Recent research statistics show that 20 to 25% of the average hotel’s reservations originate from some interaction by the guest through the Internet. This interaction is either as a part of the selection process or a direct online reservation. This percentage is based on actual bookings and it does not consider the telephone bookings that are generated from Internet searches and references. In the months ahead, hoteliers will realize more than half of all their reservations are a direct result of Internet searches and information.
Will these reservations come through a hotel’s proprietary website, the brand website or a 3rd party website? The answer is yes! Yes, online reservations will be made through all of these channels from travelers, travel planners and secure extranets that are connected to various Internet channels. How you market your hotel on each of these channels and probably some new ones, such as the meta search engines is crucial to your business. Successful hotel marketing requires a solution for each.
Gone are the days when hotel marketing was a bold listing in a directory, a color brochure and a connection to the GDS. The amazing shift in sales channels and buying patterns over the past five years has turned the hospitality industry upside down. I would use the term "paradigm shift", but that is way too trendy. Now is the time to re-evaluate marketing strategies! Hotel sales are up, room rates are up and the percentage of guest booking through the Internet is escalating at a record pace. The battle of the heavy weights for the guest bookings is on between the brands and the 3rd party merchant sites. The hotelier has to decide what level of inventory and rates will generate the best return from the brand’s Internet and GDS bookings compared to giving away half of their rate to a 3rd party merchant because they do drive sales volume. Mr. Hotelier, remember when the concern was whether to pay a 15% commission to the travel agencies?
There is no doubt that the sales channel for today and even more for tomorrow is the Internet. Hospitality marketing has changed significantly and it will continue to change as the Internet and search engines change. It doesn’t matter anymore whether your hotel is a five star deluxe in Manhattan or a two star at interstate exit 25 or whether you are a mountain resort or an urban conference center. Your website content, search engine position and link affiliations are part of the selection and reservation process by your future guests.
The strategic business decision facing most hoteliers today is whether to take on the personnel and related overhead that is required to manage an effective Internet marketing program, to rely on their brand or to outsource and manage the relationship with a professional Internet marketing agency . There are clearly a growing number of new online marketing tools that can help enable an in-house Internet marketing effort. And, the number of marketing agency choices is overwhelming.
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