Success in Internet Marketing[1]

8/14/2019 Success in Internet Marketing[1]

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INTERNET MARKETING SOLUTIONSfor the international hotel industry


Success in Internet Marketing

TravelCLICK Webinar

May 2007

“there is a better way”Jerome WiseVP - eCommerce





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





TravelCLICK’s experience

• Developed and hosting almost 200 hotel web sites

• Managing online marketing campaigns for over 300hotels

• Clients range from individual 2 star hotel to worldwidemajor luxury brands

• Delivered approximately $12 million in incrementalbusiness to our customers over the past 12 months





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 3years*

*source PhocusWright Inc 2006






• Online travel sales will represent 41% of total travel

sales by 2008*

• A further 38% of consumers make their decisiononline, 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






• Supplier sites are fighting back against the OTAs and

in 2005 57% of online hotel sales were made on thesupplier site, up from 53% in 2003*

• This is forecast to grow further as suppliers catch upwith the OTAs in terms of technology, customer

service and marketing

* comScore Networks, April 2006 (US)





Where are the opportunities?

There are three main opportunities that online sales

present:2. Incremental revenues

3. Reduced cost of sale

4. Enhanced brand loyalty and client relationships





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





Reduced cost of sale

• A brand web site has the lowest cost of sale

• Enables business to be “channel shifted” from moreexpensive channels, such as travel agency or callcentres

• A strong brand web site enables the reliance on OTAs

to be reduced and relationships to be renegotiated inorder to bring down the overall cost of sale





Net

Revenue*

Consumer

Spend

$90.00

$150.00

O p a q u e

Brand /Rep Co.

$235.50

$275.00

G D S

TravelAgent

Pegasus

Brand orRep Co

GDS

$250.00

$275.00

P r o p e r t y

W e b s i t

eBooking

Engine

Provider

$206.25

$275.00

M e r c h a

n t

Brand /Rep Co. *

Develop strategies and employ specific tactics to

shift business mix to the most profitable channels*industry averages

http://www.priceline.com/default.asp





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





How to drive incremental revenue

• What are the various marketing opportunities?

• What is each of them good for?• Where should the focus be?





The marketing opportunities

• Before looking at the opportunities, one should

consider the four stages of customer interaction: – Conversion

– Acquisition

– Retention

– Analysis• Focussing in each of these areas

will create a solid action plan

2. Acquire

1. Convert

3. Retain4. Analyse





The marketing opportunities

• Equal focus and specific activities should be deployed

to address each of these key areas:Convert Acquire Retain AnalyseWeb design SEO CRM Web analysis

Booking engine PPC Web design

Content Linking Customer service2. Acquire

1. Convert

3. Retain4. Analyse





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 isthe single best investment

• Once the site is optimised, then marketing activity to

deliver incremental consumers should start

1. Convert





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, withclear rationale for consumers to provide their details?

• Is the most relevant information displayed “above the fold”?• Are online security fears addressed?

1. Convert





Measuring site conversion is essential

• Site conversion should be measured every month to

ensure optimum site performance• Measuring Visits, Persuasion and Conversion will givean accurate picture of site performance

1. Convert

Total site visits

Total number of

availability enquiries

Total number of

completed reservations





Driving incremental traffic to the site

• Now the site is optimised and performance

measurement is in place, it is time to deploy marketingefforts.

• 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





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 toadjust the approach accordingly





New and incremental customers

Search Engine Optimisation:

• Definition: the process of improving the volume andquality of traffic to a web site from search engines via"natural" ("organic“) search results

• SEO is the single-most important online marketingactivity

• The benefits of a well “SEO’d” site will be dramatic

• This is a strategic activity, that will deliver significantlong-term benefit

2. Acquire






Natural search results

PPC Results






• SEO does take up to 4 - 8 months to make a

significant impact• The best results require an iterative process, not aone-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






• PPC is a fantastic medium for turning on traffic

immediately• A well-researched PPC campaign will deliver significant returns and will quickly become an ongoingactivity

• PPC campaigns compliment SEO activities• Running SEO and PPC side-by-side, ensures that you

own the page

2. Acquire





Top left is the most valuable area of the page





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





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 offlineenvironment is vital

• Regular, and relevant, email communication will buildloyalty and reinforce the brand

3. Retain





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





Measurement and analysis

• Online offers unparalleled measurement and trackingopportunities

• There are three key areas to measure:

– Site conversion

– Site performance

– Marketing return

4. Analyse





Measuring site conversion is essential

• Site conversion should be measured every month toensure optimum site performance

• Measuring Visits, Persuasion and Conversion will givean accurate picture of site performance

Total site visits

Total number of

availability enquiries

Total number of

completed reservations

4. Analyse






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 tomeet the customers’ needs

4. Analyse






Marketing return

• Return on investment (ROI) or return on advertisingspend (ROAS) are the most common metrics

• Equally important is the contribution that marketingefforts make to the overall business

• Other performance metrics to consider are: – Cost-per-acquisition

– Number of email sign-ups4. Analyse






A simple spreadsheet gives a dashboard view:

4. Analyse





Why TravelCLICK?

TravelCLICK is your ideal online marketing partner

• 21 years experience in hotel electronic distribution

• Specialist Internet Marketing Services team workingonly within the hospitality sector

• Offers a full service suite of Internet marketingsolutions

• Ongoing relationships with over 12,000 clientsworldwide

• Shared interest in your success





Summary

• Today up to 80% of all bookings are influenced by theweb

• A strategic, planned, approach to online marketing willproduce 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





Success in Internet Marketing

TravelCLICK Webinar

May 2007

“there is a better way”Jerome Wise

Success in Internet Marketing[1]

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