Browsing Tag

hotel marketing budget

Finally…Our Top 3 Hotel Marketing Stories of the Year

December 29, 2016 • By
screen-shot-2016-12-29-at-4-05-01-pm Want good advice? Ask a crowd…. So that’s exactly what we did this week when we measured the number of readers of each of our hotel marketing blog posts in 2016. And the results are in… here are the top 3 stories of the year, based on the readership of thousands of hotel marketers just like you! #3: 10 things successful hotel Sales and Marketing Directors do every day screen-shot-2016-12-29-at-4-05-28-pm #2: Six sales & marketing metrics every hotel owner cares about screen-shot-2016-12-29-at-4-05-49-pm #1: Hotel marketing: 10 things that worked in 2016 image1

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

Business, hospitality, hotel marketing, Marketing Advice, Uncategorized

Friday Freebie: Drive Rates With This Simple Trick

November 25, 2016 • By

FridayFreebie-Tambourine

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: Make your room rates more appealing by changing just ONE number. 

Usually, establishing rate is a rational practice, based on historical trends, current market conditions and other hard data. However, many hoteliers overlook a vital aspect when determining prices: Understanding the basic psychology of what makes consumers choose one price over another.

This is called “price psychology” and one of its most tried and true practices is “The Law of Nines,” which is based on using "9" in your room rates.

WHY?

People read numbers very quickly from left to right, and they associate the price with the very first number they see. For example, $199 seems closer to $100, even though it is just a dollar away from $200. This is why consumers see numbers endings in 9 or 99 or 95  as better values overall. Even luxury brands use this practice, including Apple.

Give this tactic a try and experiment by amending your $405/night suite to $395 or $399.

Get More: 3 Things Revenue Managers Can Learn From Psychologists


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

Direct Bookings, Guest Experience, hospitality, hotel marketing, Hotel Marketing Advice, Hotel Revenue

OTAs Hitting Hotel Owners Where It Hurts: Real Estate Values

November 1, 2016 • By

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A new report from the AHLA has sent a ripple of concern through many hotel owners.

According to the report, entitled: Demystifying the Digital Marketplace“the revenue retained by US hotels after paying all customer acquisition costs declined by almost .4% or $600 million… That $600M in additional cost would have contributed directly to net operating income. Using an 8% capitalization rate (which most investors require), these additional acquisition costs of $600 million reduced the asset value of the overall hotel industry by at least $7.5 billion.”

Translation: Costly third party bookings are eroding profits and overall hotel asset values.

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The situation for many owners is even more serious in markets with new supply and growing Airbnb listings. Meanwhile, pricing power and occupancy everywhere seem to be peaking, which restricts revenue even further. All of this, in conjunction with acquisition costs rising, appears to be signaling an impending slowdown in RevPar. All of these factors mean hoteliers are left with less net revenue each month, with only one smart option to pull them out of the sinkhole of eroded margins: to drive bookings from the hotel’s direct channel.

The only way for hoteliers to increase their margins is by reducing the fees they pay to third parties and focusing their efforts on increasing direct, higher margin bookings.

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You may not be able to ditch OTAs altogether, but you can leverage them as a customer acquisition tool and convince the guest to remain loyal from that stay forward. Not only then do you "own" the customer, guests who book direct tend to be more loyal, spend more and stay longer.


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


Business, Digital Marketing, hospitality, hotel marketing, Hotel Marketing Advice, Hotel Revenue, OTA

Six Things Scaring The $%#@ Out Of Hotel Marketers This Halloween

October 26, 2016 • By

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For Halloween, we asked hotel marketers from coast to coast, representing properties of all sizes, what they’re most spooked about right now. Here is what they said:

1. Unrealistic Goals on Tight Budgets

Hotel marketers have always had notoriously full plates. Now, those plates aren’t just full – they’re stacked sky-high with multiple marketing priorities to oversee, manage and implement. This upcoming year, the number of channels, campaigns, audiences, assets and tools will only get bigger and wider. This obviously calls for more marketing dollars, more staff and more assistance, right?

Not exactly.

More and more hotel owners are holding their managers and marketers accountable for driving measurable conversions… and demand they somehow top last year’s results. Yet, those same owners are not opening their wallets any wider to fund the needed resources to reach those higher revenue targets. This leaves hotel marketers under an avalanche of pressure to produce more with less.

Read: How Much Should Your Hotel Marketing Budget Be?

2. Shrinking Margins

Growing supply, Airbnb, fewer overseas visitors and growing OTA bookings all continue to affect margins, leaving hoteliers with less net revenue each month. Hotel marketers have to step up and double down on their efforts to drive bookings from their own direct channel. Otherwise, hotel managers and asset managers will be left wondering why they’re seeing eroded margins, even as your hotel enjoys all-time high ADRs and steady occupancies. It is up to you to explain why your bookings are coming from costly channels vs direct.

3. Predicted Slowing Pace in ADR and RevPAR

While overall hotel demand in the U.S. is predicted to remain strong in 2017, increasing supply growth is projected to cause occupancy levels to begin to level off. And according to STR, lower growth in the overall economy means a noticeably decelerating pace in RevPAR as well. How will owners react to the beginning of the end of a historically successful cycle? Will hotel marketers be expected to pull rabbits out of their hats?

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4. Airbnb

After their merger, Marriott and Starwood have now become the world’s largest hotel chain with 5,500 hotels and 1.1 million rooms worldwide. However, they are still eclipsed by one other lodging giant – Airbnb, which now boasts 1.5 million listings across 190 countries. Add to that the millennial traveler’s desire for authentic and local experiences outside the traditional hotel model and now you have a force to be reckoned with.

It’s still hard to believe a guest would ever choose a room in a stranger’s house over your renovated guestrooms, valet parking, curated artwork and award-winning restaurants. But Airbnb’s appeal of "live with a local" experiences have managed to steal hundreds of thousands of room nights away from U.S. hotels. Plus, this year Airbnb advanced even more into capturing business travel bookings. BCD Travel, Carlson Wagonlit Travel and American Express Global Business Travel now integrate Airbnb For Business into their platforms.

5. The End of Rate Parity

Wait, isn’t the demise of rate parity a reason to celebrate, not cower in fear? Well, it should be. However, thousands of hotels across the country have come to rely on OTAs as a crutch for bookings so much that the fear of the unknown would overshadow any jubilation. If hotels were to eventually break free from rate parity and are suddenly handed full control of their own pricing and discounting, they’re nervous that their own lackluster marketing efforts won’t be the magic bullet they assumed it would be.

The end of rate parity is slowly approaching, with France being the first country to completely abolish the practice from its tourism industry. While no other country has taken all the steps to achieve the same, Germany and Italy have already made strides in that direction.

6. Shaky Job Security

Hotel marketers are expected to know more, do more and react faster than ever before. Hotel owners are mounting more pressure on hotel marketers to contribute their share of the revenue pie. This continued stress on marketers has resulted in an all-time high turnover rate averaging 23 months. Owners now expect bigger payoffs, with a shorter amount of time and funding. Meanwhile, hotel marketers have to fight to stay relevant by mastering rapidly evolving marketing technology, leaving them struggling to keep up, flustered and overwhelmed with an avalanche of marketing channels and tools.


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


ADR, AirBnb, hospitality, hotel marketing, Hotel Marketing Advice, Hotel Revenue, Marketing Advice, RevPar

The One Question That Terrifies Hotel Marketers

July 19, 2016 • By

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You’re precise with your numbers. You’re diligent and know where every cent of your hotel marketing budget is spent. Your owners and hotel asset managers decided to trust you with their investments and now rely on you to make the right decisions to turn the largest profit possible. However, there is one paralyzing question that can make even the most fastidious hotel marketer and general manager stammer nervously during an owner meeting:

“How Much Do All of These OTA Bookings Actually Cost Us?”

The truth is that this question is truly difficult to answer, and many hoteliers want to avoid it all together. But, it MUST be addressed as owners and asset managers are starting to hold their operators more accountable for the actual costs and real expenses of each channel. And with KPIs like ADR and RevPar peaking, owners are starting to realize that costly 3rd party channels and hidden OTA commissions are cutting into their bottom line.  Not fully understanding your reliance on OTA bookings and their REAL costs to the hotel can eventually put the own owner/operator relationship on the line.

How OTA Costs Fly Under the Radar

While we all know that OTA commissions should be treated as marketing costs, they are often an ”invisible” marketing expense in your budget or internal hotel P&L. Because OTAs usually pay a net rate back to the hotel, you never see the actual cost show up in your financials. This is ultimately what makes the question, “How much does each OTA booking cost us?” a challenge to answer.

Unfortunately, other marketing investments needed to grow lucrative direct bookings aren’t given the same forgiveness in your property’s financial statements, and show up as tangible expenses.

Owner Priorities vs. Your Priorities

It’s common for owners and operators to not be on the same page about this issue from day one. Owners are concerned about maximizing asset profitability and performance. Owners want cost-efficient revenue. After all, the hotel is an investment – the more money saved per booking, the better.

By hiring you and your management team, they’re trusting that you’ll do everything you can to cut expenses, make sound financial decisions on their behalf and ultimately and diligently yield above-market returns.

The Real Reason Why Owners Continue to Cut Your Marketing Budget

Owners and asset managers are getting more savvy about how much you’re spending to bring in bookings. And the first place they’re going to scrutinize expenses is on your hotel’s P&L. Unfortunately, all of the cost-effective tools needed to bring in the most profitable reservations are listed in the property’s Sales and Marketing Budget and are ripe for getting cut simply because they are visible. These include hotel website design upgrades, SEO, online media and retargeting, email marketing, advertising, social media, reservation abandonment programs, etc. As you already know, it’s common for owners to inspect each line item, debate them with you during lengthy budget meetings, then adjust or slash as they seem fit.

But sadly… incredibly… they often cant see the biggest marketing cost of all: OTA commissions.

Growth of the channel that can bring in the most profit (your own hotel website) is hindered by budget restrictions, while costly OTA bookings are allowed to flourish under the radar.

Adopt an owner mindset and mindfully examine what costs are required to bring in the most profitable bookings. Then, consider how to start reducing your OTA “marketing” costs and moving those funds to higher margin direct marketing activities. 


 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

Fighting Back Against OTA, hospitality, hotel marketing, Hotel Marketing Competitors, Hotel Revenue, Hotel Sales, Marketing Budget, OTA

Friday Freebie: Use Different Ads For Different Audiences

July 15, 2016 • By
FridayFreebie-Tambourine Welcome to the Friday Freebie!

Each week we share one impactful FREE hotel marketing tactic that you can implement immediately to drive more direct bookings. This week’s freebie: Create different retargeting ads for different interests for maximum exposure and impact.

Reap the maximum ROI from your retargeting efforts by using behavioral targeting, which means delivering different ads that are tailored to the visitor’s actual behavior or action on your hotel direct website. This ensures you are not wasting marketing dollars chasing a meeting planner with an ad about romantic getaways or promoting your conference space to parents looking for a family vacation. 

Digital retargeting ads are one of the smartest ways to recapture abandoned bookings from guests who had visited your hotel website and showed initial interest in staying with you.

However, it is not enough to deliver a generic ad to every visitor with the assumption they are all looking for the same leisure getaway. After all, every visitor has a different context and reason for their travel. One could be looking for family-friendly activities. Another could have visited your meetings page, looking for a conference room to hold a board meeting. And, another visitor could have spent time reading about your girls getaway package.

Get More: How Smart Are Your Hotel Ads?


 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

advertising, Direct Bookings, hotel marketing, Hotel Marketing Advice, Hotel Marketing Tools, ROI

How Hotels Make Their OTA Addiction Worse

June 28, 2016 • By

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The cycle of OTA dependence is all too real and aggravating. But, it’s time to face the facts. It’s your fault, not the OTA’s, if an OTA-driven guest doesn’t come back and book direct the next time around.

Some hoteliers are dropping their pitchforks and getting smart about their relationships with OTAs by leveraging them as a customer acquisition tool. We agree with this approach. It’s time to embrace OTAs as a channel (albeit an expensive one) that gets new business in the door. But once that OTA guest checks in, it’s now up to you and your staff to make an extraordinary impression on them to keep them loyal from that stay forward.

In other words, you should only be paying for that OTA customer ONCE. Then, use these tactics to keep the guest coming back to you, not the OTA, for a return visit:


1. Deliver a Remarkable Experience

Today’s hotel guests want amazing experiences. They want more than your amenities and creature comforts, more than packaged entertainment and big-ticket attractions. Out-of-the-ordinary experiences are what will ultimately compel guests to return to you again and again. Look at what your comp set is doing to stand out. How can you top their offerings and stand out amongst the crowd? Get creative and brainstorm ways to wow

image2your guests in unexpected ways. Some stellar ideas we’ve seen in the industry include a chocolate buffet, a running concierge, complimentary photo memory books and a fun-loving dog you can adopt for the day.

Extraordinary experiences do more than just urge the OTA guest to book direct for a return visit.  These experiences compel guests to share stories and brag to their friends, family and social networks, giving you even more exposure to new business.

2. Build a Culture of Great Service

Even with a remarkable experience, it's the staff that can really make or break a guest’s stay. Encourage managers and employees to personally connect with guests and build relationships. Make it clear to the front desk that a guest is a guest, no matter what channel they came from. Often, guests who book through an OTA are assigned to the lowest room product, which can often cause major friction and cause them to feel as if they are being punished. Why punish a new customer? Even worse, that guests will leave your hotel believing that your worst rooms are the BEST you have!

Because most OTA guests don’t understand the nuances of their reservation, they may not even be aware of what else your hotel has to offer. Mention larger room types that you have available and upgrade them when space is available (the loyalty you will engender is greater than the cost of any net operational revenue you might incur). Offer them local tips on how to make their stay even better. Make sure your front desk conveys to these guests how happy you are that they chose you. Treat them like VIPs, as you would any other guests, at every touchpoint.

3. Collect Their Email Address Upon Check-In or Check-Out

We can’t stress this enough. Don’t let OTA guests walk away without leaving their email address! This is the only way you can market to these guests later and stay on top of their mind. But, you have to give them a good enough reason to do so. Offer to send them their receipt directly to their email. Ask for their email address when they log-in for Wifi. Offer to send them an exclusive offer via email.

4. Communicate the Benefit of Booking Direct While On Property

It is your responsibility to educate your guests on all the reasons why it’s worth their while to book direct. Leverage the one thing that OTA doesn’t have – personal interaction with the guests. Have your front desk mention all the perks of booking direct casually upon check-in and check-out. Print out the benefits on keycards, hotel brochures and even the signage in the elevator. Email the guests post-stay thanking them for their business and offering them an exclusive offer to return. Every OTA guest should walk away aware of the privileges they’ll receive if they book direct the next time around.


 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


Direct Bookings, Fighting Back Against OTA, Guest Experience, hotel marketing, Hotel Marketing Advice, OTA

What Would You Do With $5,000 Extra In Marketing Budget?

June 21, 2016 • By
shutterstock_137249807 Even after crafting a well-thought out marketing strategy, getting creative with resources and watching obsessively over every marketing dollar, it’s still common to wish your hotel marketing budget was more flush with cash.

So, just say, by the grace of the accounting gods, that your marketing department is granted an unexpected windfall of $5,000. How would you like to spend it? Or, rather, how should you spend it? Here’s what our team, with 30+ years of bringing in direct revenue for hotel clients across the country, recommends doing with that $5,000 to drive more bookings.


Put Your Money on Your Destination

Run a campaign that showcases your destination and aligns your hotel as the property that will give guests coveted front-row access to your city’s locally inspired and authentic moments. After all, modern travelers are not looking to stay in a hotel simply for the room and a bed. They want to immerse themselves in a sense of place and to experience things they won’t be able to replicate at home. The key is to focus your new marketing funds on answering this market need.

Here’s What We Would Do: 

1. Identify Slow Periods Start off by looking at your calendar and noting which months or weeks need the most boost in occupancy, group bookings and ancillary revenue. For most hotels, you will have several need periods all year-round. In this case, cast a wide net and try to capture a full continuous month – or even a season – rather than staggered dates that run at different times of the year.

2. Select an Attraction/Event Close to Your Property Now, comb through the attractions that are closest to your hotel, or a major local event that people are known to travel to. Whether it’s a landmark exhibit at your contemporary art museum or a new attraction, this will be the focus and star of your campaign, so gather as much information as you can for marketing. While it would be ideal (and give you the most visibility) to be an official partner as the host hotel, this is usually a pay-to-play transaction, and your funds can be better used elsewhere.

3. Create a Landing Page on Your Website That Focuses Exclusively on the Attraction/Event Many hotels make the mistake of creating campaigns solely in social media or email, linking them directly to the booking engine or to their homepage, hoping it's enough to usher the prospect to making a purchase. By doing so, these hotels leave a bulk of visitors floundering as they don’t know where to go next, or they start to question if the campaign is still running. Adding a landing page to your hotel website sustains the excitement of the event or attraction and its content can give the visitor even more reason to stay with your property if they want to join in the experience. And make sure to add a map on the landing page that shows distances form your hotel to the attraction/event!

4. Invest in Drawing Traffic to That Landing Page The bulk of your $5,000 budget should now be invested in reeling in online traffic to that landing page. Use targeted methods, such as a direct paid search and a Facebook ad campaign, using specific keywords in your advertising. Piggyback those efforts with emails to past guests who have stayed in that time period before.

Identify the market these travelers historically have come from in your PMS. If for example, most of the last few year’s mid-week July guests all came from local drive markets, export that guest data from your PMS, repeat guest email marketing and use those lists to build Custom and Look-alike Audience campaigns in Facebook. Start all of these marketing efforts a few months beforehand to build momentum and to garner as much exposure to the landing page and your hotel as possible. And finally, make sure your local CVB or tourism board knows that you’re investing in the campaign. They may be doing something as well, and may mention your property as a recommended place to stay for the event.


 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

destination marketing, Direct Bookings, hospitality, hotel marketing, Hotel Marketing Advice, hotel marketing campaigns

Friday The 13th: Three Things That Terrify Hotel Marketers

May 13, 2016 • By

image1Friday the 13th is here, and while people are feverishly avoiding ladders, staying out of the way of black cats and tightly securing every mirror around, the hotel industry has their eyes on other dangers. Here are three terrifying things that are making hotel marketers anxious right now:


1. Frighteningly Low Budgets to Accomplish Marketing Targets

A thin marketing budget is a common cause for anxiety for hotel marketers. We all know how much money and staff hours are required to achieve the lofty targets owners expect. However, more and more owners and GMs are shortchanging their marketing teams, believing that social media is "free" or that there are an abundance of cheap and no-cost marketing tools that can be leveraged to reap big profits.

You need to do your part to inform your management team about the exact investment needed to produce a specific ROI. When they ask you how much to allocate to the marketing budget for the next year, don’t hastily spit out an arbitrary figure or leave the number open to negotiations. Instead, be specific about what your goals are and what amount of funds, resources and staff will get you there.

2. Peaking Occupancy and ADRs

The inevitable is here, and a cause for celebration is now slowly turning into a reason for concern. After a steady climb, hotel industry economists are declaring that occupancies and ADRs are soon expected to peak. And, what goes up, must come down.

CBRE stated in a recent report that while national occupancies and ADRs are seeing all-time highs and expected to peak this year, local markets are starting to show the signs of growing competition with new hotel product and an increasing number of Airbnb units.

In addition, while the rising levels of inflation and employment benefit hotel demand, bringing occupancy to such lofty numbers, this will also burden hoteliers with higher prices to pay for labor, goods and services.

3. A Scary Reliance on OTAs

We all know the pain and pleasure of the bookings that come from OTAs. They rescue you during slow periods, consistently fill rooms and bring new travelers through your doors. But it all comes at the price of outrageous commissions, shrouded customer details and the low possibility of repeat business. Most hoteliers decide to swallow their pride (and their profits!) and accept the situation as it stands. Is it any wonder then that the industry finds it difficult to kick its OTA addiction?

However, we’re here to remind you that you don’t have to succumb to this dire situation or walk away from OTA bookings altogether. Remember, there are smart ways to combat and neutralize OTAs, while optimizing your hotel booking system and hotel website design to drive direct bookings.

First, find out how much each it costs your hotel to attain each OTA reservation (marketing cost per booking). Compare that to how much you’re allocating to other channels that could pull in direct business. Then, give OTA guests a reason to share their email addresses with you. Offer to email their bill or entice them to sign up for future offers. OTA reliance is an issue almost all hotels deal with, however this doesn’t give you an excuse to surrender to lost revenue.


 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

ADR, Direct Bookings, hotel marketing, Managing Revenue, Marketing Budget, OTA, OTA addiction

Hotels Are Crushing It… So Why Is Wall Street Crushing Hotel Stocks?

February 15, 2016 • By

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Can you guess who will win the Academy Award or the next presidential election?

Want to know who will win the Super Bowl?

We all have our own favorite and biased theories, but the winners are often best predicted by what’s commonly referred to as the “wisdom of the crowd.”

Why is our collective wisdom so good?

According to Wikipedia, “A large group's aggregated answers to questions… has generally been found to be as good as, and often better than, the answer given by any of the individuals within the group… Trial by jury can be understood as wisdom of the crowd, especially when compared to the alternative, trial by a judge, the single expert.”image2

Things get even more statistically juicy when “the crowd” puts its money where its mouth is... which is why Las Vegas uses crowd behavior to set odds on sporting events. They know that when lots of folks put lots of money on the line, their collective “wisdom” is often very accurate.

Similarly, if you want to predict the direction of a specific industry or a particular sector of the economy, you should understand the wisdom of the crowd that risks real money on that sector or business.

With this bankable principle is mind, its interesting to note Wall Street’s recent wisdom and attitude towards the hotel industry. In 2015, the widely followed Baird/STR index of 41 hotel stocks fell 20.1%. And according to a recent article in Fortune: “here’s the confounding thing: the stocks plummeted even as the industry posted all-time highs for occupancy rates and revenue per available room.”

What’s up with this strange logic?

Is this just a case of savvy institutional investors taking profits off the table?

According to a number of industry analysts, the answer is no. Hotel stocks are being sold off for three fundamental reasons, which should cause everyone in the industry – from hotel owners and asset managers to on-property staff – to sit up and take notice:

  1. Concerns Over Growth: Record-setting performances are hard to sustain year after year. Many Wall Street analysts question the industry’s ability to outperform other sectors. "Hotel stocks finished near the lows of the year (2015) as investors remained concerned about slowing global growth and other macroeconomic headwinds,” said David Loeb, Senior Hotel Research analyst and managing director at Baird.
  2. Concerns Over Competition: AirBnB, HomeAway and VRBO.com continue to grab market share, especially among transient consumers and family travelers. Also, record profits have attracted new players and the pipeline of new product concerns many analysts.
  3. Concerns Over Margins: Costs associated with acquiring new hotel customers through new technology/distribution channels are rising faster than hotel revenue growth itself. Also, some analysts perceive a “race to the bottom” mentality in the fight between OTAs and hotels that has caused the majority of consumers to shift loyalty to the lowest price provider.

Meanwhile… OTA Stocks?

Wall Street’s negative attitude towards hotel stocks is further revealed in its outlook on OTA stocks. Apparently, Wall Street doesn’t have the same concerns about the prospects of publicly-traded OTA companies, and for good reason.

Expedia is growing at a healthy pace. In the most recent quarter, the company’s gross bookings increased 40% year-over-year and revenue surged 29% year-over-year, and hotel reservations continue to be the most important contributor to revenues for all large OTA. (Hotels account for 67% of Expedia’s revenue). 

Now What?

Apparently, Wall Street believes the record growth in AOR and RevPar is winding down. For hotel stocks to shine again and sustain their value over the long term, enlightened hoteliers must focus on the things they can control. Owners and their management teams must find ways to reduce exorbitant customer acquisition costs and build loyalty without cutting down on the quality of their product.

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

Business, Data Analysis, Future, hotel marketing, Hotel Revenue, Industry Trends, Market Research, OTA