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Five ways for accom providers to kickstart guest bookings

Understanding economic behaviour is the key to boosting guest bookings, a new report has revealed. There are five cognitive tactics that operate as workable strategies to increase consumer bookings, according to Skift‘s latest online report.

The research listed the five elements below:

Contextual Pricing
“The purchasing journey does not begin and end with glancing at the price tag. People won’t know what they want until it’s put into context. This is why you should never present a customer with just one choice. Instead, present them with three choices, with the middle option being the choice you want to steer them toward. The idea here is that the middle option becomes favourable purely based on environment.”

Decoy Pricing
“Customers get three options: the product you want them to buy at the price you want, a slightly less-good product at a lower price (the “decoy”), and a similar product that’s good, but not what the
customer wants. Adding a decoy alongside the real offer generates demand on the real offer.”

Anchor Pricing
“Once you set a price for your customers, they become tethered to it. Humans like to focus on one piece of information when making decisions and use the most convenient price available to drive their decision about what something is really worth. The initial price they see becomes the baseline in which they’ll compare every other offer you present them.”

Social Proof
“People are happier to book something if they know their friends, or a huge body of people have recommended or liked it. There’s an aspect of authenticity in social proof that a direct-from-brand message just can’t accomplish. That’s why Booking.com dedicates an entire section to showcase recent bookings and Airbnb and Uber show ratings from their guests and users. When asked in a Hubspot survey, 81% of respondents said posts from their friends directly influence their purchasing decisions.”

Scarcity and FOMO
“Since people are more likely to respond to a sense of perceived loss than a sense of perceived gain, creating a sense of scarcity can be a key in driving incremental revenue. During the booking path, inform consumers how many people are looking at that same product right now, how many have booked in the last hour or how many seats are left. All these things add urgency to the booking process.”

 

Rosie Clarke

Rosie Clarke is managing editor at Multimedia Publishing.

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