Take a direct approach

Further to your Strategy Clinic (Caterer, 17 August, page 58), I'm surprised nobody mentioned having a "channel conversion" strategy as being key in using third-party suppliers to a property's full advantage.

Third-party websites are inherently expensive when used to their full and a flick back, in that issue of Caterer, to Marcel Lindt's article on revpar will illustrate the folly of increasing occupancy at the expense of actual room rate, whatever measure is used.

A channel conversion strategy means you creatively look at ways to get the guests who book through one channel, such as a third-party website, to book directly with you on their next visit, preferably through your own website. The strategy should start with a good website - with repeat guest recognition, creative incentives, a good data capture system and targeted mailings, all offering real value and giving the guests what they really want (not what you think they want), all paid for by the 30%-plus you've saved from the third parties.

Without this sort of strategy, a property will soon find itself in thrall to the third parties, hating their rates but worried about losing the business.

Third parties have their place in exposing your hotel to new guests but make sure they become your guests and that your hotel does not become a pawn of the big boys.

Kenneth Sharp
Director, Triage Hospitality, by e-mail

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