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If you need technical assistance with the

webcast, contact us at hsmai@commpartners.com

and we will assist you immediately.

Digital Marketing Webinar Series

The Hotelier's Action Plan to Meet 2013 Digital Marketing Challenges

November 7, 2012

Overview of Format and TopicOverview of Format and Topic

Fran BrasseuxExecutive Vice President, HSMAI

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About Digital AlchemyFull Service CRM Solutions for Hoteliers

Email, Mobile Web Sites and eSurvey Services

Multi-Lingual, platform-independent

Offices in:

Texas, Palm Springs, London

Clients:

• 650 hotels

• 53 countries

• 6 Languages

We are grateful to Digital Alchemy, our sponsor and partner in

presenting this digital marketing webinar series!

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POLL QUESTION #1POLL QUESTION #1How many people are participating

in this webinar at your location today?

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Dr. Bill Carroll, Senior Lecturer, Cornell University

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2013 Action Plan

• Where will the smart money and effort be focused?

• How do smart people make the decisionsabout what to do ?

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Today’s Presenters: Today’s Presenters: Panel Moderator: Dr. Bill Carroll, Senior Lecturer,

Cornell UniversityPanelists:

Bryan Owen

Director, Creative Services &

Interactive Marketing

Hershey Entertainment & Resorts

Max Starkov

President & CEO

HeBS DigitalLoren Gray

Director of E-Commerce

Ocean Properties, Ltd.

Max Starkov

President & CEO

HeBS Digital

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Misguided Ad SpendMisguided Ad SpendU.S. Internet Ad+Mobile Ad “Underspend” = $20 Billion!

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With over 55% of Hotel Bookings Coming from the Online Channel

Print Advertising = Wasted Revenue Opportunities

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Your 2013 budget should take a three-silo approach and include:

Core Marketing Initiatives

Business-Need Campaigns

Capital Investments,

Consulting &

Operations

The Core Marketing Initiatives: tried and true, and/or

initiatives that have quickly proven to drive high ROIs.

Business-Needs: based on concrete business needs for the

property, not advertising driven. Focused on a theme.

Capital Investments, Consulting & Operations

• Strategy & Consulting: focused on strategy and branding

initiatives such as social media audits and strategies, social

media profile development and branding, TripAdvisor

optimization, etc.

• Website Enhancements: focuses on website enhancement

products.

• Website Operations: necessary to keep your website

functioning, such as hosting.

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Core Marketing Initiatives

60%-70% of 2013 Budget

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Core Marketing: SEOSearch Engine Optimization: 8-10%

• Google: over 500 algorithm updates/year

• Google Panda 3.9 Update made many

hotel websites obsolete:

• Unique, engaging Content

• Deep and relevant Content

• Fast Download Speeds

• The Google Venice update had a heavy

impact on the localization of search.

Across the HeBS Digital client portfolio,

organic search revenue accounts for

32.7% of all booking revenue.

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Core Marketing: SEM

Search Engine Marketing: 25-30%

• Search Engine Marketing (SEM) = the

most efficient direct-response

advertising channel

SEM generates 22.9% from website

revenue across HeBS Digital’s client

portfolio.

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Core Marketing: TripAdvisor

TripAdvisor Initiatives: 5-10%

� Drive direct bookings with TripAdvisor:

� “Show Prices CPC Program

• Increase direct bookings

• Levels the playing field with the

OTAs and provides a direct booking

option to the site’s users.

� Business Listing

� Increase direct bookings

� Promote a concrete special

The Business Listing generates 1400% ROAS across

HeBS Digital’s client portfolio.

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Core Marketing: Remarketing & Retargeting

Retargeting & Remarketing: 5-10%

� Target users after they leave your

website

� Messages may be customized based on

which part of the site users visited and

whether or not they made a booking

� Google Display Network is an affordable

option for retargeting and comprises

millions of websites, news pages, and

blogs that partner with Google to display

targeted ads

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The Mobile Channel is Exploding

Core Marketing: Mobile Website

Hospitality:• $1.4 Billion in Direct Mobile bookings in 2012

• $2.2 Billion in 2013

• 63 % year-over-year growth (PhoCusWright 2012)

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Google Searches by Device Category

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Mobile Devices Underperform Tablets

Tablets vs. Mobile Devices

300% more room nights

520% more revenuesSource: HeBS Digital Client portfolio Jan-Sept 2012

Core Marketing:

Tablets - Beware of a New Channel

SourcePage

Views

Mobile

VisitsBookings Nights Revenue

Mobile (Excl. Tablets) 9.66% 13.57% 2.59% 1.74% 1.10%

Tablet 8.34% 8.12% 5.68% 5.23% 5.71%

iPad 7.56% 7.39% 5.45% 5.06% 5.60%

iPad as % of Tablet 90.62% 91.05% 96.02% 96.69% 98.16%

Desktop 81.99% 78.31% 91.74% 93.03% 93.20%19

Tablet Website Design: 3-5%

• Automated script for iPad detection

• iPad rich media presentation Full-screen,

thumb and swipe optimized booking

widget

• Swipe-enabled main images

• Full-screen, swipe-enabled Photo Gallery

• Tap-to-expand navigation menus

• Swipe-enabled top photos

• Swipe-enabled featured tiles

7 % of all searches already come from

tablets, vs. 14% from mobile and

79% via desktops (Google, 2012)

Core Marketing: Tablet Website Design

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Other Core Marketing:

Email Marketing: 2-3%

• Email marketing generates 3-5 percent of total

website revenues across HeBS Digital’s client

portfolio.

SoLoMo: 3%-5%

• Convergence of Social Media, Local and Mobile

• Local search = 3%-5% of total website revenues

Social MediaSocial Media

Local SearchLocal

SearchMobile

MarketingMobile

Marketing21

Business-Need Campaigns

15% - 25% of 2013 Budget

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Why Business-Need Digital Marketing? • Tackle occupancy needs; group cancelations; weekend vs.

weekday

• Target key customer segments: meeting planners, SMERFs,

leisure, family travel

• Address Seasonality Issues

Launch Campaigns Using a

Multi-Channel Marketing Approach

Business-Need Campaigns

Customer Segment Campaigns

Target your main customer segments with

effective, multi-channel campaigns.

� Establish one campaign theme to ensure there

is one powerful message across channels for

greater impact and ROI.

� From mobile to social media to SEM, only use

the right channels for each customer segment

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Business-Need Campaigns: Seasonal

Seasonal/Holiday Campaigns

Boost room nights and revenue with

seasonal/holiday campaigns.

� Build seasonal campaigns with the channels

that are the most effective to increase reach

and awareness.

� Establish one campaign theme to ensure there

is one powerful message across channels for

greater impact and ROI.

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Capital Investments, Consulting & Operations

25% - 30% of 2013 Budget

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The Hotel Website & CMS

Technology Upgrade: 15-25%

Hotel Website RedesignToday the hotel website

MUST:

-Accommodate new travel

purchasing behavior

-Employ the latest website and

digital marketing technology

-Handle stringent new demands

imposed by the search engines

(e.g. Google Panda Update)

-Generate maximum revenues

from the direct online channel

-Act as the hub of the hotel’s

multi-channel digital marketing

efforts

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Consulting + Website Operations

Online Channel Consulting:

• Online channel strategy + best practices

• Stay ahead of the competition and generate

incremental revenues

• Recommended 2013 spend: 8%-10%

Website Operations + Web Analytics:

• Cloud hosting and CDN(Content Distribution

Network) is a MUST

• Investment in advanced web analytics = more

revenues and higher ROIs

• Recommended 2013 spend: 4%-6%

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Putting It All Together

Important Points to Remember…

Core initiatives = main revenue drivers

Business-need campaigns = based on concrete business needs for the

property, not advertising driven.

Capital Investments, Strategy & Consulting = necessary to keep your direct

online channel presence “healthy”:

• website redesign + technology upgrades

• consulting, analytics and website hosting

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Putting It

All Together

Budget Line Item % of Budget to Allocate

Core Initiatives

SEM 25%-30%

SEO 8%-10%

“Show Prices” CPC Program on TripAdvisor 5%-10%

Mobile Website & Marketing 5%-8%

Tablet Website 2%-3%

Email Marketing 2%-4%

Online Video 2%-4%

Remarketing & Retargeting 4%-8%

Reputation Management 2%-3%

Business-Needs Driven Campaigns

Multichannel Initiatives to Tackle Concrete

Business Needs

15%-25%

Capital Investments, Consulting &

Operations

Website Re-Design + CMS Technology

Upgrade

15-25%

Consulting & Campaign Management 8%-10%

Web Analytics & Campaign Tracking 2%-3%

Website Operations 2%-3% 30

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Bryan Owen

Director, Creative Services &

Interactive Marketing

Hershey Entertainment & Resorts

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Business Considerations• 11+ Diverse Brands across T&E• 65% of revenue from May - August• NY/NJ, Philly, DC, Baltimore, DC, HLLY• Internal Marketing group services all

brands• Highly collaborative environment• Demand Generation (vs. Capture)

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The Players

Digital Marketing

BrandManagement

ResortSales

ResortOperations

InformationTechnology

Media Partner

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Digital Strategic Planning

• Corporate goals establish targets• Research sets the direction• Collaboration ensures alignment• Digital Strategy establishes priorities• Digital Roadmap identifies initiatives• Sourcing strategy facilitates execution

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Research Inputs• Guest Satisfaction Surveys• Social Media Listening• Primary Research• Road Tour• Trend Analysis• Performance reports

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• What is our strategy for _______?(“I don’t know” is not a valid answer)

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3 Levels of Strategy• Overall Digital• By Channel (e.g. Mobile, Social, Email)• By Brand (e.g. The Hotel Hershey)

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Alignment• Interviews with Brand Managers• Weekly Marketing Strategies Meeting• Cross-Pollination (people and money)• Published trends and strategies• Digital accountability for priorities

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Loren Gray

Director of E-Commerce

Ocean Properties, Ltd.

Keeping the Team on Track“Who really is on THE TEAM?”

“What are all of the objectives?”

“Who are we selling to?”

“How are they buying from us?”

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Everyone Is Vested In The Process

Ownership

Corporate Management Property OperationsInvestment Level Revenue

Management

Multi Property Marketing

Multi Property Group Sales

General Manager

Director of Marketing

Director of Sales

Director of Revenue

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Breaking it down by…The Source

Not everything is as simple as ‘just’ Transient and Group…

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Keeping the same … LanguageNumbers = Budgets = Reference

Points that are understood

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Moderate and Create PerspectiveSome ‘Rules of Thumb’

Average Market Budget 4 – 7%• Has to be shared with ALL marketing initiatives

• Transient & Group• Travel / Leisure• Group Sales / Meetings• Departmental (i.e. Spa / F&B / Golf / Retail / Tennis / Activities)• Corporate Initiatives• Brand Initiatives• Production / Creative• Contingency• Agency Fee’s• Departmental Costs ( Payroll / Memberships / Tradeshows / Operational

Costs / Comps)

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• Travel / Leisure – 55%• Group Sales / Meetings –10%• Departmental – 5% • Corporate Initiatives – 1%• Brand Initiatives – 3 %• Production / Creative 9%• Contingency – 3%• Agency Fee’s – 14%• Departmental Costs -- TBD

General Marketing Cost %

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So how to keep everyone on track� Don’t ‘glamorize’ digital marketing� Keep all vested players informed� Vet any new unscheduled initiative� Keep ahead of trends� Maintain a constant awareness of progress� No surprises

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Questions?Questions?Panel Moderator: Dr. Bill Carroll, Senior Lecturer,

Cornell UniversityPanelists:

Bryan Owen

Director, Creative Services &

Interactive Marketing

Hershey Entertainment & Resorts

Max Starkov

President & CEO

HeBS DigitalLoren Gray

Director of E-Commerce

Ocean Properties, Ltd.

Upcoming Webinars:

#9 in the 10-part Revenue Management series:

Translate Math to English

November 27, 2012 ♦♦♦♦ 2:00-3:30 pm EST

#10 in the 10-part Revenue Management series:

Keeping Up With Trends

December 18, 2012 ♦♦♦♦ 2:00-3:00 pm EST

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HSMAI’s Newest Certification:

The Certified Hospitality Digital Marketer (CHDM)

Coming this month!

HSMAI Adrian Awards Gala,

January 28, 2013 – Reserve Your Tables

and Seats Today at

www.adrianawards.com

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TodayToday’’’’’’’’s webinar is copyright s webinar is copyright 2012 2012 by the Hospitality Sales & Marketing Association International by the Hospitality Sales & Marketing Association International with All Rights Reserved.with All Rights Reserved.