Unlocking Success: A European Hotel Group Journey to Boost Direct Bookings by 265%

How a Leading European Hotel Group Boosted Direct Bookings by 265%

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One of Europe’s largest family-run hotel groups found themselves increasingly reliant on Online Travel Agencies (OTAs) and struggling with low website traffic in 2019. With a portfolio of over 150 hotels spread across multiple countries, the group aimed to enhance their digital presence and regain control over their online revenue streams. The brand-level performance metrics such as Average Daily Rate (ADR), Length of Stay (LOS), and conversion rates were not being reflected effectively in their reporting.

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Determined to make a change, the hotel group partnered with myhotelshop’s Full Management Service to drive direct bookings and reduce dependence on OTAs. Over the span of four years, their website revenue skyrocketed from €23 million in 2019 to €92 million in 2023, while their hotel portfolio continued to grow.

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"Through our collaboration with myhotelshop and their expertise, we were able to increase our direct bookings by 265%. Transparent reporting has provided us with valuable insights into key performance indicators, allowing us to make data-driven decisions."

— CEO, Anonymous Hotel Group

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Positioning for Long-Term Success in the Digital Arena

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To achieve long-term success, the hotel group set ambitious but attainable goals. As an e-commerce partner, myhotelshop worked with them to develop strategies and implement measures that would support sustainable growth and profitability.

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The first priority was driving more traffic to their websites. Increasing online visibility and attracting new target audiences were crucial steps in boosting revenue. Conversion rate improvement was the second key focus. By continuously optimising the website and booking engine for seamless user experience, the goal was to increase turnover and maximise the value of each visitor.

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The shift toward direct bookings was a cornerstone of the strategy. By reducing dependence on OTAs, the hotel group significantly lowered distribution costs and captured a larger share of revenue. This focus on direct bookings also boosted profitability.

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Myhotelshop's proprietary algorithms were key in managing and optimising all paid search campaigns effectively. Close monitoring of performance metrics and the constant refinement of bidding strategies helped to maximise the return on investment for the digital advertising efforts.

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A Proven Roadmap for More Direct Bookings

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To further reduce reliance on OTAs, the hotel group activated Search Engine Advertising (SEA) and metasearch campaigns across platforms like Google Hotel Ads, Trivago, TripAdvisor, and Kayak. With myhotelshop’s advanced bidding algorithms, access to vast amounts of data, and insights into demand, the campaigns were optimised for maximum efficiency.

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Additionally, a commission-based (CPA) model was introduced for SEA and metasearch, ensuring the hotel group only paid for actualized bookings. This approach proved especially advantageous during the uncertainties of the pandemic, offering flexibility and risk-free investment.

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A dedicated Account Manager provided ongoing support and expertise, working closely with the hotel group to continuously refine the website experience. From deep dives into website performance to customer journey analysis and usability improvements, the team focused on enhancing every aspect of the digital presence.

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Comprehensive reporting played a pivotal role in this data-driven approach. myhotelshop provided detailed insights into key performance indicators (KPIs), tracking everything from search engine performance to the effectiveness of digital tools like chatbots and consent management platforms.

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Remarkable Results through Strategic Cooperation

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Since 2019, the partnership has yielded impressive results. Direct bookings soared from 127,422 in 2019 to 464,510 in 2023, a staggering 265% increase. Although the hotel group expanded during this period, their growth outpaced their reliance on OTAs, as demonstrated by the 66% growth rate in bookings via a major OTA during the same timeframe.

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The share of direct bookings through the group’s websites also increased significantly, rising from 16% in 2019 to 25% in 2023, marking a 56% improvement. This shift reflects a substantial reduction in OTA dependence, alongside a marked increase in profitability.

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Conversion rates continued to climb, highlighting myhotelshop's success in optimising the online experience and simplifying the booking process. The website cost ratio was consistently kept below 5%, ensuring that the group’s digital investments delivered optimal returns.

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With transparent and comprehensive reporting, the hotel group gained critical insights into both brand and hotel-level performance, enabling them to track trends, make informed decisions, and identify areas for ongoing optimisation.

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