For most, Thanksgiving is a time for football, traveling to see relatives and diet-busting feasts.
It’s also the time of year we ask clients, colleagues and industry experts what they are feeling good about. And once again, we heard that the economy, industry dynamics and hotel consumer behavior are working in our favor like never before.
Based on our informal survey, here are 5 things hoteliers are feeling thankful for this Thanksgiving:
1. Evidence That Direct Booking Campaigns Are Working
In 2016, major hotel brands and smaller hotels went after OTAs with a fervor and pushed aggressive campaigns to convince travelers that booking direct was best. Now, we finally have proof that the preaching paid off. Kalibri Labs compiled data from more than 12,000 U.S. hotels and 52 million transactions during the run of these highly publicized campaigns.
In their recent report “Book Direct Campaigns: The Cost & Benefits of Loyalty,” Kalibri measured a significant net revenue benefit due to a shift in bookings from OTAs to Brand.com. While this certainly calls for a massive celebration, the momentum shouldn’t stop here. Experts agree that discounting to create loyalty can’t be the end-all, be-all of your book direct strategy; creating online and on-property experiences that the OTAs cannot must be the neverending quest for hotel marketers seeking to reduce OTA dependence and improve bottom line profitability.
2. Owners’ Willingness to Invest in the Product
Hotel marketers know this best: No amount of brilliant marketing, guest data, or up-to-the-minute technology can compensate for an aging and run-down hotel property. Now, with property values on the rise and an overall healthy real estate market, hotel owners have the renewed confidence in investing in upgrades, redesigns and renovations that will help hotel sales and marketing teams compete with the new supply entrants in their market.
And with so many major hotel brands launching new or re-imagined brands, it’s more vital than ever to keep up and hold onto your market share by offering compelling amenities, aesthetics and experiences.
3. Demand and RevPar Still Going Strong
Despite the threat of Airbnb’s climbing success (especially with their new focus on offering a complete travel experience, both in and outside of their hosts’ homes) and a ballooning hotel supply, RevPAR and demand are still holding steady.
Based on a strong economy, hotel occupancies are still at an all-time high and the hotel industry is still experiencing an unprecedented string of record results. To date, RevPAR has increased year-over-year consecutively for 92 months, according to STR.
4. Social Evangelism
Over the last few years, storytelling and “content marketing” has become one of the most popular (and cost-effective) ways for hotel marketers to win guests’ hearts and wallets.
Because consumers no longer trust advertising… they trust each other. As an article in Ad Age so aptly put it: “Your brand is defined by the interactions people have with it.”
User-generated content (UGC), especially photos, videos and posts about on-property experiences are more authentic, less sales focused… and let’s face it, more creative than anything you could ever dream up yourself.
Hotel marketers are feeling blessed to have guests who gush and brag about their stay on Facebook and post foodie pics to Instagram. Not only have they made marketing travel engagingly personal and authentic, they come at no cost to the hotelier.
5. Metasearch: An Attractive and Less Expensive Option
It’s easy to see why travelers love metasearch, such as Google and TripAdvisor: They receive all the key details needed to research and book their stays all in one place, like real-time pricing, availability, hotel information, guest reviews and location.
But, hotel marketers are loving metasearch too.
They are using these sites to boost direct bookings instead of relying on OTAs and paying high commissions. You can pay-per-click or pay booking commissions (still less expensive than traditional OTA fees) – all while getting brand exposure and access to travelers who are just entering the consideration and booking funnel.
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