel booking service.

05

Invest in Hotel Digital Marketing

Digital marketing tools like search engine optimization (SEO) and pay-per-click (PPC) service are excellent methods to boost traffic and get guests hooked to your hotel website. Hotels that rank high in search engines attract bookings very easily.

06

Review and Reputation Management

Online reviews can make or break your hotel's reputation. If hoteliers can get good reviews from satisfied guests, it builds trust in the online space in a very organic way. Also, hotel technologies available nowadays have mechanisms to address negative reviews (especially those posted by rivals and competitors) and manage your hotel’s reputation.

07

Why Google Free Hotel Booking Links Matter

Google’s free hotel booking links gives hotels a chance to be listed without paying for any advertisements. By enrolling in this program, hotels can increase their visibility on Google Search and Maps. Result: More direct bookings without additional costs.

Why Google Free Hotel Booking Links Matter

Google’s free hotel booking links gives hotels a chance to be listed without paying for any advertisements. By enrolling in this program, hotels can increase their visibility on Google Search and Maps. Result: More direct bookings without additional costs.

Key Benefits of Online Hotel Booking Systems

Benefits of Online Booking vs. Offline Booking

Feature Online Booking Offline Booking
Availability 24/7 Limited to office hours
Reach Global Local
Booking Process Instant, automated Manual, time-consuming
Error Risk Low Higher
Data Insights Real-time analytics Limited
Guest Convenience High (self-service) Moderate
Upselling Opportunities Integrated (during booking process) Requires manual effort

Conclusion:

Switching to an online hotel booking system is no longer just a trend. Well, its a necessity for hotels and a smart move to remain competitive. The benefits are huge--- increased reach, higher ROI, reduced manual efforts and enhanced guest experience. As technology continues to evolve, online booking systems will only become more integral to successful hotel operations.