How Travel Brands Can Use CRM to Drive Direct Bookings
By Kara Trivunovic, SVP CX Studio. Travel and hospitality brands are facing serious guest expectations to deliver unique and personalized experiences with every interaction, whether in person, online or anything in between.
Those experiences need to not only stand out but also drive direct bookings and build long-term loyalty. Travel options keep growing—including third-party platforms like online travel agencies (OTAs) that often dominate the booking process—making it essential for travel brands to find innovative ways to engage directly with guests.
Enter the world of customer relationship management (CRM) and customer data platforms (CDPs), where travel brands are using data-driven strategies to deliver hyper-personalized campaigns, tailored recommendations, and loyalty incentives that enhance the guest experience and increase retention.
The Importance of Direct Bookings
Direct bookings have become a primary goal for many travel brands. When guests book directly through a brand’s website or app, it allows the brand to maintain control over the guest experience, from booking to check-out and beyond. Direct bookings also reduce reliance on third-party platforms like OTAs, which often charge hefty commission fees and limit the brand’s ability to personalize interactions with their guests.
Finding the right value-exchange is critical to shift guests from booking through OTAs to direct channels.
Guests need to understand the benefit of booking direct. This is where CRM and email marketing come into play, leveraging rich customer data to create unique, tailored experiences that resonate with guests on an individual level to highlight perks and benefits to booking direct.
CRM and CDPs: The Backbone of Personalized Travel Experiences
At the heart of personalized marketing is customer data. A CRM system enables travel brands to collect, organize, and analyze customer data, giving them insights into individual guest preferences, behaviors, and needs. However, the complexity of managing customer data across multiple touch points—such as email, website, mobile apps, and in-person interactions —isn’t easy, which is why CDPs become critical.
A CDP consolidates data from various sources to create a unified customer profile. This profile includes detailed information about guest preferences, past booking behavior, interactions with marketing content, and even specific requests during previous stays. Armed with this data, travel brands can deliver hyper-targeted campaigns that feel personalized and timely.
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Here are a few ways integrated CRM and CDP can enhance the guest experience and drive loyalty.
Using email to encourage direct bookings
Email marketing remains one of the most effective tools for travel brands looking to drive direct bookings and enhance customer loyalty. With the support of CRM and CDP systems, email campaigns can be personalized down to the individual, making them far more engaging than generic mass emails.
Use these emails to stay top-of-mind for in-market travelers, but also to showcase the value that resonates with them as individuals.
Segmentation for precision targeting
By segmenting an audience based on data captured in the CRM system, travel brands can send more relevant and timely offers. For example, a guest who recently stayed at a family-friendly resort might receive an email promoting upcoming holiday deals tailored to families, while a business traveler might get personalized messaging around corporate rates and fast-track booking options.
Segmenting emails based on behavior, such as previous bookings or engagement with past emails, allows travel brands to build deeper connections with their guests and create a sense of exclusivity. A well-timed, personalized email can prompt a guest to choose direct booking over a third-party platform, knowing that the brand recognizes their preferences and is offering a unique experience.
Abandoned booking recovery
Travel brands can also use CRM-driven email campaigns to recapture guests who may have started the booking process but didn’t complete it. With real-time data from a CDP, the brand can send automated reminders or personalized offers to encourage these guests to finish their booking. For example, an email with a subject line like, “Complete Your Booking and Get an Extra 10% Off Your Stay,” can entice travelers back to the brand’s website, reducing lost bookings and strengthening the direct relationship.
Enhancing guest loyalty through personalization
Loyalty programs are a staple in the travel and hospitality industry, but personalization is the key to making these programs truly impactful. Generic rewards or offers that don’t align with a guest’s preferences can feel impersonal and fail to inspire continued loyalty.
By leveraging CRM and CDP insights, brands can ensure their loyalty programs cater to individual guest needs and preferences.
Personalized rewards
Personalization at scale enables travel brands to create loyalty rewards that resonate with individual guests. For example, if a guest frequently books spa services during their stays, a brand can offer a customized reward such as a complimentary massage or a discounted spa package. This not only adds value to the guest’s stay but also reinforces the brand’s commitment to personalized service.
Dynamic offers
With real-time data from a CDP, travel brands can offer dynamic rewards that evolve based on a guest’s behavior. For instance, a guest who regularly books last-minute trips could receive a special “last-minute booking” offer, while a family who typically travels during school vacations could be targeted with early-bird specials for holiday breaks. This level of personalization enhances the guest experience and keeps the brand top-of-mind, increasing the likelihood of direct bookings in the future.
Centralizing Data to Enhance the Guest Experience
One of the biggest challenges travel brands face is the fragmentation of customer data across multiple channels and platforms. A guest might interact with a brand via email, website, mobile app, and during their actual stay. But if this data is not centralized, the brand misses valuable opportunities to provide a cohesive and personalized experience.
A CDP solves this problem by unifying data from various touch points, providing a holistic view of the guest. With this centralized data, travel brands can personalize every aspect of the guest journey, from pre-arrival communication to post-stay follow-ups. For example, a guest who frequently books spa services and enjoys dining at the hotel restaurant can receive personalized offers for both spa treatments and dining packages before they even arrive at the property. This proactive approach not only enhances the guest experience but also increases the likelihood of repeat bookings.
Conclusion: Building a Path to Loyalty and Direct Bookings
In the travel and hospitality industry, personalization is no longer a luxury—it’s a necessity. By leveraging the power of a CRM and CDPs, travel brands can create personalized guest experiences that drive direct bookings and enhance long-term loyalty. From hyper-targeted email campaigns and tailored loyalty incentives to personalized recommendations and real-time offers, these tools enable brands to connect with guests on a deeper level and provide the seamless, relevant experiences that today’s travelers demand.
As the travel landscape continues to evolve, brands that prioritize personalization at scale will be well-positioned to build strong, lasting relationships with their guests, ultimately increasing retention, boosting revenue, and gaining a competitive edge in a crowded marketplace.
By embracing CRM and CDP technologies, travel brands can take control of their data, deliver personalized experiences, and foster loyalty in ways that third-party platforms simply cannot match. Learn more about AI-powered marketing with Zeta.
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