Q & A on Restaurants and E-marketing

I recently had a chat with the guys at e-consultancy.com about Livebookings Network (My day job).

We talked about which types of restaurants are making the best use of online marketing and what other opportunities are out there for its aggregated reservations model...

Livebookings has been around for a while now, as has the idea of online bookings for restaurants. How well has the idea caught on with consumers and what types of restaurants have made the biggest strides on the web?

Livebookings Network as it currently exists has been around for two years, having been created in 2006 by the merger of two restaurant reservation system providers – Livebookings in the UK and Loghos in Sweden. The ambition then was to build the business model and prove it would work in our core markets of Sweden and the UK.

Having done so, the plan was to go for a second round of funding and take the business model further geographically. That’s what we are now doing. We are now focusing on expanding through Europe – to France, Germany, Spain, the Netherlands and throughout the Nordics.

Our most mature market is London. There, there is a wide range of very sophisticated, fine dining restaurants that are looking to maximise their covers. It is obviously better to get two guests per chair in an evening than one, as it doubles your turnover. So a lot of those restaurants are using complex software solutions to manage their reservations and many of them are then connected to online distribution networks, such as ours.

The more advanced restaurants are also using a lot of online promotional activity to drive bookings, such as special offers to fill their shoulder periods. It is often difficult for restaurants to fill every session throughout the week so if you can put together offers for those periods, such as between 6pm and 7pm for the pre-theatre dining crowd, you have more chance of maximising your profitability.

What about consumers?

Consumers are getting used to the idea of booking online. The majority of our bookings come through a la carte bookings but we do see major spikes in booking levels when we run a significant promotional campaign around events. Many bookings also come from secretaries that are reserving tables for their bosses.

In terms of how big the market is, we do know that around 62% of UK consumers are searching the web to decide which restaurant to visit, according to a study conducted by the American Express Hospitality Monitor last year. So that’s a lot of people deciding which restaurant to book online.

Our mission is to make sure that when people have made that decision, our services are in front of them. We focus on a B2B model, rather than spending a large marketing fund on creating an audience for our own site. We focus on people that already have the audience and visitors that are willing to book.

Read the rest of the article at e-consultancy...