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Hotel Marketing Budgets: How Much is Actually Enough?

September 18, 2018

Hotel marketing budgets: how much is actually enough?

According to a recent study, Booking.com and Expedia return $16 for every dollar spent on marketing. This looks great on paper, but the reality is that over the last decade OTAs’ return on marketing investment decreased by 15%. 

This explains why Booking.com dramatically decreased its advertising spend. 

The same story is playing out across the hotel marketing landscape… cost-per-acquisition is soaring, and if the Goliaths of the industry had to change their strategies, it’s probably time to sit down and address the elephant-in-the-room: how much should you be spending on marketing? 

First: What’s in the Marketing Budget?

Allocations within the marketing budget vary from company to company. According to The CMO Survey sponsored by Duke University, Deloitte LLP, and the American Marketing Association, “less than half (47.9 percent) of companies include expenses for marketing employees in their marketing budgets. Most companies (61.3 percent) include direct expenses for marketing—such as advertising, trade promotions, and direct marketing—in their marketing budgets, but this varies by industry (See below):

What does your hotel or resort include in its annual marketing budget? Do you include employee or outside agency costs in your budget? How about OTA commissions or GDS fees?

This is a critical definition that will determine how much you need and how your results are perceived by ownership.

THE INVERTED U-CURVE

Hotel marketers can learn a valuable lesson from Malcolm Gladwell in his inspiring book David and Goliath. In the book, Gladwell talks about “inverted U-Curves:”

“Inverted-U curves have three parts, and each part follows a different logic. There’s the left side, where doing more or having more makes things better. There’s the flat middle, where doing more doesn’t make much of a difference. And there’s the right side, where doing more or having more makes things worse,” according to Gladwell.

The curve has been around for over a century and it has been applied to a wide range of different situations:  

Money: Scholars who research happiness suggest that more money stops making people happier after they exceed $75,000 per year

Class Size:  Contrary to popular belief, a class size decreases beyond an optimal number, learning effectiveness decreases. Apparently, the optimum number is 18-24 students per class

Punishment and Crime: Past a certain point, cracking down on crime and locking people up stops having any effect on criminals, makes crime worse and the juvenile delinquency rate increases

Similarly, hotel marketing budgets have an inverted U-curve; doing too little will result in sub-optimal results, but doing too much is often wasteful.

So how can you identify this sweet spot? 

WHERE ARE YOU ON THE CURVE?

Hotels on the left side of the curve (usually large branded properties) typically allocate little to no budget in marketing beyond their brand fees. 

They often have a lackluster brand.com web page, no outside marketing investments and their distribution relies almost entirely on third-parties. The good news is that if your flagged hotel is on that part of the curve, any additional marketing investment will help you move to the flat middle of it, where investments and return are in balance and your profitability is at its zenith. 

The majority of hotels fall between the left side and the flat middle of the curve (and need to spend more to achieve their goals. However, if you categorize OTA commissions as marketing costs, virtually every hotel immediately moves to the right side of the curve, where spending more often delivers diminishing returns. As Kalibri Labs notes in their recent report: Demystifying the Digital Marketplace: “if you’re growing top-line revenue —but you’re spending a lot to do it—then you’re ultimately less successful in contributing to overall profits. Not an optimal strategy.”

However, if profit is not your primary goal (i.e. hotels rebranding, new openings, brand awareness projects, etc.) spending MORE may be the correct strategy, but for the vast majority of hotels (if you believe Malcolm Gladwell) it is not. 

So, how much is too much when it comes to hotel marketing?

Marketing effects profitability

According to a recent Gartner Research study, companies spend an average of 12% of their annual revenue on marketing. A recent CMO Survey comes to similar conclusions, highlighting how tech companies are among the biggest spenders (14%) when it comes to marketing. The hotel industry, however, seems to pay an even higher price (up to 25%, according to Kalibri Labs).  Tom Klein, the former CEO of Sabre, recently stated in a Tnooz interview that Travel “is not 90% margin like many of the businesses that Google and Facebook and others are in.” With OTAs’ average commission at 19% and direct booking cost-per-acquisition growing year after year, industry margins are under siege. 

So while ADR and RevPAR are important metrics, you should also focus solely “ProPAR” (Profit per Available Room): the revenue generated per room minus the investments needed to acquire the guest. Here again, we strongly recommend categorizing OTA commissions as marketing costs to get a true picture of your marketing budget and its effect on profitability!

WHAT ABOUT DIRECT BOOKINGS?

Because of high 3rd party acquisition costs, there has been a lot of attention on building direct channels, just think about Hilton’s Stop Clicking Around campaign:

The unavoidable truth is that it is also very easy to overspend when it comes to direct booking investments and you can find yourself on the right side of the inverted-U curve without even realizing it. Similar to the OTA channel, direct reservations also have growing costs. 

Special discounted rates, loyalty programs, hotel digital marketing, PPC, metasearch engines and social media ads to name a few. Our advice to clients has always been: “you should have an unlimited budget for things that work…”

This philosophy requires a near-manic obsession with ROI tracking and analytics that requires serious software and some intensely nerdy data, scientists. As the CMO Survey reinforces: when respondents were broken into three groups—high, medium and low usage of ROI analytics— marketing budgets were 70 percent larger in the high group than the low group.

HOW MUCH IS TOO MUCH?

Before you can determine how much to budget for marketing, hotel execs need to answer three critical questions:

1.  What are the revenue targets by segment? (more on this here)

Without a concrete understanding of targets by segment, hotel marketers cannot quantify (or deploy) their budgets properly… leading to misalignment with ownership and missed targets.

2. Where is the property in its lifecycle?

Recently opened hotels, or properties which went through a rebranding, in fact, should be less focused on return on investment and more on building awareness. In cases like these, 20-25% of annual revenue spent on marketing is common. If, on the other hand, your hotel has matured to a more advanced stage and it’s been in business for 3+ years, then 8-15% of your annual revenue on marketing should be more than enough to guarantee you a good balance between profit and visibility. 

3.  How much revenue is marketing accountable for…?

As the CMO Survey points out: Marketing is responsible for leading revenue growth at 38.4 percent of companies. These companies have larger marketing budgets as a percentage of the overall company budget than companies that do not assign primary responsibility for revenue growth to marketing.”

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 an Instagram user posts from your location.

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

Friday Freebie: Feed Foodie Wanderlust

March 23, 2018

Feed Foodie Wanderlust: boost upscale/luxury bookings.

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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: Upscale and luxury hotel marketers know that consumers’ increasing fascination with food is a delicious path to profits! Tap into this growing trend by showcasing your unique F&B offerings and quintessential local food experiences. 

Lingering over great food and drink is considered one of the best parts of traveling. From splurge-worthy tasting menus to food tours, to local farmers markets. Foodie or not – modern travelers crave discovering a city through its unique tastes and cultural elements. And, they’re drawn to the hotels that give them front-row access to these culinary opportunities.

Luxury hotels understand this well. 

In fact, most luxury hotel websites celebrate their food and drink, just as much as they highlight their rooms and amenities. Visit any luxury hotel website and you’ll find their restaurants positioned as vital components to the travel experience.  Follow some of their proven tactics:

  • Highlight the local/sustainable ingredients in food and drink menus
  • Showcase partnerships with organic markets and purveyors
  • Share your chef’s background, their inspirations and influences
  • Offer tips on how guests can bring the local flavor home
  • Offer a food map showing your hotel’s proximity to authentic foodie finds, like farmers marketers, ethnic eateries, and hidden local restaurants

Get More: 10 Secrets of Luxury Hotel Websites


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: The Simple Digital Skill That’s Changing Hotel Group Sales

February 16, 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: Cold calling is dead… encourage your group sales team to master new digital business development skills.

Traditionally, hotel sales teams use classic old-school textbook techniques, relying heavily on relationship selling and cold calls to book business.

Today, however, meeting planners are doing 80% of their pre-purchase research in the digital world… relying far less on hotel salespeople for information, instead choosing to educate themselves on potential venues via the web and peer referrals.

Here’s One Proven Way Hotel Salespeople Can Tap into This Trend:

Embracing digital doesn’t mean the longstanding practice of relationship-based selling no longer applies; it’s just moved into a different medium. According to LinkedIn, three out of four B2B buyers now rely on social media to engage with peers about buying decisions.

More than three-quarters (82%) of B2B buyers say vendor content shared on social channels (like LinkedIn) has a significant impact on their buying decision, while B2B buyers are five times more likely to engage with a sales rep who provides new insights about their business or industry, according to LinkedIn research.

With that in mind, today’s sales teams should be using digital to enable “social selling,” which essentially means building relationships and nudging leads along through the sales process via savvy, helpful, UNSELFISH social media interaction, rather than outdated and ineffective methods like phone calls and email.

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This is primarily done by providing content that solves the problems and answers the questions of customers, as well as by interacting one-on-one with leads through social media. It’s different from wide-swath “shotgun marketing” on social, where branding-related content is shared everywhere in hopes of going viral and building awareness; social selling, rather, makes the customer the key dictator of the type of content shared, based on their specific wants and needs.

And remember, social interaction doesn’t end with that first sale, either.

Social platforms are also employed post-sale to retain and upsell customers, especially by creating a channel for customers to share feedback and vent frustration. Referrals are now essential to lead generation, with 84% of B2B buyers beginning the buying process with a referral and more than 90% of purchase decisions influenced by peer recommendations, according to a 2016 Harvard Business Review article.

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


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

It’s Valentine’s Day: What Are Hotel Marketers Loving?

February 13, 2018

Hotel marketing folks are infatuated with these 7 things…

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Each year around Valentine’s Day, we ask clients, partners and industry insiders what they are feeling warm and fuzzy about… here are the 7 things they’re smitten with right now:

1. A Strong Economy and Positive Industry Forecasts 

The smart folks at STR, CBRE and PWC all generally agree that 2018 will be another year of steady growth for the hotel industry. (You can download STR’s detailed breakdown by market here.) Fueled by a strong global economy, relatively low gas prices and limited supply growth, the US hotel industry is once again expected to enjoy positive RevPAR and ADR growth. And since all boats rise with the tide… hotel marketers are riding the wave to happiness and career growth.

image22. Robust Career Opportunities

Speaking of career growth… hotel marketers are seeing more opportunities than ever. Industry results have expanded budgets and created new roles. While the allure of the hotel industry and the fast-tracked promotional opportunities make hotel marketing and hotel social media jobs some of the most coveted in the country.

3. Elevated Consumer Awareness of Direct Booking Benefits

Thanks to the massive media outreach by Hilton and Marriott’s direct booking campaigns, we’re seeing heightened public recognition of the benefits of booking direct. The idea is to educate travelers and chip away at the myth that OTAs save guests money. With the stage set, more and more hotels are following in Hilton and Marriott’s footsteps with their own hotel marketing campaigns enticing audiences to book direct.

Plus, hotel marketers at properties of all sizes are now armed with new digital hotel marketing tools and previously unaffordable technology that can help them drive direct room revenue, instead of settling for costly OTA bookings. The momentum of the “book direct movement” is growing and hotel marketing folks are excited to see where it’s headed.

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4. Owners’ Investment in a Remarkable Product

New hotels with bold concepts and fresh guest experiences are springing up in all directions, so hotel owners need to invest in their properties to keep up with modern expectations.

Thankfully, more and more hotel owners are realizing that the best hotel marketing investment they can make is in enhancing their property, the experience and the service.

If your property is providing a lackluster experience with frayed edges, outdated décor, and musty smells, no amount of brilliant marketing can save you from the downward spiral of lost revenue.

5. Social Evangelism

Hotel social media managers 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.

Over the last few years, storytelling and “user-generated content (UGC)” has become one of the most popular (and cost-effective) ways for hotel marketers to win guests’ hearts and wallets.

Why?

Because consumers no longer trust advertising… they trust each other. As this article in AdAge so aptly put it: “Your brand is defined by the interactions people have with it.”

User-generated content, especially photos, videos and posts about on-property experiences are more authentic, less sales focused… and let’s face it, usually more creative than anything hotel social media folks could ever dream up.

6. 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.

7. Digital Personalization

Every year, new hotel website and booking engine technology allows hotels to know more about who’s looking, booking and bouncing. With this robust analytics and demographic data, hotel offers are now personalized and optimized to reap the biggest ROI.

And hotel marketers are smarter than ever about crafting hotel marketing campaigns that are tailored to the right travelers and delivered to the right place, at the right time. And, best of all – everything is measurable, which provides tremendous power to hotel marketers when it comes time for annual performance and budget reviews.


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: When Guests Want to Pay… Get out of the Way

February 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 blocking bookings – be flexible and allow as many payment methods as possible. 

A booking in progress is a fragile and fickle thing. So many factors could derail the process and cause people to abandon their reservation and head over to another hotel or OTA. In fact, often it’s a complicated hotel booking engine process that pushes people to walk away from their reservation.

This is especially true at the moment of truth… at checkout!

Most hotels are smart about giving their guests options – from room types to upgrades. However, many hotels don’t extend their flexibility when it comes to paying. Instead, they offer a rigid set of payment options.

Solution: Provide speedy, simple payment experiences. Offer multiple ways to pay beyond the typical Visa, AMEX and Mastercard transactions. Accept as many other forms of payment as possible (like PayPal). Some hotels even accept Bitcoin these days!

And some go even further – Couples Resorts offers the Love Away payment plan which allows guests to place a $100 deposit, then enter into a layaway plan for their getaway.

Also, don’t forget to mention security clearly on your checkout page, otherwise you run a serious risk of abandonment. Customers need to feel confident that their payments will be handled securely. A statement of secure payment (or security badges) reassures your customers and could be the difference between a new guest and a lost sale.

Get more: Mobile Bookings are up. Why Aren’t Yours?


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

Rebranding Your Hotel? Five Marketing ‘Gotchas’

February 6, 2018

Hotel rebranding requires more than pretty pictures…

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Successfully rebranding a hotel isn’t usually as simple as just putting up a new sign outside the property and slapping a new logo everywhere the old logo used to be…

A true rebranding is a massive shift in philosophy, company culture and audience targeting, which has widespread implications for all marketing efforts going forward under the new identity.

There are, unfortunately, some specific aspects of the rebranding process where marketing commonly goes astray. These “gotcha” moments include the following five blunders, which hotel marketers should avoid at all costs:

Gotcha #1: Before rebranding, forgetting to properly debrand!

The first step in a rebranding strategy is to wipe the slate clean and start fresh.

That entails removing all collateral, signage, uniforms, advertising and marketing materials (online and off) that reference the hotel’s previous branded identity, including images, logos and words or catchphrases. You’ll also need to revise your presence on all digital platforms and sales channels, like Tripadvisor, the OTAs, AAA, etc., and share the news of the impending change with your local travel and tourism ecosystem, such as CVB partners, area vendors, chambers of commerce and the like.

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Gotcha #2: Failing to build your new brand around the TRUTH!

Just like your mom used to say… Don’t try and be something you aren’t.

Instead, root the identity of your rebrand in experiences and amenities you can actually deliver. Travelers are no longer drawn to sterile facts, puffy promises of a wonderful stay or mentions of your recent industry awards. They want to be a part of something that intrigues them, connects with them and gives them something to brag about. Consistently and creatively telling a meaningful, truthful story is what can truly attract travelers. However, many hoteliers simply don’t know what their story is, much less how to convey it.

Correctly telling your story means knowing your audience, being honest about your assets and getting all stakeholders into consensus about your property’s unique identity, so you can convey it poignantly across all marketing channels. Cement that strategy by taking the time to author a brand manifesto, or brand promise document.

Gotcha #3: Not having enough time and money.

Just take a deep breath and remember: You only get one chance to launch.

Celebrate it! And expect to spend money.

It’s costly to create and activate new websites, digital media, advertising, signage, collateral, sales material and messaging for a rebranding. If you are transitioning from a brand to independent, make sure you have the team in-house, or external vendors, who can replace the vital marketing services your remote brand team was performing for you. This also includes managing the redirect schema of your legacy search engine rankings. Not to mention, meetings are booked years in advance, so you’ll need to publish new sales/meeting collateral ASAP.

Gotcha #4: Failing to retain legacy assets.

Don’t get too carried away when purging the hotel’s past.

Make sure you keep all assets from the hotel’s former brand days that you may need to reuse, like photos, video, newsletter templates, guest email databases, web addresses (for redirects), social media accounts, TripAdvisor and metasearch log-ins and Google Analytics data. These valuable assets (and legacy performance results) will help your marketing efforts in many ways going forward, particularly in reducing time and expense, regardless of the name change.

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Gotcha #5: Forgetting what really matters….

No amount of marketing, no matter how clever it may be, can make up for a lackluster product. There are far too many hotels that attempt to rebrand to over-compensate for or to cover up an aging, lackluster, or grungy hotel product. Sadly, as long as those hotels delay improving or – in some cases – completely overhauling their hotel appearance, service or amenities, they will continue to have an uphill battle when attracting and retaining guests.

As Robert Stephens (founder of Geek Squad) famously said: “Advertising is the tax you pay for an unremarkable product.” Marketing can only do so much. The less you pay attention to improving your service and your hotel product, the more you’ll be spending in marketing and advertising to make up for it.

Serve your guests better by working on your hotel first. By refusing to cut corners, investing in quality from the front desk to the back of the house, and by presenting the best guest experience that your staff can deliver, guest sentiment will go up, your number of repeat guests will go up, profits will go up and your marketing cost per booking will go down.


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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