Pelland Blog

The Reservation Software Decision

September 4th, 2020

I am probably asked which reservation software I recommend more frequently than any other question. My answer is generally the same each time, responding that I do not recommend any particular reservation software package over another. They all appear to have their advantages and disadvantages, and one that is right for one business may not be right for another. In the 2020 edition of the Woodall’s Campground Management Business Directory, there are 45 businesses listed under the “Reservation Management Systems & Software” category. Essentially, those are too many choices. What I invariably end up doing is to provide a list of questions to ask when comparing the various products on the market.

As with any business investment, you should select software based upon its ability to streamline your workload and increase your profitability. Reservation software is a long-term investment, which is why software is likely depreciated in your accounting and on your tax returns. Consistency is good, particularly when it means that you do not need to learn new processes and your customers are not required to adapt to something unfamiliar. As with anything online, the ultimate determination of success is a highly intuitive end-user experience.

Most reservation systems are part of a broader back office software suite, not simply standalone reservation engines, allowing you to manage your available inventory in real time. They might include customer relationship management and property management system functions. The more robust the package, the more useful the software will be as you manage not only your inventory of campsites and rental units but your overall customer base.

When people tell me that they would like to make a change from an existing software suite, I generally ask them why they are thinking about making a change. Are they contemplating the costs and the learning curve, which also applies to employees? What is it in particular that they dislike about their existing software? I then generally advise them to talk to their existing account representative to see if they can address the new concerns (that may, in fact, not have existed at the time of the original set up.) More often than not, the “problem” is a lack of communication with the existing supplier.

The Important Questions

First and foremost, what are the costs involved? Nothing of value in the business world is free of charge. Is there an initial purchase price, plus a fixed monthly fee or a per-transaction fee? If there are transaction fees, are you expected to pass those along to your customers or are you expected to absorb them into your pricing as a cost of business? Customers will balk at a hefty fee, and absorbing that same fee could seriously impact your profit margins.

Do you have to pay fees on ALL reservations, keeping in mind that most of your customers are finding you from your own website, not the reservation engine? Generally speaking, nobody likes to loosen the lid on a pickle jar, only to pay someone else to actually remove the lid. If you are going to be paying a fee only on stays that are booked through the reservation engine, is the reservation engine competing against your website in search results?

Beyond the pricing issue, here are what I consider to be a few essential questions to ask:

  1. Will you have an account representative assigned to your business to offer support during the setup process, the learning curve, and beyond? Are there limitations or costs to that technical support, or are you simply expected to watch (and understand) video tutorials?
  2. Does it support dynamic pricing? How flexible is your control of that pricing? Keep in mind that you are looking into a long-term investment. Even if you are not engaged in the use of dynamic pricing today, you are highly likely to do so within the foreseeable future.
  3. Does it allow you to determine either a flat or percentage reservation deposit?
  4. Does it allow users to reserve add-ons at the time the reservation is made? For example, can a guest reserve a golf cart, or perhaps linen service in a rental unit?
  5. Of course you expect the reservation process to be responsive, working on both computers and the full spectrum of mobile devices. Do they have a responsive widget that can be embedded into your website? If not, who is responsible for making your landing page look like your website?
  6. Does the reservation engine support languages other than English, not simply using Google Translate?
  7. Is the reservation process ADA compliant? PCI compliant? GDPR compliant (important for any reservations originating from the European Union.)
  8. Can the reservation engine integrate with Facebook, where many of your customers may be ready to book?
  9. If the landing page URL changes, will the old link redirect to the new destination page?

Also important, is the reservation software doing more than passively processing reservations? Does it allow you to follow up with users who do not actually complete the reservation process? E-commerce companies have long utilized “abandoned shopping cart” tracking software, with the understanding that somebody who went through 90% of the buying process is one of your best candidates to turn into a paying customer. Perhaps a person was sidetracked by a phone call, the needs of another family member, or it was simply time to call it a night. A little reminder will not hurt and can often resuscitate the otherwise uncompleted transaction. Choosing a real-time reservation services provider is a very important consideration, which is one of the primary reasons that so many park owners choose to go with a franchise system such as KOA. If you are the more typical unaffiliated “mom and pop” campground owner, you need to make this decision carefully. Too many people have been forced into making a hasty decision because their reservation services provider suddenly ceased operation. Do your homework and make your decision when you are not under duress, choosing a company that you expect to be a key player ten or more years down the road.

This post was written by Peter Pelland

All Links Are Good … or Are They?

April 4th, 2016

One of my clients recently contacted me, concerned that his New Hampshire campground was listed without his prior knowledge or authorization on several websites that purported to be online campground directories. He discovered this when one of the sites contacted him on behalf of a camper who wanted to make a reservation to stay at his park and another contacted him to “claim” his listing. At first glance, these would appear to be good things, wouldn’t they? Any resource that is sending you business is generally welcome to do so. After all, your campground is probably sent online traffic from a variety of referring sites – everything from Go Camping America to your state association website to Good Sam to your local tourism association.

In the instances that my client described, something just didn’t seem right.

Over the years, a number of websites have sprouted up that are essentially directories of local businesses. Many of these have evolved from so-called “yellow pages” companies, and their business model is to persuade gullible business owners to pay for enhanced listings. In my own instance, about a third of these local directories lists my company’s street address correctly, but then locates us in the next town. Another third list our fax number as our phone number. Do I care? Not really, because these sites get close to zero traffic, and they have little if any effect – either positive or negative – upon the SEO of my company’s official website. These websites are working with compiled data, obviously harvested from unreliable sources.

The sites that my client described were an entirely new breed. Also based upon compiled data, their business plans are no longer focused upon selling enhanced listings but in providing reservation services where they collect referral or transaction fees. These can be problematic indeed. My client has gone through a fairly labor-intensive process of getting his business de-listed from several of these sites. The more that I looked into them, the better my understanding of how my client’s instincts were probably right on target.

Campground reservations are accurately perceived as a multi-billion dollar business, and companies that would like a piece of the action are suddenly coming out of the woodwork. Funded with infusions of venture capital, the focus is on generating income from the collection of processing fees on those reservations, either in real-time (with campgrounds that get on board) or with the type of delayed booking that initially caught my client’s attention. One such site posts that it “anticipates” use by 1 million campers per month, even though it does not currently show up as even a blip on the radar at Alexa, the leading provider of comparative website traffic analytics.

What is the problem with these sites? Well, first of all there is a problem with compiled data. How often is the data updated and how accurate is the initial source? (Think back to those local sites that list my business in the wrong town or with our fax number as our primary phone number, where incorrect data tends to perpetuate itself.) On one of these sites that my client called to my attention, I perused the campgrounds listed in my home state of Massachusetts. I am intimately familiar with the industry players in my home state, and I found fictitious listings, listings for municipal parks that have nothing to do with camping, listings for campgrounds that have been out of business for several years, and listings for summer camps.

The second problem is the potential for these sites to compete with your own official website and your own chosen online reservation engine, a situation that can only serve to confuse consumers and that could inflict harm upon your business. I know that I do not want any other company representing my business, and I would be feverishly protective against any threats to my company’s unique online identity. Particularly if pricing (that may or may not be accurate) or reservations enter into the equation, the potential for problems is very real.

Thirdly, if you choose to get on board, be sure to read the fine print. The “Terms of Service” listed on one of these websites, when copied and pasted into a Word document, consisted of over 20,000 words that ran 42 pages in length. That’s a far cry from the old-fashioned handshake agreement of years past and probably reason to proceed with caution.

Keep in mind that any online directories or search engines built upon compiled data (even Google itself!) need businesses like yours as much as you need them. Without listing real businesses that consumers are seeking, they have no product to offer. It is your decision whether or not to get on board with any particular website. Understand the potential risks and benefits, and then make a decision based upon what is best for your business and how it can most effectively meet the needs and expectations of its core clientele.

This post was written by Peter Pelland