Browsing Tag

email marketing

Why Hotel Management Companies are Obsessed with Marketing Costs

October 3, 2017 • By

Hotel marketing costs are affecting profitability more than ever.

image1-2

With profit growth slowing in the lodging industry, the focus among hoteliers is now shifting toward closely controlling costs, especially among management companies, whose earnings are directly tied to property performance (and incentives are tied to profits).

As the pressure to find cost savings mounts, experts say one of the most significant expenses to watch is marketing, which has only grown more expensive with the rapid growth of digital media.

In general, hotel management companies care deeply about costs, which have a direct linear effect on their ability to achieve profitability/incentive targets. And these days, marketing costs (especially OTAs and third-party channels) are rising at an alarming rate. Industry averages for marketing expenses typically range from about 4% to 7% of overall expenses, but can vary widely depending on the hotel and its management.

image2 “Marketing is a minimum of probably 6% of your expenses, so it’s a pretty big number,” said Richard Millard, Chairman and CEO of Trust Hospitality. “It could be as high as 8% to 10%, depending on what you’re doing.”

Between just internal staffing, OTA commissions, digital marketing programs (paid search, banner ads, etc.) and other forms of advertising (print, radio, TV, billboards, etc.), hotels are currently fighting a rising tide of seemingly obligatory marketing costs. And all too frequently, it forces managers to scrimp elsewhere.

“Marketing is costing more and more, and that means the training and service level of people on the hotel side suffers, because some way, somehow that money has to be saved,” Millard continued. “So what we as an industry often cut back on, instead, is human resources and training.”

But it doesn’t need to be that way.

Finding the Right Balance

Smart management companies can still find methods to keep marketing costs from getting out of hand, while continuing to do all the right things to get their properties noticed in the marketplace. It requires careful planning, but it’s not impossible.

Experts say one core strategy for reducing and controlling hotel marketing expenses is to strategically outsource certain aspects of hotel marketing to third-party vendors and consultants, based upon the management company’s need and resources. For example, while it may clearly pay to hire a skilled, full-time revenue manager for internal staff, it may be more cost-effective to hire an outside agency for critical recurring functions that drive direct bookings such as email promos, search engine optimization (SEO) and paid search/pay-per-click (PPC) and metasearch campaigns.

image3 “Marketing as a discipline has grown exponentially in how you reach a potential guest or interact with a guest. The reach has become enormous,” said Michael Tall, president and COO at Charlestowne Hotels. “There are certain disciplines and components of marketing that we feel are better left to those that specifically do that as their discipline. The key is figuring out what it is that you want to do internally as a management company, and what needs to be outsourced, and then it’s just selecting the right vendors and hiring the right people inside.”
Another critical method is managing OTA relationships and working to drive customers toward booking directly, rather than through OTAs. OTA commissions can run anywhere from roughly 14% to 25%, depending on the scale of the relationship (rates tend to be higher for independent, unbranded hotels) and the company’s contract with each OTA, but savvy managers can save considerably by optimizing this particular channel.

“We want people to book in the lowest cost channels,” said Tall. “Understanding whether you are able to get a guest or enough guests to book on the lowest cost channels, versus having to go out and market or pay for acquisition to OTAs, is really the balance that you try to understand. That’s a huge part of our business: understanding what it is we desire from the OTAs, and what are we willing to pay to the OTAs to acquire the guests.”

It also comes down to making sure hotel marketers are constantly up to date on the latest marketing techniques and trends, and then both planning and acting accordingly. (This is another area where a mix of both internal and third-party guidance can prove effective.) Most importantly, marketers need to regularly analyze their various channels for a firm understanding of what’s working and what isn’t, as well as where the future lies.

“You can only cut so many corners. It’s not just about trying to save marketing dollars; it’s about spending those marketing dollars wisely,” said Millard. “The secret is to be on top of it. Marketing is changing and you can’t depend on one thing. Experience is great, having people who know what they’re doing is great and having the right technology is great. But you’d better pay attention. Don’t be too sure that what’s working in September 2017 is still going to be here in January 2018.”


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

 

We Need to Talk About Hotel Marketing Metrics

September 19, 2017 • By

Unfortunately for hotel marketers, our industry is drowning in metrics.

image1

From “look-to-book,” to unique visitors, to sentiment scores, to clicks…the list of stats goes on and on. With so much to measure, it’s easy to get caught up in the wrong metrics.

Don’t waste precious time and resources by analyzing metrics that don’t matter in the grand scheme. It’s time to get perspective.

So we’ve outlined 5 popular marketing KPIs that are currently distracting you from what really matters – driving traffic into your direct booking environment and call center.

(As a bonus, we’ve also included the metrics that we think hotel marketers SHOULD actually obsess over!)

Approach With Caution: 

1. Bounce Rate

According to Google Analytics, a ‘bounce’ occurs when someone visits a single page on your hotel website, then leaves without visiting any other page. A high bounce rate can seem devastating. After all, that shows that visitors aren’t interested in pursuing you any further, right?

Wrong.

This is a quick, singular metric that depends on context. This implies that a guest could go to a page on your website (for example, meetings and events), consume everything on that page for 5 minutes, leave the page and still count as a bounce. Simply because the visitor didn’t click to any other page on your hotel website during that same session. But what if they end up emailing your sales team a few moments later? Or, return the next day to submit an RFP? That one visit will still be deemed unsuccessful since the visitor “bounced.”

Bounce rates can also vary according to page content and whether someone is using their smartphone or desktop. Mobile traffic bounces at a higher rate than desktop traffic. Plus, if you sent traffic to a specific landing page, like a promotions page, the goal is for the audience to engage ONLY with that one page. In that case, a bounce would be a good thing.

2. Online Traffic/Page Views

An overall increase in traffic to your website is a great thing. But, don’t let this metric mislead you to believe your hotel website is performing better than it actually is.

Ultimately, success comes down to quality, not quantity. Is all that traffic resulting in booked rooms, submitted RFPs, dinner reservations? Traffic is worthless if it is irrelevant or doesn’t convert.

Aim for action, not attention.

If you have to pick one thing to focus on to measure your hotel website’s performance, make it entrances into the booking engine AND calls driven by digital to the call center.

Smart hoteliers would rather have 25 page views that resulted in 25 booking searches/calls, instead of 1000 page views without any action.

3. Email Open Rates

Email is still one of the most efficient and persuasive hotel marketing channels out there.

However, tracking your emails’ success isn’t as cut and dry as it seems. First off, open rates aren’t reliable. The biggest problem is the way your open rate is calculated. Most email marketing tools add a small, invisible image to every message sent. The email is only considered opened when that undetectable image is brought up from the server where it sits. But, because most email providers allow you to turn off images, this skews open rates dramatically and renders them difficult to track at best.

And, even when someone opens your email, is it still considered successful if they read just one word, then delete it immediately?

Just like your web traffic, ultimately you want your audience to perform an action, such as clicking through to the booking engine.

4. Social Media Followers

It’s thrilling to see thousands of people excited enough about your hotel to follow you on Facebook, Instagram, Snapchat and Twitter. This is purely a vanity metric. Yes, a large number of followers means a better reach. But, just slightly.

Organic reach on social media channels has been declining for years. It’s standard now for hotels to invest in social media advertising just to consistently reach a small fraction of their followers. Which means your followers mean nothing until you actually reach them by paying to play. Plus, if your huge social media following isn’t translating into leads, traffic or conversions, then what’s the point? Instead of boosting ‘likes,’ focus on optimizing your channels for lead generation and on increasing on converting the followers you already have.

5. Display Ad Impressions

When you are investing in digital advertising, it’s vital to know how many people actually see your hotel ads, right? Unfortunately, using impressions as a metric of advertising success doesn’t actually tell you how many people viewed your ad. It’s only a measure that shows how many times your hotel ad was displayed, whether or not it was clicked on.

According to Google Research, about 56 percent of your hotel impressions weren’t actually viewed by anyone! Stop using impressions to measure the reach of your hotel advertising campaigns. Because impressions don’t measure action, they lack any real value. Instead, use conversions and actual clicks that lead to calls and entrances into the booking environment as a yardstick to measure the success of any display advertising.

METRICS THAT MATTER

Instead of leaning on metrics that only sound impressive on paper, pay attention to the numbers that will actually measure your contribution to hotel revenues. Every day, you should be checking the KPIs that actually matter to your hotel’s owners and asset managers.

  1. MCPB (marketing cost per booking): Tracks the cost of each sales and marketing channel versus actual conversions. Try using this for OTA commissions as well… and see how that channel stacks up versus your other campaigns.
  2. DRR (direct revenue ratio): Measures percentage of online revenue from direct sources (your website) versus pricey third-party sources, like OTAs. If you’re not garnering 40 percent of your revenue from direct reservations, you still have work to do!
  3. Website conversion rate (from unique visitor to entrances into the booking environment): Converting a higher percentage of visitors into booking searches (or phone calls) is critical to reducing your cost of revenue and MCPB.
  4. Variance from revenue target: This metric showcases revenue goals versus actual results (by segment).
  5. TripAdvisor sentiment score: Using a reputation/sentiment monitoring tool allows hotels to measure guest satisfaction. This reflects whether your guests are enjoying your product, along with alerting you to hotel deficiencies. A bad hotel experience will outweigh any of your clever sales and marketing tactics.

About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

Budgets Are Coming: 7 Lessons from Game of Thrones

August 22, 2017 • By

Hotel marketers are sharpening their pencils for battle.

image1

Just as winter (and a terrifying army of the dead) descends on Westeros in Game of Thrones, budget season is looming in the real world and hotel marketers all across the kingdom are arming themselves for battle.

To help hoteliers prepare, we turn to the lessons, themes and quotes we’ve learned while watching the battle for the Iron Throne between power-hungry lords and ladies:

1. GoT QUOTE: “When you play the game of thrones, you live or die.” 

LESSON: Your budget is your armory. Ask for everything you need to survive.

Hoteliers usually only think dollar amounts when working on their budget. How much will this marketing technology cost? How much should we dedicate to advertising spend? How much will our hotel website design cost?

But, here’s the surprise: you are not restricted to only asking for marketing funds during budget time! If you need more marketing staff or outsourced vendors to help you achieve your hotel’s revenue goals, then ask for them!

If your hotel is in dire need of upgrades and updates in order to effectively compete with newer properties and win market share, then ask for them. If you depend on another department’s performance to help you reach your targets, then ask to oversee them.

Here’s an example of what that request could look like:

“For me to achieve the revenue targets set forth by ownership… I need $_______ in funding, specific hotel upgrades to be made, and _______ new staff (contractors). Plus, I would like the ________ department to report to me.”

The road to achieving your property’s revenue goals begins with your ability to ask for what you need. Show your management team that without these items, you won’t be able to deliver the results they’re looking for.

 image2

2. GoT THEME: Three Dragons versus Everyone Else

LESSON: Focus on quality, not quantity.

Forget the mass of Lannister soldiers that Queen Cersei has under her belt or the thousands of eerie wights brought back to life by the White Walkers. All it takes are three massive, fire-breathing dragons to wipe them out completely.

This year, vow to keep your budget uncluttered and uncomplicated. Your 2018 hotel marketing plan should be built on a few powerful initiatives, not on a mess of disjointed marketing tactics that just produce small bursts of wins and revenue. Build a strong budget that includes only marketing tactics that will have a measurable impact on your audience and the bottom line.

3. GoT QUOTE: “Words are wind, my friend…”

LESSON: Getting what you want takes proof.

Asset managers, hotel management firms and GMs are under more pressure than ever to deliver real bottom line results. However, many hotel marketers still shy away from being accountable for any revenue responsibilities. Instead, they lavishly tout their “rebranding initiatives,” number of social media followers or new hotel photography. This continued disregard for numerical evaluation will put you in a difficult position next year, when you attempt to request a larger marketing budget. Without measuring your success, owners and managers will be more apt to cut back on marketing expenses and staff, believing that your intangible branding results can be achieved with less.

So it’s important to have complete fluency in the KPIs that affect the bottom line. For example, if you know last year’s marketing cost-per-sale (CPS), you should be able to extrapolate that against future revenue targets to determine the budget required and make statements like this:

“Last year, we achieved a marketing CPS of X.
To achieve next year’s budget, I need $_______ .”

But remember, you will also be expected to reduce your CPS over time as you learn and tweak your programs.

4. GoT QUOTE: “You know nothing, Jon Snow.” 

LESSON: You have data. Use it. 

This catchphrase, originally spoken by the red-haired Wildling Ygritte as she aggressively flirted with Jon Snow, has become one of the show’s most popular. But, don’t let it become your catchphrase. You should know everything about your marketing program results and not be guided by assumptions or gut feelings.

You should rely on data culled from the right sources to guide all future hotel marketing decisions.

And again, data is your ally when you need to ask for more marketing funds! Some data that you should always have on hand include key performance indicators, like DRR (direct revenue ratio), MCPB (marketing cost per booking) and your STR index versus the compset. All of these numbers will show you, and your hotel’s executive team, how much your marketing team is actually contributing to your hotel’s revenue.

5. GoT QUOTE: “Winter is coming.”

LESSON: Apathy about 3rd party costs is dangerous.

For a while, it seemed like winter would never come to GoT, despite numerous warnings with this ominous phrase. Yet, it was still on everyone’s minds. In hotel marketing, this means: Don’t ever be too comfortable in the here and now. For example, if more than 15-20% of your revenue is coming from OTAs, you need to prepare for the eventual downturn and start investing in programs, campaigns and assets that will deliver higher margin bookings.

When “winter comes” to the hotel industry and AOR goes from 75% to 50%, you don’t want to have the majority of your bookings incurring a 20% OTA commission!

6. GoT Quote: “A Lannister always pays his debts.”

Lesson: Ask hotel owners exactly what they expect from you.

Before you determine what marketing resources you’ll need for 2018, you need to find out the exact amount your hotel owner (or hotel management company) expects your marketing team to contribute to the hotel’s revenue.

Don’t move forward on a budget without knowing exactly what goals your team is beholden to. Get as much clarification as you can, including how many room nights, booked meetings, corporate bookings, etc. should be attributed to your marketing efforts. Ask management/ownership early on in the budget process, because this one question will give you clarity and insight to build out any other projected expenses.

Don’t waste time or make costly guesses, nor should you allow your hotel owner to determine how much they want to give you. Don’t place your hotel marketing in a dangerous position of always being underfunded, but tasked with lofty goals. Instead, use your hotel owner’s revenue goals to correlate the assets you need to achieve them.

7. GoT QUOTE: “I may be small, but I won’t be knitting by the fire while others fight for me.” 

LESSON: Don’t surrender your property’s destiny to 3rd parties.

Spoken by everyone’s favorite young spitfire, Lady Lyanna Mormont of Bear Island, this empowering quote hits at the heart of every hotelier. OTAs have had their moment, but now it’s time to take back control of your booking destiny. So, stop depending on third-party sites to fill the house. Instead of paying commission fees of 15-30 percent, invest in the right tools and technology for your hotel to pull in your own reservations. One place where hotels will see big ROI is by investing in their hotel’s mobile experience. Offer a mobile-compatible booking engine. Have a responsive website and hotel marketing emails. Offer immediate online chat. Investing in mobile is paramount to your success in 2018.


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

Friday Freebie: How Free Parking Can Reduce OTA Commissions

August 11, 2017 • By

FridayFreebie-Tambourine-600x600

Welcome to the Friday Freebie!

Each week we share one impactful hotel marketing tactic that you can implement immediately to drive more conversions and more revenue.

This week’s freebie: Capture more DIRECT Labor Day bookings from drive markets by showcasing free parking on your hotel website. 

Millions of travelers will be hitting the road this Labor Day weekend, looking to celebrate their last summer weekend. Your drive markets are your best audiences to promote a last-minute getaway for the holiday.

Travelers are already enjoying the lowest gas prices in years. Sweeten the deal by including free parking in your Labor Day packages and specials ACROSS ALL CHANNELS…. But emphasize it on your direct hotel website.

OTAs have hundreds of thousands of properties on their websites, they cannot keep up with the promotions at all of them! By prominently showcasing the free parking perk (“Book direct and get free parking!”) you will create the perception that free parking is a special, direct-only benefit, without jeopardizing your OTA relationships.

Get more: 5 Ways to Attract Last Minute Labor Day Bookings from Your Drive Markets


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

The Seven Traits of Great Hotel Digital Marketers

August 8, 2017 • By

Hotel marketing requires a quirky blend of skills.

image1

Virtually every one of your future guests will discover and engage with your property in the online world before they ever walk through your doors. That’s why digital marketing has become such a prerequisite skill for hotels that want to outperform their compset.

But this job isn’t just limited to running ads and managing channels; digital marketing managers are also responsible for launching their own programs, managing external vendors and many other activities.

As one of those external vendors, we’ve worked with hundreds of hotel digital marketers over the years… and during that time we’ve seen that it takes a very special set of skills to be successful in such a demanding position.

The most successful hotel digital marketers we’ve worked with have these 7 traits in common:

1. They Multitask

On any given day, a digital marketing manager has to take care of a wide variety of tasks, ALL while overcoming sudden crisis drops in occupancy. To be successful in such a hectic environment, that person needs to be an excellent multitasker, with an uncanny sense of recall.

This combination lets them pick up on where they left off on other tasks from previous days and make steady progress towards their goals – all while being pulled in multiple directions.

2. They are Caffeinated

Digital marketing managers often need to help fill hundreds of rooms, every night, or face vanishing assets. But accomplishing that task, in a business that often sees many of its bookings occur in the last 48 hours before arrival, requires someone with a lot of energy and stamina (it’s not uncommon to see them go through 5 or 6 cups of coffee every single day).

3. They Should Be Well-Traveled

You can’t market a product when you have no experience as a user/buyer.

With this in mind, it’s only natural that successful hotel marketing managers should be able to use their own travel experiences to speak to prospects on a personal level.

 image2

4. They Should Have Experience in Other Industries 

For an industry like ours, one that’s been resistant to change on many occasions, attracting digital marketers with skills and knowledge from other industries is essential. Hotels have long depended on a few core channels for their revenue, while other industries (think software and tech) have to develop innovative ways to build audiences, users and market share. By borrowing best practices, tactics and tools from other industries, hotel digital marketers can turbocharge your property’s marketing strategies and give you a serious advantage on the compset.

5. They Should Speak Geek

It’s cool to be part geek these days, especially in the hospitality marketing sector. That’s because everything is constantly evolving, so there’s always so much to learn. That’s why it’s a good indicator of success when you hear your digital marketing manager talking with their friends about things like; CRS, PMS, CRM, CMS, SEO, PPC or SEM. It shows their real interest in these subjects.

6. They Shouldn’t Be Scared of Data and Reporting 

That’s the only way they know what’s working in their campaigns… and what’s not.

Being comfortable with data and reporting also enables successful hotel digital marketers to make strong business cases to management and ownership for additional funds and marketing assets.

7. They Should Present Well

Digital marketing managers need to be seen as leaders who are able to bridge ‘the departmental divide’ and bring revenue management, sales and GMs together. Presentation skills and confidence are the keys to building consensus and cooperation across departments.

So, which one of these 7 skills is most important for your property?  How do you keep your competitive edge?  We’d love to hear more about this from your point of view in the comments below! 


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

6 Ways Hotel Marketing Can Generate More Leads for the Sales Team

July 18, 2017 • By

Hotel marketing teams need to improve their support of group sales.

image1

Achieving group and meetings revenue targets can make or break your property’s annual performance. But incredibly, most hotel group sales departments lack consistent, effective marketing support and are forced to generate their own leads. Hotel marketers often ignore the need to boost their hotel’s revenue by accelerating the number of incoming sales leads.

As a result, hotel marketing departments usually stick to what they know: marketing only to leisure travelers.

Let’s change that. 

There are several smart ways for hotel marketers to generate more group business for their hotel and champion the sales teams’ efforts. It simply takes using the hotel marketing strategies you already know and use… and finessing them for the meetings market:

1. Be Accountable: Carry a Quota

What?!

Marketing people carrying a quota?

While this may be a strange and radical concept among hotel marketers, other industries (i.e. Silicon Valley software companies) have been assigning lead generation quotas to marketing teams for many years. Asset managers and property owners no longer want to hear about “branding initiatives” or logo colors… they expect their hotel management firm’s marketing team to contribute to revenue in a measurable way, communicate in number-speak and be accountable for tangible results.

Quotas for marketing teams can be memorialized in terms of leads or actual closed deals generated by leads driven by the marketing team. And marketers often receive bonuses based on their performance against their quota.

Hotel marketers need to remember that having a quota is not only a burden, but also an opportunity: if they hit their assigned lead generation targets, they increase their value in a demonstrably important way to their management and can ask for compensation increases as a result!

2. Consistently Communicate with “HVTs”

Every hotel should have a Top 100 list of “high value targets.”

Most hotel sales teams already work with a company like Knowland to access groups market intelligence to identify the most relevant group opportunities for their location and venue size. But the hotel marketing team should ensure these HVTs are loaded into a simple CRM platform in order to send out a steady stream of entertaining, engaging and useful stories, photos and videos that will help meeting planners do their jobs when planning a meeting in your destination and beyond.

Meeting planners love to book venues they trust. And one way to build trust is by communicating consistently in a selfless, helpful way. Hotel marketers should deploy a steady “drip” of stories, photos and content that helps prospects understand the destination better and do their job more effectively.

But under no circumstances should the content be self-serving!

Your content “stream” does not have to be restricted to email or digital content. Direct mailing personal notes and helpful material often breaks through the clutter and differentiates you from the thousands of emails your prospects receive each week!

Creating this cadence of content will establish you and your property as a trusted resource and position you as THE leader in your destination!

 image2

3. Empower Sales with Marketing Automation

You’ve already been using marketing automation to boost leisure business for several years, from post stay surveys to reservation recovery emails. Now, you can use the same principle to be a catalyst for driving meetings and events to your hotel. By placing a piece of code (provided from your marketing automation vendor or hotel marketing agency) into your website, you can monitor whenever one of your sales team’s key group business targets visits and explores your meeting pages.

Plus, your marketing automation software will be able to determine what the planner’s interests are by following their clicks. Did the planner spend more time looking at breakfast catering menus? The section on government meetings and per diem pricing? Or, watch a virtual tour of your largest ballroom? You can then provide this data to the sales team and enable them to craft relevant messages and offers to match planners’ exact event needs.

4. Stay Top of Mind with Retargeting

Keep your hotel top-of-mind with meeting planners who visit, then leave your hotel website’s meeting pages. If a meeting planner goes to your website, clicks around and leaves without submitting an RFP, set up retargeting display ad campaigns to follow them online and remind them what makes your venue a remarkable option for their group.

5. Create Compelling Destination Content

Establish your hotel and its sales team as meeting industry thought leaders in your city by creating helpful, info-tainment content. This will position your hotel as being the most experienced property to host meetings and events in your destination.

For Example: 5 Distilleries For Groups To Experience True Louisville Bourbon, 10 Waterfront Teambuilding Activities in Long Beach, or Most Unique Group Tours in Philadelphia. You can also take content you’ve already written for the leisure audience and customize for the groups market by giving it a meeting and events ‘spin.’

Then, pay to publish these into the LinkedIn newsfeeds of meeting professionals. Post these onto your hotel’s own meetings and events blog or repurpose this as content for upcoming sales newsletters (See #2 & 3 above).

6. Optimize Your Website for Meeting Planners

This is your main marketing vehicle, so don’t solely cater to leisure guests here. Pack your meetings and events section with all the resources that meeting planners need. Our latest meeting planner survey revealed that planners wanted relevant sourcing tools that could be downloaded directly from hotel websites, including photos of past events, floor diagrams, room measurements, capacity charts, testimonials, and 360-degree venue tours.


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

Friday Freebie: Briefcases to Suitcases, Compel Business Travelers to Stretch Their Stays

June 30, 2017 • By

FridayFreebie-Tambourine-600x600

Welcome to the Friday Freebie!

Each week we share one impactful hotel marketing tactic that you can implement immediately to drive more conversions and more revenue.

This Week’s Freebie: Compel corporate guests to extend their stay by creating a targeted ‘bleisure’ offer.

Out of a hotel’s three primary market segments, corporate clients often produce the steadiest stream of room nights AND add-on revenue throughout the year. And better yet…. free-spending corporate travelers alo tend to spend more on dining and other ancillary products (since they are reimbursed by their companies).

Amplify your revenue opportunities with corporate travelers by compelling them to add on leisure days to their stay.

Here’s One Way to Encourage Them to Stay Longer:

Create an exclusive offer only for corporate guests that extends the corporate rate a few days pre- and post-reservation. Add perks during those extra days, such as complimentary bike rentals, late check-out, discounted passes to a family-friendly attraction, free parking or complimentary breakfast. Include a link to a calendar of fun local events happening before, during, and after their original stay.

Share this offer with corporate guests a few times leading up to their stay. Include it in the pre-stay email, at check-in… or leave a note during their stay.

Get More: Turning Business Into Pleasure


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

Friday Freebie: Do This to Turn up the Heat on Summer Bookings…

May 26, 2017 • By

FridayFreebie-Tambourine-600x600

Welcome to the Friday Freebie!

Each week we share one impactful hotel marketing tactic that you can implement immediately to drive more conversions and more revenue.

This Week’s Freebie: Rake in more summer bookings by building a tiered minimum stay promotion leveraging your onsite amenities, instead of simply handing out summer discounts. 

The good news: Today launches the unofficial start of summer.

Even better news: Millions of travelers are pulling out their credit cards and packing their bags for summer vacays.

But, don’t rejoice just yet.

The competition for summer travelers is fierce and hotels will be pumping out summer discounts in every direction to get their attention.

Our advice?

Hold back from joining the pack and giving out those standard 10-15 percent discounts. They’re boring and your compset is probably doing the same thing. To get the most revenue out of this summer season, you need to stand out in the sea of summer sameness.

Here’s how to do it:

Create tiered minimum stay promotions using your onsite amenities as incentives for longer stays. Start off with small, no-cost add-ons, like free late checkouts or early check-ins. Then, increase your offerings with each day added onto the reservation. These can include room upgrades, free parking, free bike rentals, dining credits, spa credits, tickets to local attractions, etc.

The best part is, unlike straight price discounts, these value-ads strategically help you drive incremental revenue by enticing guests to stay longer and spend more money at the restaurant or spa, which they may not normally do.

Get more: Put Some Sizzle In Your Summer ADRs 


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

Stop the Noise: The 10 Things That Matter to Hotel Marketers Right Now

May 23, 2017 • By

Hotel marketing has never been so cluttered and noisy.

image1

Every week it seems as if there is something new and important competing for your attention and causing FOMO (fear of missing out) stress.

With all this marketing overload, it’s easy to forget what is really important and which marketing assets actually have the biggest impact on results.

We’re here to help…

Of course every property has unique demands and market conditions, but we want to try and free your mind from all the nonsense, hype and clutter and review the 10 things that should TRULY matter (in our humble opinion) to the majority of hotel marketers right now:

1. Having a Remarkable Product

Boundless creativity, clever marketing concepts and even a robust marketing budget are essentially useless if your hotel is crap. Great marketing can only begin with a great product. If your hotel is showing its frayed edges and providing lackluster experiences (or no real experience at all), no amount of brilliant marketing will save you from a downward spiral. Scour your hotel reviews and find out what guests complain about the most. Then, present this to your owners and champion the improvements your hotel needs to turn the tide and rise above the comp set.

2. Telling a Compelling Story 

There is a reason why “storytelling” has become a hotel marketing buzzword over the last several years. Storytelling captivates your audience, draws them in emotionally and entices them to want more.

Travelers – both leisure and business – don’t need to be sold on your thread count, the hours of your fitness center or the square footage of your ballroom. When they research hotel options, they are really looking for how your hotel will impact their lives during and after their stay. Follow these steps to use storytelling to win over the hearts and wallets of your target hotel audience.

 

image2
3. Integrating Systems and Technology

Using different providers for each of your critical marketing technology needs (i.e. CRS, website, hotel booking engine, PMS, and CRM) is a recipe for disaster. Many hotels are missing out on countless reservations because of one simple reason: they don’t have integrated technology.

The key is to work with as few providers as possible to make sure each component of your marketing can seamlessly speak to each other and simplify reporting for stressed-out hotel revenue, marketing and sales execs who are tired of system incompatibility and reporting nightmares.

4. Measuring Cost-per-Booking 

Think you’re impressing your hotel owners with news about your social media followers, your cool new marketing videos or your rebranding initiatives?

Think again.

Today, hotel owners expect their hotel marketing departments to contribute to the hotel’s revenue targets in ways that can be measured. Without tracking and showing numerical evaluation of your marketing efforts, you’re going to face a difficult time later in the year when you need to request next year’s marketing dollars.

To prove how your marketing efforts are adding to the hotel’s revenue, you’ll need to calculate your marketing cost-per-booking (MCPB). Use this number to show your marketing team’s value and to ensure you’re given the proper amount of marketing dollars to continue bringing in business for the hotel. Be especially vigilant to know your cost-per-booking from OTAs as well. Avoid the trap of viewing OTA bookings as purely revenue with no cost of acquisition.

5. Consolidating Vendors

The more hotel marketing vendors you work with, the more chaos and confusion you should expect.  Hiring multiple, disconnected vendors to handle separate hotel marketing tasks, like hotel website design, hotel email marketing, hotel social media and hotel PPC campaigns, will halt your property’s success in so many ways. First, you’re paying way too much for vendors handling only one function. Second, you’ll spend most of your day relaying messages from one vendor to the next. And, lastly, no one vendor can ever be held accountable for your marketing success or failure, since they can easily point fingers at each other.

Smart hotel marketers avoid juggling vendors… thereby reducing stress and gaining time to spend on proactive campaigns.

6. Sticking to a Plan

Marketing to everyone will get you nowhere fast.

Smart hotel marketers have a roadmap with a breakdown of exactly how much revenue they expect from each segment of the hotel’s business. This enables the firm to correlate its separate investments in marketing for leisure/transient, group, corporate and F&B.

The best hotel marketers understand that generic, aimless and ‘pretty’ marketing won’t cut it. Every marketing activity they create is built with the intention of drawing direct business from one or more of a hotel’s pre-defined guest segments.

This will allow you to delegate the proper amount of investments to market to group, corporate, leisure/transient or F&B business. Every marketing activity you craft should be built with the intention of pulling in direct business from one or more of your target guest segments.

7. Consistency Across All Channels 

Sure, setting rates and keeping content consistent across the vast array of digital channels can get overwhelming. But maintaining rate, image and promo parity is vital to your hotel’s bottom line.

Smart hotel marketers also know that their USP (unique selling proposition) has to be consistent across all brand touchpoints and channels. If consumers see your property described as “urban chic” in one place and “a traditional business hotel” in another… dissonance occurs, causing erosion and attrition.

Consistency matters.

Whether it’s sending out email offers on a steady cadence, updating your hotel’s social media accounts or communicating with your group clients, it’s critical to set schedules and maintain consistency regardless of season or current results.

Your core marketing activities need to be sacred and deserve to be given the attention, resources and budget required.

8. Stunning Photography 

Awe-inspiring photos are worth a thousand bookings. Evocative images provoke an emotional response and directly contribute to booking decisions. Your images prepare potential guests for what’s to come. Along with your hotel’s website design, they convey your experience with a single glance.

So, be ruthless and replace all bland property images, including those that are old, grainy, dark or fail to convey a remarkable guest experience. Hire a hotel photographer trained in shooting real estate or architecture. Even better, complement those professional images with authentic and free photos taken by your hotel’s best photographers – your own guests.

9.  Simultaneous Promotions Across All Channels 

Filling periods of need is not easy… which is why smart hotel marketers launch promotions across all channels simultaneously. (See #7: Consistency, above.) Imagine you are the general of all your forces, you’d want them to coordinate operations and move in unison!

Launching the promo on every channel AT THE SAME TIME gives consumers comfort and avoids confusion. If guests see different special offers for your hotel on a 3rd party channel than what is shown on your own direct hotel website, they will get uncomfortable with the inconsistency and find another hotel that gives them greater mental comfort.

10. Continuing to Boost Online Guest Sentiment

Guests will always trust other guests more than you. This is why past guest reviews are one of the most influential factors impacting your hotel’s future success. Whether glowing or scathing, every review is an opportunity to stumble or shine. Get rid of the canned corporate responses and strive to always answer genuinely and authentically. Graciously own up to any mistakes and correct mistaken guests with grace. Even offer solutions for problems you can’t control, like the noisy nightclub across the street or the construction next door.

Keep all of your responses thoughtful and they’ll have a greater chance of turning negative reviews into shining moments that make your hotel even more likable and worthy of a visit.


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

Do Hotel Sales Teams Have a New Secret Weapon?

May 16, 2017 • By

Smart hotel marketers are using new, affordable marketing automation tools to close more group and meetings business.

image1

Marketing automation technology is one of the biggest advancements in the marketing world over the last ten years.

And hotel marketers were among the early adopters.

The vast majority of hotels use basic forms of marketing automation to improve relationships with leisure segment guests: automatic booking confirms, post stay surveys and reservation recovery emails have been deployed by hotel marketing departments for many years.

But now, thanks to new, more affordable and simplified software, marketing automation could very well be your group sales department’s new best friend and the catalyst for driving more meetings and events to your property. 

Marketing automation can send the right message at the right time to the right meeting planner or group lead. And keep your sales team informed as your target prospects engage with your website and marketing materials!

First, here’s a simple explanation of how marketing automation works for hotel sales and marketing departments:

1. A small piece of code from your marketing automation vendor or agency is embedded in your hotel website’s code. This code allows your marketing automation platform to monitor every visitor who comes to your direct hotel website.

2.  Each visitor’s behavior, actions and referral source is now tracked, collected and viewable via your marketing automationplatform.

3. You can trigger automatic actions to occur when a visitor or lead meets a specific condition. This can be anything from an emailbeing sent, a retargeting ad being delivered or an alert being sent to a salesperson.

image2

Now, let’s take a quick look at a few of the specific things marketing automation can do to accelerate group revenue:

1. Engage New Group Prospects

Once you get a meeting planner’s email address (usually submitted via an RFP form), marketing automation can ensure that every new lead receives an instant personalized response. Surveys have shown that a surprising number of inbound leads are often ignored… simple marketing automation eliminates this risk by sending these new leads a welcome email that summarizes your hotel’s entire group experience, gives them easy links to see venue photos and images of past events, contact information and bios of sales managers, sample group itineraries, virtual venue tours, etc.

The purpose of this email is to give the meeting planner a reason to interact with your website. From there, marketing automation tools can track their behavior on your website and collect data to refine future campaigns.

2. Create a Steady Drumbeat of Awesomeness

Meeting planners love to book venues they trust. And one way to build trust is by communicating consistently in a selfless, helpful way. Hotel marketers can use marketing automation tools to establish a steady “drip” of stories, photos and content that helps prospects understand the destination better and do their job more effectively. But under no circumstances should the content be self-serving!

Your content “stream” does not have to be restricted to email or digital content. Direct mailing personal notes and helpful material often breaks through the clutter and differentiates you from the thousands of emails your prospects receive each week!

Creating this cadence of content will establish you and your property as a trusted resource and position you as THE leader in your destination!

3. Segment Messages By Group/Event Type

Based on where meeting planners are located and/or what they click on in your onboard/welcome email (and subsequent visits to your hotel website), marketing automation software can determine if they are planning a family reunion, a corporate retreat or a large customer conference. Were they looking at a virtual tour of the largest ballroom? Or, spending a lot of time on the activities pages?

Marketing automation can separate each prospect into smaller buckets and send more customized marketing campaigns with relevant images and copy that match their interests.

4. Perfect Timing…

Meetings and events often follow a pattern throughout the year. For example, many associations generally hold annual conferences in the fall or winter. Meanwhile, the more price-sensitive SMERF market (social, military, educational, religious, fraternal) tend to meet off-season (usually holiday months or summer) when there are more discounts to leverage. Marketing automation can schedule campaigns to be released at the right time, with season-specific images and copy, to target group planners way in advance leading up to their site selection.

Even better, marketing automation enables hotel marketers to send increasingly specific messages as each prospect’s behavior intensifies. For example: if one of your meeting planner leads spends 20 minutes on your website two days in a row, she probably should receive different (and more urgent) calls-to-action than the planner who has not visited in months!

5.  Retarget

Retargeting is another form of marketing automation used by many hotels to drive leisure business from consumers who have visited the hotel website before. Similarly, if a meeting planner’s visit to your hotel website doesn’t result in an RFP, you can set up retargeting advertising campaigns (typically through display ads) to follow them and remind them what makes your venue a viable option for their group. The idea is to stay top of mind and get them back onto your site, so that you’ll have a second chance of converting them. You can make your retargeting efforts even more effective by personalizing each with the information you have already collected, for example: dynamically populating your retargeting ads with the actual event dates provided by the prospect.

Have questions about using marketing automation for your hotel sales department? Ask us… we love to talk about this stuff!


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com