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How Silken Hotels Leveraged Machine Learning to Boost Direct Bookings & ADR

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Results

Time period: 1 year

6% of all chain bookings

resulted from direct clicks on the Predictive Personalization messages

5% increase

in additional revenue thanks to the campaign

10% in chain bookings

were influenced by the campaign

Reduction of  promotional costs

booking influenced

Silken Hotels, a Spanish chain with 30 properties, has always kept direct channel growth at their center of their marketing approach. Their focus is on optimizing their marketing efforts to drive profitable direct bookings, while avoiding extensive campaigns. The challenge was to implement strategic discounting: offering discounts selectively to low-intent visitors and avoiding presenting offers to website visitors that were likely to complete their bookings regardless. Their goal was to secure additional bookings while ensuring their campaigns remain efficient and effective.

The Objective 

  • Increase direct bookings from low-intent visitors
  • Enhance their profit margins by adding new bookings while preserving ADR from high-intent customers
  • Save on promotional costs by offering discounts only to those travelers that needed them to be convinced

The Solution

Since partnering with The Hotels Network, Silken Hotels leveraged THN’s platform to enhance their direct channel performance. The team launched a new campaign using THN’s Predictive Personalization to achieve their goals:

1. To target visitors with low booking intent, Silken Hotels implemented automated custom messages and offers to encourage them to complete a booking.

2. To ensure high-intent visitors saw standard pricing, the machine learning algorithm excluded these visitors from being shown the promotional messages, preserving a high ADR.

By leveraging these tactics, Silken Hotels optimized their marketing efforts, reducing unnecessary promotional costs and driving incremental bookings. This approach enabled them to deliver personalized content to the right audience, ultimately leading to more direct reservations and increased direct revenue.


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What messages were displayed?

 

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Smart Note in the Home Page displaying a discount to encourage users to book. 

 

 

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