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Friday Freebie: You have one chance to make a good impression

May 4, 2018

A hotel marketing lesson from mom….

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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:

Mom was right.

Our moms are always dishing out sage advice. And, it turns out their quips hold a lot of hotel marketing wisdom. In honor of Mother’s Day and all our wonderful mothers out there, we’re celebrating one of our favorite mom quotes:

“You have one chance to make a good impression.”

And the valuable, hidden hotel and resort marketing message behind it?

Your words matter.

You have seconds to capture your customer’s attention and make an impression. EIGHT seconds, to be exact. Studies show that’s the average attention span in our age of streaming content and smartphones.

So, you have to get your message across – quick.

To entice, engage and convince within that tiny time frame, every word has to be intentional, poignant and clear the first time around. Or else, risk losing the customer who doesn’t have time to ‘get it’.

Don’t expect a second chance to repeat yourself.

Here’s how to write hotel copy that sells to today’s consumer::

  • Succinctly present your core value proposition on your hotel website homepage in a way that appeals to the emotional truth your property delivers (EX: “Create unforgettable family memories at ____ Resort.”)
  • Assume customers are going to scan, not read
  • Put your most important points at the beginning
  • Keep paragraphs short, about 2 sentences long
  • Use bullet points, subheads, bold or design elements to break up text
  • Leave plenty of white space

Get More: 7 Lessons Your Mom Taught You About Hotel Marketing


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

Are comments about your hotel falling on deaf ears?

May 1, 2018

Hotel social media monitoring needs to go way beyond Trip Advisor

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Hotels take reputation management seriously when it comes to guest feedback on TripAdvisor but often underappreciate the need to closely monitor other social media channels.

This is a lost opportunity to gain short-term insight and long-term goodwill.

Here are 3 reasons hotels need to prioritize social listening:

1. Instant karma

Social Media is a two-way communications channel; you can talk to guests, and guests can talk back. You can have a real conversation with an individual. Not so with TripAdvisor: By the time you respond, the damaging review may already have been posted.

Not to mention, social media trains consumers to expect an immediate response, and an already irritable customer can get more irritable if they don’t receive a response in an adequate amount of time. Ignoring a problem doesn’t make it go away. It can often exacerbate the situation.

Most negative posters on hotel social media channels are still on the property when they post.

And they aren’t doing it for their own enjoyment, either: 78% of people who complain to a brand via Twitter expect a response within an hour, according to a study by Lithium. By monitoring and responding ASAP, hoteliers can potentially engage these dissatisfied guests during their stay—and win them over—before they turn their vitriol into permanent TripAdvisor or OTA reviews.

Another instant benefit of social listening for hotels is the ability to glean insight on guest experience and product/service issues— both positive and negative.

If your hotel makes the mistake of ignoring positive comments about your property, you’ve just lost out on valuable testimonials you can utilize, as well as gaining useful feedback and a chance to strengthen relationships with users. And if you ignore negative comments, you’ll damage your brand and foster negative social proof.

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Further, by listening to social media channels and acting quickly, hotels are often able to delight guests with unexpected surprises that create long-term loyalty and evangelism. These opportunities—which are fleeting and must be capitalized on almost immediately—can offer significant branding value, at minimal cost.

One company making tremendous strides to this end is Marriott, which has tasked its M Live team with constant monitoring of social channels, for the sake of surprising guests with enhanced service touches, like a free bottle of champagne delivered on-site for guests who got engaged while staying at a property.

2. Complete strangers are talking about you…

It’s not just your fan base that you have to worry about.

Non-fans and non-followers are talking about your brand too. It’s crucial to listen to these potential influencers as well.

Surprisingly, 96% of the users who discuss brands online don’t actually follow those brands’ profiles, according to a Brandwatch report.

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You can be reactive and ONLY monitor people who directly comment or tag your hotel’s Instagram “handle” (your actual Instagram account name) in a picture. You’ll receive a notification and you can respond accordingly.

But there are more proactive ways of monitoring ALL relevant sentiment on Instagram. By typing the generic name of your hotel (see illustration above) or property specific hashtags in the search bar, you can discover additional content that guests have posted about your prop.

If you don’t have the time or resources to monitor your hashtags and geo-
tags, Tools like Tout allow you to find and license the content with ease.

3. Discover (and celebrate) the evangelists

Hotel social media monitoring isn’t just about catching people bashing your hotel: It’s equally valuable when guests are celebrating their experiences on channels such as Instagram.

Over the last few years, storytelling and other forms of user-generated content (UGC) have become some of the most popular and cost-effective methods for hotel marketers looking to harness digital and social media and put more heads in beds.

capturing guest-generated social proof from The St Regis in San Francisco

An example of capturing guest-generated social proof from The St Regis in San Francisco

This is driven by a decline in consumer trust in advertising; instead, consumers now look to one another for credibility. UGC such as photos, videos, and posts about hotel experiences are viewed as more authentic and less sales-focused, so using that content to your advantage can offer tremendous benefits.

By monitoring things closely, you can locate and celebrate those brand ambassadors who are taking pictures of their property experience, allowing you to benefit from what is essentially free positive publicity.


About Tambourine

Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 34th year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com

Friday Freebie: How to Uncover Guests’ Hidden Instagram Photos

April 27, 2018

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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: Your guests are creating FREE ultra-creative marketing content almost every day. Here’s how to uncover that treasure trove of evangelism!

Right now as you read this, a guest is documenting their stay at your property and posting it on Instagram for all their followers to see.

From breakfast in bed to epic balcony sunsets, these photos and videos are far more authentic, unique and imaginative than anything the most creative hotel marketer can come up with consistently. Plus, your guests’ posts carry more influence since they are authentic, not manufactured. This SOCIAL PROOF builds validation and inspires their followers to consider a stay. You can collect these posts and use them for future marketing collateral (with permission) or to repost on Instagram to your own audience.

In other words – Your guests’ Instagram posts are precious marketing gold. And, the goodies just keep flowing in. 

Only problem is that many of these photos and videos are ‘hidden.’ You’ll only be notified of a guest’s post if they happen to use your official Instagram account name, otherwise known as a ‘handle.’ So, if a user leaves that out, you may never see their post.

Unless, you get proactive.

Here are three easy and proactive ways to unearth guests’ Insta content:

  1. Search the generic name of your hotel. For example, the Grafton on Sunset (@graftononsunset), should search ‘grafton hotel’ or ‘hotel grafton’ to catch any posts where guests used those names.
  2. Search any property specific hashtags that a guest might have used instead of your handle, like #graftononsunset or #hotelgrafton
  3. Monitor your property geo-tags, an automatic label that is marked when a Instagram user posts from your location.

 

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Monitor these three methods daily to catch any timely content, as well as to catch any feedback or comments that guests make about their hotel experience.

Get More: Why Every Flagged Hotel Should be Rethinking Instagram


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: Solving the latest hotel website curveball from Google

April 20, 2018

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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: 

Google’s new security standards could threaten your hotel’s website traffic. Here’s how to solve the problem:

In hopes of fostering a safer internet, Google has moved toward new security standards for its Chrome browser, which requires a significant update to hotel websites in order to achieve compliance.

Under the new specifications, Google now requires all websites that collect any type of personal data (i.e. forms, email addresses, credit card info, etc.) to migrate websites to HTTPS and upgrade their security technology in the form of “SSL Certificates,” or suffer the consequences.

Right now, that consequence is a security alert, which Chrome users see when they reach a web page that Google has deemed a “Non-Secure environment” when the mandated SSL certificate isn’t present. Considering roughly 60% of web surfers currently use Chrome, this is no matter to take lightly; it’s best to make the required changes as soon as possible, to ensure your site traffic isn’t at risk and/or potential guests being scared away.

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This may seem like a small detail, but it may have a huge impact on hotel website conversion rates. You don’t want to scare away customers with an unsecured website. Google has indicated that warnings may become even more pronounced in future browser updates.

You also don’t want your customers’ data being compromised because you failed to provide a secure setting. As recent data breaches among numerous major hotel companies have proven, hacks can cause extensive damage to brands and they erode consumer trust, which can be disastrous to the bottom line. Given those risks, taking the steps to comply with the SSL/HTTPS standard is a no-brainer.

The Solution:

The first step in meeting the standard is for hotel digital marketers to obtain an SSL Certificate from a Certificate Authority (CA). The certificate permits your website to communicate using encrypted, non-corruptible data, while also acting as a stamp of approval.

Many providers offer free SSL/TSL certificates; (Shameless plug: Tambourine provides SSL certificates for all clients included in our monthly service package).

With an approved certificate in place, the next steps are to conduct a full backup of your hotel website site, change all your internal links, check code libraries, update external links and create a 301 redirect. It’s also important to claim all four versions of your site URLs (HTTPS, HTTP, www. and non-www.) on Google Search Console Analytics, AdWords and other paid ads, plus social profiles and business citations. Since there are multiple complex steps, you definitely want your digital marketing team or external hotel digital marketing firm to handle this.


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

Bad Habits: 5 things hotel marketers should stop right now

April 17, 2018

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Usually, we offer insight on the hotel marketing tactics, tools and strategies you should adopt to drive more revenue to your hotel: add chat to your hotel website. Focus on this webpage as your SEO secret weapon. Try these tips on your mobile website, etc…

Today, we want to turn things around and recommend a few things NOT to do!

From our experience, here’s five negative habits inhibiting hotel marketers from reaching their full revenue-generating potential:

1) Using the wrong message to fight OTAs

Travelers aren’t as obsessed with low prices as you may believe. According to a recent JD Power & Associates’ North America Hotel Guest Satisfaction Index Study, customers who booked on third-parties are more likely to face problems (like last-minute changes and canceled reservations) and be dissatisfied with their hotel experience. 

A common review from an unhappy OTA customer…

A common review from an unhappy OTA customer…

So, instead of using price to win back OTA customers, focus on a common fear: Fear of a ruined travel experience.

It’s no secret that OTAs have left thousands of travelers in the lurch with their cancellation policies and ability to change/reassign hotels at their own discretion.

So, use that your advantage. Remind customers that booking direct with your hotel is the SAFER option. Unlike OTAs, you have a staff that actually, truly cares about them and will do all that’s possible to avoid and quickly amend any issues.

2) Tolerating an Inferior Product

Not even the most creative hotel marketing strategies, sophisticated hotel booking engine, or targeted hotel ppc campaigns can compensate for a sloppy hotel experience. Just as the saying goes, “You can’t put lipstick on a pig,” you can’t cover the signs of your hotel’s frayed edges or lapses in service. Travelers are more sophisticated than ever and they’re well aware of their options, especially with so many shiny and new boutique hotels stealing their attention.

No amount of “lipstick” can cover up an aging, inadequate product

No amount of “lipstick” can cover up an aging, inadequate product

While you can’t decide what gets fixed and replaced, that shouldn’t stop you from diligently pointing out to your owners what guests are complaining about. Each year, leverage your guest reviews that show the shortcomings that are deterring guests and hindering revenue growth. Convince your owners that property upgrades and enhancements are urgent if they want to compete in today’s marketplace.

3) Working in a Silo

It’s a common scenario playing out in hotels across the globe:

Hotel marketing departments that don’t communicate, share resources or vital updates.

The result?

Marketers left in the dark about upcoming periods of weakness. Group sales managers with no leads. Revenue managers clueless about why marketing continues to target one audience (or date period) over another.

It’s time to end this disconnect.

Smart hotel marketers break down silos and work closely with sales and revenue management

Smart hotel marketers break down silos and work closely with sales and revenue management

Your entire hotel and its financial success depend on all three pillars of the sales & marketing platform working together in unison and towards the same revenue goals. One easy way to break down these silos is to schedule an all-team meeting every week. This meeting should include ALL associates, not just managers. Share your current priorities, upcoming projects, recent discoveries, ask for feedback and share resources.

This not only gives every team member access to what’s happening outside of their department, but it also fosters teamwork and enhances collaboration that results in success across all S&M departments.

4)  Ignoring the sales team

Meetings and events account for a major portion of your hotel’s revenue.

Yet, hotel marketers tend to solely focus on driving leisure business, leaving sales managers to generate their own group leads.

This is a dangerous habit, as more and more hotel owners and asset managers become less impressed with your branding initiatives or your hotel’s number of social media followers and more obsessed with how much you contribute to your property’s revenue.

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So start using your skills in digital marketing for hotels to champion the sales team’s efforts and drive group business. Smart hotel marketers do three fundamental things to support their sales teammates:

a.  Run campaigns that consistently engage the sales team’s high-value targets (HVTs) with relevant and entertaining content
b.  Deploy marketing automation tools to alert sales managers when HVTs are on the hotel website and what pages they are looking at…
c.  Optimize the meetings and events pages on the hotel direct website with ALL the resources meeting planners need… AND create compelling content showcasing your destination as an exciting locale for meetings and events attendees

5) Focusing on meaningless stats

Because the best hotel marketers know they’re only as good as their metrics, measurement and tracking of key performance indicators (KPIs) are an ongoing commitment.

However, with more sophisticated technology comes more data.

While analytics are vital for doing what we do, we’re also burdened with an avalanche of irrelevant KPIs stealing our attention from the metrics that actually matter.

Don’t get dragged down trying to keep up with useless numbers, such as bounce rate, online page views and social media followers.

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, including:

  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).

 


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: Rate parity matters… but so does Promo Parity

April 13, 2018

Behold the Power of SPAC…

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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: Rate parity matters… but so does Promo Parity.

It’s not easy filling your hotel’s need periods. These low periods can break your annual budget. Avoid what many panicked hotel marketers do… “spray and pray” offers all over the digital landscape.

You need to be deliberate and focused.

Just like a general in charge of an army – you need to coordinate your operations and move your forces in unison.

This is why smart hotel marketers launch one promo across all channels simultaneously. We call this SPAC: Simultaneous Promotion Across All Channels.

Not only will your promo have the best chance of massive outreach and conversions, it also squashes any chance of confusion and skepticism in your market.

Think about it:

If Offer A is running on your Facebook page, Offer B is running on a 3rd-party channel and Offer C is running on your website, guests will be leery of what’s real or what’s current. Prospects will experience dissonance… enough to turn them away looking for another more consistent and mentally-calming hotel option. Consumers are uncomfortable with inconsistency.

Lesson: Consistency matters. Maintaining parity among your offers, not just rate, is vital to your bottom line.

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


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 10 Daily Habits of Highly Effective Hotel Marketers

April 10, 2018

Hotel marketing success requires daily discipline.

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Can we all agree that the cumulative effects of small daily habits—both good and bad—add up to meaningful results over time?

Brush your teeth every day and you’ll avoid cavities. Eat chocolate pie every day, you’ll probably gain weight…

If you were to ask pro athletes and successful business tycoons what made them successful, most would tell you it required many years of hard work and practice.

The same goes for every profession, including hotel marketing; there are no silver bullets or shortcuts to the front of the line.

Just take the example of British cycling coach Sir David Brailsford, whose aggregation of marginal gains philosophy first led his Sky Team to a Tour de France victory in 2012—just three years after its implementation—then fueled subsequent wins in 2013, 2015, 2016 and 2017. The core idea, for Brailsford, was to push his riders to work toward a 1% improvement in everything they do, for a cumulative gain that is much more impactful over time.

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British cycling coach Dave Brailsford recommends trying to improve many little things by 1%.

“So often we convince ourselves that change is only meaningful if there is some large, visible outcome associated with it,” says writer James Clear. “Whether it is losing weight, building a business, traveling the world or any other goal, we often put pressure on ourselves to make some earth-shattering improvement that everyone will talk about. Meanwhile, improving by just 1 percent isn’t notable (and sometimes it isn’t even noticeable). But it can be just as meaningful, especially in the long run.”

At Tambourine, we live by the same philosophy and urge our clients to embrace Brailsford’s daily method for meeting their own goals for success. Based on our 34 years in hotel marketing, here are the 10 daily habits we see that separate the best hotel marketers from the mediocre:

  1. They check the numbers

Because the best hotel marketers know they’re only as good as their metrics, measurement and tracking of key performance indicators (KPIs) are an ongoing commitment. Savvy marketers are constantly evaluating their efforts, budgets and staff in relation to business mix targets.

image3     2. They plan for times of need

Filling those sporadic gaps in demand requires forethought and careful planning. That’s why successful hotel marketers always make a point to check-in with their revenue management team, far in advance, to identify upcoming, cyclical and ongoing periods of weakness.

     3. They exude positivity

The best hotel marketers know that energy and enthusiasm are contagious. They make sure that everyone on their team, outside agencies, related departments (e.g., revenue management) and upper management are aware and excited about the marketing activities for the hotel. These marketers then celebrate meaningful success (always using metrics, when possible) when that success occurs.

      4. They face the music

While it’s natural to stress the positives, highly effective hotel marketers instead focus primarily on problems and weaknesses (staff, results, product, etc.) that need improvement. They think of ways to streamline processes and campaign execution.

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      5. They stay informed

Each day, hotel marketing all-stars are monitoring the industry and comp-set news, to have a fully informed perspective on both local market conditions and the hospitality industry as a whole. They also read their hotel’s latest guest reviews and feedback scores, to keep abreast of guest sentiment.

      6. They maintain a healthy work-life balance

All-star performers know that to truly function at the top of their game, they need to do more than simply work around the clock. These professionals make sure to also earmark time for exercise, family, vacations and getting a good night’s sleep.

      7. They unplug

There’s more to life than staring at a computer screen.

Skilled marketers also spend time talking to guests, walking the property, listening and learning, and interacting with reservation center/call center agents and the front desk. Sometimes there’s just no replacement for human, face-to-face contact.

      8. They say ‘no’…a lot

The highest-achieving professionals understand that time is money and there is an opportunity cost associated with every endeavor one adds to their plate. Oftentimes, staying productive means saying “no” to distractions like irrelevant opportunities, shiny new utopian technologies and time-sucking projects.

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     9. They know what’s important

Highly effective hotel marketers prioritize objectives for both themselves and their key employees. They correlate their activities and budgets to the business mix projection they provided to upper management.

Also, they understand that achieving a greater goal requires a series of smaller steps all taken in a logical order, and they can communicate that methodology to coworkers. Random busy-ness and the constant putting out of fires is not the path to long-term marketing success.

    10. They demand consistent messaging and execution

Hotel marketing rock stars are vigilant about ensuring that their property’s story and unique value proposition (UVP) is infused in every marketing touchpoint and the operational service experience at the hotel. Communicating that story and UVP to guests is a daily obsession, essential to all sales activity, as well as maintaining a place of distinction in one’s respective marketplace.


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

5 Things Modern Hotel Marketers Can Learn From Vintage Travel Posters

April 4, 2018

Hotel marketing hasn’t changed much in 100 years…

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In the Golden Age of travel in the early part of the 20th century, there were no online banner ads. Nor guest analytics, marketing technology, mobile apps, retargeting campaigns, email offers, Insta-influencers, or search engines.

Instead, airlines, CVBs, resorts and railway companies relied on one of the most powerful mediums of their time – the travel poster.

These travel posters shared common characteristics: exuberant colors, a gorgeous single graphic, and bold eye-catching lettering that all evoked a lust for travel and exploration with a single glance. In fact, these poster designers have been nailing it for more than a century. These vintage travel posters are still provoking inspiration for adventures far and wide today.

There’s a lot we can learn from these beautiful illustrations.

Decades before the creation of modern hotel marketing, poster designers inherently understood and integrated five key elements of successful hotel marketing:

1. Take time to CRAFT your story

Your hotel is different.

You may know that, but your prospective buyer doesn’t.

So, you need to make it obvious. Your hotel marketing needs to deliver relevance and intrigue immediately. A mistake many hotel properties make is ‘me too’ marketing that is cliché and already overused by many of their compset neighbors. For example, describing your hotel as ‘in the heart of New Orleans’ or ‘oceanfront hotel,’ making it difficult for travelers to differentiate your property from other central New Orleans properties and oceanfront hotels.  Ditch these overworked marketing messages and present something brilliant and provocative, instead of bland and predictable.

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This poster for a French hotel tells a unique story of mountain air and healthy activity!

2. Tell It Succinctly
The marketing concept behind travel posters is simple: combine one vibrant image and bold text to create a uniquely effective marketing medium that inspires travel.

These posters were easily understood and were perfect for capturing the attention of people on the go. Today, attention spans are at an all-time low, so every second of your hotel marketing counts. Hotel marketers need to be cognizant of the first five seconds that a visitor lands on a property website, that short span of time determines if the person will book, bounce or return. So, you need to squeeze performance out of every second for higher chances of conversion and revenue. Cut the clutter, get rid of slow-loading graphics, keep things simple.

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Is there any question where this Rio hotel is located?

3. Be Visually Arresting

Your marketing images and hotel photography should be more than just pretty pictures. Just like the eye-popping colors and a single image on a travel poster, your images should catch attention in seconds and convey your experience in a single glance.

In fact, studies show that travelers spend time scouring through hotel images before making a decision. And, that your hotel photography has the power to change a buyer’s mind, for better or for worse. Ditch the stock images or dated blurry photos. Invest in a photographer experienced in shooting interior design, real estate, architecture or other hotels. Plus, leverage your hotel’s best FREE photographers – your own social media-savvy guests. Instagram enthusiasts are producing images on par with paid professionals for their personal channels.

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Sometimes, the best image for a hotel is not the hotel at all… it’s the nearby attractions!

4. Keep messaging consistent

Back in the heyday of travel posters, hotels could not change messages very often… so they were forced into being consistent in their marketing.

Today, rate parity isn’t the only consistency your hotel should be vigilant about. Maintaining your hotel’s STORY parity is also vital to your bottom line. Smart hotel marketers know their Unique Selling Proposition (USP) has to be consistent across all touchpoints and marketing channels. If consumers see your hotel described as ‘cosmopolitan and sophisticated’ on one channel, then as ‘central and family-friendly’ on another, potential guests will be confused and leery of moving forward. Consistency builds trust and trust turns into buyer confidence.

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For many years, the Outrigger hotel in Hawaii used images of guests enjoying the surf with the locals. They were the early advocates of celebrating authentic local experiences!

5. Be Intentional with Time and Place 

The biggest boon of marketing technology is the ability to target and automate campaigns, allowing you to reach the right audience, with the right message, at the right time.

Use it.

The most popular travel posters were commissioned by airlines and railway companies and were respectively displayed in airports and train stations touting resort destinations, thrilling cities, and weekend getaways. Today, consider where and when to deliver your marketing messages. For example, consider the impact of a billboard promoting a Caribbean resort and its sunny beaches displayed in New York City during the bone-chilling months of winter.

 


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

Why Do Some Hotel Marketers Get Everything They Want?

March 13, 2018

Smart hotel marketing pros are using simple math get more budget.

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With the hotel industry enjoying a period of record performance, posting all-time highs for occupancy, ADR and RevPAR, one of the most talked-about ways to improve performance (and delight ownership) are to reduce the cost of guest acquisition.

And that begins with fully understanding a vital metric: your hotel’s CLV-to-CAC ratio.

But unlike many other industries that have already embraced the concept, too many hotel marketers are still unable to quantify their CLV-to-CAC formula.

This can be overcome with a little effort, offering a major potential boost to the bottom line and a far stronger bargaining position when asking ownership for more marketing dollars (and a raise)!

What Does It Mean?

To get started, there are some basic principles to know, beginning with terminology.

CLV stands for “Customer Lifetime Value,” meaning the revenue your hotel can expect to earn from each guest over the lifespan of that customer’s relationship with you. CAC, meanwhile, is short for “Cost to Acquire Customer,” or your total sales and marketing spend to attract each customer and obtain the aforementioned CLV. The premise behind the CLV-to-CAC formula is to maximize that ratio as much as possible.

There are multiple benefits from having a strong CLV-to-CAC ratio, including enabling hotel marketers to ask owners for more investment dollars, for example, imagine being able to tell ownership: “We spent $300,000 last year to attract 5,000 NEW guests, who represent a LIFETIME VALUE of three million dollars in revenue… in other words, for every dollar you give me, I’m giving you ten dollars back in gross revenue.”

So how do hoteliers calculate their CLV to CAC ratio?

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According to Kissmetrics, a well-known web/data analysis company, Starbucks CLV is more than $14,000.

Here are the core steps:

1. Making the Calculations

To come up with your CLV, first, consider how many times a guest typically stays at your hotel(s) over a multi-year period. Then, deduce the total value of those stays. Multiply that value by the total amount of visits per guest and that is the CLV you will use in the formula.

Next, to arrive at a value for CAC, simply divide the TOTAL amount your property spends on sales and marketing for each segment (ie: transient vs group vs corporate) by the total number of guests from that segment.

EXAMPLE:
So, if a hotel attracts 1,000 new guests this year and spends $100,000 to do it, the CAC equals $100.

2. What to include in CAC?

When calculating CAC for each demand segment, be sure to include salaries, expenses, technologies, advertising and any other investments made specifically to attract bookings for that specific segment. That may include, for example, a customer relationship management (CRM) system and trade show booth that is part of the CAC for your hotel’s sales efforts for attracting the corporate business segment.

Other costs, like Google pay-per-click (PPC) advertising, email marketing, and social media fees should be attributed primarily to transient guest CAC calculations. On the other hand,
your hotel’s website, the salary for your director of sales and marketing (DOSM) and other “shared” costs can be distributed evenly across all segments that your property targets.

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3. The Results:

Using the calculations described above, divide the CLV by the CAC to arrive at the ratio.

For example, if a hotel has a CLV of $5,000 per transient guest and the CAC for each transient guest equals $100, then the CLV-to-CAC ratio is 50x. In other words, for every dollar spent on sales and marketing to target that guest, the hotel will earn back $50.

That is the kind of return owners love!

And that is the kind of math that separates serious hotel marketers from those just focused on pretty pictures!

Now compare results to your OTA costs!

Once you know your own CLV-to-CAC ratio, you can compare it to the CLV-to-CAC of bookings derived from third-party online travel agencies (OTAs).

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You’ll most likely be pleasantly surprised by what you find: Typically, OTA-driven guests are less loyal and will have a lower CLV as a result. Also, the commissions on those bookings may be higher than the CAC you are achieving on your own.

So, in the quest to drive hotel profitability even further into the stratosphere, make it a top priority today to learn your CLV-to-CAC ratio for each customer segment you target. By offering such compelling insight, the CLV-to-CAC ratio can be an incredibly powerful stat for hotel marketers to cite to owners when requesting more marketing dollars.

You’ll be much more likely to obtain the budget you need when your owner is assured their investment will lead to a far better payoff down the road.


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: Stop Obsessing Over This Hotel Marketing Metric

March 9, 2018

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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: Stop obsessing about the quantity of traffic and visitors to your hotel website…instead, focus on how many actually enter the booking environment!

It’s every hotel marketer’s reality:

We have loads of stats to track…from website stats, search rankings, to social media likes and email open rates. And we know that gathering data is instrumental to finessing our marketing campaigns and being accountable to ownership and upper management.

However, some metrics can be dangerously misleading. One of those often-deceptive metrics happens to be extremely popular in hotel marketing: Online traffic and visitors to your hotel website.

Why is it misleading?

While a gradual, sustained increase in website traffic is a great thing, don’t let the numbers mislead you into thinking your site is performing better than it really is (conversely, if it drops, don’t freak out and think the sky is falling.)

The following are just a few of the factors can cause your traffic/visitors to create a “false echo” and send you off trying to fix (or replicate) something that it is out of your control:

  1. Seasonality can affect traffic up and down.
  2. A major PR story about your property can cause traffic to spike.
  3. PPC and Promo campaigns (avoid Groupon please!) can increase traffic and cause it to drop when its over.
  4. Local/regional events nearby your property will cause it to spike & drop.
  5. Changes in the way Google displays their search engine result pages (SERPs) can actually cause LESS traffic to come to your site (because users are getting their answers right on Google’s SERPs!

Ultimately, it comes down to the quality of traffic, not quantity.

And there are three primary keys to attracting QUALITY traffic:

  1. Tell the story only your property can tell: If you want to find the right guests who will buy and return, then you have to give them a truthful, relevant reason to consider you! You must understand your ideal guest persona and communicate your UVP across every marketing touchpoint.
  2. Stop using cheap tactics: Lots of unsavory digital “publishers” sell access to cheap traffic. But what good does it do if your traffic is coming from click-robots in Kazakhstan? Your digital team (or ask your guests!) should be able to easily explain which media they actually consume on their purchase journey.  (And do we really need to talk about the poor quality traffic from flash sale providers like Groupon?)
  3. Invest in long-term organic hotel SEO content: Choose the right keywords to start building long-term content around: You will never rank on page 1 of Google for “Hotels in Boston” but you have a decent shot of ranking for “Hotels near Fenway Park” if your SEO and content team is producing content EVERY MONTH with that “long-tail” focus.  Another simple trick: your content can bring you loads of quality search traffic if it answers the questions of your potential customers… you can use this handy/cheap tool to see what questions people are actually typing in about your market and compset

REMEMBER: If you have to pick one thing to focus on to measure the performance of your website, track entrances into your hotel booking engine and calls to your reservation center. 

Get more examples: We Need to Talk About Hotel Metrics


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

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