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Blue Karma Resorts And Villas

Blue Karma
$30K
incremental revenue
in six months
87%
decrease
in undercut rate

About our client

Blue Karma Resorts And Villas is a hotel group based in Bali. They discovered Triptease when Johannes Marbun, Corporate Sales and Revenue Manager at Blue Karma Secrets, spotted the Price Check widget and a personalized message on another hotel’s website while booking his own trip. He later looked into the wider Triptease product offering and learnt more about the features, coaching, industry-leading content and community available to Triptease clients. Soon after that, Blue Karma decided to join forces with Triptease.

Challenge

While the number of inbound tourists in Bali has increased since early 2018, supply still outstrips demand. Smaller hotel chains and independents have to provide enticing offers online to ensure their rooms are filled.

Maintaining rate parity with OTAs is in Indonesia is also challenging. “We have had a hard time with Agoda and Expedia,” says Johannes. “It feels like they punish us for disparities on different regional websites. After partnering up with Triptease, we have been able to take our parity reports to our Market Managers and recover our rate parity.“

Personalized guest experiences are at the heart of Blue Karma hotels. This is reflected in exceptional customer ratings (4.5 on TripAdvisor and 9.1 on Booking.com). That’s why it’s a big concern for the business when guests get a conflicting experience between OTAs and their direct site, damaging their brand's reputation in the process.

On one occasion, for example, some OTAs offered customers Blue Karma’s Bedroom Suites with Pool in greater numbers than the hotel could supply. This disrupted Blue Karma's relationship with their guests and threatened to affect their excellent reviews online.

Before Triptease, our average undercut rate was 60%. Today, it is only 7.7%!

Johannes Marbun Corporate Sales and Revenue Manager

Solution

Blue Karma strives to always provide the best deal on their direct website. Their revenue managers use Triptease's Disparity Dungeon to continuously monitor disparities and raise any issues with their OTA market managers. Triptease's Price Check message reinforces to guests when Blue Karma has the best price available online.

Johannes explains that Full Screen Messages created with Triptease play a crucial role in showing off their benefits for direct bookers. To maximize the impact of their messages, Blue Karma segments them according to their guests’ demographics. “We find that foreign guests prefer benefits like a free shuttle from the airport, while locals are more likely to book when we offer them a free drink,” shares Johannes.

Blue Karma’s team speaks warmly about their relationship with Triptease’s Direct Booking Coaches. They frequently keep in touch with their appointed Coach in Singapore, discussing hotel-specific challenges and sharing their feedback on the platform’s performance.

Blue Karma Full Screen Message

Results

Integrating with the Triptease Platform has resulted in an impressive 87% decrease in undercut rate as the team are now able to reduce their disparities easily.

The Full Screen Messages resulted in a 90% revenue uplift when guests showing signs of leaving the website were shown the personalized messages. This earned the properties $29k in revenue from August to January 2019. The hotel chain has already run fifteen different messages, seeing a significant 3% conversion rate on average.

Price Check drove a 5.04% conversion rate on Blue Karma’s web page when the hotel was in parity (as opposed to 1.70% when the widget wasn’t activated).

What's next?

In Bali’s competitive hotel market, Blue Karma continues to ensure their rooms are filled with direct bookers. They intend to explore Facebook and Instagram Ads to promote their hotel’s offerings.

They plan to improve their website’s user experience to drive more direct bookings, with Triptease’s Direct Booking Coaches helping them to create the right digital experience for their hotel. The team are trained professionals in digital marketing and direct booking strategies.

Blue Karma could also look to stepping up their game on evolving metasearch sites. To capitalise on the new opportunities presented by meta, Triptease has launched a traffic acquisition product. It combines two systems - the Guest Value Index and Trip Value Index - to calculate the potential value of a guest and the probability of them converting to make smarter decisions on how to spend in metasearch and beyond.