Basics of Internet & Social Media Marketing in the Hotel Industry
The Role of the Internet in Hotel Industry
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Transcript of The Role of the Internet in Hotel Industry
The Role of the Internet in Hotel IndustryYAHYA ABDULQADERMBA 645FALL 2014THE UNIVERSITY OF FINDLAY
Internet Channels Used in the Hotel Industry
Websites Official hotel websites• “Just about every hotel today has a website.”• The digital gateway to the hotels on the web.• “The website is at once the most important lead generator,
booking path, marketing apparatus and revenue manager available to the hotel owner or general manager.”
Internet Channels Used in the Hotel Industry
Websites Booking websites• “Reservations through third party internet booking companies
exploded in the early 2000's as the industry struggled with the effects of the September 11th downturn.”
• “Include online channels in your distribution plan, if you want to generate the highest possible revenues and increase occupancy rates.”
• “Paying commissions isn’t great, but empty rooms are worse.”
Internet Channels Used in the Hotel Industry
Social media websites
“Hotels and companies within the hospitality
industry must have a keen understanding of how to
deliver their messages via social media websites if
they are to compete in today's business
environment.”
Internet Channels Used in the Hotel Industry
Smartphone applications
“75 % of frequent business travelers (those
making at least five trips a year) are smartphone
owners. About half of frequent leisure travelers have
smartphones.”
The Role of the Internet in Hotel Marketing
As a marketing tool
Allows hotel to create a positive image.
Reach more potential customers / Wide regions at a lower price.
Offers buyers and sellers information/ gives clear details.
Example: PPC (Pay per Click) advertising campaigns (cost $1 per click,
Several hotel operators have cited returns of around 8:1 on average).
The Role of the Internet in Hotel Marketing
As a Booking/ Reservation Tool
The internet became a major distribution
channel for the hotel industry in 2002. Advantages:
Wide choices/ Immediate booking/ The availability of 24/7.
The Role of the Internet in Hotel Marketing
As a Booking/ Reservation ToolPercentage of survey respondents who use online services to make travel plansOnline travel agencies such as Travelocity, Orbitz and Expedia
34 %
Other Web sites 27 %Personal referrals 25 %Travel Company Web sites 19 %Traditional travel agents 9 % Calls to travel companies 7 %
The Role of the Internet in the Hotel’s Financial Side
Increase Hotel’s Revenues.
Enable new channels to offer hotel products and
services.
The ability to charge a deposit for the rooms prior
to check-in.
The ability to verify credit cards at the time of
booking.
The Role of the Internet in the Hotel’s Financial Side
Decrease Hotel’s Expenses.
Traditional methods of marketing, telephone lines,
faxes, and mail, holding press conferences, creating
workshops, travelling to attend exhibitions.
Reduce the need for human interaction/ employment.
The Role of the Internet in the Hotel’s Financial Side
Ease Customers’ Transactions.
Internet offers an automated payment methods
via credit cards, PayPal, and other payment means.
Today, Internet conducting all transactions.
The Role of the Internet in Customers Relationship
Facilitating communications with customers.
No need to dial hotel telephone number to get
information.
Browse website/ send an email/ chat.
The Role of the Internet in Customers Relationship
Customer’s reviews
Available in all hotels and booking sites.
Helping to take accurate decision.
Hotels’ customers and hoteliers must interact positively.
“Positive review can generate business, a negative assessment can just as
easily drive customers away.”
The Role of the Internet in Customers Relationship
Feedback surveys
Online surveys are much easier.
More Participants.
Hotels are receiving feedbacks faster.
References• Carr, B. (2014). How booking engines increase revenue and capture market share. Hotel
Executive.com. Retrieved from http://
hotelexecutive.com/business_review/2554/how-booking-engines-increase-revenue-and-ca
pture-market-share
• Horvat, J., Markovic, S., Katavic, S., & Mikrut, M. (n.d.) Using the World Wide Web in
hospitality industry. University of Osijek. Retrieved from
http://cuc.carnet.hr/cuc2001/papers/f9.pdf
• The impact of E-Commerce and social networking on the hotel industry. (2009). Pinnacle
Advisory Group. Retrieved from http://
www.pinnacle-advisory.com/impact-of-e-commerce-and-social-networking-on-the-hotel-ind
ustry.html
References• The impact of e-commerce on the hospitality industry. (n.d.). UK Essays.com. Retrieved
from http://www.ukessays.com/essays/ecommerce/the-impact-e-commerce-hospitality-industry.php
• The importance of online booking sites in a small property's distribution strategy. (2014).
Little Hotelier.com. Retrieved from http://www.littlehotelier.com/blog/online-booking-sites/
• The importance of web presence in hospitality industry. (2011). eTourism.com. Retrieved
from http://www.etourism.com.au/blog/the-importance-of-web-presence-in-hospitality-industry/155
• Murphy, J., Forrest, E., Wotring, E., & Brymer, R. (1996). Hotel management and marketing
on the Internet. Cornell University. Retrieved from http://www.cbpp.uaa.alaska.edu/afef/hotel_management.htm
References• Pilepić, L., Šimunić, M., & Car, T. (n.d.). Online hotel's sales strategies with emphases on
web booking. University of Rijeka. Retrieved from http://www.aabri.com/NO2013Manuscripts/NO13037.pdf
• Rodrigues, J. (2010). The importance of an effective hotel website. Hospitality & Catering
News.com. Retrieved from http://www.hospitalityandcateringnews.com/2010/07/the-importance-of-an-effective-hotel-website/
• Saracut, F. (20120. Mobile apps for hotels, the hospitality industry benefits from smartphone
market growth. Mobiversal.com. Retrieved from http://blog.mobiversal.com/mobile-apps-for-hotels.html
• Social media & the hospitality industry. (2014). Small Business Chron.com. Retrieved from
http://smallbusiness.chron.com/social-media-hospitality-industry-37599.html