What are the Criteria of Good Instant Booking Engine for Independent Hotels

So now you have heard of the importance of getting direct booking on your own official site but you have no idea where to start. The below summarise the criteria that I think would be important to consider before you make any decision. Feel free to suggest in the comment area if you have other consideration points, would love to hear from you.

Hotel-Direct-Booking-Engine-IBE-Softinn

Pricing Model

There’s no one price tag for IBE that suits everyone. Cause the one price tag could fit your budget while blowing someone else pocket. Hence there’s no one winning price point when it comes to the price of the Instant Booking Engine (IBE).

Having said that, we should focus on choosing the product with a price tag that best fit your budget and more importantly making sure it’s a good investment for your hotel business. Focus on the Return On Investment (ROI). Example: Subscribe to an IBE that cost MYR 50 per month make sense if your hotel makes more than MYR 50 profit difference in the commission you saved over Online Travel Agencies (OTAs) like Agoda and Booking.com. Make sure that the cost per months averagely hit the KPI even at your lowest season, or at least 80% of your season average.

I remember once that I have tabulated the table below with a Hotelier over a discussion on how much bookings commission he saved after installing direct bookings on their official website.

Here’s how it goes:

  • Average Room Rates per night = RM 300 per night
  • Total number of room at Hotel XYZ = 35 units
  • Total Achievable Booking Values per month = RM 300 * 35 units * 30 days = RM 315,000
  • Averagely, Hotel XYZ is getting 60% occupancy
  • So, Average Booking Values per month = RM 315,000 * 60% = RM 189,000

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