News for the Hospitality Executive |
Getting Back to the Basics Part II: Case Studies &
Best Practices
from the �Hotel Internet Marketing Trenches�
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By Max Starkov and Mariana Mechoso May 2009 In June 2008, HeBS presented an article titled �Getting Back to the Basics: The Hotelier�s Internet Marketing Action Plan for a Difficult Economy.� A year later, we would like to revisit the recommendations we made back in 2008, offer an update on our suggested Action Plan, and provide case studies and best practices from the �Hotel Internet Marketing Trenches.� Introduction In today�s tough economy, hoteliers are still struggling with the pressure to make every marketing dollar count, and to invest in campaigns that deliver only the highest ROIs. Leisure travel, business travel, meetings and groups travel are all in decline. The only light at the end of the tunnel is provided by the online channel, due to the ongoing shift from offline to online, from GDS to online hotel bookings, and ultimately from indirect online to direct online. Market researchers provide various projections for the growth of the online travel channel in 2009 and 2010, from a small decline as reported by a travel research company, to growth rates as high as 10.5% per eMarketer. These optimistic projections are supported by the leading e-Commerce research company, which declares that overall U.S. online sales will increase by 11% in 2009 and by another 9% in 2010. HeBS believes that online travel, having always been the most dynamic and fast-growing segment of the overall online marketplace, will experience similar growth rates. Whatever the case might be, the online travel channel, and especially the direct online channel, provides hoteliers with the only viable option for any growth during this recession. In 2009 and 2010, the Direct Online Channel needs to be the hotelier�s main focus point. As tempting as it may be to rely on Online Travel Agencies (OTAs) to put �heads in beds,� the OTA�s are experiencing the same declines in revenue�and are suffering equally from overall decrease in demand�as the rest of the hospitality industry. For example, Expedia reported gross booking declines of 11% in both Q4 2008 and Q1 2009. We believe the only viable strategy in this economy is the Direct Online Channel strategy, your only chance to offset the overall decline in revenues. Why? Smart hoteliers using the Direct Online Channel can outsmart the competition and increase market share. Last year, HeBS released the article: �Getting Back to the Basics: The Hotelier�s Internet Marketing Action Plan for a Difficult Economy.� This year, with the economic environment still on the forefront of every hotelier�s mind, we would like to revisit our recommendations and provide case studies and best practices from the �Hotel Internet Marketing Trenches.� Case Studies from the �Trenches� What can hoteliers do? Are there any proven Internet marketing initiatives or formats that really work right now? The following are some case studies from HeBS� own experiences � based on the initiatives from the Hotelier�s Action Plan for a Difficult Economy we recommended a year ago. I. Auditing the Internet Marketing Budget / Plan Recommendation:
Case Study:
One client in particular, a luxury boutique hotel in Burbank California, did not decrease their Internet marketing budget in Q1 2009 but kept the same Internet marketing budget. Last year in Q1 online revenues were at $145,244 with 255 bookings. This year, Q1 online revenues were at $157,075, with 358 bookings. By re-evaluating the budget and shifting funds to more ROI-centric initiatives, HeBS and this luxury boutique client were able to increase Internet revenues even while this hotel�s competitive set was suffering (and probably lowering their Internet marketing budgets). Bottom Line:
II. Web 2.0 and Social Media Recommendation:
Case Study:
TripAdvisor CPC has been working very well for a HeBS client in North Seattle. This independent hotel enjoys reviews on TripAdvisor in the 4-5 star range. To take advantage of this, HeBS launched a CPC (cost-per-click) campaign for the hotel on TripAdvisor. Over the past 12 months, ROAS has risen consistently over 9 times. 2) Twitter: Among the many Twitter accounts for its clients, HeBS created a hotel profile on Twitter for a client in Northern California, and launched a strategy to create a list of followers. HeBS also started tweeting about various events going on in and around the hotel, including special hotel offers, dining events, entertainment and more. Within a few weeks after launch, the hotel has attracted 853 followers, 37 tweets, 81 direct messages and 21 retweets. HeBS tracks all visits and conversions via Omniture SiteCatalyst. There is no direct revenue yet that can be attributed to Twitter; however there have been over 90 relevant visits to the site and 7 initiated bookings from our tweets. 3) Sweepstakes: a hotel and casino in Nevada with a variety of rooms, dining, and entertainment options, wanted advice from HeBS on how to create interactive relationships with their website visitors and build their email database. HeBS conceptualized and built an interactive Web 2.0 application for the website and ran a sweepstakes called the �90 Suites in 90 Days� giveaway. HeBS created a dedicated mini-site for the sweepstakes which was linked from the hotel�s main site. The sweepstakes ran in Q4 2008 and generated over 82,000 visits, over 10,500 sweepstakes signups and referrals to over 900 people. Additionally, HeBS launched a comprehensive campaign to promote the sweepstakes via the hotel website, PPC, banners, email and online sponsorships, etc. The sweepstakes generated a lot of buzz and contributed to a noticeable increase in revenue and website visits. Bottom Line:
We have found social media initiatives, such as creating and maintaining hotel �fan� pages on FaceBook, and �follower� pages on Twitter, if done according to best practices, generate buzz around the hotel, provide a receptive audience, and ultimately stimulate hotel website visits and interactions. III. Website Redesign Recommendation:
Case Study:
The design of the re-launched website�launched in November of 2008�fits the image the hotel was going for, while using industry�s best practices. The new website has a widescreen layout, intuitive navigation, flash animation, photo gallery, email capture, Live Talk functionality, sections for each target market (including meeting & event planners), a reservations widget as part of the global navigation, Web 2.0 features and social media links (including to the hotel�s Facebook page), and optimized content for top placement in the search engines. Every page of the website is coded with Omniture SiteCatalyst (the leading website analytical and campaign tracking tool) so that we can track visitor behavior on the site as well as see how all Internet campaigns are converting on the site. The result? One month after re-launch, online revenues increased significantly, and the website redesign paid for itself within 3 months of launch. Bottom Line:
IV. Website Optimization Recommendation:
Case Study:
HeBS optimized over 100 pages of the website for the most relevant keywords, fixed typos, deleted expired packages, and added pages that were necessary to accurately and more thoroughly describe the resort. The optimization was completed approximately two months ago, and already the hotel is benefiting more from organic search. The website comes up on the first page for very relevant keywords such as �Resort in Florida Keys� and �Florida Keys luxury resort,� and traffic to the website is increasing month over month. While it takes several months to fully see the effects of a website optimization, search engine placement results for top key phrases will improve consistently, and traffic to the site will continue to increase month over month. Bottom Line:
V. Paid Search Recommendation:
Case Study:
Omniture�s SearchCenter provides automated bid strategies and alerts marketers to better evaluate and respond to changing bid conditions. It measures ROAS (return-on-ad-spend) and cost per acquisition across millions of keywords and ad groups from a single interface. It helps marketers target the right audience, measure and achieve tangible ROI, and decrease PPC �waste� and drive down cost of campaigns, while increasing ROIs. Please read our blog article �Best Practices in Managing Paid Search Campaigns.� Since the optimization, ROI on the PPC campaigns has increased markedly, and in Q1 2009 reached 1173%. Bottom Line:
VI. Email Marketing Recommendation:
Case Study:
Bottom Line
VII. Online Display Advertising Recommendation:
Case Study:
Bottom Line:
Conclusion When HeBS released the article, �Getting Back to the Basics: The Hotelier�s Internet Marketing Action Plan for a Difficult Economy�, back in June 2008, no one knew how long hoteliers would need to brace themselves for an economy where people are traveling less and spending less. Almost one year later, even though we still don�t know what the immediate future will bring, we may determine that with a comprehensive ROI-centric Internet marketing strategy, hoteliers may continue to generate incremental revenues and out-smart their competition. This is proven through evaluating case studies of the actual performance of our recommended Internet marketing initiatives. Even in this economy, you should not eliminate your hotel Internet marketing budget. The Internet, and especially the direct online channel, is the only growth channel for hoteliers. The best strategy is simple: you must carefully employ ROI-centric initiatives like the ones in these case studies, including website redesign, website optimization and SEO, paid search, email marketing, online display advertising and proven social media initiatives. One very important lesson learned is that we must not think of these recommendations as simple remedies for succeeding in the current economic environment. Concentrating on proven ROI-centric Internet marketing efforts, focusing on the Direct Online Channel, and carefully tracking every dollar spent should be your methods of propelling your Internet strategy in the future�even after the economy has fully recovered. Consider seeking advice from a full-service hotel marketing and direct
online channel strategy firm to actively help you take advantage of the
only growth channel in these challenging economic times. Learn how to implement
the latest trends and best practices in your Internet marketing efforts
so you can realize substantial ROI and incremental revenue growth.
About the Authors and HeBS: Max Starkov is Chief eBusiness Strategist and Mariana Mechoso is Director, eMarketing Services at Hospitality eBusiness Strategies (HeBS). HeBS is an award-winning, full-service Internet marketing and Direct Online Channel Strategy firm, strictly dedicated to the hospitality and travel verticals. Having pioneered many of the "best practices" in hotel Internet marketing and direct online distribution, HeBS specializes in helping hoteliers profit from the direct online channel and transform their websites into the hotel�s chief and most-effective distribution channel, establish interactive relationships with their customers, and significantly increase direct online bookings and ROIs. Visit us online at www.hospitalityebusiness.com A diverse client portfolio of over 500 top tier major hotel brands, luxury and boutique hotel brands, resorts and casinos, hotel management companies, franchisees, independents, and CVBs has sought and successfully taken advantage of HeBS� hospitality Internet marketing expertise. Contact HeBS consultants at (212)752-8186 or [email protected]. |
Contact:
Max Starkov/Jason Price
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Also See: | Getting Back to the Basics: The Hotelier�s Internet Marketing Action Plan for a Difficult Economy / June 2008 |
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