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The Smart Hotelier’s 2013 Top Ten Digital Marketing Resolutions

Wednesday, January 2nd, 2013

By Max Starkov & Mariana Mechoso Safer

As we find ourselves in a new year full of possibilities, now is a good time to reflect on events that impacted our industry in 2012 and how you should plan your digital marketing efforts throughout 2013. The continuing transformation of travel consumers into multi-device and multi-channel users, the explosive growth of the mobile and tablet channels, the proliferation of new social media platforms, and ongoing Google algorithm updates are just some of the topics that made headlines last year. (more…)

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Smart Hotelier’s 2012 Top Ten Digital Marketing Resolutions

Wednesday, January 4th, 2012

By Max Starkov & Mariana Mechoso Safer

Last year the economy remained in “recovery mode,” allowing the industry to focus its efforts more on marketing to the travel consumer and less on scaling back budgets for the first time in several years. The convergence of social media, mobile Web and location-based services, increased personalization and relevancy of marketing messages, the continued onslaught by social buying/flash sales sites and other heavily discounted distribution channels, the Google Panda and ‘Freshness’ updates, and ‘engaging’ the traveler at all touch points via multi-channel marketing were all hot topics last year and will continue to dominate in 2012.

How can hoteliers use real-time customer information to create time- and location-relevant promotions? Which digital channels and formats most effectively reach today’s hyper-interactive travel consumers and generate the highest ROIs? Should hoteliers be dedicating a significant amount of time to managing review sites and social media channels? What strategy should hoteliers adopt to stay competitive in search engine results when Google is consistently changing its algorithms?

The 2012 Top Ten New Year’s Digital Marketing Strategy Resolutions, presented by HeBS Digital for the 12th consecutive year, answers these questions and provides guidance on what hoteliers should do to succeed in the year ahead. With an improved outlook for the industry, technological advances, and the usage of mobile devices growing exponentially, opportunities for incremental revenues abound.

Here are the Top Ten Digital Marketing Resolutions your hotel company should consider adopting in 2012:

1. I will bring social, local and mobile marketing initiatives to the forefront of my hotel digital marketing plans this year.

Situation:

In 2012 hoteliers will be hearing a lot of the buzzword SoLoMo (SOcial, LOcal, MObile). Meant to convey the convergence of these three major media, the term SoLoMo describes a “marriage made in heaven” between the three content and marketing platforms. Why does this mean for hoteliers? Hotel guests are avid SoLoMo services users. Most social network engagements by travel consumers are done via mobile device. Consumers perform more than 3 billion local searches every month, and one in three mobile searches have local intent vs. one in five desktop searches (Google).

Unlike the desktop Web world, SoLoMo allows hoteliers to combine real-time customer geo-location with their demographic and psychographic information and time- and location-relevant promotions. The success of location-based social media such as Foursquare has shown us that rewards and recommendations are only the beginning. Hoteliers need to consider how to best utilize SoLoMo to engage their customers and generate incremental revenues.

Action Steps:

By focusing efforts on social media, local marketing, and mobile marketing, hotel marketers have the ability to deliver more personalized, relevant content and engage existing guests and potential customers like never before.

To begin with, how well optimized are your property profiles in the main data providers, which feed many local directories and geo-social sites? How well optimized are your property local search listings on Google Places, Yahoo Local, and Bing Local? What about all the local online directories and yellow pages? Do you have a local citation listing program in place?

Once you take care of your local content and listing strategy, it is time to enhance your mobile marketing presence. How deep, relevant and engaging is the local content on your mobile site? Do you have automated push of specials, promotions and local events from the property “desktop” website to the mobile site to keep your mobile presence “fresh?” Do you use micro-formats and Schema codes to relay the time- and location-relevant nature of these promotions and events to the search engines? Does your property take advantage of coupon promotions through Google?

Other recommendations include engaging your local customers via time- and location-relevant check-in promotions and rewards, launching social media promotions, contests, and post series via Facebook and Twitter, and blogging. Geo-social marketing initiatives allow hoteliers to integrate into customers’ lifestyles and connect (and stay connected) with them in ways that were not possible before. Industry experts already predict the end of the Foursquare-type check-in and envision a deeper and more experiential form of “social sharing” instead. Social, local and mobile marketing are great for time- and location-sensitive promotions. In 2012 focus on SoLoMo initiatives and you will remain ahead of the competition.

 

2. I understand this industry is complex and will work to make sense of a very convoluted digital space/online marketplace.

Situation:

Hoteliers have been rightfully confused by the myriad of headlines about the changing landscape of hotel distribution, from articles titled “Google will change your hotel’s distribution strategy” and “Facebook as an E-commerce engine,” to “How to make Twitter Sell” and “Mobile Apps to Impact Hotel Distribution.” In other articles OTAs are proclaimed to be a “good thing” because of the so-called billboard effect and contribution to new client acquisitions. On a daily basis, hotel owners, managers and operators are bombarded by far-fetched and often conflicting messages and claims.

The recession brought an onslaught of new players to the travel marketplace, which further convoluted the complex online marketing and distribution channels and online travel consumer behavior. Social buying sites (group buying, flash sales sites, member-only sites) and last-minute mobile sites are all presenting themselves as the “future of hotel distribution.” To add to the confusion, mobile and social have forever changed the way people research, plan and purchase travel – shorter booking windows, greater transparency, and peer recommendations are just some of the ways the integration of social and mobile have affected purchasing habits. Understanding this increasingly convoluted digital space and the increasingly complex online travel consumer behavior can feel like a monumental undertaking.

Action Plan:

In this dynamic industry, taking time on a daily basis to stay current with hotel digital marketing trends is a must. To start, adopt a business approach when analyzing whether or not use these new marketing formats and channels. In spite of all that is happening in the digital space, hotel marketing and distribution fundamentals have not changed. Try to correctly categorize these new sites, players and business models by asking yourself a set of simple questions: Is the site an advertising medium or a distribution channel? Does it work against accepted rate parity and best rate guarantee principles? Would a promotion via one of those sites alienate your existing corporate, group and leisure clients? Does working with these new players adhere to industry’s best practices in marketing and distribution?

Look deeper to understand the influence of each digital marketing initiative on the new online travel consumer. Advanced analytical tools can also help you make sense of this convoluted space. In this increasingly complex environment, consider partnering with a direct online channel strategy consulting firm to keep you informed and ahead of the competition.

 

 3. I will continue to account for the continued shift from offline to online, and engage the hyper-interactive travel consumer via multi-channel marketing efforts.

Situation:

The shift from offline to online continues. The online channel has been rapidly growing for 16 years straight. Internet bookings for the top 46 hotel chains now constitute 54% of all the chains’ CRS bookings. The online channel has grown by 25% in the last four years alone, while the share of the GDS travel agent channel and voice channel has decreased by 25% and 11.1% in the past four years, respectively. It’s critical that budget dollars are shifted to online marketing budgets, and that these budgets stay focused on hotel distribution channels that generate the most bookings, are cost-effective, and protect rate parity and price integrity.

In 2012 the mobile Web and social media will further establish the new breed of hyper-interactive travel consumers who demand “immediate, anywhere and anytime” customer engagement, information access, transaction capabilities, content sharing and customer service in real-time. Marketing to this new type of consumer requires a completely new, multi-channel marketing approach where the hotel engages consumers at all touch points.

Action Plan:

Multi-channel marketing is the foundation for a smart direct online channel strategy. In this environment, the hotel website, SEM campaigns, email marketing, social media presence, mobile, etc. have a symbiotic relationship. For example, if you launch a website promotion, you should also send an email to the hotel’s opt-in list, announce it on Twitter and Facebook, launch a paid search campaign and publish a blog posting via the hotel blog.

In 2012, hoteliers need to invest in technologies and expertise needed to better execute these types of multi-platform and multi-format campaigns. For example, invest in technology that allows for smart and centralized marketing content delivery: All new special offers and events at the property and destination are automatically pushed by your hotel “desktop” website Content Management System (CMS) to your property’s mobile site and Facebook and Twitter accounts.

What line items should you include in your 2012 hotel digital marketing budget in order to drive revenue through the direct online channel? In our recent article, The Smart Hotelier’s Guide to 2012 Digital Marketing Budget Planning, we provide detailed recommendations how to allocate your 2012 budget to achieve the highest direct online revenues and ROIs.

 

 4. I will take advantage of the Mobile Channel, especially in this marketplace where my competitors are behind the times.

Situation:

Today’s hyper-interactive travel consumers demand instant information and transaction capabilities, user location-oriented services, and personalization, attributes only the Mobile Web can deliver. Mobile users demand not only instant access to travel planning and booking capabilities, but a Mobile Web user experience that rivals and surpasses the Desktop Internet experience.

Mobile Internet usage will surpass desktop Internet usage by 2014 (Morgan Stanley). Google reports four-fold YOY increase in mobile search, and that one out of five hotel queries come from mobile devices. Coda Research projects 65% compounded annual growth of mobile commerce from 2010 through 2014, to reach $24 billion. Many OTAs and hotel chains reported several-fold increases in their mobile bookings in 2011. Last year more than 4.7% of website visits and more than 3% of all bookings came from mobile devices across our hotel client portfolio.

Smart hoteliers already know that the mobile Web adheres to different rules than the conventional desktop Internet. Mobile users have shorter attention spans than do traditional desktop users. They have less time to browse and are often on the go.

Action Plan:

Hoteliers need to develop and implement mobile Web-specific marketing initiatives, and not try to adapt existing “desktop” Internet assets like the property desktop website for use in the mobile space. It has become obvious that trying to squeeze your wide-screen 1280 x 1024-pixel “desktop” hotel website onto the tiny 320×480-pixel screen of a mobile device is a futile exercise that inevitably destroys usability and conversion rates.

In 2012, hoteliers should continue to focus on building and enhancing their mobile websites and launching mobile marketing initiatives, such as mobile SEM, SEO, mobile-social media initiatives, interactive sweepstakes and contests. In 2012, hotels should spend 9%-10% of their overall digital marketing budget on mobile marketing initiatives.

Start with the mobile website, your mobile hub for customer engagement. Is your mobile website specially designed to provide an excellent user experience in a mobile environment? Does it offer an engaging, contemporary design and functionality? Does it include content sections targeting your main customer segments? Have you increased your mobile site’s “discoverability” via mobile SEO and mobile SEM (e.g. Google mobile AdWords) and mobile media initiatives? Have you made the mobile website more interactive via mobile-social media initiatives, interactive sweepstakes and contests? Is your mobile website compatible with the recent Google Panda and “Freshness” updates and their requirement for unique and engaging content?

Here are the top mobile marketing initiatives hoteliers should focus on in 2012: mobile SEO, mobile link building to the site from mobile directories and sites, mobile SEM (paid search) campaigns, mobile banner advertising in the main mobile feeder markets, mobile contests and sweepstakes, and mobile promotions via SMS. Read our “Top 20 Secrets to Success in Hotel SMS Mobile Marketing” to help you get started.

As for the question of whether hoteliers should develop mobile apps or focus on developing and enhancing their mobile website, we firmly believe that hotels do not need a mobile app if they are a single-property, independent hotel. Nor do franchised hotels and resorts or smaller and mid-size hotel chains and multi-property companies. These hotel companies are better off focusing on building and enhancing their mobile websites and promoting the mobile site via mobile marketing initiatives. A single-property mobile site is six to ten times cheaper than a comparable mobile app. With rapid advancements in mobile technology, the lines between mobile apps and mobile websites are disappearing. Also, a mobile website is by default a cross-platform entity that can be viewed on all mobile platforms (iPhone, BlackBerry, Google Android, Windows Mobile, etc.), while apps or a customized version of an app must be created for every major platform.

 

 5. Now that I know social media is a customer engagement channel and not a distribution channel in hospitality, I will use Social Media correctly to create “buzz” around my hotel, target receptive audiences, provide customer service and enhance customer experiences. This will ultimately stimulate hotel website visits, interactions and conversions on the hotel website.

Situation

There is no doubt that social media has changed how travel consumers research and plan travel, access travel information, and perceive the credibility of information. Internet users are increasingly influenced by social media sites and peer reviews. By utilizing a comprehensive social media strategy, smart hoteliers engage their customers and enhance their experiences, generate buzz and improve customer service.

Many hoteliers have underestimated the complexities and involvement required for managing the property’s social media profiles. Infrequent or bland, “sales pitch” postings, lack of interactivity, creativity, fun and intrigue plague the social media presence of many hotels.

Action Plan:

In 2012 social marketing should continue to be an important component of your property’s marketing mix and part of the comprehensive direct online channel strategy for any hotel company.

Social media and social marketing initiatives should be reviewed as part of the overall multi-channel marketing strategy of the hotel. Instead of focusing on only bookings and revenue when measuring results from social media marketing, use social media for brand-building and buzz-building; as a medium to interact with and engage customers; as an important customer service channel; as a source of engaged and relevant traffic to the hotel website, and a way to make the hotel look current, cool and up-to-date.

This year work on establishing or enhancing a brand consistent Facebook and Twitter presence; monitor customer reviews/engagements for any customer service issues; use engaging posts (ask questions, use trivia, hold contests); locate/designate your on-property Social Media “Champion”, and partner with a social media strategy and technology firm to provide strategy, training, and technology implementations such as Facebook custom tabs, contests, etc.

In light of the recent Google Panda updates (to be discussed in more detail in the next resolution), allowing your website visitors to share your site’s content with Facebook Like/Tweet/Google +1 buttons is important to stimulate conversation and for search engine optimization purposes.

Avoid the all-too-common mistakes made my many hoteliers when participating on social media channels, including posting infrequently, only focusing on promoting packages and specials, not responding to questions and comments made to the hotel, and deleting comments.

 

 6. I will rise to the challenge imposed by the recent Google Panda and ‘Freshness’ updates!

Situation:

Today’s hotel website must adhere to very high expectations from not only website visitors but also the search engines. In a typical year Google makes more than 500 updates to its search algorithm. 2011 saw two major updates: the Google Panda Update (now in version 2.5) and the Google “Freshness” updates, which made most hotel websites obsolete by introducing very strict requirements for content, interactivity, and page download speeds. The Panda update requires websites to have engaging and unique website content (as opposed to bland, old and tired content and in addition to the existing requirement for deep and relevant content) that increases the site’s “stickiness”. The recent Google “Freshness” update requires that hotel websites maintain fresh and new content to rank high in the search engines.

Why are these updates important for the hospitality industry? Between 50%-70% of hotel website visitors and website bookings originate as leads from the major search engines. Traditionally, hotel websites are content rich vs. news rich, with descriptions and information featuring and explaining in detail every facet of the hotel business and service, from the bed linens to the capacity of a meeting room. The “static” content is there, but the “unique and engaging” and  “fresh” content is lacking. This is the main issue with current hotel websites after the latest Google algorithm updates.

Action Plan:

In 2012 hoteliers must work harder than ever to enhance the uniqueness and engaging nature of the content on the property website by employing professional hospitality copywriters and maintaining fresh content on the hotel website year-round.

Build promotional landing pages and tiles for timely specials and events. Create new content pages on various topics including seasonal and sports events, local festivals and customer segment-specific content. Use “micro-formats” applied to every local promotion and event, which signifies to the search engine that these events are in fact standalone current events, with exact starting and ending times. Incorporate Schema codes on all time-sensitive content pages. Maintain a blog highlighting specials and events along with general hotel news. Talk about local events, highlight someone’s stay, seasonal activities in the area, or feature infographics about your hotel or region that deeply engage users.

Another must is incorporating real-time Twitter feeds and Facebook interaction information in the hotel website to ensure that interaction is recorded, up-to-the-minute, and relevant.

Updating the hotel website should not be a costly endeavor – a good content management system should give hoteliers the tools they need to perform these updates easily, efficiently, and without extra cost to the hotel, as well as ensure automated push of new content (e.g. promotions, events, packages, etc.) from the “desktop” website to the property mobile site and Facebook and Twitter pages.

 

 7. I will decrease dependence on the OTAs this year, adding thousands of dollars in incremental revenues to my hotel’s bottom line.

Situation:

Did you know that since 2007, OTAs have increased market share by 32% at the expense of the hotel direct online channel (hotel websites)? STR estimated that the true cost of OTA distribution in 2010 alone was more than $2.5 billion in the form of abnormally high merchant commissions. It is 10 to 15 times cheaper to sell your rooms via the direct online channel compared to the OTA channel.

We do not envision a scenario in which 100% of Internet bookings are made via the direct online channel. The OTAs and other intermediaries in the indirect online channel do play a necessary role in certain areas of the travel planning and purchasing process (dynamic packaging). Even pre-Internet, approximately 25% of all hotel bookings in the U.S. came via the indirect channel (travel agents, tour operators, and wholesalers).

Action Plan:

Driving bookings through the direct online channel – the hotel website – needs to be every hotelier’s priority in 2012. In addition to being the most cost-effective distribution channel, the direct online channel provides long-term benefits and competitive advantages. It prevents rate and brand erosion, helps the hotel “own” the customer, enables cross-channel and multi-channel marketing initiatives, builds brand loyalty, and more. The OTAs’ fair share should not be higher than 15% for franchised and 25% for independent properties from all Internet bookings. We should not be seeing the current industry average of 40% OTA contribution.

Start by changing the property mindset: OTA commissions = marketing dollars. Do a distribution cost analysis. Maintain strict rate parity and a best rate guarantee. Focus on and budget accordingly for the direct online channel. Redesign the hotel website as per Google’s Panda and Freshness updates – you will gain competitive advantage over the OTAs and your comp set. Learn how to market your hotel better and smarter than the OTAs do. Embrace the mobile distribution channel and utilize social media to engage your customers. Focus on the customer experience.

And finally, utilize the OTAs as an incremental distribution channel: low season, group cancellations, weekends, or other scenarios.

 

8. I will NOT resort to desperate measures and use social buying and flash sales sites in 2012.

Situation:

Social buying and flash sales sites emerged as a result of the recession. Social buying and flash sales sites in travel and hospitality, such as Groupon Getaways with Expedia, LivingSocial.com, and SniqueAway.com are an integral part of the economy and the supply-demand market equilibrium. For social buying and flash sales sites to exist, there must be market equilibrium (price-quantity) between the demand side (quantity of members/engaged social buyers) and the supply side (quantity of fresh, intriguing deals).

In 2012, all signs are indicating that the hospitality industry is in recovery mode. STR projects that all three of the key performance measurements (occupancy rate, ADR and RevPAR) will realize steady increases for the year as a whole.

As travel demand improves, hoteliers have become reluctant to participate in social buying/flash sales sites because of their “open discount” business model need for steep 50%-60% discounts. Online travel consumers, disappointed by the lack of fresh hotel deals on the social buying sites, are reverting back to traditional booking channels: hotel direct, OTAs, GDS and voice.

Action Plan:

Some hoteliers participate in social buying and flash sales sites merely because their competition is doing so. Our advice? Don’t succumb to the devil. Stick to the fundamentals in hotel distribution and make sure you are covering all the bases in the Direct Online Channel.

Hoteliers should realize the existence of “The Law of Unintended Channel Share Loss” which stipulates the following: Any booking via the most discounted channel (i.e. Flash Sales Sites such as Groupon, LivingLocal.com or SniqueAway.com or an OTA) is one fewer booking for the same hotel via the hotel website, call center and GDS (in that order).

This is why we recommend that hoteliers focus on the direct online channel (the hotel branded website), which is by far the cheapest distribution channel. A booking via the property website of an independent hotel costs $10-$11, including all marketing and advertising expenses.

 

9. I will focus on determining the effectiveness and ROI of my digital marketing campaigns and make smarter use of analytics technology to determine true ROI and campaign effectiveness, as well as test, test, test to achieve better results.

Situation:

Is social media a hotel distribution channel? Is the mobile Web generating bookings? Do we still have to engage in the “old-fashioned” email marketing, which many hoteliers have branded “ineffective”? What are the ROAS (return on ad spend) from my search engine marketing (SEM)?

The explosion of social media and mobile marketing, along with channel convergence and multi-channel marketing, has made it more imperative for hoteliers to track the effectiveness of hotel digital marketing initiatives and optimize returns from their limited budget resources.  The available analytical technology tools today offer cost-effective yet powerful ways to track the results. They allow us to track conversions from the hotel website and all digital advertising campaigns such as SEM, banner advertising and re-targeting. Call analytics allows us to track the effectiveness of the voice channel, as well as the mobile Web and print ads.

In addition, we can retarget and behaviorally target website visitors and have more access than we have ever had to consumer’s browsing and purchasing habits. So why do we work so hard to get consumers to our website, yet fail to make the same effort in making sure our website meets the needs of these visitors? Making small tweaks to a hotel website may often result in significant increases in conversions.

Action Plan:

Invest in analytics technology in 2012 if you haven’t already! Having a full understanding of which initiatives work and which don’t will offset the cost of the investment.

For your website, utilize a web analytics tool like Adobe SiteCatalyst, powered by Omniture, the most advanced web analytics technology today, used by many major hotel brands and OTAs alike. For your paid search campaigns use Adobe SearchCenter, powered by Omniture, a sophisticated real-time paid search campaign management tool.

For your banner advertising and re-targeting campaigns, use a banner delivery and tracking tool like DART to track post-impressions and post-click activity and conversions and gain a deep understanding and knowledge of your banner campaigns’ returns.

Did you know that 7 of 10 hotel bookings from mobile devices actually happen via the voice channel? Track the contribution of mobile website and mobile marketing initiatives, as well as voice reservations from your desktop website, via call analytics to determine the true effectiveness of these media. Using call analytics and QR Codes in your offline print advertising has become the norm.

As discussed above, social media is not a distribution channel and social marketing initiatives should be reviewed with “sober eyes” and within the context of their impact on the multi-channel marketing strategy of the hotel. Instead of focusing on bookings and revenue when measuring results from social media, consider the quality and quantity of “customer engagements” such as “Likes”, initiated conversations, comments and questions on Facebook and @replies, and retweets on Twitter, as well as the impact of social marketing initiatives on customer service, customer relationship, buzz- and brand-building for the hotel, as well driving relevant, engaged traffic to the property website.

Invest in a tool like Adobe® Test&Target™, powered by Adobe Omniture®, to test multiple versions of a webpage to separate targeted populations. Track each version for key revenue metrics and visitor behavior in order to compare results. Suggested test projects include: testing locations of the booking engine widget on four different sections of a home page; rearranging the display of promotional tiles for greater usage and visibility; testing different marketing messages on the home page hero space; and comparing a rollover drop down navigation vs. static navigation on the main navigation. Dedicating some time and resources to tests such as these will give you insight into how best to structure the elements of your website for the highest conversion rates.

 

 10. I will partner with savvy digital marketers who know it all and can guide me through this process, so I can drive the most revenue ever through my most cost-efficient channel – my hotel website.

Situation:

Navigating the online marketplace can be confusing and overwhelming.  The pace of change in this industry, including technological advancements, updates to search engine algorithms, and new solutions for driving direct online revenues are almost impossible to keep up with.

Additionally, most hoteliers are already shuffling many different priorities each day and are not able to devote the majority of their time – if any time – to keeping up with industry trends and best practices.

Action Plan:

In this dynamic industry it is important to stay on top of quickly moving trends, prioritize initiatives that generate direct online bookings, and be flexible enough to continuously adjust hotel digital marketing campaigns for optimal results.

Partner with digital marketing experts who will make driving direct online revenues for your hotel their priority: Experts who will keep you up to date with best practices without you having to ask, who will proactively bring forth ideas to generate the highest website revenues and ROIs.

Work with a team of savvy digital marketers who will show you new ways to recoup lost opportunities, teach you how to stay on top of changes in the industry, and provide your hotel and team with real value, not just a service.

 

About the Authors

Max Starkov is President & CEO and Mariana Mechoso Safer is VP, Marketing of HeBS Digital, the industry’s leading full-service hotel digital marketing, website design and direct online channel strategy firm based in New York City (www.HeBS Digital.com).

HeBS Digital has pioneered many of the “best practices” in hotel digital marketing, social and mobile marketing, and direct online channel distribution. The firm specializes in helping hoteliers build their direct Internet marketing and distribution strategy, boost the hotel’s Internet marketing presence, establish interactive relationships with their customers, and significantly increase direct online bookings and ROIs.

The firm has won over 160 prestigious industry awards for its digital marketing and website design services, including numerous Adrian Awards, Davey Awards, W3 Awards, WebAwards, Magellan Awards, Summit International Awards, Interactive Media Awards, IAC Awards, etc.

A diverse client portfolio of over 500 top tier major hotel brands, luxury and boutique hotel brands, resorts and casinos, hotel management companies, franchisees and independents, and CVBs has sought and successfully taken advantage of the firm hospitality Internet marketing expertise offered at HeBS. Contact HeBS Digital consultants at (212) 752-8186 or success@hebsdigital.com.

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Hotelier’s 2011 Top Ten Internet Marketing Resolutions

Wednesday, January 5th, 2011

By Max Starkov and Mariana Mechoso Safer

While 2010 was not quite the tough year the industry feared it would be, hoteliers still grappled with a number of challenging issues: a slowly recovering economy, the ever-changing world of social media and the mobile Web, mobile-obsessed consumers and customer review enthusiasts, and significant revenue leakage from hotels to OTAs in the form of abnormally high merchant commissions. These challenges led to a fundamental shift in hotel Internet marketing tactics, including the need for multichannel marketing, engaging the new breed of on-the-go hyper-interactive travel consumers, and a smarter approach to analytics to determine what really works for hoteliers with limited marketing dollars available.

The hurdles presented by 2010 encouraged hotel Internet marketers to simply be smarter so they might achieve greater online successes in 2011.

The outlook for the industry in 2011 is the most optimistic it has been in years. PKF Hospitality Research predicts REVPAR to grow by 7.8%, a 3.4% increase in lodging demand and a 4.6% rise in ADR. In all of 2010, online travel distribution continued to dominate the hotel distribution space, and HeBS predicts this will continue throughout 2011.

How can hoteliers take advantage of increased travel demand this year? What smarter hotel Internet marketing formats should they focus their budgets on? Which new technologies and marketing formats and strategies will most efficiently and cost-effectively reach the on-the-go, hyper-interactive traveler?

The 2011 Top Ten New Year’s Internet Marketing Strategy Resolutions, presented by Hospitality eBusiness Strategies for the eleventh year in a row, offers some answers to these questions, as well as a sneak peek into what should be on the forefront of hoteliers’ minds next year.

Here are the Top Ten Internet Marketing Resolutions your hotel company should consider adopting in 2011:

1. I will adapt a new marketing approach around the Customer Engagement Channel and develop campaigns that fully align marketing efforts with the behavior of the hyper-interactive travel consumer.

Situation:

Today’s travel consumer is exposed to and engaged by so many snippets of information coming from all directions in a fast-paced, real-time 24/7 environment, that they live in a perpetual “hyper-interactive information cloud.” Consumers no longer keep track of where exactly they have been exposed to information or content, they no longer care what format the information or content they have been exposed to is in (email, tweet, Facebook post, SEM campaign, etc.), and they no longer differentiate between media channels and content formats (i.e. they have become channel- and format-agnostic). In other words, the convergence of marketing/media channels + the new hyper-interactive travel consumer = the emergence of one single Customer Engagement Channel.

Action Steps:

The Customer Engagement Channel demands a completely new approach to distribution and marketing.  Hoteliers must find a way to convince consumers that the channel is theirs, that they are in full control of the content they receive and how they receive it.

What are some of the ways hoteliers can engage in this two-way conversation with current and potential guests? Provide multiple options on the hotel website for how consumers can hear from you (email, mobile, Facebook, Twitter, etc.). If they unsubscribe from one marketing format, give them the option to choose to hear from you in another way. Also, invest in eCRM in order to send more personalized marketing messages, keep your marketing plan dynamic (if people aren’t responding well to a campaign, move on quickly), stimulate website visitors constantly with fresh content, and implement contests and promotions on your website and through social media. Additionally, in 2011 it will be important to invest in technology needed for centralized content delivery. A good CMS can dynamically push content from the website Content Management System (CMS) to social media, the mobile site, email, Web 2.0 functionality on the site, etc. More on this below.

2. I understand that 2011 is going to be the ‘Year of Video’ and will continue to invest in videos for my hotel website, mobile website and other online marketing channels and efforts. Virtual tours are long out, and videos are definitely in.

Situation:

While online video was an important part of the hotelier’s strategy in 2010, this year it is even more essential that video marketing be in the hotelier’s arsenal. Videos excel at selling your hotel product and engaging consumers better than any other medium.  Also important in 2011: consumers will be watching video even more while on the go, on their iPhones, Android devices, tablets, etc.

Action Steps:

Develop hotel videos presenting hotel services and amenities to your different customer segments, post them on the hotel website and YouTube, and send them out via MMS messaging. Due to the shortened attention span of today’s traveler plus mobile distribution restrictions, best practices require not a single 30-minute video, but shorter 30- to 60- second videos illustrating different aspects of the hotel product: weddings, spa, entertainment, etc. Consider the impact this would have: a guest is preparing for a stay at your property, and receives a short video on his or her phone via MMS of the latest entertainment option at the hotel (comedy show, music show, etc.) or a video of dining at the restaurant, or of the spa services. This, followed by an exclusive offer, will increase the likelihood of ancillary revenues while on property.

Additionally, advertise your videos on YouTube (an easy and cost-effective marketing tactic), and make sure your videos can easily be found on your hotel’s website, its Facebook page and from your email newsletters.

3. I will no longer operate in a “marketing silo.” I should not launch or run any marketing initiatives in silos (i.e. SEM, SEO, social media, mobile marketing, etc.), and I understand I will lose serious revenue opportunities and even market share if I send non-symbiotic or conflicting marketing messages about my hotel across various channels.

Situation:

Many hoteliers use separate arrangements, departments or agencies – some in-house, some outside – to manage the hotel’s SEO, SEM, email marketing, social media, mobile marketing, etc. A silo marketing approach goes against the mere nature of the new breed of consumers hoteliers are trying to reach, and often results in different, confusing, even contradicting messages on different channels. For example, you may run a contest on your Facebook page but not mention it anywhere on your website or in your SEM, text and email campaigns. This will result in lower levels of participation as well as confusion as to the legitimacy of the contest.

Action Steps:

Hoteliers need to work in a multichannel marketing environment – the antidote to the silo approach – with centralized content creation and delivery. In this environment, the hotel website, SEM campaigns, email marketing, social media presence, mobile, etc. have a symbiotic relationship. Your website content and marketing campaigns should be managed centrally and distributed via multiple platforms so that similar content across all channels engages consumers at multiple touch points.

4. I will continue to launch multichannel marketing campaigns and invest in technology needed to better execute these types of multi-platform and multi-format campaigns. I know that I need to reach my current and future guests via multiple touch-points, and that there is technology available today that can help me do this more efficiently.

Situation:

In last year’s Top Ten Internet Marketing Resolutions, HeBS accurately predicted that multichannel marketing would be the norm in 2010. Many marketing initiatives, on their own, cannot generate the high revenues that multichannel campaigns can produce. Hyper-interactive travel consumers’ need to receive and share fresh/relevant information and comment on experiences has blurred the boundaries between various distribution and marketing channels. These channel convergences exacerbate not only the need for multichannel marketing and distribution strategies, but also for centralized marketing content creation and multichannel distribution.

Action Steps:

Invest in technology that allows for smart and centralized content delivery. As mentioned above, your website CMS should enable you to create a special offer or new package that not only posts this new promotion on the Special Offers page and Featured Special promo tile on the hotel website, but also pushes this promotion to your social media profiles and populates your mobile website. Hoteliers must also consistently provide website visitors with fresh, engaging content such as contests and promotions concurrently on your website, SEM campaigns, email newsletters, mobile marketing campaigns, and through social media.

5. I will make room in the budget for smart investments in 2011 – and not rely on outdated business approaches or short term solutions.

Situation:

Many hoteliers are still investing in 1990 business approaches or quick fixes. Outdated CMS technology that does not allow for centralized content delivery, mobile websites that do not work across multiple devices (Blackberry, iPhone, Android), flash-heavy websites and websites that read like static online brochures are unacceptable in 2011. These investments may save you money in the short run, but in the long run can spell disaster for your business.

Action Steps:

This year, invest intelligently in technology and marketing approaches that enable customer engagement across all Internet marketing formats. Any investment by hoteliers should go through a litmus test:

a) Does this investment help me generate more engaging content?

b) Am I engaging the hyper-interactive travel consumer with this campaign?

c) Have I created tools that enable the hyper-interactive traveler to share this campaign and/or their experience on my hotel website?

6. I know that I may no longer delay serious time and efforts in mobile marketing & social media. It is not acceptable to provide my website visitors via their mobile device the desktop version of my website. I also know that if I do not make a significant time investment in social media that my competitors are going to leave me far behind. This year, I will work hard to integrate mobile and social marketing into my overall digital marketing strategy.

Situation:

In October of 2010, Google reported that year-over-year mobile searches for hotels had increased by a staggering 7,000%. Industry experts project that the mobile Web will surpass the traditional web in size by 2013, and HeBS’ own research and other industry sources show that between 1% – 1.5% of visitors to hotel websites already come from consumers accessing the hotel site via mobile devices.

It is also now evident that social media is not going anywhere – in 2010, Facebook’s traffic surpassed that of Google’s. Facebook users uploaded more than 2.7 million photos, shared 1 million links and “liked” 7.6 million pages every 20 minutes in 2010 (Mashable, Facebook). So how can hoteliers combine these two powerful marketing initiatives and integrate mobile into their social media strategy in 2011?

Action Steps:

People are utilizing the mobile channel to conduct searches as well as to share content, interact with friends, and browse the web. This year, consider these ideas to integrate mobile into your social media strategy: build your mobile list by featuring a mobile widget on a customized Facebook tab and on your website; run a mobile promotion on Facebook and Twitter to build your mobile list by prompting users to text a keyword to a short code to be entered to win a prize; cross-promote your mobile initiatives on your Facebook customized tab, in Facebook wall posts, and in Twitter tweets; and use mobile to increase visibility of your social media messages (asking people to ‘text to follow’ – Twitter allows non-account holders to follow specific accounts through SMS messaging).

7. I understand that the time has come to upgrade my hotel website, which has become the main face of my hotel to the rest of the world.  I understand that my hotel website should offer the best visual and rich media content about the property on the Web and should become the most potent customer engagement tool via Web 2.0 optimizations and functionality.

Situation:

Over the past two years, many hoteliers who desperately needed website redesigns simply put Band-Aids on their existing sites to save precious budget dollars. Today’s hotel website has become the main revenue driver that carries the burden and responsibility of generating the bulk of bookings for the property. The hotel website is the first, (and in many cases) the only, and unfortunately for many hoteliers, the last point of contact with the travel consumer. The property website is the backbone of the hotel multichannel marketing mix and the main “engagement tool” with today’s hyper-interactive travel consumer.

In 2011, this approach needs to be rethought. The hotel website is the backbone of your Internet marketing strategy – the most important tool in your arsenal. Your outdated website allows your competitors to steal your market share.

Action Steps:

There have been so many changes in the past 24 months that it would be virtually impossible to have kept up with all of them – the emergence of the hyper-interactive traveler, social media, mobile marketing, Web 2.0 functionalities, and more. If your hotel website is over two years old, it’s time for a redesign.  If your website is over a year old, keep it current with search engine optimization (SEO) strategies, a Web 2.0 optimization (interactive elements on your website) and ensuring you are fully addressing all your customer segments in your copy and navigation.

Make the hotel website redesign reflect 2011 industry’s best practices. A site redesign is a 90-120 day project (start planning now). Our experience shows that any website optimizations, enhancements or site re-designs pay for themselves within 3-4 months.

8. I will continue to make the Direct Online Channel the foundation of my hotel Internet marketing strategy and stop ‘leaking’ revenues to the OTAs. I know I need to reduce my reliance on the OTA channel and establish direct relationships with my guests. This will result in significant incremental revenues, increased loyalty and long-term competitive advantages.

Situation:

Revenue “leaked” from the hotel industry to the OTAs in the form of abnormally high merchant commissions of 25% and higher will have reached $5.4 billion in 2010. Hotel reservations are de facto financing the OTAs’ operations and allowing the OTAs to obtain billions of dollars of abnormally high merchant (wholesale) commissions and reap huge profits on Wall Street.

Action Steps:

The goal for the industry should be as follows:

  • Major hotel brands: OTA contribution (including agency, merchant and opaque model) should be kept below 15%.
  • Average for the hospitality industry: OTA contribution (including agency, merchant and opaque model) should be kept below 25% (the level the indirect channel has traditionally had for many years, even before the Internet).

Hoteliers should maintain strict rate parity across all channels, create unique product offerings on their own website, and engage guests directly through social media, mobile marketing, and Web 2.0 functionalities on the hotel website. Additionally, every single Internet marketing initiative (PPC, SEO, email marketing, etc.) should be planned and launched with the goal in mind of producing revenues directly on the hotel website.

9. I will no longer suffer through ‘information overload’ and will use smart analytics to make smart business decisions. From Adobe Online Marketing Suite powered by Omniture to DART, every report that I analyze must answer this important question: How can I use this data to improve my business and generate more revenue?

Situation:

Understanding business issues and decision-making are often made more difficult for hoteliers by the overwhelming amount of reports that are constantly made available to them.  Also, many hoteliers are only focused on website analytics and are not taking advantage of new tools available to them such as offline conversion tracking (i.e. call tracking).

Action Steps:

Start requesting reports and analyzing them with specific questions and goals in mind. Also, start utilizing analytical tools to measure your offline efforts/channel contribution.  By constructing private landing pages for print offers, enabling call tracking (especially to help you measure what percent of business is coming from the mobile channel), QR codes, and short codes that must be texted to redeem specials, hoteliers can get the bigger picture of what works and what does not work. In 2011, move beyond just using website analytical tools.

10. I will not be intimidated by the complexity of it all. I understand that with each passing day the whole digital space is becoming more and more convoluted with new media formats and marketing channels, with new “make-believe” and real revenue opportunities. I will make sure to stay on top of these dynamic developments by partnering with the best hospitality experts in Internet/digital marketing to a) learn it all, and b) work jointly on my hotel’s Internet, social and mobile marketing.

Situation:

Until recently, having a new hotel website and launching a few Internet marketing campaigns such as email and paid search were considered sufficient by many hoteliers. Today the above falls into the “It’s elementary, Watson” category, and constitutes only the initial step of a comprehensive “digital exposure” for your hotel. In the past two years a number of very important developments occurred that profoundly changed inventory distribution and marketing in hospitality: social media, mobile Web, cross-channel marketing, and the emergence of the hyper-interactive travel consumer. In 2011, hoteliers need to do much, much more to engage the new breed of hyper-interactive travel consumers in this new multichannel 24/7 environment: from social and mobile marketing, to Web 2.0 and interactive promotions and applications on the hotel website, and multichannel marketing to tie all of this together.

Action Steps:

Consider partnering with a hotel Internet/digital marketing firm with a proven track record in the industry. Partner with hospitality experts in Internet/digital marketing and direct online channel strategies who can help you acquire new core competencies and adopt best industry practices. Partner with those who can help you and your hotel stay competitive, preserve and increase market share, beat the industry averages and generate the highest direct online channel revenues and ROIs. Hire experts who will work with you in complete transparency and that are ROI-centric, yet innovative and will keep you in the know of the latest trends, including social media and mobile marketing.

Most importantly, this partner should make your hotel’s digital presence your hotel’s most productive and efficient revenue generating channel in 2011 and beyond.

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Posted in HeBS Articles & Publications, Top 10 Internet Marketing Resolutions | 3 Comments »

Hotelier’s 2010 Top Ten Internet Marketing Resolutions

Monday, January 4th, 2010

By Max Starkov & Mariana Mechoso Safer

Looking back, HeBS believes that 2009 was a year not only of challenges, but also successes for the industry. While no hotelier is sad to see the end of 2009, HeBS believes that every hotelier has learned extremely important and insightful lessons that have benefitted their Internet marketing and distribution efforts. Undoubtedly the most important and relevant initiatives in 2009 included holding every spent dollar fully accountable with analytics, not experimenting with unproven advertising formats, enhancing and optimizing the hotel website, and very carefully targeting the right customer segments. These tactics were integral parts of HeBS article “Getting Back to the Basics: The Hotelier’s Action Plan for a Difficult Economy” and hoteliers who made these recommendations priorities in 2009 were the winners in this economic downturn.

Now, it’s time to look at the year ahead.

Industry reports show that in 2010, hotels will continue to experience declines in revenue and profits, and the recovery is expected to be slow and painful. According to PKF Hospitality Research, in 2010 hotel occupancy will increase by only 0.4%, while ADR and RevPAR will decline further by 1.5% and 1.1% respectively.

The Online Channel is the only growth channel in 2010. This was true last year and it is still the case this year. In Q3 2009, Internet CRS bookings for the top 30 hotel brands grew by 6.6% compared to the previous year, while both GDS bookings and voice bookings declined by 3.6%, and 3% respectively (eTRAK).  Smart hoteliers will continue to shift marketing dollars to the online channel at the expense of traditional and declining channels, and implement ROI-centric Internet marketing and distribution strategies with new efforts such as social media and mobile marketing, which are quickly becoming the mainstream in the hospitality industry.

What should hoteliers do to improve bookings in this slowly recovering economy? How seriously should they take their social media strategy? Which Internet marketing initiatives should hoteliers budget for? What online initiatives will bring the highest ROIs? Most importantly, how can hoteliers keep up with emerging trends and provide the immediate, real time service that guests demand?

The 2010 Top Ten New Year’s Internet Marketing Strategy Resolutions, presented by Hospitality eBusiness Strategies (HeBS) for the tenth year in a row, provide some of these answers and action steps.

Here are the Top Ten Internet Marketing Resolutions your hotel company should consider adopting in 2010:

1. I know that “Less is More” in a difficult year like 2010 and I will focus my budget on the Internet marketing initiatives that bring the highest ROIs and generate the most bookings. I know it is essential that I use analytics to drill down my results and find the right marketing mix that converts for my hotel, and that I make use of every marketing dollar I have.

Situation: The Internet marketing basics—website re-design, SEO, paid search, and email to the hotel’s opt-in list—consistently bring in the most bookings and the  highest ROIs in the industry. HeBS estimates that 75%-80% of hotel website bookings originate directly from these 4 initiatives alone.

Action Steps: Focus 90% of your budget and efforts on the 4 ROI-producing marketing initiatives as mentioned above—website re-design, SEO, paid search, and email to the hotel’s opt-in list. Then carefully study your analytics so that you can allocate more of your budget to those specific elements in each initiative that works (specific keywords over others, shorter newsletters, two newsletters every two weeks vs. four, etc.).

What about social media and mobile marketing?  Where do you start and what do you focus on?  To complement the 4 initiatives above, spend up to 10% of your Internet marketing budget on social media and mobile marketing initiatives this year.  By enhancing your social media presence on Facebook and Twitter you can create buzz around the property and contribute to increased awareness and booking considerations.  Also, make it a priority to build a mobile-ready website this year—67% of leisure travelers and 77% of business travelers have already used their mobile devices to find local services such as lodging.  However, social media and mobile marketing should remain a small part of the budget in 2010. And remember that less is more. Use the basics more intelligently this year by carefully looking at your website analytics, which will enable you to do more with limited budgets and resources.

2. I will take advantage of the fact that multi-channel marketing is here and that I can reach my future and current guests through a variety of ways that complement each other.

Situation: The research process is now longer than it has ever been—people are searching an average of 22 travel websites before making a booking (Google), communicating with friends and family via Facebook, conducting mobile search, etc. This means that they are seeing your marketing messages across a variety of different channels. Now more than ever, there is a convergence of interactive and offline marketing channels—social media and print; hotel websites and social media initiatives, mobile and email, etc.

Action Steps: Multi-channel marketing campaigns should be the norm in 2010. Reach your future and current guests at multiple touch-points. For instance, if you launch an email campaign to the hotel’s own opt-in list, combine it with a tweet on Twitter, a posting on Facebook, a promotion on your website (this is a must), and paid search campaigns. Remember, no matter which channels you use make sure you are tracking results and conversions (e.g. Omniture, DART, etc). Phone tracking is now easier than ever (e.g. a unique 1-800 number to be used for calls resulting from your Google AdWords, another from Yahoo, etc.), and even with print you can send people to private landing pages or use promo codes.

3. I will remember that the Direct Online Channel must always be at the centerpiece of my Internet strategy. I know that travel consumers booking via my hotel website i.e. direct customers are more loyal, bring more revenue and tend to travel more often.

Situation: Across the industry, in 2010, Direct Online Channel sales will exceed 62% of total online hotel bookings.  In 2009, even the top 30 major hotel brands t increased their dependence on the Online Travel Agencies (OTAs)—from 25.4% a year ago to 30% of CRS bookings in Q3 2009 (eTRAK). Emboldened by hoteliers’ desperation, some OTAs engaged in controversial and unhealthy practices, as described in HeBS’ recent article “The Prisoner’s Dilemma, the Stockholm Syndrome, or a Case of Both?”

Action Steps: What should hoteliers do to improve their direct vs. indirect online channel ratio? Firmly establish the direct online channel as the centerpiece of your marketing strategy. This provides your hotel with immediate results in a very difficult economic environment as well as long-term competitive advantages.  Maintain strict rate parity across all marketing channels and maintain a best rate guarantee. At the same time, create unique product offerings and providing unique value proposition via the hotel website. Engage your customers directly via social media and mobile initiatives, and Web 2.0 features and functionality on the hotel website.

4. I will plan my budget around ROI-Centric Internet marketing initiatives and furthermore, I will track every dollar spent using sophisticated website analytical and campaign tracking technology. In this economy, I will not spend even a single precious marketing dollar without tracking the results, bookings generated and Return-on-Investment (ROI). I know that my Internet marketing budget is never final – it is a “work-in-progress” which continuously needs to be reevaluated dependant on results and Return-on-Ad-Spend (ROAS).

Situation: Smart hotel marketers—from the major hotel brands and OTAs to independent hotels and resorts—use sophisticated website analytical and campaign tracking tools like Omniture, DART, etc.  For example, Omniture’a SearchCenter (used by many major hotel brands and all of HeBS clients) allows automated bid management of paid search campaigns resulting in significant cost savings of 30%-40%, in addition to detailed ROI-analysis on the campaign and keyword level and keyword stacking reports. This process reveals which keywords actually lead to a booking. Here at HeBS we often see bookings that resulted from three or more keyword searches.

Action Steps: In 2010, hoteliers must track post-impression and post-click activity and track conversions (bookings, room nights, revenues) and ROAS from each campaign. Do not accept excuses from your interactive vendors on how difficult it is to track conversions and ROAS.  Work only with an Internet marketing vendor that provides the hotel with 24/7 access to state-of-the-art website analytical and campaign tracking tools, utilizes industry’s best practices, and focuses on marketing spend that can be tracked. Go even more granular with analytics, and don’t just look at direct revenues from campaigns but look at the path website visitors took to make a booking. For instance, make sure that you review campaign stacking reports with your vendor and website user pathing behavior to get the full picture as to which marketing initiative led or contributed to each booking. Do not disregard an initiative because you aren’t drilling deep enough into your analysis. If your current vendor cannot accommodate your hotel with the above reporting and analysis, replace them in a heartbeat.

5. I will make sure my hotel website is Web 2.0-friendly to increase interaction with visitors. I understand  that launching Web 2.0 features and functionality on the hotel website engages website visitors, generates interest and site stickiness, and ultimately increases bookings.

Situation: Most hotel websites read like a static online brochure. There is minimal interaction with the user; all he/she can do is sit back and read what is on the website as if in a county library. This is contrary to the mere nature of today’s hyperactive Internet user, who is tweeting, texting, emailing, communicating with friends via Facebook, and commenting, often in real-time, on restaurants and hotels via review sites.

Action Steps: Create opportunities for your website visitors to communicate with your hotel.  Start a blog so that you can speak to them and allow them to leave their feedback (this will benefit the hotel’s SEO as well). Launch a sweepstakes that allows your visitors to enter to win a free night’s stay (and refer the contest to their friends, spreading it virally), and let them show off their vacation photos by creating a photo sharing contest (always have an approval process before photos go live). Post a fun scavenger hunt on the site and generate buzz, add new users to the opt-in email and text lists, and generate incremental bookings in the process.  Everyone wants to be a celebrity – let them share their experiences!

Many of these Web 2.0 features such as interactive sweepstakes and contests, blogs, event/activity calendars, photo sharing contests, sharing the site with friends, following the hotel via Twitter and Facebook, customer surveys and testimonials, etc. can be implemented even now, in this economy, without re-designing the whole website.

6. I will take full advantage of Social Marketing and enhance the social media strategy for my hotel in 2010. I understand that social marketing and targeted social media initiatives, if done according to best practices, generate buzz around the hotel, engage customers, provide a receptive audience, and ultimately stimulate hotel website visits, interactions and bookings.

Situation: Internet users now spend 17% of their surfing time on social network and blogging sites, nearly triple the percentage of time spent on such sites a year ago, according to Nielsen. Over 44% of Internet users are active in social media. In addition, over one-third of social network users and 44% of Twitter users have engaged with a brand through discount promotions (Mashable).

No wonder that according to the recent Business.com’s 2009 Business Social Media Benchmarking Study, 83% of U.S. companies use Facebook and 45% Twitter. All major hotel brands, airlines and other travel suppliers, as well as all OTAs are now present on the social networks like Facebook, Twitter, etc. At the same time, the social networks are cluttered with “dead” Facebook Fan Pages and Twitter accounts, abandoned by hoteliers and travel marketers who did not realize the amount of time, expertise and resources maintaining social media presence requires.

Action Steps: Do not get tempted to create a Facebook Fan Page or a Twitter account if you are not ready to devote a significant amount of time and resources to managing your hotel’s social network presence and if you do not have access to best practices and expert advice on the subject.  If you do not have the internal bandwidth or resources to manage social marketing, outsource to a hospitality social media expert company.

Launch interactive contests & promotions using social media and find unique ways for people to interact with your hotel outside of the hotel website. An example could be an interactive scavenger hunt using Facebook and Twitter, or a Twitter-only contest asking your followers what their dream hotel package would be (the prize would be the most imaginative-yet doable-package). Here at HeBS, we have found that these types of promotions drive significant traffic to the hotel website, are beneficial for SEO, are often referred to friends, and consistently result in multiple hotel bookings. And always measure ROI from your social marketing—number of engagements, referrals, leads, initiated bookings, conversions.

7. I will invest in Mobile Marketing this year, as I know that mobile users expect instant access to information as well as an Internet experience that rivals the one via traditional PCs and laptops. Mobile users have even shorter attention spans. They have less time to browse and are often on the go. I know the mobile Internet is not wireless access to the conventional Internet and adheres to different rules.

Situation: The number of mobile devices has already surpassed the number of personal computers worldwide.  Seventy-eight percent of the U.S. population has a mobile device of some sort. Sixty-seven percent of travelers and 77% of frequent business travelers with Web-enabled mobile devices have already used their devices to find local services (e.g. lodging) and attractions (PhoCusWright). In other words, hotel guests—past, current and potential—are increasingly becoming mobile-ready and hoteliers have to respond adequately to this growing demand for mobile services. This is the reason why all major hotel brands, travel suppliers and OTAs have mobile Internet initiatives in place, including mobile brand websites, mobile applications (including iPhone apps), m-CRM and mobile marketing.

Action Steps: The first step any hotelier should take is to build a mobile-ready website, designed specially to provide an excellent user experience in a mobile environment. The economy or budget constraints are no excuse—a 10-page mobile hotel website starts at $1250 and is definitely worth the investment. Also, launch Google mobile ads and start soliciting sign-ups to the text opt-in list (m-list) on the hotel website and via email marketing campaigns, etc. Include a mobile marketing component in your social media initiatives, interactive sweepstakes and contests.

8. I will invest in online videos for my hotel’s website and other online channels such as YouTube, Facebook, etc. I know that because of advances in bandwidth and technology, online videos are becoming an integral part of the Internet and Mobile Web users’ experience. I also know that an online video describes my hotel and its location better than any textual content on my site, and is an attractive conduit by which I will be able to showcase the hotel and the destination via the social networks.

Situation: According to Nielsen’s VideoCensus, YouTube serviced over 6.6 billion streams in October 2009 alone, followed by Hulu (632 million) and Facebook with over 217 million streams.  YouTube is the second largest search engine–second only to Google. People watch an average of two hours a month online and referrals from YouTube to the online travel channel are up 84% this year (Google). Most importantly, 72% of US Internet users view video online on the same scale as network television and 89% of users surveyed said video influenced their booking decision (PhoCusWright). No wonder almost all major hotel brands, OTA’s, luxury hotel and resort brands have invested heavily in the creation of online videos about their product and services and created YouTube and Facebook video channels.

Action Steps: If you do not have an online video of your hotel in 2010, make this a priority. Video is a great way to bring your property to life and there is a huge audience out there. Upload your video on your website, create a YouTube user channel for your hotel and make your videos part of the hotel’s Facebook Fan Page. If you are not able to budget for a video, consider the much cheaper  Flash Video (flash animation of images along with a voice-over recording), or ask your guests to upload and share their own videos.

9. I will take full advantage of today’s real-time marketing world we live in. I will focus on real-time communications with my past, current and future guests because I know that they expect me to be there for them via multiple channels and at all touch points. At the same time I know that with the advent of social media and mobile Web, real-time information is being generated, disseminated, and acted upon with lightning speed across the Web, and I will make sure not to miss this opportunity to showcase my property.

Situation: Today’s hyperactive travel consumer expects to have access to real-time information in a 24/7 fashion. “Consumer expectations are at a level never seen before. Immediacy is compelling, engaging, and highly addictive” (CNN Dec 09). At the same time consumers, for the first time in history, can create content in real time via social networks, mobile texts, email, etc., which automatically gets distributed across the traditional and mobile Web. Google already serves content in real time from across the blogosphere, Twitter, Facebook and other social networks in its search results.  Via RSS, this content gets distributed to thousands of sites. This presents hospitality eMarketers with enormous new challenges, as well as opportunities.

Action Steps: Hoteliers need to be there right away for their customers and these customers won’t necessarily come to you directly with their questions and feedback. They may post a comment on Facebook, or tweet about your hotel. Many companies have been very successful at responding to these communications, resulting in higher customer satisfaction and ultimately in new incremental bookings.  Make sure you are monitoring for comments about your hotel not only on the hotel review sites, but across the social networks, and responding as quickly as possible. Take advantage of this new staggering immediacy in information dissemination—new postings on the hotel’s website blog, Facebook Fan Page, Twitter profile, YouTube channel, Flickr account, etc. and get picked by the search engines almost immediately to appear in the search engine results.

10. I will always keep in mind that experience matters when it comes to hotel Internet marketing. I know there are a lot of vendors out there that want my business, and I do not want to be a victim to self proclaimed Internet marketing experts or those that want to “learn the business on my dime.”

Situation: Now, 15 years after the first hotel online booking, best practices have been established in practically every aspect of hotel Internet marketing. There are many vendors, an increasing number not hospitality-focused, who proclaim themselves as internet marketing experts. At the same time there are proven hotel Internet marketing professionals who can help you and your hotel stay competitive, increase market share, and generate high website revenues and ROIs. It is becoming increasingly difficult for hoteliers to distinguish and choose the true experts in the field.

Action Steps: Consider partnering with a hotel internet marketing firm with a proven track record in the industry. Partner with hospitality experts in Internet marketing and direct online channel strategies who can help you acquire new core competencies and adopt best industry practices. Partner with those who can help you and your hotel stay competitive in these difficult times, preserve and increase market share, beat the industry averages and generate the highest website revenues and ROIs. Hire experts who will work with you in complete transparency and that are ROI-centric, yet innovative and will keep you in the know of the latest trends, including social media and mobile marketing.

Most importantly, this partner should make your website your hotel’s most productive and efficient revenue generating channel in 2010 and beyond.

Posted in Best Practices, HeBS Articles & Publications, Top 10 Internet Marketing Resolutions | 6 Comments »

Hotelier’s 2009 Top Ten Internet Marketing Resolutions

Wednesday, January 14th, 2009

Happy New Year HeBS Blog Readers!

Here at HeBS we believe that an ROI-centric Internet marketing strategy will be your perfect survival tool this year, given this difficult economic environment.

This year you have to be more focused. In order to improve marketing ROIs, retain existing and attract more affluent travelers, and out-smart the competition, DO NOT spend marketing dollars blindly. With the sophisticated analytical tools available – such as Omniture – we can all track every single marketing dollar spent down to the conversion process.

Make sure to check out the “Hotelier’s 2009 Top Ten Internet Marketing Resolutions”, and start the year off right!Internet-savvy hoteliers with robust Direct Online Channel strategies are the winners in economic downturns like this one.

Posted in HeBS Articles & Publications, Top 10 Internet Marketing Resolutions | Comments Off

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