Hospitality E-MarketingTravel E-business By: Eric Frankum
Hospitality E-Marketing • Website Design • E-marketing Strategies • Search Engine Optimization • Online Channels • Future trends I. Social media II. Mobile marketing III. Other • Measurement and Analytics
Hospitality E-Marketing Online channels are where hoteliers need to focus their efforts. More than 1 billion people use the internet every day and 91% of US online buyers state that researching online makes them feel more confident about their purchases.1 The internet offers the simplest way for consumers to find and compare hotels. It also produces the best marketing return-on-investment.
Website Design Basics Visual Appeal Demand Generator Content Navigation Flexibility Scalability 5 Important Elements
Visual AppealDevelop and distribute visual content that tells your hotel’s story Storytelling uses product experiences to take people on an emotional journey appealing to their wants and needs for something more personal and connected. It grabs their attention and pulls them in.2 Storytelling touches on three key steps during the travel process: (1) Inspiration, (2) Research, and (3) Planning.3 The best way to convey your hotel’s story is to provide online photos, virtual tours, and videos in a way that will: • Inspire visitors • Give a vivid mental image of your product • Create a lasting impression
Visual Appeal1) Inspire Visitors At an early stage of the travel process, consumers are seeking high order emotional benefits and inspiration. That means story telling, vivid mental imagery and romance.4 The best way to inspire travel shoppers is with content. If they don’t see anything that catches their interest and makes them feel inspired, they’re not booking your hotel. Target your content to appeal to your guest segments Know who your current guests are, what they value and how your hotel makes their trips successful. For example, if you’re a luxury golf resort frequented primarily by retirees, written content and photos describing the golf courses, spa services and other relevant amenities on leisure travel and destination websites may be effective options for reaching this audience
Visual AppealDeliver Inspiration Leveraging web services, content & applications from variety of sources provide a rich, immersive and informative experience
Visual Appeal2) Give a vivid mental image High- quality, large high-definition images, zoom, virtual tours with 360 degree spin and videos emulate the experience of actually being in the hotel. “38% of US online leisure Providing visually-rich experiences and the travelers surveyed avoid opportunity to examine details more closely staying at hotels because online, helps communicate value and increase they don’t see photos, video confidence in hesitant and wary consumers. or written content that would make them feel comfortable”6 It is important to help tourist imagine what a -Forrester Research destination will be like. Travelers tend to be interested in content elements such as pictures, graphics and maps that convey a “sense of place.” 5 When travel shoppers can picture themselves at your hotel and feel comfortable, that’s when your story is most effective.
Give a vivid mental image: By delivering the optimal visual experience, hotels can differentiate themselves and increase conversions. 7
Visual Appeal3) Create a lasting impression Travel shoppers will look at your hotel and compare it against your competition, so you need to know who you’re up against in order to increase sales from your online efforts. Evaluating your hotel against your online competition will reveal ways to improve your position in the marketplace. Start by focusing on the one or two hotels that are your primary competitors and ask yourself: • Why are we competing with them? • What content do they have available to travel shoppers? • What are their strengths and weaknesses? When producing content, ensure that what makes you unique and the reasons why travelers want to sty at your hotel are the central focus8
Visual AppealCreate a lasting impression Austin uses a consistent “live music” theme throughout its website. Talking virtual people are present to grab the attention of the viewer as seen in figure (9).
Demand Generator ContentDevelop a content strategy There are three important sources of information essential to developing a content strategy: 1) a clear brand position (the single-minded idea that sets your destination apart from your competition) 1) an offerings list (an inventory of everything your destination or resort has to offer), and 1) a keyword list (all the words and phrases that consumers are using to search for destinations and offerings similar to those you have to offer)10 Today, consumers want to be sure that the hotel of their choice includes the right location and area attractions based on their needs for each unique visit. Therefore, it is vital that every website include information about local attractions, area business and events. This information is used in the customer’s buying decisions, as well as improving the opportunity to show up in more searches under more key phrases11
Demand Generator Content Before making a hotel decision, consumers need to be able toexplore the property and delve into more detail (textual and http://www.nycgo.com/ visual), more closely.12
NavigationThe website and the design must be user friendly and providebasic and credible information. 6Research found that customers ranked “rapid information” and“user-friendly system” as most important to potential customersand e-buyers.13 Tools needed to do this are: I. Navigation Toolbar I. Secondary Navigation Toolbar II. Calendar of Events and Event Listings I. Special Deals & Offers I. Interactive Maps I. Trip Planning Elements
Website Design BasicsNavigation Best Practices: www.snow.com
Website Design BasicsNavigation A proper navigation toolbar gives the capability to target articles, pictures, and information geared towards those specific needs and showcase why destination is uniquely attractive based on those needs. Visitors will often decide whether to stay or leave a website on what they see without scrolling. So, its important that you include key content in the window that is viewable before people have to scroll.14 www.snow.com/
Website Design BasicsFlexibility The website platform must be flexible Platforms that cannot quickly adapt to the enough to keep up with the most modern rapid changes, such as proper viewing and programming techniques allowing hoteliers to the rapid influx of new browsers such as keep up with the rapid changes of technology. Chrome, IE9, Safari and mobile systems, will 15 quickly outdate a hotel website. Integrate new map technology
Website Design BasicsFlexibility Example: New Map Technology User generated review & recommendations connected to map: Pair 360 view map with regular map to help traveler or tourist find direction and location of specific places Link websites to surrounding not for touring purposes businesses and integrate user- generated content, reviews, and recommendations into the map. This strategy can help target Staycationers, and gain the support of local businesses by drawing local consumers looking for places to eat, stay, and visit on their staycation. 360 View Map
Website Design BasicsScalability Facebook, Blogs, T witter: be prepared to support the future and adapt to the growing needs of the changing market place
Website Design Basics Inspiration Sharing Research The Seven- Step Travel Process Travel Planning Booking Validating Figure by Robert Cole 7 Step Travel Process
Seven-step travel processInspiration With a an empathetic understanding of your customers needs, you can determine what combination of external experience components you need to deliver, in order to trigger a delightful experience. Use digital media and rich content to try, to replicate the “experience of the brand so that the customer will momentarily "get the feeling" and through this be persuaded to buy the product or service.16 Engage visitors, be unique, authentic and fun
Seven-step travel processResearch YouTube is now the number two search engine.17 This is a testament to the type of content that users are searching for A study by Forrester Research revealed that for 56% of travelers, hotel videos have a positive impact on booking decisions, for 45% traveler- written reviews on third- party sites have a positive impact on booking decisions and for 44% pictures taken by travelers posted online have a positive impact on booking decisions.18 http://www.littlepalmisland.com/LittlePalmIsland_movie.aspx
Seven-step travel processResearch EXPERIENTIL MARKETING The hotel needs to understand that it is one part of a broader set of events, activities, context and interactions that are going to contribute to the overall Transportat ion experience of the guest of which the hotel is going to be judged; and in which people are then going to say this is the type of hotel where I want to be at and tell my friends about. Hotel The way to differentiate your hotel, is by really understanding what the experience is your travel Guest guests are looking for. Event One of the best ways to prepare yourself is to look at your hotel less as the product itself is or the services you have, but for a moment walk a mile in the brain of your guest and understand what the experiences are they are looking for at your hotel18
Seven-step travel processResearch There are 3 different types of videos: •Professionally-shot videos that promote your hotel and the surrounding area. Attempting to shoot promotional videos yourself and placing them out of context risks making your hotel appear low-budget. •Hotel produced video clips about special promotions, events taking place at your hotel, nearby dining and shopping, or interviews with guests produced using a digital camera, video camera or flip camera. •Guest produced videos and photos are inevitably going to be posted online. But, not all guest videos are created for the purpose of a review or will be detrimental to your hotel’s image20 •Virtual tours allow guests to explore your hotel’s features
Video Optimization Research 1. Optimize with key words 3. Implement a linking strategy 1. Distribute video on video 4. Encourage viewers to share sharing sites your videos21
Seven-step travel processPlanning • The planning process transforms the vast information collected in the research phase into a travel plan • Third part itinerary planning tools should be used to in assisting Travelers • Hospitality websites must provide more than property-specific or brand information-must incorporate destination & event content • Web services enable integration and seamless updating of external content & access to content aggregation from multiple sources22
Seven-step travel processPlanning Tools Joie de Vivre hotels are inthe business of selling hotel rooms, but on their websitethey market the experience of California – this is much more valuable to the customer. . http://www.jdvhotels.com/
Seven-step travel processBooking Booking Applications Monetize the Marketing Strategy •Driving conversion remains the most critical priority for most sites •The presentation and navigation of the booking process has not changed substantially over the past 5 years and remains textually based. •Upgrade opportunities and effective presentation of value added promotions at the point of sale are key tools to aid conversion.23
Seven-step travel processBooking Intercontinental Hotels Integrates its search and reservations feature across the lower prominence but does not distract viewers from the images displayed above
Seven-step travel processValidating Guest consult their networks for answers Thee Categories of Influence Networks This is where your Social Media strategy pays off Weak The World Ties by developing a strong vocal group of relevant The New Social supporters Network Best Friends Strong The Net Generation: A Strategic Ties Investigation (08)
•Ideal Scenario:Hotel fully engaged with guest, understanding of itinerary, knowledgeof guest interests, tool to communicate in real timeProvide guest with relevant value, authentic travel experience
Mobile holds the key to engagement…Guest travel experience•Use guest room portal, SMS messaging &Smartphone applications to provide real-timepush, pull and trigger based communication•Upgrade/ cross-sell/ value-added/ co-oppromotional opportunities•Utilization of guest room broadband/entertainment platform as conduct for guesttraveling life- home life integration23
Seven-step travel processSharingThe consumer owns your Brand •Travel experiences will be shared regardless of property participation. Valuable opportunity to reinforce positives & resolve any issues •Sites like Flickr, Facebook and YouTube are great platforms for giving your hotel a personality and sharing information and experiences with consumers. Having a presence on these sites is also good for your online visibility, especially with Google now displaying photo and video content in its search results pages . 24
Online Travel Agents•Think of OTAs as marketing vehicles versus reservation engines.•By not having content, let alone listings on OTAs, hoteliers are preventingthemselves from selling more hotel rooms at higher rates through otherchannels, including their own.•A study conducted by Cornell University in partnership with Expedia and JHMHotels in fall 2009 found that while listed on Expedia, hotels received a 7.5 –26% lift in bookings on other channels (call center, brand.com, other sites) andwere able to attain higher rates (approx. 2-3%) on those channels.•This is why ensuring that your hotel is well-merchandisedon all digital channels and marketing vehicles is an effective way to sellhotel rooms online.•By distributing visual content to thousands of sites and linking to it fromyour social media accounts, hotels can not only improve their positionsin search results and drive more traffic but also increase the likelihood ofconverting that traffic and increasing reservations. 25
Social MediaCommit to Social MediaCommit to social media, it’s not just a fadSocial media has become a part of everyday life.Over 44% of all Internet users are active onsocial media sites.Social media has helped the internet evolve intoa public, interactive, communication tool used byconsumers to voice their opinions and sharetheir experiences – and they do it whether you’reinvolved in the conversation or not. But it’s better to be involved. Put in the time toengage in the conversation about your hotelonline. Your view from the hotel is just asimportant as your guest’s perspectives.26
Visual merchandising A successful online strategy should be focused on both driving traffic to websites, but also converting it when they arrive. SEO, PPC and many Social Media activities are primarily focused on driving traffic and creating awareness online, while visual merchandising is what helps convert traffic and close the sale.
Multiple-languages Make your content available in multiple languages A new report recently released by the China Internet Network Information Center reveals that online travel booking in 2009 increased 77.9 percent, a growth rate that exceeds online shopping (45.9 percent), online banking (62.3 percent) and e-mail (29 percent). Also, the number of Internet users has increased by 86 millions compared with the end of 2008. Attract international travelers through the following search engines: Google (US), Baidu (China), Yandex (Russia), Naver (Korea)
Website Design BasicsCharacteristics of Services Intangibility Inseparabili Intangibilit ty y Services Variability Services Inseparability Variabilit y Perish ability How does the Internet help to manage services?
Website Design BasicsHow does the Internet help to manage services? I. Tangibilizing the service products • Virtual tours & Photos http://www.vegas.com/resorts/virtual/index.html • User-generated contents • Videos I. Managing perceived risk •Building strong brand image http://www.wynnlasvegas.com • Providing more clear picture for the experience
E-marketing Strategy E-marketing strategy = channel strategy • “Customer communications and product distribution are supported by a combination of digital and traditional channels at different points in the buying cycle” (Chaffey et al., 2009 • Internet marketing is most effective when it is integrated with other communications channels • Multichannel Marketing Typical E-Mktg Objectives (Sultan & Rohm, 2004) • Cost reduction and value chain efficiencies (Reduce service call) • Revenue generation (Direct sales) • Channel partnership (Partnering with distributors) • Communication and branding
E-marketing StrategyBenefits of online marketing • Sell : Grow sales Wider distribution, Wider product range than in-store • Speak: Get closer to customers Two-way dialogue: forums, surveys, chat rooms • Serve: Add value Providing extra benefits online, inform new product • Save: Save costs Online communication: reduce staff, print & postage costs • Sizzle: Extend the brand online Improving branding: providing new offers, new experiences
E-marketing StrategySituation Analysis • Assessing the current contribution of the Internet to the organisation • Customer research • Resource analysis • Stage models of the internet marketing capability • Competitor analysis • Intermediary analysis • Assessing opportunities and threats (SWOT analysis)
E-marketing StrategySituation Analysis: Current contribution of the Internet • Business effectiveness Cost-benefit analysis • Marketing effectiveness Qualified inquiries, sales, online market share, brand enhancement, customer service • Internet effectiveness Unique visitors, repeat visits, duration, subscription rates, conversion rates, churn rates etc.
E-marketing StrategyOnline Consumer Analysis & SegmentsAssess customer demand • Access to Internet • Proportion of customers influenced by internet channel • Proportion of customers who buy direct online • => Secondary research or Primary researchIdentify different target segmentsUnderstand target consumers. • online media consumption • buying behavior • type of content & experience they will be looking for
E-marketing StrategySituation Analysis:Customer researcho Online consumerbehavior modelso Customer demographic/psychographic characteristicso Website usage style and level • Personas: A thumbnail description of typical website users Demographic, psychographic, webographic characteristics Primary persona: a representation of the typical site user • Customer scenarios (user journeys): Alternative tasks or outcomes required by a visitor to a website. Typically accomplished in a series of stages of different tasks involving different information needs or experiences.
E-marketing StrategySWOT Analysis Strengths Weaknesses • Existing brand • Brand perception • Existing customer base • Intermediary use • Existing distribution • Technology/skills • Cross-channel support • Churn rate Opportunities Threats • Cross-selling • Customer choice (price) • New markets • New competitors • New services • New competitive products • Alliances/co-branding • Channel conflicts • Social network
E-marketing StrategyDecisions for strategy development Decision 1: Market and product development strategies Decision 2: Business and revenue model strategies Decision 3: Target marketing strategies Decision 4: Positioning and differentiation strategy (Mktg mix) Decision 5: Multichannel distribution strategy Decision 6: Multichannel communication strategy Decision 7: Online communications mix and budget Decision 8: Organizational capabilities (7S framwork)
SEO Tips Inbound Links • Page Title • Start with keyword research. • Clean URL • Headers & Content • Description • Customize your SEO plan to your property and clientele Outbound Links • Premium links that relate to • Emphasizing the unique your site’s content and are attributes of your property will hosted on reputable sites differentiate you from the competition •These links show search engines that your site is reputable and relevant. • Create a sitemap and use data to make decisions, including Local search for SEO: leveraging sources such as • Claim your listings on the search Google webmaster tools. engines and beyond (Yelp, CitySearch, etc.) • Be consistent, use the same address • Promote content on other sites and phone number across the web. • Monitor and manage you and your competitor’s reputation
Search Engine Optimization 1. Local/Maps Search Results. Google will often show local results (see belowexample) when geographic modifiers, like city or state are used in searches. To increase your odds of showing up at the top of local results, you’ll want to claim and optimize your listings in the Google Local Business Center.
Search Engine Optimization 2. Image Results. By optimizing your images, you can increase the odds that you’ll show upin Google’s Image results (shown to the right)
Search Engine Optimization 3. Adwords /Pay Per Clicks. If you have your Google Merchant Center account set up, and are running paid ads throughGoogle Adwords, you can opt to show your name in the paid results(highlighted in yellw.) It’s a great way to stand out from the text ads. 4. However, organic search results (shown to the right) receive more traffic and 75% more clicks (HubSpot)
Search Engine Optimization5. Video Results. Videos are a great way to draw more visitors into yoursite. So make sure to optimize yourvideos and make it easy for search engines to show them (as seen in the example below.)
Major Online Marketing Domains Domains• B2C (business to consumer); B2B (business to business)• C2C (consumer to consumer); C2B (consumer to business) tab Source: Kotler et al., 2010
Multichannel buying modelsIntermediaries Analysis• Online intermediaries o Search engines: Google (US), Baidu (China), Yandex (Russia), Naver (Korea) o Potential online media and distribution partners • Online Travel Agencies (Expedia, travelocity) • Mainstream news media sites or portals (Times, Google news etc.) • Price comparison sites (Farecompare, Sidestep, Kayak) • Social media sites (Bloggers)
Producer + Consumer = Prosumer Co-creation• First introduced in 1980 by futuristAlvin Toffler in his book The Third OfferMeTrip is an online site that allowsWave customers to imagine their ideal vacations by describing their desires in terms of location,• Mass Customization or activities, length of stay and place. A network of approved travel agents can react by offeringPersonalization of Products – Active customized trip itineraries around theRole of Customers customer’s parameters.
Long TailA frequency distribution suggesting the relative variation in popularity of itemsselected by consumers The growing trend will continue to be an increase in the amount of looks over books
Online Channel Structure Individual Hotel Social OTA’s Networks Channel Management Revenue Management Search Engines PMS • Chain/Franchise • Central Reservations • Global Distribution System • Website (Brand.com) • Third Party CRS Consumer Channel Management
e-Customer Relationship Management (e-CRM) Approaches•Using the website for customer development•Applying e-mail marketing•Data mining to improve targeting•Online personalization or mass customization facilities•Recommender systems•Online customer service facilities•FAQ, Chat support etc.• Social Media
1. eMarketer, The Future of Online Retail Doesn’t Look…Too Bad, June 24, 2009, http://www.emarketer.com/Article.aspx?R=1007142.Figure on slide two: Cullen, Kathleen. “Best Practices for Maximizing Your Hotel’s OnlineRevenue and ROI” HSMAI.com2. Collins, Robert. New Marketing Labs, “In Search of Storytellers” (2010)3. Cole, Robert. RockCheetah LLC, “Web 2.0 Technologies in the Hospitality Industry”(2009) http://prezi.com/qct23lpz19yw/web-20-technologies-in-the-hospitality-industry/4. Cole, Robert. RockCheetah LLC, “Web 2.0 Technologies in the Hospitality Industry”(2009) http://prezi.com/qct23lpz19yw/web-20-technologies-in-the-hospitality-industry/Figure on slide seven: http://www.morganshotelgroup.com/#/home/5. Lee, W., Gretzel, U. and Law, R. (2009). “Quasi-Trial Experiences through SensoryInformation on Destination Web Sites.” Journal of Travel Research, 0, 1 -146. North American Technographics® Travel Online Survey, Q1 2009 (US), ForresterResearch, Inc., February 2009.7. Boni, Paolo. “Online Merchandising: The Secret to Selling the Hotel ExperienceOnline” www.vfmleonardo.comFigure on slide nine: www.experiencewa.com/8. Boni, Paolo. “Online Merchandising: The Secret to Selling the Hotel ExperienceOnline” www.vfmleonardo.comFigure on slide Eleven: http://www.austintexas.org/9. Collins, Robert. New Marketing Labs, “In Search of Storytellers” (2010)10. http://www.createwanderlust.com/destination-website-design Works Cited
11. Cullen, Kathleen. “Best Practices for Maximizing Your Hotel’s Online Revenue and ROI”HSMAI.com12. Adobe Scene7 Viewer Study, What Shoppers Want, January 2010.13. Han, J.H. and Mills, J.E. (2006) “Zero acquaintance benchmarking at travel destinationwebsites: what is the first impression that national tourism organizations try to make?”International Journal of Tourism Research, 8(6), 405-430.14 The Tourism Company, “Design Tips for Tourism Destination Websites” (2010)http://www.thetourismcompany.com/topic2.asp?projectid=1127&topicid=615. Cullen, Kathleen. “Best Practices for Maximizing Your Hotel’s Online Revenue and ROI”HSMAI.comFigure on slide twenty-one: Cole, Robert. RockCheetah LLC, “Web 2.0 Technologies in theHospitality Industry” (2009) http://prezi.com/qct23lpz19yw/web-20-technologies-in-the-hospitality-industry/16. Bernstein, Laurence. “Experiential Marketing – What It Is and Isn’t”http://vtv.vfmleonardo.com/experiential-marketing-what-it-is-and-isnt/17. Cahill, Adam. The New Age of Search Strategy. ClickZ. Nov 5, 2009. http://www.clickz.com/363556318. North American Technographics® Travel Online Survey, Q1 2009 (US), ForresterResearch, Inc., February 2009.19. Bernstein, Laurence. “Experiential Marketing – What It Is and Isn’t”http://vtv.vfmleonardo.com/experiential-marketing-what-it-is-and-isnt/20. Boni, Paolo. “Online Merchandising: The Secret to Selling the Hotel Experience Online”www.vfmleonardo.com21. http://www.toprankblog.com/2009/10/video-seo-basic-tips/Figure on slide 26: http://www.ourawardentry.com.au/bestjob/index.html22. Cole, Robert. RockCheetah LLC, “Web 2.0 Technologies in the Hospitality Industry”(2009) http://prezi.com/qct23lpz19yw/web-20-technologies-in-the-hospitality-industry/ WorksFigure on slide 32: Tapscott, Don. “Grown up digital” (08) pg 198 Cited