Lower Hotel Guest Satisfaction Associated with Bookings made through OTAs

The 21st annual J.D. Power 2017 North America Hotel Guest Satisfaction Index Study was just released. The study measures overall hotel guest satisfaction and this year’s study showed that guests are more likely to be less satisfied with their stay when booking through independent travel websites.

 

Here are some key findings of the JD Power 2017 study:

  • OTA vs. Direct Booking: Guests are more likely to experience issues that decrease their satisfaction with their stay when booking through an independent travel website instead of directly with the hotel.
  • Reward Membership: 75% of hotel reward members are more inclined to book directly with a hotel than the 47% that are not members, and guest satisfaction is higher.
  • Mobile Apps and Reservations: The number of online reservations made on mobile devices has risen to 25%, up from 14% in 2014. Of these users, most are in a younger age group or business travelers. 38% of guests who have a hotel’s app on their mobile device don’t use it during their stay. Only 4% use the mobile app at check-in and only 1% at checkout but guests that do use the app show they have a greater satisfaction with their stay.
  • Loyalty: Those guests who use a hotel’s mobile app have a greater satisfaction with their stay and greater loyalty to the hotel.
  • Social Media: 86% of people who experience a problem are very likely to post to social media. Despite this, those who share their experiences via social channels appear to be more satisfied overall.
  • Hotel Reviews: 52% of guests have read a hotel review in the past month and 46% of these guests wrote a review in the past six months. Also, people who read and write reviews are more likely to have higher guest satisfaction.

An increase in mobile usage has caused a growth in mobile app services in hotels. This presents both opportunities & challenges for hoteliers. Major chains like Marriott and Hilton have launched campaigns promoting direct bookings with promises of discounts and perks.  But Phocuswright estimated that OTA’s will have increased their share of online U.S. hotel bookings to 52% by 2020.  With this growth comes the likelihood that guests will finalize their booking through an OTA rather than book direct with a hotel.

 

Bookings through OTAs are notoriously associated with lower guest satisfaction. Over the last 10 years, the CoMMingle division of Lodging Interactive has seen this come to light through our own analytics in reputation management for hotels.

One way to influence your reputation is by incorporating mobile apps into a hotel stay because it is associated with higher guest satisfaction. It makes guests more willing to share their positive hotel experiences on social media.

 

The fact of the matter is that mobile apps have become central to the guest experience. The challenge for hotels to have guests book direct are many but hoteliers can help themselves by creating and strengthening guest relationships and providing great customer service. The best way to combat dissatisfied guests who booked via an online travel site is to be armed with a strong mobile and social media strategy that will provide quick action and resolve issues. To do this, hoteliers will need to seek resources to help them know their rankings on various online sites and social media channels. With these tools in hand a hotel can get enough control over distribution to entice those direct bookings and increase revenue.