Half of hotel-bookers still call for reservations

Tuesday, 05 May, 2005 0

The internet may be emerging as the preferred method of making hotel reservations, but hold on. About half of hotel-bookers still call directly for reservations.

“Close to 70% of reservations for most hotels in the US are still made directly to the hotel location, compared with the 30% that is now split between toll-free CRO requests and internet reservations,” said Don Farrell, founder and chairman of Signature Worldwide, a business and training company.

“Web reservations are still not for everyone…in fact not even for the majority,” he said.

He attributes these numbers to the fact that the hospitality industry is in the service business.

“True levels of service are hard to communicate through a computer screen,” he said.

His advice is not to disconnect toll-free numbers or send front desk reservation agents home at this time.

“The internet has opened up a world of opportunity for hotels that recognize it as an additional way for consumers to communicate with you, not a replacement for consumer preferred sales channels,” he said.

He says the internet has changed the way business is being conducted by providing more information and price-comparing abilities. “It has also created a savvy and more demanding customer,” he said.

From a reservations standpoint, he said, it has created a situation where hoteliers need to look at making all of their distribution channels work together and provide consistent service no matter what the mode of communications.

“By providing your guests with multiple, integrated and service-oriented options, you’re letting them know that no matter what channel they use, their needs will be met,” he said.

He found comparisons to the retail business which found that speed and service-concerned internet buyers still wanted a live reservations staff.

“Your human capital is still your greatest asset,” he said.

Report by David Wilkening



 

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