In theory, the ability to book online should make it easier for hoteliers to bring in new guests and fill rooms. But in reality, hotels, airlines, and travel agencies experience booking abandonment rates as high as 81%. Let’s face it - online booking has made it easier than ever for potential guests to go “window shopping.”

For guests, window shopping properties online is a harmless form of wanderlust. Yet for hoteliers, it is an ever increasing revenue drain that is met with little resistance. A curious thing for a problem so large and apparent.

But is it apparent? Without the proper tracking tools in place abandoned bookings disappear like ghosts.  For a problem so large and apparent, you’d think there would be a host of solutions employed to reduce the leak of sales into the digital ether. Other industries, such as eCommerce, flit between one solution and the next, hungry to recover every dollar and cent. However, this same ferocity does not exist for hoteliers.

Most abandoned bookings occur due to unexpected costs, such as hidden fees or taxes, or outdated and clunky reservation systems. I’m sure you pride yourself on delivering a spectacular experience to each and every guest at your hotel, but does that experience extend to your booking process?

As a hotelier, it is important to understand the full impact of booking abandonment and take the necessary steps to recover lost reservations and lost relationships.

Missing out on long-lasting guest relationships

It’s not just the lost revenue from that one booking that you need to worry about. When a guest abandons their booking, you’re also missing out on the potential for multiple future bookings from that same customer.

Long-lasting customer relationships result in more revenue over the long-term, as well as increased referrals. You may have heard this statistic before: it takes 12 positive interactions with a brand to overcome one negative one. So when someone has an outstanding experience with your business and decides to book again or refer their friends, it’s very likely they will do so again and again.

Just one recovered booking could result in thousands of dollars in future bookings. But in order to get there, you must reshape your approach to online bookings. Your relationship with your guests begins the second they land on your website, or see your name appear on an OTA.

Positive website traffic without positive results 

You might be getting traffic, but you're not getting bookings. What does this mean? You might have a high volume of website visitors, but your conversion rate is low; in other words, people are visiting your site but not making bookings.

This can skew analytics and make it seem like you're attracting new guests when in reality you're losing money. When analytics do not reflect your actual ROI, your marketing spend will increase without achieving the results you want.

Reducing booking abandonment before it occurs is the best solution to this problem. Using a tool with browse abandonment and exit-intent popups like RezRecover can help mitigate this issue substantially. Asking guests to confirm their stay before they leave, or enticing them with an exclusive offer, increases the likelihood of securing a reservation. 

Sky-high guest acquisition costs

The more guests you lose to booking abandonment, the more you’ll spend to attract new leads.

You don’t want to lose guests who are already interested in your hotel. Waiting too long to follow-up on abandoned bookings, or never following up at all, increases the chances of that guest booking with a competitor. Now that relationship could be lost forever.

So, how can you convert warm leads or abandonments into confirmed reservations? One solution is to utilize a booking abandonment tool with real-time data capture. Features like this allow you to capture a guest email in real-time as it’s typed in anywhere on your site. This makes it quick and simple to follow-up with any interested travelers and guide them towards booking.

Missed opportunity to improve your guest experience

All of this is to say: every abandoned booking is an opportunity to go above and beyond for a potential guest. But what can you do if an abandoned booking occurs?

First, take a moment to feel bad about yourself. Then, remind yourself that this is the perfect opportunity to show a potential guest how your brand shines. A fantastic strategy for recovering abandoned bookings is to craft an irresistible guest experience before guests have even set foot in your hotel.

By offering your best possible incentives from the beginning (and following-up with those offers throughout their stay), you’ll be able to stand out in a crowded market and build loyal customers who will keep coming back for more great experiences at your property!

Losing out to your competition

But there are more reasons to be concerned than simply lost revenue. Your competition is always a factor, and guests that abandon bookings might later book with your competitor instead. Booking abandonment can also result in lost customer loyalty, as guests may feel like you're not worth the hassle after they've had trouble booking or paying for something.

Another thing to keep in mind is that booking abandonment can affect your marketing efforts by making it harder for potential customers to reach you through various channels: search engine optimization (SEO), social media campaigns, and email newsletters.

To overcome these obstacles of the new technology age—and compete more effectively against rivals—you need a plan that focuses on providing memorable experiences and better customer service overall. Promote a "sense of urgency" for guests who are still in the process of booking by offering them extra perks that they won't find elsewhere in exchange for their details early on in the process!

How you can tackle booking abandonment today

Now that you know booking abandonment is a problem, and the many ways it can affect your business, it's time to take action. Here are two ways you can tackle this issue:

  • Preventing booking abandonment in the first place

  • Automating your booking recovery process

Booking abandonment remains to be a huge problem for hotels, and it can lead to some serious negative impacts on your business. However, by understanding the problem and investing in tools to solve it, you can reduce or even eliminate these impacts. 

By Brett Thoreson, CEO & Co-Founder of CartStack & RezRecover