Unlike air travel and car rentals, the online lodging industry is highly fragmented. There are thousands of destinations with each one having many hundred suppliers. New online agencies are thriving in this market. Here is how you do it.

Develop A Distinctive Niche
Online lodging consumers tend to be very specific in their demands. They have either a particular destination or a leisure activity in mind when they begin their online hunt.

If you can't be the only hotel reservation agent on the Internet (and you can't) develop a specific niche where you can have a competitive edge. Online lodging agents can specialize in offering long stay condos in Florida, �mountain� vacations in the Rockies or casino hotel reservations in Monte Carlo. Price doesn't have to be your only competitive factor if the inventory you offer is unique.

In order to be viable, your chosen market segment must be clearly defined. Targeting �online leisure travel buyers� is not refined enough. What are their interests? Where are they from? What is their budget?

There are many market segments in the online lodging industry that are chronically under supplied. Be careful in choosing the market segment that best fits your business. Your target clientele must have a clear need for what you are selling and must be large enough to be considered a market segment.

Your niche has to be geographically feasible. It is best to concentrate on a locale where you have good contacts with hotels and accommodation suppliers. If you are a localized agent, you will be able to manage your inventory and rates better by maintaining close contacts with local lodging suppliers.

Focus Your Online Marketing
Niche websites are ideal for online promotion. Online consumers search for accommodations with the help of destination or activity specific keywords (e.g. London apartments, Scotland hunting lodges, Atlantic City casinos). It is more cost-effective for niche sites to focus their online marketing strategies than large online travel sites that cover many destinations.

Select a great domain name. The majority of online consumers find websites through search engines. A good URL that communicates what you are offering will help you obtain high rankings in search engines and draw targeted traffic.

Carefully decide your keyword list and keep refining it continuously. Once you have narrowed down on the keywords that your target audience is likely to type in (e.g. New Orleans budget hotels), build the content of your website around them and use the list for all your search engine optimization programs.

Your website must be easily accessible to your target clients. Building an affiliate network is a great way to achieve this and is ideally suited for niche markets with very focused needs. This strategy involves identifying highly trafficked websites where potential consumers are likely to �hang out� and building links with those sites in order to direct traffic to your online reservation centre.

Offer A Complete Service
Your website may have the best room inventory in Ft. Lauderdale, attractive photographs of beach front cabanas and a complete narration of all the facilities they offer. However nearly 70% of your online visitors will turn away if they have to e-mail you in order to make a reservation. They want a high level of service and require immediate confirmations. You can't waste their time.

Ensure that your website enables consumers to make quick comparisons of room rates and availability and make bookings online in real-time.

Make the shoppers' experience complete by offering flexible booking capabilities,  maps, travel tips and special members offers. Offline or online, customers are  always looking for great service.

Online lodging consumers value in-depth information about a destination they wish to visit. A specialized agent is able to offer expert and up to date information about each property they offer along with activities in the area and handy travel tips. This is the unique advantage that niche �been-there-done-that� agents have over impersonal mega sites. In brief - having a localized presence and knowledge about a destination or activity builds trust and confidence in consumers.

If you are about to venture into online lodging industry, keep in mind that it offers as many challenges as great opportunities. Focus on your niche and be the best in it.

About RoomsNet
RoomsNet (www.roomsnet.com) is a global network of specialized e-lodging agencies. RoomsNet web based reservation software and marketing solutions enable accommodation agents, travel agents, tour operators, hotel reservation call center agencies and entrepreneurs to operate reservation centers in niche online lodging markets.

Uthpala Kumara
E-Mail: uthpala@roomsnet.com
Business Development Division
94-1-75-339769 Telephone
94-1-75-339776 Fax