With the New Year starting and hotel management are becoming more positive about the future, we still want do to the most of what we already have. Even if this is the recovery we are told is imminent (a claim that remains skeptical), we still want to run hotels lean and get the most return for our investment.
If you haven't already started spending your new 2011 marketing budget, it's about time you do and ensure that you are positioned the best possible way right from the start. But what does your budgeted revenues look like? Did your hotel managed to realistically forecast the pace of the economic recovery? Or did you just apply a percentage increase or decrease over 2010?
Although we all want to keep those positive thoughts going, many hotels haven't witnessed the signs of the change announcing better days. Allocating a hotel marketing budget to maximize returns and minimize risks can become a lot more unpredictable when investments involve new trends and emerging technologies.
You would think that marketing trends would be closely aligned with consumer trends, since effective marketing depends on getting our messages to appear where the highest concentration of qualified customers are focused. Unfortunately that isn't always the case and to that end, if hotels still need to "do more with less" and with the fact that hotel marketing returns are only as good as our ability to make educated guesses, here are some notes about new trends and ways to stretch your hotel marketing spending for 2011.
Reach out to old and loyal hotel customers using the data the hotel has and create more personalized communications to existing and past customers. The in-house hotel database is often the most productive source of sales as clients in that database have already expressed an interest towards your hotel or its services by responding to previous marketing programs, inquiring or buying from you. That qualifies them as the right people to target with a marketing campaign.
Creative's used by multiple platforms - Hotel marketers should look at how they can exploit their creative's across multiple platforms, whether through TV spots, behind-the scenes footage or branded content. The aim is to devise a creative campaign that both delivers a return on investment and makes the execution pay for its own media space. Such work can take on a viral life of its own or involve branded content that can be repeated across various channels. Either way, making content work harder has become critical to success as the downturn continues to bite. This is not to say that marketers should simply re-run old ad campaigns as the time has come to get creative about how and where content can be used.
Internet marketing - Since the Internet has now become a primary tool for the delivery of information and promotions, Hotel Corporations of all sizes are using online marketing to increase awareness of their properties and services. Online Marketing refers to using the power of Internet advertising to generate a response from clients. Common areas of interest within the field of online marketing include Affiliate Marketing, Display Advertising, Email Marketing, Interactive Advertising, Search Engine Marketing and Viral Marketing.
Online marketing, regardless of the exact method a hotel chooses to use, offers several benefits such as convenience and affordability as well as providing the opportunity for hotels to track results as a campaign progresses. Additionally, Internet marketing allows even the smallest of hotels to compete in a global marketplace. Online marketing is also related or linked to public relations, customer service, sales, and information management. However, it is important to remember that these fields can be considered separate specialties as well.Always think ROI per investment - If the hotel has an expensive strategic marketing niche that pays off in big dividends, they should keep on spending. The key to marketing is to make the investment worth the return. If a hotel ROI is high on an expensive marketing strategy, let that be the focus. Curtail investments on other marketing campaigns that have a lower ROI while explore other inexpensive strategies.
Only produce the materials that is actually needed - Now this might sound obvious, but we talk to a lot of customers, who for example tells us they want to produce a brochure because "all companies should have a brochure" without truly measuring the need for it. Before a hotel spends the money to produce something, the management need to have a clear plan for how it will be used, distributed and get ROI.
Marketing isn't just an expense; it's an investment. We often see hotels spending an incredible amount of money on marketing with very little return. The key is to market smarter and fully utilize a marketing budget. Nowadays throwing money at high-dollar advertising venues does not always provide an automatic customer return, Hotels need to know how to stretch their budgets and here are a few ways to effectively do so.
It may not be necessary for hotels to market its product consistently all year long. There are times when hospitality industry is running slow and clients are not likely to make a purchase, conversely, there are other times during the year when customers are more likely to be in the market for a hotel and its services. Scheduling hotel marketing activities to take advantage of these peak times and to avoid what we call the "valleys" (when no one is in the market for what he is being sold). Aim to persuade as many customers as possible to stay in a hotel or dine in a restaurant when they are in the buying mood.
Looking at market segmentation on the other hand is crucial. Targeted marketing recognizes the diversity of hotel customers and enables the marketing department to target different categories of consumers who perceive the full value of a hotel products and services differently from one another. Differentiated marketing builds greater loyalty and repeat purchasing by considering the different hotel customer needs and wants. It creates more total sales with a concentrated marketing effort in selected areas.
Another way to stretch the marketing budget is to use free publicity. It costs hotels nothing and builds credibility and awareness. Therefore, hotels have to continuously look for opportunities to be involved in. For example hotel executives can speak at local organizations about generic topics in management or share their knowledge by writing articles for their industry journals and their own website.
Reusing content is another way to reduce marketing spent. If a hotel has reasonable up to date marketing resources they can reuse them as much as possible. An example is professional photos made of hotel products; use them in multiple print ads and/or if a freelancer is hired to write up sales literature, use it on the website and paid ads as well.
Soliciting Marketing Partnerships with others is yet another way to stretch a hotel marketing budget. Looking for businesses with complimentary services to create cooperative advertising campaigns; allows both organizations to have a larger pool of funds available.
Networking is the most effective way to meet people and people like to do business with others they know. Networking does not cost much, but it does take a time commitment especially that it has to remain a consistent effort throughout the year
Using multi-touch direct marketing to increase a hotel chance of being in-sight and in-mind at the right time with prospective customers is another way to extend your marketing money. Hotel tend to generate more by touching 1,000 prospects three times with direct marketing, than they will by touching 3,000 prospects once. Each contact is another chance for the hotel and its services to be in the right place at the right time.
Use search engine optimization or paid search if a hotel wants more leads that represent sales opportunities. Hotels need to increase the likelihood of being found at the top of the search engine results when clients are actively searching for accommodation or other services. Despite what the SEO experts say, optimizing a hotel page can be as easy as putting the right words or phrases in the right places on the Web pages. If a hotel can't get to the top of the results that way, they should consider spending a portion of the limited marketing funds on contacting a specialist.
Stretching a hotel marketing budget means getting your money's worth. In "pay per" marketing, hotels have access to real-time results of the marketing efforts. Pay per click and pay per call advertising on search engines are highly effective, and these strategies allow hotels to pay only for qualified leads who click the online link or call the reservation from a search add. With the conversion rates right at ones fingertips, hotels can make quick changes and alterations to their strategic marketing online.
Hotels can leverage social media as another inexpensive way to stay in sight and in mind with clients. All it costs to use social media mediums such as LinkedIn, facebook or Twitter, is time. Hotels marketers can start by investing an hour a day to read about the subject. Join appropriate LinkedIn groups and search in Twitter related comments to your hotel and its services and then contribute to conversations.
If something works, stick with it. Too many hotel marketers attempt to be super savvy and come up with new promotions all the time in an attempt to stimulate the market. Scrapping existing, perhaps effective but not appropriately utilized campaigns, for new ones is a waste. If the new promotion is significantly different from the previous one it not only means the hotel start the 'reach process' again, it also means that the hotel is creating unnecessary expenditure when existing campaigns if used correctly are still accurate and effective. Hotels should run their ads for as long as their customers read and react to them.
Do not copy. The look, tone and image of hotel promotions should be dictated by the hotel product and its market--not by what other hotel companies put out. Producing literature that's too fancy for its purpose and its audience is a waste of money. And it can even hurt sales. For example, a hotel customers will look at overdone literature and wonder whether a budget hotel really understand its market and its needs or not.
Hotel marketing is an important part of the business operation. The challenge is finding cost-effective ways to get your hotel name out without going over the allotted budget. Strategic planning is the key so that hotels have a purpose with each marketing dirham or dollar they spend. Creating a marketing plan that incorporates some of the above tips will help hotels have a focus and a variety of venues to reach existing and potential customers and keep the hotel financial picture on track.
-Ends-
For further information on this press release or Sectormark Marketing Consultants FZLLC please visit
www. sectormark.com or contact:
Nada Sheshtawy
Managing Director - SectorMark Marketing Consultants FZLLC
P.O. Box 72280
Dubai Media City
UAE.
T: +971 (0)4 446 2427
Mob: +971 (50) 814 2290
E: nada.sheshtawy@sectormark.com
© Press Release 2011
