This article comes from one of Triptease's Direct Booking Coaches. Get in touch to find out how the Direct Booking Coaches can help your hotel.
What is benchmarking?
Benchmarking is a way for you to understand how you perform against your peers in terms of a specific metric. It's an analysis which allows you to determine your areas for improvement based on what your competitors are doing well.
How do you start?
For a successful benchmark, start by determining the metric you want to compare against others. What is your business focus right now? Is it your full-funnel conversion rate? Your parity? Your ability to turn visitors into searches? Whatever it may be, determine it in advance so you are sure to compare something that will be valuable to your business.
Who should you benchmark against?
At Triptease, we suggest benchmarking yourself against two groups: your peer group and the best-in-class. Your peer group is made up of those hotels which are similar to yours in a category of choosing. You could categorize yourself by region, ADR, facilities (golf resort; conference hotel), or any other factor which makes your hotel what it is. Choosing an appropriate peer group will give you a fair reflection of how you perform against the hotels most similar to your own.
The best in class are the best performers. This set of hotels forms an aspirational competitive set for you to compare yourself against. They could represent your stretch goals, your long-term ambitions or very simply give you a direction to work towards.
One of my objectives as a Direct Booking Coach at Triptease is to help my partners determine areas of improvement that they want to focus on. For instance, where are your clients dropping off your website - and why? Once you determine what your pain points are, we can drill down on what is causing the issue and what actionable steps we can take to improve.
The Triptease platform makes this really easy, allowing you to benchmark yourself against the global conversion rate, hotels in your ADR range and those in your region.
Hotel benchmarking data in the Triptease platform
Working with one of my partners, we identified that they were significantly underperforming compared to their competitive set when it came to their booking engine conversion rate. They weren't able to convert searchers to bookers as successfully as their peer group was able to.
We ran a heuristic booking engine analysis comparing their booking engine to similar hotels with better conversion rates. We came to the conclusion that there was too much information, too many rates and too many colors leading to a cluttered and stressful experience for the potential guest. We were able to determine a list of concrete actions that would have a direct impact on their booking engine conversion rate and in turn, increasing their conversion rate. These included:
Keep your rates really simple - less is more! Sometimes just a BAR and an advance purchase option is the way to go.
Ensure your CTAs are all the same color, with highlights in a complimentary color. The Book Now button is really where we want the visitor's attention to go.
Ideally, we never want to redirect the guest out of the booking funnel once they are on your booking engine.