According to a survey by Toast, 45% of customers say that they would spend more with a restaurant if they could get exclusive deals.
Selling through a direct online ordering platform like Slerp results in a higher average order value compared to marketplaces in the hospitality industry for several reasons:
Customers booking directly through a hotel or hospitality provider’s website often have a higher level of trust and loyalty to the brand. This trust can translate into a willingness to spend more on their stay or services.
Direct channels allow for personalised marketing and upselling opportunities. Hotels can offer tailored packages, upgrades, and add-ons that are specifically designed to meet the needs and preferences of their direct customers, which can increase the overall order value.
The booking experience on a direct channel is typically more seamless and user-friendly, reducing friction and increasing the likelihood of customers opting for premium services or longer stays.
Marketplaces often charge commissions and fees on bookings, which can lead to hotels increasing their base prices on these platforms. However, when booking directly, customers may find better value offers, prompting them to spend more on other services.
Direct channels often provide exclusive promotions and discounts that are not available on marketplaces. These can entice customers to book more expensive packages or add-ons, thus increasing the average order value.
Hotels have full control over their inventory and pricing when selling directly, allowing them to manage demand more effectively and encourage higher spending through dynamic pricing strategies and exclusive deals.
Many hospitality providers offer loyalty programs that are only available through direct bookings. These programs can encourage repeat customers to spend more to take advantage of member benefits and accrue points for future stays.
Booking directly often comes with better customer service, as there is no intermediary. This higher level of service can encourage customers to spend more on premium services, amenities, or longer stays. Slerp has a Customer Satisfaction score (CSAT) of 92%. Real people to solve problems.
Research by PWC shows that 73% of customers point to customer experience as an important factor in their purchasing decisions, and are willing to spend up to 16% more for a better experience. Which is only possible through direct online ordering.
In summary, direct channels allow hospitality providers to leverage brand loyalty, personalised marketing, and better customer service, all of which contribute to higher average order values compared to bookings made through marketplaces.
Restaurants benefit from higher average order values through direct channels due to
1. increased customer loyalty
2. personalised marketing
3. superior customer experience
4. strategic pricing and promotions
all of which contribute to more profitable transactions compared to marketplace orders.