The Real Cost of Direct Sales, Part I

Great piece by Cesar Lopez,  Product Development Manager at Mirai España

simone puorto consulting - mirai

Would you go on a diet without knowing or controlling your weight and without using scales? Then why, as a professional, do you want to boost your direct sales without knowing its cost?

Few basic issues of hotel marketing are surrounded by so much lack of knowledge and are subject to so many manipulations. We hear hoteliers say that “It costs nothing”, reports funded by OTAs which reach the conclusion that they incur the same high costs as intermediated ones and others which state that nobody knows the cost.

Most independent hoteliers would not be able to respond with an exact figure. Knowing it will justify and allow you to quantify your direct sales boosting actions at the expense of other channels, which comes with the savings estimate it entails.

the cost of direct sales discussion

Let’s talk about cost, more specifically on its percentage and especially the direct online sales one, not including offline ones (phone, call centre, etc.). By no means is the cost the only variable you should control. Focusing on it now does not mean neglecting other essential and complementary ones, such as average price.

In this article we compile everything that you need to know to shed some light on the subject. In this first part we analyse why you should know the cost, why it is so complicated to find out and, above all, how to calculate it. In Part II we will address the adequate figure and how to identify and increase necessary investments.

Before you calculate anything, take the following four points into account:

 

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