10 one-of-a-kind, independent Stash partner hotels located accross the U.S., from Seattle to Fort Lauderdale, ranging from 100 to more than 1,200 rooms.
Independent hoteliers have long been looking for ways to reduce their dependence on online travel agencies (OTAs). Why? To be included in the search results of these popular sites, hotels make agreements with OTAs, giving them deeply discounted rates that are then marked up for profit. Typically, this costs hoteliers 20-30%. The smaller, independent hotels tend to make the largest concessions, since independents don’t have the same scale or negotiating power of the chains.
To reduce their dependency on OTAs, these 10 hotels gave a special offer to guests who booked through an OTA: double points on their next stay if they joined Stash at check-in and booked direct within 6 months. They anticipated that once these guests got a taste for Stash points, they would always book direct in the future, since points aren’t eligible
Front desk associates at the 10 hotels enrolled 2639 OTA guests and gave them this special double-points offer. In just 7 months, 265 (10%) of those guests have returned via a direct booking, the majority (73%) returning in less than 1 month. 15% of these guests have returned 2 or more times—booking direct each time—for a total of 326 return stays. Return stay revenue from these guests totaled $113,571. The hotels gained more than $28,000 in revenue that would have been spent on OTA margin for these bookings. In addition to margin savings, these newly converted guests also helped improve ADR at the hotels, since reduced OTA rates negatively impact ADR while Stash point cost doesn’t impact it at all.