Success in Internet Marketing by kellena96

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									       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




            Success in Internet Marketing


                                  TravelCLICK Webinar
                                        May 2007




Jerome Wise
VP - eCommerce                                     “there is a better way”
         INTERNET MARKETING SOLUTIONS
         for the international hotel industry




Agenda
•   The importance of the Internet to the hotel industry
•   How to impact the bottom line
•   Taking a strategic approach to Internet marketing
•   Building an Internet marketing plan
•   The value of measurement and analysis
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




TravelCLICK’s experience
• Developed and hosting almost 200 hotel web sites
• Managing online marketing campaigns for over 300
  hotels
• Clients range from individual 2 star hotel to worldwide
  major luxury brands
• Delivered approximately $12 million in incremental
  business to our customers over the past 12 months
             INTERNET MARKETING SOLUTIONS
             for the international hotel industry




The importance of the web
• Online is no longer a niche channel worthy of
  investment for the future.
• It is a significant channel now and should be actively
  managed.
• Worldwide online travel sales is valued at $147 billion
  in 2007*
• Forecast to grow at 17% per year over the next 3
  years*

 *source PhocusWright Inc 2006
               INTERNET MARKETING SOLUTIONS
               for the international hotel industry




The importance of the web
• Online travel sales will represent 41% of total travel
  sales by 2008*
• A further 38% of consumers make their decision
  online, but purchase offline**
• This means that almost 80% of travel sales will either
  be made online, or strongly influenced by online



*(Europe) source eMarketer
** Forester Research 2006
             INTERNET MARKETING SOLUTIONS
             for the international hotel industry




The importance of the web
• Supplier sites are fighting back against the OTAs and
  in 2005 57% of online hotel sales were made on the
  supplier site, up from 53% in 2003*
• This is forecast to grow further as suppliers catch up
  with the OTAs in terms of technology, customer
  service and marketing




* comScore Networks, April 2006 (US)
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Where are the opportunities?
There are three main opportunities that online sales
   present:
1. Incremental revenues
2. Reduced cost of sale
3. Enhanced brand loyalty and client relationships
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Incremental revenues
• The internet is a level playing field in terms of sales
  and marketing
• Everyone can attract new clients through very targeted
  and measurable marketing
• Global distribution reach is available to all, not just the
  major brands that have global networks
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Reduced cost of sale
• A brand web site has the lowest cost of sale
• Enables business to be “channel shifted” from more
  expensive channels, such as travel agency or call
  centres
• A strong brand web site enables the reliance on OTAs
  to be reduced and relationships to be renegotiated in
  order to bring down the overall cost of sale
               INTERNET MARKETING SOLUTIONS
               for the international hotel industry




  Consumer
   Spend             $150.00                  $275.00              $275.00              $275.00

                                                                      Travel
                                                                      Agent

                                                                                          Booking
                                                                                          Engine
                                                                        GDS               Provider




                                                                       Pegasus
                      Brand /                    Brand /
                      Rep Co.                   Rep Co. *
                                                                      Brand or
                                                                       Rep Co




      Net                                                                               $250.00
    Revenue*
                     $90.00                   $206.25              $235.50
                                   Develop strategies and employ specific tactics to
*industry averages                 shift business mix to the most profitable channels
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Enhanced loyalty and client relationships
• A direct client should be retained for future marketing
  and relationship building
• A customer booking through an OTA is likely to remain
  loyal to the booking channel
• Actively seek to build relationships with clients
  delivered through OTAs for future, cheaper marketing
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




How to drive incremental revenue
• What are the various marketing opportunities?
• What is each of them good for?
• Where should the focus be?
         INTERNET MARKETING SOLUTIONS
         for the international hotel industry




The marketing opportunities
• Before looking at the opportunities, one should
  consider the four stages of customer interaction:
   –   Conversion
   –   Acquisition
                                                             2. Acquire
   –   Retention
                                                1. Convert
   –   Analysis
• Focussing in each of these areas
                                                4. Analyse    3. Retain
  will create a solid action plan
        INTERNET MARKETING SOLUTIONS
        for the international hotel industry




The marketing opportunities
• Equal focus and specific activities should be deployed
  to address each of these key areas:
Convert           Acquire      Retain        Analyse
Web design                        SEO          CRM            Web analysis
Booking engine                    PPC          Web design
Content                           Linking      Customer service

                                                                              2. Acquire
                                                                 1. Convert



                                                                 4. Analyse
                                                                               3. Retain
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Site conversion is key to success
• Before investing in marketing efforts, a web site should
  be “fit for purpose” to convert at the highest rate
• Increasing the conversion ratio of visitors to bookers is
  the single best investment
• Once the site is optimised, then marketing activity to
  deliver incremental consumers should start



                                                      1. Convert
        INTERNET MARKETING SOLUTIONS
        for the international hotel industry




What does an optimised site look like?
• Does it represent the brand in a clear and compelling way?
• Is the navigation easy and logical?
• Are there overt booking arguments (best rate guarantee, online-
  only offers, exclusive promotions)
• Is the content fresh, up to date and compelling?
• Is the “book now” button clearly displayed on every page?
• Is the booking process simple, quick and efficient?
• Is there an easy process for capturing email addresses, with
  clear rationale for consumers to provide their details?
• Is the most relevant information displayed “above the fold”?
• Are online security fears addressed?
                                                            1. Convert
        INTERNET MARKETING SOLUTIONS
        for the international hotel industry




Measuring site conversion is essential
• Site conversion should be measured every month to
  ensure optimum site performance
• Measuring Visits, Persuasion and Conversion will give
  an accurate picture of site performance
     Total site visits

     Total number of
     availability enquiries
     Total number of
     completed reservations
                                                   1. Convert
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Driving incremental traffic to the site
• Now the site is optimised and performance
  measurement is in place, it is time to deploy marketing
  efforts.
• Two distinct plans should be put into place to target:
   – New and incremental customers
      • Search Engine Optimisation, Pay-Per-Click, Linking
   – Existing customers
      • Email Marketing, Offline Marketing, Customer
        Service
                                                             2. Acquire
         INTERNET MARKETING SOLUTIONS
         for the international hotel industry




Why are search engines important?
•   89% of Internet users regularly use a search engine
•   In Europe, Google accounts for 76% of all searches
•   In Asia Pacific Google accounts for 67%
•   In the US Google accounts for 49%
•   It is important to know where users are searching to
    adjust the approach accordingly
        INTERNET MARKETING SOLUTIONS
        for the international hotel industry




New and incremental customers
Search Engine Optimisation:
• Definition: the process of improving the volume and
  quality of traffic to a web site from search engines via
  "natural" ("organic“) search results
• SEO is the single-most important online marketing
  activity
• The benefits of a well “SEO’d” site will be dramatic
• This is a strategic activity, that will deliver significant
  long-term benefit
                                                            2. Acquire
     INTERNET MARKETING SOLUTIONS
     for the international hotel industry




New and incremental customers

                                                    Natural search results



                                            PPC Results
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




New and incremental customers
• SEO does take up to 4 - 8 months to make a
  significant impact
• The best results require an iterative process, not a
  one-time effort
• Ensuring high-quality incremental traffic is delivered is
  vital
• For short-term, tactical, traffic deploy Pay-per-click
  marketing as a complimentary activity
                                                         2. Acquire
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




New and incremental customers
• PPC is a fantastic medium for turning on traffic
  immediately
• A well-researched PPC campaign will deliver
  significant returns and will quickly become an ongoing
  activity
• PPC campaigns compliment SEO activities
• Running SEO and PPC side-by-side, ensures that you
  own the page
                                                     2. Acquire
      INTERNET MARKETING SOLUTIONS
      for the international hotel industry




Top left is the most valuable area of the page
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




TravelCLICK PPC Campaigns
• In 2007 we are running approximately 40 campaigns
• Forecast to generate:
   – $8 million incremental revenue
   – 13,000 incremental reservations
• Year to date, we are delivering a 8:1 ROAS
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Existing customers
• Existing customers are often overlooked in the fervour
  to find new ones
• If managed effectively they can:
   – Reduce the overall cost of sale through channel shifting
   – Increase their loyalty and value
• Communication of the online proposition in an offline
  environment is vital
• Regular, and relevant, email communication will build
  loyalty and reinforce the brand
                                                         3. Retain
         INTERNET MARKETING SOLUTIONS
         for the international hotel industry




Existing customers
• Building the customer database is very important and
  can be achieved relatively easily:
   –   Sign-up process on web site
   –   Run online promotions / competitions
   –   Sign-up at check-in / check-out
   –   Ensure offline communication encourages email sign-up
• A communication calendar should be developed to
  ensure regular emails are sent with compelling offers
                                                        3. Retain
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Measurement and analysis
• Online offers unparalleled measurement and tracking
  opportunities
• There are three key areas to measure:
  – Site conversion
  – Site performance
  – Marketing return


                                                    4. Analyse
        INTERNET MARKETING SOLUTIONS
        for the international hotel industry




Measuring site conversion is essential
• Site conversion should be measured every month to
  ensure optimum site performance
• Measuring Visits, Persuasion and Conversion will give
  an accurate picture of site performance
     Total site visits

     Total number of
     availability enquiries
     Total number of                                 4. Analyse

     completed reservations
         INTERNET MARKETING SOLUTIONS
         for the international hotel industry




Measurement and analysis
Site performance
• Correct use of the web site analysis tool will show:
   –   Where are customers visiting from
   –   Where are they leaving the site
   –   How long are they staying
   –   Which search engines are delivering the traffic
• This information will assist in changing the web site to
  meet the customers’ needs                              4. Analyse
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Measurement and analysis
Marketing return
• Return on investment (ROI) or return on advertising
  spend (ROAS) are the most common metrics
• Equally important is the contribution that marketing
  efforts make to the overall business
• Other performance metrics to consider are:
   – Cost-per-acquisition
   – Number of email sign-ups                            4. Analyse
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Measurement and analysis
A simple spreadsheet gives a dashboard view:




                                               4. Analyse
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Why TravelCLICK?
TravelCLICK is your ideal online marketing partner
• 21 years experience in hotel electronic distribution
• Specialist Internet Marketing Services team working
  only within the hospitality sector
• Offers a full service suite of Internet marketing
  solutions
• Ongoing relationships with over 12,000 clients
  worldwide
• Shared interest in your success
       INTERNET MARKETING SOLUTIONS
       for the international hotel industry




Summary
• Today up to 80% of all bookings are influenced by the
  web
• A strategic, planned, approach to online marketing will
  produce far better returns than tactical activity
• Investing in existing customers, as well as prospecting
  for new ones, is crucial for overall success
• Measuring performance and adjusting campaigns will
  produce stronger returns
        INTERNET MARKETING SOLUTIONS
        for the international hotel industry




             Success in Internet Marketing


                                 TravelCLICK Webinar
                                       May 2007




Jerome Wise
VP - eCommerce                                     “there is a better way”

								
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