Internet Sales & Marketing Fundamentals for Hoteliers (Part 1 of 2)

All hoteliers, whether yours is a branded property or an independent, these fundamentals should be considered when developing an effective strategy, implementing your plan and carrying out the daily sales activities. How you invest your Internet marketing dollars and what your sales expectations are should be determined by realistic truths about your property, your brand and your market. A strong marketing program is as important as the quality of your beds, the air in your rooms and the smile at the front desk.

Internet Sales & Marketing Fundamentals for Hoteliers (Part 1 of 2)

Internet Sales & Marketing Fundamentals for Hoteliers (Part 1 of 2)

Source: www.htrends.com

All hoteliers, whether yours is a branded property or an independent, these fundamentals should be considered when developing an effective strategy, implementing your plan and carrying out the daily sales activities. How you invest your Internet marketing dollars and what your sales expectations are should be determined by realistic truths about your property, your brand and your market. A strong marketing program is as important as the quality of your beds, the air in your rooms and the smile at the front desk.

Running a branded hotel has its unique challenges because most hotel brands will tell you that they are all you need to have an effective Internet sales and marketing program. The brand may even tell you that any direct Internet marketing you do is in violation of your franchise agreement. In reality, what the brand is concerned about is protecting their copy rights and image by requiring certain policies and standards. The brand sells franchises and their services, not your rooms. Direct marketing at the property level at a branded hotel can be achieved within all the brand policies and standards that I've ever seen.

Enough about the brand, those of you who run an independent hotel do have a greater challenge simply because you are competing with the perceived value of a branded hotel and you need to create a similar perception and value in your marketing message. For example, the initial decision for a good size independent property may be whether to invest in doing Internet marketing in-house or to outsource. Clearly, both have their risk factors.

For most hotels an in-house solution is clearly more cost prohibitive. Even, if the website creative is outsourced, a skilled full time Internet marketing person demands a salary in the range of $75,000 per year or more. On the other hand, with the right supplier you should have skilled personnel, resources and measurable results. An effective Internet program is, of course, based on the size of your property, ADR, market conditions and other factors, but for an average hotel in a major to mid-size market will incur a minimum Internet marketing cost in the $15,000 to $30,000 range per year, plus occasional website updates and add-ons.

For the hotelier, a truly effective Internet marketing program is all about managing and tracking results to validate your ROI. My recommendation is that you segment how you look at your Internet plan into two elements; one segment is your marketing to attract shoppers and the other is your website. Your website is your point of sale whether it is your proprietary website or your brand pages or a combination of both.

The first element to consider is, of course your website point of sale! The website is what informs and motivates the shopper to choose your hotel? Whether the shopper is converted to a sale depends on the look and feel, information and ease of use within your web pages. For a brand hotel, this is standardized across all hotels on their site. So there is always the question whether the brand site enables enough photos, the right categories to describe your property effectively, clear convenient maps, emphasis on location, proximity to local attractions and other factors that are unique your hotel and market. There is also the need for incoming links from websites that compliment your property. These may be your local attractions, restaurants, newspaper, CVB or a particular wholesaler. Because the brands sell the brand, they have to standardize their website and balance what is good for all of their hotels.

For independent hotels, some hotels get carried away trying to present a dynamic website with too many features such as audio, video clips and flash elements. These features run the risk of inhibiting the search engines and access by some computer security systems. Not to mention, the cost for these added features. Other independent hotels often fail to update the look and feel or even the content on their website.

Finally, there is the booking process. When the shopper is at the Point of Sale, they are either there to check availability and prices or they are ready to book. For larger hotels, this is your last chance to sell an upgrade or added services. For the average hotel this process has to be simple, secure and convenient. Don't delay or inhibit the purchase process with too many links to divert the buyer or flash elements that slowdown or inhibit access to the booking engine.

The second fundamental element is your Internet marketing! What do you do to reach your target guest audience and to test the potential of reaching new market segments. . Actually, the search engines are making this process a little less complicated. There is one or more search engine sessions involved in 85% of all online transactions. The use of search engines to find hotels based on their location, services, proximity to attractions and special needs such as weddings and spa has become a dominate factor in Internet marketing. No effective Internet marketing program can avoid a substantial investment in search engine marketing. If the shopper wants a brand hotel they will generally go to the brand website or simply search on the brand name for the domain. But, the majority of hotel shoppers select their hotel based on location, services and special needs.

For your plan, and your budget, you need to a realistic expectation in attracting prospects and the conversion ratio. So for your marketing you need to consider your location, competition, market segments, proximity to local attractions, on-site services and amenities and average occupancy. For your budgeting, you need to look at your average occupancy, average daily rate, seasonal periods and target markets (transient, leisure, corporate, group, meeting and wholesale allotments.

Clearly, the Internet is your ultimate marketing channel! It has been projected that in 2006 nearly 50% of the average hotel's sales will originate online and a third of the remaining sales are affected by information derived from the Internet. I hope you find the following check list useful when applying these fundamentals to your hotel:

• You need your own direct Internet marketing program, no matter what your brand, hotel size or market. Target Internet shoppers with your own proprietary marketing and website.

• Remember, your website point of sale is useless without an ongoing online search engine optimization program or a paid search program to attract shoppers.

• Keep your GDS information current because the GDS are still a dominate distribution channels the offer exposure on most of the leading 3rd party merchant websites.

• Evaluate whether your market and competition warrant the level of discounted rates required to benefit from the 3rd party websites. Seek 3rd party sites that can drive sales during your slow season and special promotions.

• Do not let your brand mislead you about what you can and cannot do to market your hotel. If you adhere to brand standards and copy rights when marketing a brand property there should be no retaliation by your brand.

• When evaluating the results of your search engine program, demand more than good search rankings on just your brand or name and location city.

• Do not accept a search program that does not provide frequent reports to show your search ranking fluctuation.

• Track search engine traffic through to the booking where possible. Unfortunately, most brands will prohibit this validation.

• Invest wisely, effective search engine optimization is not cheap, but it does produce results. Search engine optimization requires time and expertise.

• Add content and features to your proprietary website that are not available or limited on the brand website.

• Make sure your proprietary website content is in synch with your brand web pages. This will keep the brand happy and eliminate any confusion for the shopper.

• A search pay per click campaign is an excellent solution for short term results.

• Email marketing often gets a bad rap due to the excess of spamming and unwanted emails, but overall, email is more effective than direct mail and it enables better tracking techniques to help improve ongoing targeting and improvements to your special offers.

Restaurant review site raises $10 million in venture capital

HotelMarketing.com

October 09, 2006

Yelp, the Web site offering user-generated reviews of bars, restaurants and other places, has raised $10 million in venture capital from Benchmark Capital.

Yelp, like other recent Internet companies, is challenging incumbent sites like Citysearch by developing a community of local reviewers. By encouraging loyalist users to review often, Yelp bets its site will be fresher and more compelling.

After launching initially in SF, the SF-based Yelp has since launched in Boston, Chicago, Los Angeles, New York, San Jose and Seattle.

Rather than unleashing armies of people to go out and build a massive repository of reviews, like Citysearch did, Yelp has managed to build a local community that keeps reviews fresh, giving Yelp a more lively feel. And with more reviews, you can begin to parse them in different ways — for example classifying them to show which one are written by 20-year-olds, and which ones by 40-year-olds. That way, users can judge reviews based on their preferences.

Get the full story at VentureBeat

Consumer loyalty for suppliers outweighs online travel agencies

Source: HotelMarketing.com

October 02, 2006

eVOC Insights, a customer experience consulting firm, and RelevantView, a technology provider of Web-based research solutions, released a new syndicated lodging report, “The Battle for Loyalty - Online Travel Agencies vs. Suppliers”.

This report compares the customer experience between leading online travel agencies and lodging suppliers - Expedia, Hotels.com, Marriott, Hilton, Starwood - to identify what factors drive purchase preference and determine whether loyalty exists when travel sites reach price parity.

With more than 150 million consumers shopping for travel on the Web and over $70 billion in online revenue forecasted for 2006, competition between online travel agencies and suppliers is fierce. Online travel agencies are feeling the pressure from suppliers, most notably airline and lodging suppliers, as consumers are beginning to migrate to suppliers to research and book travel. Lodging suppliers pose the greatest threat, as consumers are seeking more than just competitive prices when making a purchase decision for hotel accommodations.

This competitive lodging report explores this trend and addresses the following questions:

- Will the trend towards suppliers continue or will OTAs prevail?

- Are users likely to research lodging on one travel site and purchase on the other?

- What factors impact the purchase decision - price, content, functionality, rewards?

- How effective are loyalty programs for attracting and retaining customers?

- Are loyalty members really loyal?

The report helps travel and lodging providers maximize the effectiveness of the online channel by providing a clear understanding of the customer decision process relative to the competition. Unlike other methodologies, this research combines behavioral and attitudinal metrics to understand the thoughts, actions and preferences of consumers as they interact head-to-head with OTAs and suppliers.

Highlights from this report include:

- Consumers are initially more likely to prefer purchasing from a supplier directly, than an OTA; Although, after experiencing the sites, overall purchase intent on leading OTAs outperforms suppliers

- Supplier loyalty programs are a key differentiator; Loyalty members will pay more for hotel accommodations and are twice as likely to return, purchase and recommend as non-loyalty members

- However, loyalty membership does not guarantee purchases; 48% of Marriott Rewards members and 44% of Starwood Preferred Guest members would prefer to purchase from Expedia or Hotels.com than the supplier after experiencing each of the sites

Download an abstract of the report at RelevantView

When it comes to ‘lowest rate’ guarantees, read the fine print

Source: HotelMarketing.com

October 05, 2006

In a typical “lowest rate” hotel promotion, the site guarantees it will have the same low room rates that are available through participating hotel chains’ Web sites and toll-free numbers, which will be the lowest rates publicly available to consumers on the Internet. If you find a rate lower than the best available rate offered by the site that is bookable on an unrelated Web site for the same hotel, same room type, same number of guests, same currency and same dates, and advise the site within 24 hours after booking your room, the site says it will cover the first night of your stay free, refund twice the difference or some such.

Where’s the wiggle room in that promise? Mainly in the condition that the competitive rate be “publicly available to consumers on the Internet.” In further explanation, the fine print excludes: special rates available only to members of membership organizations and limited demographic groups. Translation: The guarantee does not apply if the lower rate you find is for seniors or members of AAA, AARP or a similar organization. Add to that group rates, corporate rates, wholesale rates or affinity/association rates. Translation: Negotiated discount rates on sites such as Expedia do not qualify for the guarantee. Rates for which you don’t know the name of the hotel until you make a nonrefundable booking don’t count either. Translation: The guarantee does not apply to Hotwire or Priceline prices.

Clearly, your chances are pretty slim of finding a lower room rate that gets through all of those exclusions. And that’s the whole idea.

Get the full story at the San Francisco Chronicle

Worktopia, Travelocity partner on group booking

Source: HotelMarketing.com

October 16, 2006

Worktopia, which specializes in workspace procurement services, has announced that the Travelocity Partner Network is providing a hotel room option to Worktopia’s instant meeting space booking services.

Worktopia is a web-based service that allows companies to search, compare and acquire meeting space instantly from a live inventory of hotels and conference and business centers worldwide.

By seamlessly integrating with Travelocity’s extensive database of travel information and reservation services, Worktopia users can now also book hotel rooms either in the same venue as the meeting space or in other hotels nearby.

Worktopia offers planners real-time access to over 5,000 meeting rooms in 1,000 locations through its proprietary automated portal. There is no special training or certification requirement to use Worktopia, and the service is free to end-users and site visitors.

Related Link: Worktopia

Why Your E-mail Still Lands In the Junk Folder

Source: ClickZ

By Stefan Pollard | October 11, 2006

No, I'm not urging you to go over to the Dark Side. But one reason spammers get messages into the inbox while yours languish in the junk folder is because they're truly dedicated to the task of getting through ISP filters. Meanwhile, you're probably still using the same old tactics over and over.

Spammers constantly tweak message templates, experiment with new tactics, and track their IP addresses to uncover and evade ISP blocks. In response, ISPs also update their filter criteria and definitions, and monitor blacklists in order to identify and trap more spam.

Consequently, a benign e-mail message element that would have passed through the filters one day may be identified as a spam signature the next. Or, the number of spam complaints hitting the ISP's threshold triggers a block. Inbox deliverability has become a constantly moving target in the tug of war between spammers and ISPs.

Marketers, on the other hand, seek the one magic trick that will solve all their deliverability problems forever. Where's the ultimate Top Five checklist of strategies to stay out of the bulk/junk/spam folder? Trouble is, that checklist keeps changing as spammers shift to new tactics and ISPs update their filters in response.

Yes, you can employ specific strategies to improve your shot at the inbox. I'll share those in a bit. However, each requires you to constantly monitor and update. You can't just fix a broken program, then forget about it.

Why Marketers Get Blocked

Here's how many good e-mail marketers go wrong: they start out by slapping together some creative, which more often than not includes some outmoded device long associated with spam, such as JavaScript or single large images with no text version.

They send it out and get OK results the first time. So they keep doing the same thing, over and over and over. Nobody's paying any attention to the diagnostics like message-bounce logs or blacklists, or to delivery metrics. It's also a pretty safe bet that they aren't monitoring spam complaints on ISP feedback loops.

One day, a fresh-faced newcomer notices the e-mail program isn't producing the way it should. So he runs a delivery report and freaks out when he sees the company's e-mail is getting blocked by every major ISP. Is it too late to work out the kinks and move the program back to profitability? Not without some effort.

Monitor, Test, Adjust. Repeat

"Put your e-mail marketing on autopilot!" That's how e-mail software sellers used to market list-management and marketing software. Truth is, there's no autopilot in e-mail marketing.

Nor is there a bulletproof list of tactics that will get you into the inbox each and every time. These three long-term strategies will help improve your chances, but each requires constant vigilance.

1. Monitoring

Your e-mail list software should provide multiple delivery and status reports. But they don't do any good if you don't study them. Ask for them from your IT department or e-mail service provider if you don't currently have direct access.

This is a basic set. Your ESP might have more. Check them daily, even if you don't e-mail your lists that often:

• Message bounce logs and delivery status reports



• Blacklists DNS Stuff is a free clearinghouse resource that lets you type in your IP address to see if any participating blacklists have it listed. Most bulk e-mailers are on one list or another; don't fret if you turn up on one or two, unless it's a major one such as Spamhaus.



• ISP feedback loops Major e-mail providers such as AOL and MSN/Hotmail will send you spam complaints for you to deal with.

2. End-to-end testing

Developing a bad e-mail reputation by ignoring spam complaints or violating ISP procedures is your fastest trip to a blacklist, but spammy content and broken or dodgy HTML code will still trip you up. Test your entire e-mail program, from opt-in/out-out to message content and design through delivery to highlight problems.

3. Adjust content, design, and coding

This is a continuous process. As soon as you fix one problem, an ISP may change its filter protocol and flag another element in your message as spam, based on what real spammers are doing. As soon as you notice one factor of your program isn't working or is getting you into trouble, change it immediately. Consider your message creative an eternal work in progress. Tweak as you go along.

4. Repeat By this point, you should have found and corrected any major problems in your e-mail program. It's no time to turn on autopilot. Continue to monitor, test and adjust to keep up with the rapid pace of change.

This is something you can do on your own if money's tight just by tracking the data your own delivery reports provide, getting on ISP whitelists and feedback loops, and testing your messages in different e-mail clients. If you use an ESP, it may offer these services either as part of your package or as an add-on.

A growing number of companies now specialize in e-mail delivery and optimization. They can scrutinize your entire e-mail program and call out weaknesses ahead of delivery, analyze developments during and after delivery, and recommend improvements. The best-known include these companies or programs:

• Lyris E-mail Advisor
• Pivotal Veracity
• Return Path
• Habeas Mail Track

And as always, keep on deliverin'.

More Web Site Hints, Tips, and Tricks - Unwrapped

Source: www.hotelnewsresource.com

When it comes to boosting web site sales, search engine optimization (SEO) has become the first and last choice by many web marketing companies.

It seems that SEO has become the current Rx prescription for non-producing web sites. In itself, SEO can be very beneficial, but it is certainly not the cure-all that some web marketers claim. The ironic thing about search engine optimization is that it actually needs to begin with the structure of the site itself. Applying SEO to an improperly designed hotel web site is like adding high-test gas to a car that doesn't have an engine or transmission. It's still going nowhere. Designing a functional web site is not rocket science, but there are some fundamental design necessities to produce a marketable web site. Don't get caught up by web designers who want to create a work of art instead of a hotel web site that sells rooms. Don't think that a hotel site only needs to look good. Flash elements are still a bad idea and entire flash web sites, a new trend, may be great for museums and art galleries, but terrible for hotel web sites. There are still many web designers who don't understand the purpose of a hotel web site. In their eagerness to make an attractive site, many completely ignore the interaction between search engines and web site content; how they must compliment one another. Text content sells rooms, yet many designers treat it like an after-thought. Text is what search engines see in order to rank a web site. There are just a few key components of a well designed site; thoroughly researched and well-thought-out Meta Tags; a simple site navigation theme; well written sales text; a good link strategy; a good booking engine; use of low density photography; and knowledge of how consumers choose hotels. It's amazing how many sites violate one or more of these essentials. Many hotel web sites today are producing upwards of 30% to 50% or more of their hotel's total room business. Some hotels claim even higher production numbers and yet, on the other hand, there are still many hoteliers who are facing dismal production but love the 'look' of their sites, so they do nothing. Many hoteliers have allowed themselves to get hung up in the technical subterfuge of measuring the effectiveness of their site by 'hits', 'unique user visits', and other technical jargon used by web designers who know little about selling rooms online. I can't count the number of web sites, I've reviewed, that are completely dysfunctional from a search and/or sales stand-point, but get a descent number of 'unique users'. The problem is they don't book many reservations. The average hotel web site converts less than four reservations from every one hundred visitors; many even fewer. A well designed site can increase conversions by two or three times. The true measure of a well designed web site is the number of reservations it generates. A good booking engine will give you the 'look-to-book' ratio of your site. If it's only average, you can do something about it. I hear from many hoteliers, who have spent hundreds or even thousands of dollars for the development of their web sites that are now very unhappy with their site's production. They have web sites that are attractive brochures instead of sales productive web sites. As a result, many of these hoteliers are frustrated with and disappointed in their site's ability to generate business. The fix doesn't have to cost a fortune and the return can be very cost effective. Take a lesson from the bright people managing franchise web sites. During the past few years, several franchises have invested time and energy to improve the ability of their sites to capture reservations. They have made their sites more user, search, and navigation friendly; reduced the number of clicks to make a reservation; improved their booking engines; and enhanced their sales message through well-written text. As a result of their efforts to improve the market ability of their web sites, many franchises have significantly increased overall production. Making your site sales worthy is the first step in marketing your web site. Ok, you've improved your web site, it's now optimized to 'sell' reservations; and your new booking engine is integrated into your site and ready to capture and track new reservations. Now, it's time to apply search engine optimization, right? Well, not exactly. A very effective way to prepare your site for SEO is to create a good 'link strategy'. Search engines like Google and Yahoo place a strong emphasis on links within, to, and from your site when it is ranked. When choosing a designer, check-out their knowledge of links and how strategic links can be effectively used on your site. Populating your web site is similar to populating your hotel. Greater popularity of your site generates even more popularity. Sometimes, a temporary boost from pay-per-click sites like Google and Yahoo can give your site that added popularity needed to improve your rankings by search engines. They will work with your budget, so it doesn't have to be open-ended. They can place your site among the first four search results. It may sound too simple, but I am surprised at the number of people who haven't yet learned to utilize the 'signature' on their emails. A link to your web site along with a brief message is simple to create and can be beneficial. Marketing your web site includes marketing on-your-web-site. If your current booking engine doesn't accommodate the booking of packages, it's time to change engines. People love packages; especially simple packages with popular elements. At the very least, they provide an additional choice for visitors. If your hotel accommodates group business, include a 'request for proposal' page on your site. If planners visit your site, give them an opportunity complete an electronic RFP to get a quick response; it's only common-sense. Use your site to develop a data base of the users who visit. One way to accommodate this is a simple email newsletter link to which users can register. A simple award of some kind can enhance the popularity of this link. A good site designer can easily build this for your site. Use your new data base to further market your hotel. Location is still the number one criterion for choosing a hotel. Simply listing your address is not enough. What are the room night generators in your area? Descriptions of and links to these generators can multiply your chances for getting bookings. Meet with your sales and/or front office team to review the text details on your site. They know the 'hot buttons' which your guests share. It amazes me that so many sales and front office people have no clue as to what is on their hotel's web site, yet they are the most guest-knowledgeable people in the hotel. Pay keen attention to what rates are offered on your site. Are they current, are they at parity with rates offered at the front desk and other channels, and are they competitive with your neighbors? Rates should never be developed in a vacuum. If your deserved position is to be number one in your market, let your rates reflect that position. This is especially important for independent hotels; your rates will define your hotel. People don't shop rates, they shop value. Download and print your web site, give it to peers, friends, and family and get their viewpoint. You will gain a completely different viewpoint when you see it in print. Is the text in priority order; does the text sell; is it up-to-date; is it accurate? The devil is in the details; your web site deserves your attention.

Study compares travel booking loyalty drivers

Thursday October 5, 2006 | thewisemarketer.com

Direct accommodation sellers such as Marriott, Hilton, and Starwood now provide the greatest threat to online travel booking agents such as Expedia, according to a 'price vs. loyalty' study conducted by customer experience consultancy eVOC Insights and online research solutions provider RelevantView.

The report, entitled The Battle for Loyalty - Online Travel Agencies vs. Suppliers, compared the customer experience between leading online travel agencies and direct lodging suppliers to identify the factors that drive purchase preference and determine how loyalty is affected when such travel booking web sites reach price parity. acheng This article is copyright 2006 TheWiseMarketer.com).

High stakes
With more than 150 million consumers shopping for travel on the web, and over US$70 billion in online revenue forecasted for 2006, competition between online travel agencies and suppliers is fierce.

Online travel agencies are feeling the pressure from direct suppliers, most notably airline and lodging suppliers, as consumers are beginning to migrate to suppliers to research and book travel.

Greatest threat
Lodging suppliers pose the greatest threat, as consumers are seeking more than just competitive prices when making a purchase decision for hotel accommodation. The competitive lodging study explores this trend, and addresses the following key questions:

• Will the trend toward suppliers continue?
• Will users research on one web site and purchase on another?
• What factors impact the purchase decision? (e.g. price, content, functionality, rewards)
• How effective are loyalty programmes at attracting and retaining customers?
• Are loyalty programme members really loyal?

Key findings
Highlights from the report include:

• Supplier loyalty programmes are a key differentiator. Loyalty programme members will pay more for hotel accommodations and are twice as likely than non-loyalty programme members to return, purchase, and recommend.
  
• Loyalty programme membership does not, however, guarantee purchases. Almost half (48%) of Marriott Rewards members and 44% of Starwood Preferred Guest members said they would prefer to purchase from Expedia or Hotels.com than the supplier after experiencing each of the sites
  
• Consumers are initially more likely to prefer purchasing from a supplier directly than from an online travel agency (OTA). However, after experiencing their web sites, overall purchase intent for leading OTAs outperforms direct suppliers.

For additional information:
· Visit eVOC Insights at http://www.evocinsights.com
· Visit RelevantView at http://www.relevantview.com

Study reveals poor user experience is driving away customers from travel websites

Online travel companies are missing out on bookings and actively encouraging users to visit rival websites, according to web usability consultancy Webcredible.

A study of over 25 travel websites reveals that hidden charges, cumbersome search functions and booking forms that are hard to find are among the top mistakes made by some of the UK's biggest online travel agencies. In a new report launched today, Webcredible provides unique insights into the common errors made by online travel companies and reveals the main reasons why holiday-makers might click away from a travel website. These include:

• Hitting them with extra taxes and charges at the checkout

• Not allowing them to be flexible with their dates

• Not using 'print-friendly' page layouts

• Not promoting competitive prices on the homepage

The Webcredible report also provides practical advice on simple, inexpensive changes that travel companies can make to their websites to encourage repeat visits and dramatically increase conversion rates by as much as 100 per cent.

'The travel sector experiences one of the highest levels of comparison shopping online, with a massive one in four visits to travel websites coming from another site in the same category,' said Trenton Moss, director of Webcredible. 'Users are unlikely to hang around for long if they can't find what they're looking for, but by making a number of easy-to-implement changes online travel companies can significantly improve the satisfaction of their website visitors, ultimately leading to increased bookings.'

Webcredible has compiled the Online Travel Sector Usability Report following user testing and expert reviews of more than 25 travel websites in June and July 2006. The report is available to download from the Webcredible website.

Budgeting for a Robust Internet Marketing Strategy in 2007

Source: www.hoteltechresource.com

As many hotels enter the 2007 budget planning season, this article aims to help hoteliers construct a competitive Internet marketing budget. The hotel's overall competitiveness today is determined to a great extent by how well it manages its Internet marketing and distribution efforts. It is not a question of how big the budget should be, but rather what to include and how much to allocate in the Internet marketing budget for a meaningful ROI and online revenue growth. This article takes a closer look at some important aspects of Internet marketing in hospitality and what marketing activities and line items comprise the 2007 online marketing budget.

2006 may have been a banner year in hospitality, but how has this success translated into the planning of next year's marketing budget - especially as it relates to the online channel? While the hotel may have an internal formula for ROI, many hoteliers are confused as to what, where, and how much of the marketing budget should be devoted to the online channel.

The dynamic nature of the Internet further complicates the budget planning process. In an environment that consistently brings new fads, new online media formats and business models, new competitors, and new tools and methods to market a hotel via the web, how does a hotel marketer accurately and sanely plan next year's Internet marketing budget?

Direct Online Distribution

This year 29%-30% of all revenues in hospitality in the U.S. will be generated from the Internet and another quarter will be directly influenced by online research, but booked offline. By 2010 the Internet will contribute over 45% of all travel-related bookings in North America.

Three very distinct trends have emerged over the past several years which have to be taken into consideration when planning your 2007 Internet marketing budget:

• Direct online distribution is the way to do business on the Web. More hotels are selling online than ever before. Greater amounts of room inventory, at higher ADRs, are being sold direct to consumer via the direct online channel-the hotel's own website.

• The negative impact of third-party online intermediaries (TPIs) is still felt throughout the industry, but to a lesser degree. The ratio between the direct and indirect online channel continues to improve in favor of the direct channel: from 52:48 back in 2002 to 56:44 in 2006 and is projected at 62:38 by 2008. Some major brands already enjoy very healthy 80:20 direct vs. indirect online channel ratios.

• Further erosion of the GDS channel is self evident: less than 17% of hotel inventory in the US is sold via the GDS today, and the number of retail travel agency locations in the US in 2006 has declined to 19,300 vs. more than 35,000 in 1996.

The cost to sell directly to consumers via the hotel website can be as low as $3-$5 per transaction. Compare this to the hefty distribution costs via the GDS (as high as $27 for a typical 2 night stay at $100 per night), and the third-party online intermediaries such as Expedia, Travelocity, and Orbitz ($50+ for a typical 2 night stay at $100 per night). Reducing the reliance on these two very expensive channels will directly affect the bottom line.

The potential to shift even more revenue through your own direct channel has never been greater. Hopefully the following guidelines will help you define your online marketing budget in the years to come.

Case Study A:

Shifting Market Share from the Indirect to Direct Online Channel

A prestigious California resort with rich meetings, spa and golf product redesigned and launched its new website two years ago. The re-launch included website optimization, a destination web strategy, email capture and newsletters, and search marketing. The resort also adopted a new anti third-party online intermediary (TPIs) strategy and launched a very aggressive direct online distribution strategy, and in the course of two fiscal years tripled its Internet marketing budget.

As a result in 2005 bookings via the property website increased by 78% and revenues by 79% compared to 2004. In 2006 direct bookings are expected to grow by a further 54% and revenues by 62% vs. 2005. In the same time bookings from TPIs decreased by 75%. This significant channel shift and realized higher ADRs from the direct bookings more than offset the increased Internet marketing budget, and allowed the property to re-claim 'ownership' and establish interactive relationships with its customers.

Framework of the Online Marketing Budget

The shift from more expensive to less expensive distribution channels has become the norm in hospitality. Therefore lessening your dependence on higher cost channels and driving more revenues through your own website should become the main objective of your 2007 marketing budget. Here are the top items to include as you devise the Internet marketing budget for next year. Concluding case studies further illustrate the impact of your online marketing budget.

Internet Marketing Budget Considerations:

• Website Redesign - Overhauling the look and feel and bringing the site up to par with 2007 online user expectations

• Website Optimization - Enhancing the website navigation, keyword rich body copy, and all the necessary optimization, visible and invisible

• eCRM and establishing interactive relationships with your customers

• Search Engine Marketing - Launching pay per click marketing, paid inclusion marketing, local search, and vertical search marketing

• Strategic Linking - Building incoming links from highly authoritative websites

• Email Marketing Strategies - Growing the hotel's own opt-in email list and launching frequent and relevant email communications with your customers and prospects

• Email and Online Sponsorships to potential customers in your feeder markets and to your key market segments (e.g. family travelers, romance and couples, meeting planners, wedding planners, etc.)

• Destination Web Strategy - Making your hotel the 'hero' of its destination

• Display Advertising - Placing banners on highly relevant sites to grow brand recognition and drive traffic and incremental revenues

• Consumer Generated Media (CGM), including blogs, trip planners, customer review sites, experience sharing, etc.

• Website Hosting and Maintenance - Ongoing content, image and functionality updates and enhancements

• Professional development and Internet marketing expertise - Partnering with leading hospitality experts in Internet distribution and marketing strategies. Work with a firm that is fully transparent on how they spend your marketing dollars and who will teach you the best practices in direct online distribution, and do not outsource this vital core competence to vendors that 'keep you in the dark.'

• The 'Human Factor' - allocating funds for payroll for part-time or full time Internet marketing personnel.

Please Note: Which of these online marketing activities are necessary over a twelve month period depends on previous investments as well as hotel objectives.

Website Re-Design

Re-designing of the property stand-alone website and overhauling its content, imagery and functionality may be due. Typically, a hotel website has to be re-designed every 2-3 years, with ongoing content, rich media and functionality enhancements and updates in between re-designs.

Is the hotel website up to par with 2007 online user expectations? Does it adhere to best practices in hospitality websites? Is the website user-friendly, search engine-friendly and booker-friendly? Is it visually attractive and does it convey the richness of the hotel product and the destination? Does the website build brand equity or does it tarnish the brand image of the hotel? Does the site serve as a platform to establish interactive relationships with your customers? Is the site generating incremental revenues and ROIs at and above industry averages?

Answers to these questions can help hoteliers decide when and if the property website is due for a re-design. Partner with outside Internet marketing and distribution experts to audit your existing site and provide unbiased advice on whether you need a new website or if just a website optimization and copy enhancement would be sufficient for the time being.

If a website re-design is due in 2007, you have to budget for the actual look-and-feel re-design, new imagery throughout the site, customer segmentation and copy overhaul, optimization of the keyword density, page titles, description and meta tags.

Case Study B:

To Launch or Not to Launch a Franchisee's Independent Website

The decision to launch an independent (stand-alone) franchisee website depends on the scale of the property (luxury, midscale, budget), location of the property (a tier 1 city vs. small town USA), and range of products and customer segments served (full service hotel, spa services, meetings, weddings, etc, vs. simply rooms only). Another important decision is the business culture of the owners. If you are willing to take control and embrace the online channel, have decided to define your own Internet-destiny, and have accepted once and for all that whatever the major brand can do for you they have already done, then making the decision to launch an independent franchisee website will be successful.

Please note that not all franchisees need their own independent website outside of the major brand. The added expense may not be necessary and the funds could be utilized for marketing the property instead. Sometimes it makes better business sense to use the property section/pages within the brand site to market your franchised property online. Copy and optimization changes in addition to a reasonable search marketing budget may prove sufficient as a first step to compete online and do everything above and beyond what the brand is doing for you.

Here is the experience in this respect of one of HeBS' clients:

A franchisee on the west coast, part of a major global brand, launched an independent website in 2004. The site was optimized for the search engines, employs search engine marketing, participates in strategic linking, and performs email marketing on a monthly basis. Ongoing changes were made to upgrade the look and feel of the design and add more and better photos, a virtual tour, and local destination content. By Sept 2006, the year-to-date revenues generated from the independent franchisee website was $550,000. The major brand website revenue generated for the property for the same period was $518,000.

What would the effect have been without the franchisee's own online presence? In our view an estimated one-third of the half-million dollar revenues would have gone to the competition; one-third would have gone to the intermediaries, and one-third to the major brand website. In any case a big chunk of the incremental bookings and revenues (over 65%-70%) would have been lost to the competition or to the indirect online channel.

Website Optimization

Direct Online Marketing and Distribution starts and ends with the hotel website, so the goal is clear: create a fully optimized website and drastically improve website user-friendliness, search engine-friendliness and travel booker-friendliness. This is achieved through a website optimization strategy which, if executed well, will inevitably enhance the website usability and performance, improve visibility on the Internet, increase conversion rates and ROIs, and boost Internet-related direct-to-consumer bookings.

A website optimization strategy is an ongoing process that involves turning the hotel website into a 24/7 sales force. It incorporates customer behavior and website usability studies to reflect best practices in 2007 online searching and purchasing habits. It continuously enhances and optimizes the contents and key features of the website, and addresses important issues such as keyword density and tags, customer segmentation, conversion ratios, eCRM issues, trust building and consumer confidence issues, etc.

There are a number of ongoing programs and activities the hotel has to budget for that will help further convert lookers to bookers and grow online revenues. At a minimum, in your 2007 budget you have to provision for the optimization of the keyword density, page titles, description and meta tags.

eCRM Strategy

This new dramatic shift from offline to online distribution in hospitality has turned the hotel website and its related online marketing initiatives into the most important and potent e-CRM tool. The hotel website has become the 'first point of contact' with an overwhelming majority of hotel customers.

An eCRM Strategy allows hoteliers to engage customers in personalized and mutually beneficial interactive relationships, and to increase conversions while selling more efficiently. Hoteliers should make it their mission in 2007 to build interactive relationships with customers in order to increase repeat business, boost revenues, and retain loyalty.

In the upcoming year you have to budget for the overhaul of the customer support features on the website, enhancing the FAQ and customer feedback features, establishing monthly frequency of your email newsletters to your opt-in list, as well as enhance the confirmation, pre-arrival and post-stay email communications with your customers.

Search Marketing

Search engines are an essential component of the hotel direct online distribution strategy:
According to Forrester research about 80% of overall website visits begin in a search engine or a directory service. DoubleClick's recent study confirmed that nearly three out of four travel buyers consulted search engines before making a purchase. The demand and influence of search engines in hospitality are astounding and must not be overlooked.

Paid Search Marketing has become the most popular online advertising format and over 40% of all online advertising dollars will be spent on this format. Search marketing includes organic search, keyword buys (PPC or Pay-per-Click), local search, paid inclusion search, and meta search marketing. All of these are applicable to any hotel Internet marketing strategy and should be reflected in the 2007 budget.

For 2007 you have to plan a monthly budget for keyword buys (PPC) campaigns on Google, Yahoo and MSN, local search, as well as annual search engine registration fees and ongoing content enhancements and optimizations of the keyword density, page titles, description and meta tags.

Strategic Linking and Link Popularity

Strategic Linking is the business strategy to establish links from highly relevant and authoritative websites to your website, i.e. to build the 'Link Popularity' of your hotel website. Strategic Linking in hospitality and its important by-product, Link Popularity, are part of a hotelier's toolkit for building a robust Web presence and taking advantage of the Direct Online Channel. Strategic Linking achieves two important goals: a) exposes your website to incremental traffic and highly qualified potential bookers, and b) builds your website's Link Popularity, a crucial criteria used by the search engines to determine how to rank the website in the search engine results.

Strategic linking is an ongoing process that has to be budgeted for in 2007. It helps position the hotel website at all direct "points of contact" with potential Internet travel bookers, and boosts the organic rankings on the search engines.

Your Internet marketing budget for 2007 must include a monthly allowance for building strategic linking to your website from 'affinity' sites that are relevant to your key market segments and feeder markets.

Email Marketing Strategy

Email marketing is a crucial component of the hotel's overall Internet marketing and online distribution strategy. Email marketing can be used successfully as a direct response vehicle (short-term, results-oriented) or as a branding tool (long-term and strategic goals). On the other hand email marketing to your own email list is one of the least expensive online marketing formats. Therefore creating a robust email marketing strategy and provisioning for it in the 2007 online marketing budget could have a long-term positive impact. The email strategy should include at a minimum: customer email capture initiatives (online and offline), email marketing to the hotel's own opt-in list, email sponsorships and marketing to key market segments and in key feeder markets.

This coming year you have to budget for online and offline customer email capture initiatives, incentives and sweepstakes, monthly email newsletters and promotions, and seasonal emails sponsorships.

Destination Web Strategy

Online travel planning is destination-sensitive. Your property does not exist in isolation of its location and has a much better chance on the Web if presented as an integral part of its destination. Leverage the popularity of the destination for your property's benefit.

You must position your hotel as the 'hero of its destination' and exploit all the area opportunities and local attributes to your advantage. This will help further index the site on the search engines and help discriminating customers choose your site over an intermediary or competitor.

Your 2007 budget has to include the creation of new destination content, area travel guides, attractions and things to do, enhancing the mapping and direction features on the website, updates to the area calendar of events, etc.

Online Display Advertising

Display advertising (banners) continues to be the second most-popular online advertising format. This year over 31% of all advertising dollars in the U.S. will be display ads (banners) related. HeBS' experience with banner ad campaigns over the past 10 years has proved very successful and has generated consistent ROIs in excess of 2600%-3000%. This online advertising format has proven to be far superior to any past offline or GDS marketing initiative.

Online display advertising could be rather inexpensive if planned and executed well and hoteliers should not consider it as a format reserved only for the big industry players. For 2007 hoteliers should consider banner ads on local destination portals, CVB sites, key market segment sites, and other sites synergistic to your business.

Also in 2007 you may want to include a line item to cover seasonal display ads on local portals, CVB and other relevant websites, or 'affinity' sites that are important to your key market segments.

Consumer Generated Media (CGM)

Consumer-Generated Media (CGM) is online content created by anyone other than professional writers, publishers or journalists. It is a forum made available to Internet users via interactive technology applications. Blogs (corporate and social blogs), message boards, online forums, word-of-mouth/viral marketing on the Web, social networks, customer reviews and testimonials, trip planners, and experience sharing initiatives are the most common examples.

Is CGM a threat or an opportunity? Hotel marketers can benefit from CGM by 'listening' to what customers have to say, and also promote their services on the newly emerging CGM sites and formats.

In next year's budget you may want to consider provisioning an allowance for partnering with outside Internet marketing and distribution experts to analyze your current product offering and key customer segments, the sources of unique expert knowledge at the property, and devise an action plan on how to take advantage of the CGM phenomenon.

Website Maintenance and Hosting

The hotel site requires ongoing maintenance as you will want to enhance content, imagery and functionality to the site. Hopefully your site traffic will grow which means more bandwidth consumption and perhaps higher hosting fees. Many hotels outsource these functions as website hosting and maintenance has become a commodity. Look for a professional website hosting and maintenance company. Require a hosting environment with a 99.9% network uptime guarantee. Require full transparency of hosting and website update costs and services.

In your 2007 budget you must include website hosting, provision for extra bandwidth, and monthly fees for website maintenance and updates.

eBusiness Professional Development
In this extremely dynamic online marketing environment, it is crucial to budget for eBusiness professional development services that could help you better understand Internet marketing and distribution, direct vs. indirect online channel strategy, how to gain competitive advantage and benefit from 'best practices' and latest online industry trends, how to build your own robust Internet strategy, and take your direct-to-consumer online distribution and eMarketing efforts to the next level.

Direct online marketing and distribution is too important to ignore. Partner with outside Internet marketing experts who will teach you the best practices in direct online marketing and distribution. Educate yourself and your staff and develop new in-house core competences.

Ongoing eBusiness professional development consultations, on-site Internet marketing workshops for management and sales, attendance of online marketing and hospitality forums, seminars and conferences are some of the line items you have to plan for in your 2007 budget.


A Word about Choosing Your Internet Marketing Partner

Select a firm that is fully transparent on how they spend your marketing dollars. Be sure they will teach you the best practices in direct online marketing and distribution. You will need this information to plan for future years. You will also need to understand how much of the budget is being devoted to 'pure' marketing vs. campaign management fees.

Do not outsource this vital core competence to an outside Internet marketing vendor that 'keeps you in the dark.'

Become a stakeholder. Ask yourself if you are more knowledgeable today in the art and science of Internet marketing verse a year ago. Do you speak the language of an eMarketing Manager and do you feel confident to teach others if you had to? Did your outside Internet marketing vendor teach you best practices and contribute to you and your staff's professional development and online marketing skills? What did your current Internet marketing budget miss and why? What marketing services were not performed this year and why? For 2007, insist on understanding from your outside marketing vendor what marketing services are being planned and why. How much will be spent on each of these services? What portion of the budget will be spent on 'pure' marketing and what on campaign management fees? What portion of the hotel's overall marketing budget should be spent on Internet marketing?


Conclusion

The Internet has become the largest distribution channel in hospitality, far exceeding GDS and other traditional channels. The direct online channel has become the main focus and incremental revenue generator in hospitality. Naturally this channel demands its proper place and weight in the hotelier's 2007 marketing budget.

Hoteliers need a comprehensive Internet Marketing Strategy, rather than a fragmented and incomplete Internet marketing effort with ad hoc initiatives. Focusing only on certain aspects of the hotel Internet presence in isolation of the overall Internet marketing and distribution strategy will result in serious underutilization of the direct channel and missed revenue generating opportunities.

An effective Internet Marketing strategy utilizes all the market resources and channels available on the Internet. This includes implementing a robust website optimization strategy, eCRM strategy, search marketing strategy, email marketing strategy, strategic linking, online sponsorships, consumer generated media, and display advertising. All of these strategies are well within the hoteliers' reach.

Forbes.com Unveils High-end Travel Site

Forbes.com Unveils High-end Travel Site
› › › ClickZ News

By Kate Kaye | September 22, 2006

For those tired of the riff raff loitering outside Yahoo Travel and Lonely Planet, Forbes.com has launched a new luxury travel guide and planning destination. The second of the business publisher's offshoot sites, the travel guide has lured American Airlines, SkyAuction.com and Coldwell Banker as its first advertisers. In addition to articles, advice and reviews from Mobil and Frommer's, the swanky site features airfare and lodging searches powered by SideStep, which unveiled a syndication platform earlier this week with ForbesTraveler.com as its first partner.

"We're really making full use of the Forbes brand width," said Forbes.com President and CEO James Spanfeller. Travel, like Forbes.com's auto site affiliate ForbesAutos.com, "also very much relates to affluent lifestyle," he continued.

Rather than business travel, the publisher chose to make leisure travel content for the site's initial focus. "Our user base mixes personal and business life pretty regularly," explained Spanfeller; however, he added, "We think the leisure stuff is less scripted so there's more need for inspiration."

That's where features on summering at the Maharaja of Burdwan's pad and renting a Lamborghini Gallardo in Monaco come in. Reviews from Mobil Travel Guide and Frommer's Travel Guides, travel tools and advice from globetrotting CEOs and concierges from ritzy hotels can also be found. Unlike most other travel sites, Spanfeller noted, "There are very, very few if any that really focus on just the high end…. Our goal is, roughly speaking, taking the top third of the marketplace."

At this point, only American Airlines, SkyAuction.com and luxury real estate service Coldwell Banker Previews International, are advertising on the site. SkyAuction.com is using its ad space to feature a luxury travel package search tool.

Rob Solomon, President and CEO of SideStep, which is powering ForbesTraveler.com's official hotel, airfare and car rental search, doesn't mind the competition from SkyAuction's search ad. In the first of what he hopes will be many more syndication deals, SideStep is including only four and five star hotels in search results driven through the Forbes site. Those results pages feature ForbesTravel.com branding and links back to the site.

According to Solomon, Forbes will sell ads on the SideStep search results pages originating from ForbesTravel.com. Though he would not reveal details, he said the syndication deal is based on a revenue sharing model in which SideStep will provide a portion of revenues from bookings derived through the Forbes site.

The goal of the relationship with Forbes, he added, is "about enabling a greater number of transactions through the SideStep system." Through its syndication offering and a separate tool allowing small publishers to include a SideStep search on their sites, Solomon aims to have "hundreds of touch-points out there" for distribution. Sidestep partnered with Amazon last year to power a co-branded site in Amazon's travel store.

At a time when social networking and CGM tools are all the rage, Forbes has chosen to tread lightly when it comes to user-generated reviews and the like. "We're not convinced that our user base will be as predisposed to consumer generated media -- either creating it or reading it…. I'm not sure a senior business decision maker is really going to stop and sit and write 500 words on their trip to Bali," suggested Forbes.com's Spanfeller. Even so, the new travel site is using a regular column to feature travel tales sent in from readers as a social tools trial.

Forbes.com recently launched a video section and Spanfeller expects "a lot of video" to be included in the travel site in the future.

The publisher will use its other properties to drive traffic to the new site, which has strategically been released just before The ForbesTraveler 400 list, which will spotlight the world's top hotels and destinations.

Kayak.com surpasses 10 million searches per month

September 28, 2006 | HotelMarketing.com

Kayak.com, the world’s largest travel search engine, has been selected as the top travel site in BusinessWeek’s 2006 “Best of the Web” competition. In addition, Kayak.com reveals that consumers are now researching more than 10 million trips each month through its travel search engine.

BusinessWeek’s annual list of “must-bookmark sites” identifies the most useful and engaging sites on the Web. Winners are selected by a combination of editorial review and reader votes. The list covers 23 different categories, from travel to sports. For the past two years, Kayak.com has claimed top honors in its travel category. This is the seventh major award that Kayak.com has received this year, and follows similar recognition by Forbes.com, TIME Magazine, the Associated Press, and US News & World Report.

Just 18 months after its launch, Kayak.com now answers more than 10 million consumer requests for air, hotel, and rental car information each month. This milestone comes on the heels of Hitwise’s August report that Kayak.com has doubled its share of the online travel market in the past six months.

“‘Best of the Web’ identifies the most innovative, exciting sites on the web, and we are pleased to be counted in this group for the second year in a row. As this award and our growth demonstrate, consumers love Kayak.com and its wealth of comprehensive and unbiased travel information,” said Drew Patterson, VP of Marketing, Kayak.com. “We look forward to making Kayak.com even better in the months to come.”

Marketers Need To Place Equal Emphasis on SEO and SEM

By Giselle Abramovich

September 26th, 2006 | DMNews

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A recent study conducted by WebSideStory Inc. implies that in terms of generating conversion rates at e-commerce Web sites, paid and organic search are pretty much even.

Paid search has only a slight 9 percent edge in conversion rates over organic search. The findings of the study were surprising, as many thought paid conversion rates would be much higher.

“[Marketers place great emphasis on] paid search through pay-per-click outlets such as Google, MSN and Yahoo,” said Erik Bratt, director of corporate communications at WebSideStory. “But organic search is not to be overlooked and is equally valuable in generating conversions.”

The study analyzed about 57 million search engine visits during the period beginning January, ending August.

“There are arguments to be made on both sides – organic search has editorial integrity, which consumers seem to value,” “But with paid search, marketers control the message and have the opportunity to eliminate under-performing keywords.”

Getting frustrated with your hotel website?

September 27, 2006 | HotelMarketing.com

by Neil Salerno

Hotel sales and marketing has changed a lot in recent years. A decade ago, we dreamed that the Internet would become a new, exciting, and cost-effective, way to produce needed room business. For some hotels, that dream became a reality; many hotels report 50% or more of their total room business is now coming through their web sites. But, for many other hoteliers, the dream is fading.

Every week, I hear from hotel owners and managers who express their frustration with the lack of sales results from their web sites. Almost universally, their disappointment stems from the fact that their sites were set-up for failure by improper design by web masters who simply don’t understand search engines or how to sell rooms on the internet.

An all-too-common experience

I spoke to a hotel owner the other day who expressed a fairly typical account of her experience with the Web. She spent $5000 to have a site designed for her hotel and an additional $7000 in search engine optimization efforts; all with just mediocre results. The designer never spent a day in the hotel industry and the site reflected it. They designed a beautiful brochure; but a pretty bad selling piece.

This experience is too common in our industry. All too often, we have the blind leading the blind; hoteliers who judge their sites by how good they look instead of how well they work and site designers who know nothing about hotel marketing or how search engines work. Some of them are even designing entire sites in flash; a certain recipe for disaster.

There are some excellent designers out there; people who know how to apply all the necessary elements to produce a marketable hotel web site. Using some due diligence to find the right designer is well worth the investment of time and effort. Do they know as much about hotel marketing as they know about building a web site?

But there are still many wrong designers who charge exorbitant fees and have no clue how to build an effective hotel web site.

Here’s how to determine if you’ve found the wrong designer:

- When a designer tells you that all you need is SEO, as the first solution to your non-productive site, you’ve probably found the wrong designer.
- When a designer wants to produce your site in flash because it looks cool, you’ve probably found the wrong designer.
- When a designer uses more graphics than text content, you’ve probably found the wrong designer.
- When a designer suggests using cute terminology for site navigation links, like “lobby” for home page, you’ve probably found the wrong designer.
- When a designer has placed lots of outgoing links prominently on your home page, you’ve probably found the wrong designer.
- When a designer thinks that the number of “unique visitors” or “hits” on your site is the true measure of success, you’ve probably found the wrong designer.
- When a designer charges $100 per hour, but passes the design job on to a $15 per hour associate, you’ve probably found the wrong designer.
- When a designer uses the same title and description tags on all your site’s pages, you’ve probably found the wrong designer.
- When a designer wants to use words like “cost” and “price” in your site’s text, instead of “rates”, you’ve probably found the wrong designer.
- When a designer spends more time and effort on cool graphics instead of writing effective sales text, you’ve probably found the wrong designer.
- When a designer forgets to put your hotel’s address or location on your site, you’ve probably found the wrong designer.
- When a designer tells you that you don’t need a “real-time” online booking engine, you’ve probably found the wrong designer.
- When a designer is wearing a beanie with a propeller on top, you’ve probably found the wrong designer.
- When a designer thinks “link strategy” refers to sausage, you’ve probably found the wrong designer.

The actual content of your site is extremely important from a search and a sales information delivery standpoint; it’s a two-step process. It’s wonderful that good sales content will result in more visitors and more reservations from those who visit.

Would you, no could you, be content with only converting 3 or 4 reservations from every one hundred visitors to your site? That’s about average for most hotel web sites with a booking engine. The mission is to increase the number of visitors and to increase the percentage of visitors who make a reservation directly on your site; now you’re cooking.

The Internet is not simply hype; your hotel site can produce a substantial contribution to your overall room revenue. For those of you who have read some of my other articles, you can now find all of them on my web site; give me your feed-back, I’d love to hear from you.

China: Ctrip does online travel better than any of its competitors

September 27, 2006 | HotelMarketing.com

Most investors understand the macro aspects of why travel services in China are a good sector to look at. China’s middle and upper classes are burgeoning. The ranks of the middle class are estimated to top 250 million by 2010. As Chinese become wealthier and increase their purchasing power they have certain desires. Entrance or aspiration to the middle class is first heralded by the purchase of an expensive mobile phone such as one by Nokia or Motorola. The next major purchase is a car or a house.

But in between these major milestones, consumers turn towards travel, both domestic and, as Chinese are able to get more visas to countries like Malaysia and Italy, to international travel. Of the $6 billion USD a year of luxury products Chinese consumers are buying, only 1/3 of it is bought in China. The rest is bought on business trips or vacations to Italy, Hong Kong, and other hotspots.

For the last several years, Ctrip has focused on growing its primary business in hotel booking and air ticketing that focuses on the ‘frequent independent traveler.’ In 2004 revenues from hotel reservations equaled $34.5 million USD and accounted for 78% of C-Trip’s revenue. In 2005 hotel-booking revenue had increased to $45 million USD but only accounted for 65% of total revenues, largely as a result of a surge in e-ticketing. 5.5 million hotel rooms were booked through Ctrip in 2005. However, 2005 witnessed a dramatic increase in the number of airline tickets sold through Ctrip as the number went from 1.7 million in 2004 to 3.7 million in 2005. Revenue from air ticketing jumped from $8 million USD and 18% of revenues in 2004 to $20 million USD or 29% of revenues by the end of 2005.