Golf resorts and destinations could be missing out on a valuable opportunity to increase direct customer sales.
Research conducted by INFLUX.GOLF has found that of more than 100 top global golf resorts and destinations, 45% did not rank #1 on Google for their own brand name:
Instead, customers were more likely to find and view websites belonging to online tour operators (OTOs).
This means that destinations could be losing out on a significant proportion of revenue to commission based OTOs.
They are also missing out on a valuable opportunity to directly upsell experiences, merchandise and services, many of which are high-margin bolt-ons.
Today, it is estimated that 87% of golf holiday packages worldwide are sold by OTOs.
However, the average browser abandonment rate for OTOs across all travel sectors is approximately 81%, indicating how customers frequently use these sites to find and compare package options.
Meanwhile, 29% of tourists globally now prefer direct travel reservations. Reasons include access to additional amenities, competitive prices and to benefit from loyalty programmes, many of which cannot be accessed when booking via OTOs.
So why is it OTOs still dominate the international golf travel market – and resorts, courses and clubs are yet to optimise digital marketing and drive direct sales?
The market dominance of OTOs is by no means a criticism. In fact, OTOs are often praised for their reach and personalised booking processes.
However, as consumer behaviour shifts in the ever-evolving digital world, it’s paramount that destinations are fully equipped with the fundamental digital capabilities to meet the needs of prospective customers, create a seamless booking journey and in so doing, enhance revenues and profitability.
From reported research it can be estimated that USD 502 million was paid in OTO commissions in 2021, highlighting the huge financial opportunity available in the market to those destinations that are correctly geared up.
By taking back control of your brand’s visibility through insights and optimisation, you can increase your brand’s digital visibility and footprint.
This welcomes new, direct customers and consequently increases your customer lifetime value through onsite channels such as CRM (Customer Relationship Management).
But where do destinations start with brand visibility and digital footprint? There are various, proven methods to successfully achieve this such as SEO (Search Engine Optimisation), Organic Search, Conversion Rate Optimisation, Web Development, Content Creation and more. Each destination requires its own strategy, but there is a common thread to the work.
Ultimately, while OTOs are always likely to be part of a resort’s sales and marketing strategy, there is so much more you can do to drive more traffic, more customers and more, higher-yielding, direct sales.
By Will Chamberlain, Business Director