Government and tourism industry campaigns encouraging consumers to book direct with accommodation providers rather than Online Travel Agents appear to be working, according to the former Managing Director of Expedia Australia, George Ruebensal.
Ruebensal now operates Karawatha Cottages in McLaren Vale, a food and wine region 45 minutes from Adelaide and says online direct reservations now account for 90% of his bookings post-COVID compared with 50%-60% previously.
“This is partly explained by the lack of international traffic – most of them book through the OTAs – but it also clear that campaigns from the SA government and South Australian Tourism Commission such as #BookThemOut have had an impact,” Ruebensal says.
He says guests often comment they have chosen to book direct instead of through an OTA because they’d rather operators get all the money and rather than having to pay commission.
As an operator, Ruebensal prefers direct bookings, doing everything he can to encourage them, yet sees no irony in his stance despite spending many years running one of the largest Online Travel Agents in Australia.
“There’s no irony at all. Part of the OTA value proposition has always been the billboard effect. It’s up to the hotel to invest in a proper website and secure online booking functionality to benefit from that,” he wrote in an email.
“The OTA will always have a better optimised site for pure conversion but we can provide better and more detailed content (as we don’t need to “box” into a one size fits all description as the OTAs have to), which is in particularly important in this market segment (short term rental), with so many unique products.
“And with that we can engage our users and get them to convert direct, in particular domestic traffic.”
He urged fellow regional operators to invest in a good website and online marketing strategy, which are essential to attracting visitors and converting them.
“Operators must have a good website to maximise bookings.”
Ruebensal says occupancy rates are running around 30% – about half what they were pre-Covid – with most customers driving from Adelaide for Friday and Saturday night.
Midweek bookings remain soft, a situation he hopes will improve with the gradual reopening of South Australian borders to and Australians begin travelling again.
ends
Georg is getting 90% of his bookings direct and running at 30% occupancy. I bet Georg wishes he was getting 90% occupancy and 30% direct… which is where OTA’s and other extremely efficient distribution platforms make the difference. Interstate and International bookings which Georg hasn’t got a hope of marketing too directly. Not to mention the thousands of Travel Agents booking through Expedia TAAP, just looking for a place like Karawatha. Georg is a believer…
Hey Stuart, interstate and international visitors haven’t been able to get to Karawatha because of border closures, that’s why they are not there in the same numbers. Has nothing to do with OTA usage or otherwise.
No point having 90% if the extra 60% or so was a dead loss is there?
OK I get it. So because the Interstate and International visitors who would normally use OTA’s aren’t booking, Georg is getting 90% of his bookings direct, (although that’s only 30% occupancy) from locals, who wouldn’t probably use an OTA anyway. So it’s because the OTA presence isn’t there, he is getting 90% ratio, not because there has been a significant increase in direct business. Trying not to be cheeky mate but that’s what you are saying.
That’s certainly a factor Stuart and it’s covered in the third paragraph.“This is partly explained by the lack of international traffic – most of them book through the OTAs – but it also clear that campaigns from the SA government and South Australian Tourism Commission such as #BookThemOut have had an impact,” Ruebensal says. The 30% occupancy is due to mid-week traffic, mostly interstate and internationals, drying up because people can’t get there due to border closures. Georg advocates the use of OTAs as a sales and marketing tool but like virtually all operators prefers direct bookings because they are more profitable.