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Success in Internet Marketing

TravelCLICK Webinar

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May 2007

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Jerome Wise
VP - eCommerce “there is a better way”
Agenda
• The importance of the Internet to the hotel industry
• How to impact the bottom line



Taking a strategic approach to Internet marketing
Building an Internet marketing plan
The value of measurement and analysis
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TravelCLICK’s experience
• Developed and hosting almost 200 hotel web sites
• Managing online marketing campaigns for over 300 hotels

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• Clients range from individual 2 star hotel to worldwide major
luxury brands
• Delivered approximately $12 million in incremental business
to our customers over the past 12 months

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The importance of the web
• Online is no longer a niche channel worthy of investment
for the future.

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• It is a significant channel now and should be actively
managed.
• Worldwide online travel sales is valued at $147 billion in
2007*
• Forecast to grow at 17% per year over the next 3 years*
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*source PhocusWright Inc 2006
The importance of the web
• Online travel sales will represent 41% of total travel
sales by 2008*

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• A further 38% of consumers make their decision
online, but purchase offline**
• This means that almost 80% of travel sales will either
be made online, or strongly influenced by online
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*(Europe) source eMarketer
** Forester Research 2006
The importance of the web
• Supplier sites are fighting back against the OTAs and
in 2005 57% of online hotel sales were made on the

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supplier site, up from 53% in 2003*
• This is forecast to grow further as suppliers catch up
with the OTAs in terms of technology, customer
service and marketing

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* comScore Networks, April 2006 (US)
Where are the opportunities?
There are three main opportunities that online sales
present:

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1. Incremental revenues
2. Reduced cost of sale
3. Enhanced brand loyalty and client relationships

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Incremental revenues
• The internet is a level playing field in terms of sales
and marketing

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• Everyone can attract new clients through very targeted
and measurable marketing
• Global distribution reach is available to all, not just the
major brands that have global networks
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Reduced cost of sale
• A brand web site has the lowest cost of sale
• Enables business to be “channel shifted” from more

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expensive channels, such as travel agency or call
centres
• A strong brand web site enables the reliance on OTAs
to be reduced and relationships to be renegotiated in
order to bring down the overall cost of sale
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Consumer
Spend $150.00 $275.00 $275.00 $275.00

Travel
p e rty
Agent
Pro site
b Booking
We
GDS
Engine

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GDS Provider

ch a nt
q ue Mer
Op a
Pegasus
Brand / Brand /
Rep Co. Rep Co. *
Brand or

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Rep Co

Net
Revenue*
$90.00 $206.25 $235.50 $250.00
Develop strategies and employ specific tactics to
*industry averages shift business mix to the most profitable channels
Enhanced loyalty and client relationships
• A direct client should be retained for future marketing
and relationship building

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• A customer booking through an OTA is likely to remain
loyal to the booking channel
• Actively seek to build relationships with clients
delivered through OTAs for future, cheaper marketing
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How to drive incremental revenue
• What are the various marketing opportunities?
• What is each of them good for?
• Where should the focus be?
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The marketing opportunities
• Before looking at the opportunities, one should
consider the four stages of customer interaction:

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– Conversion
– Acquisition
2. Acquire
– Retention
1. Convert

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– Analysis
• Focussing in each of these areas
4. Analyse 3. Retain
will create a solid action plan
The marketing opportunities
• Equal focus and specific activities should be deployed
to address each of these key areas:

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Convert Acquire Retain Analyse
Web design SEO CRM Web analysis
Booking engine PPC Web design
Content Linking Customer service

1. Convert
2. Acquire
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4. Analyse
3. Retain
Site conversion is key to success
• Before investing in marketing efforts, a web site should
be “fit for purpose” to convert at the highest rate

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• Increasing the conversion ratio of visitors to bookers is
the single best investment
• Once the site is optimised, then marketing activity to
deliver incremental consumers should start
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1. Convert
What does an optimised site look like?
• Does it represent the brand in a clear and compelling way?
• Is the navigation easy and logical?
• Are there overt booking arguments (best rate guarantee, online-

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only offers, exclusive promotions)
• Is the content fresh, up to date and compelling?
• Is the “book now” button clearly displayed on every page?
• Is the booking process simple, quick and efficient?

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• Is there an easy process for capturing email addresses, with
clear rationale for consumers to provide their details?
• Is the most relevant information displayed “above the fold”?
• Are online security fears addressed?
1. Convert
Measuring site conversion is essential
• Site conversion should be measured every month to
ensure optimum site performance

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• Measuring Visits, Persuasion and Conversion will give
an accurate picture of site performance
Total site visits

Total number of
availability enquiries
Total number of
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completed reservations
1. Convert
Driving incremental traffic to the site
• Now the site is optimised and performance
measurement is in place, it is time to deploy marketing

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efforts.
• Two distinct plans should be put into place to target:
– New and incremental customers
• Search Engine Optimisation, Pay-Per-Click, Linking
– Existing customers
• Email Marketing, Offline Marketing, Customer
Service
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2. Acquire
Why are search engines important?
• 89% of Internet users regularly use a search engine
• In Europe, Google accounts for 76% of all searches



In Asia Pacific Google accounts for 67%
In the US Google accounts for 49%
It is important to know where users are searching to
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adjust the approach accordingly
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New and incremental customers
Search Engine Optimisation:
• Definition: the process of improving the volume and

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quality of traffic to a web site from search engines via
"natural" ("organic“) search results
• SEO is the single-most important online marketing
activity
• The benefits of a well “SEO’d” site will be dramatic
• This is a strategic activity, that will deliver significant
long-term benefit
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2. Acquire
New and incremental customers
Natural search results

PPC Results
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New and incremental customers
• SEO does take up to 4 - 8 months to make a
significant impact

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• The best results require an iterative process, not a
one-time effort
• Ensuring high-quality incremental traffic is delivered is
vital
• For short-term, tactical, traffic deploy Pay-per-click
marketing as a complimentary activity
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2. Acquire
New and incremental customers
• PPC is a fantastic medium for turning on traffic
immediately

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• A well-researched PPC campaign will deliver
significant returns and will quickly become an ongoing
activity
• PPC campaigns compliment SEO activities
• Running SEO and PPC side-by-side, ensures that you
own the page
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2. Acquire
Top left is the most valuable area of the page

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TravelCLICK PPC Campaigns
• In 2007 we are running approximately 40 campaigns
• Forecast to generate:

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– $8 million incremental revenue
– 13,000 incremental reservations
• Year to date, we are delivering a 8:1 ROAS

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Existing customers
• Existing customers are often overlooked in the fervour
to find new ones
• If managed effectively they can:
– Reduce the overall cost of sale through channel shifting
– Increase their loyalty and value
• Communication of the online proposition in an offline
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environment is vital
• Regular, and relevant, email communication will build
loyalty and reinforce the brand
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3. Retain
Existing customers
• Building the customer database is very important and
can be achieved relatively easily:

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– Sign-up process on web site
– Run online promotions / competitions
– Sign-up at check-in / check-out

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– Ensure offline communication encourages email sign-up
• A communication calendar should be developed to
ensure regular emails are sent with compelling offers
3. Retain
Measurement and analysis
• Online offers unparalleled measurement and tracking
opportunities

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• There are three key areas to measure:
– Site conversion
– Site performance

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– Marketing return

4. Analyse
Measuring site conversion is essential
• Site conversion should be measured every month to
ensure optimum site performance

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• Measuring Visits, Persuasion and Conversion will give
an accurate picture of site performance
Total site visits

Total number of
availability enquiries
Total number of 4. Analyse
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completed reservations
Measurement and analysis
Site performance
• Correct use of the web site analysis tool will show:

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– Where are customers visiting from
– Where are they leaving the site
– How long are they staying
– Which search engines are delivering the traffic
• This information will assist in changing the web site to meet
the customers’ needs
4. Analyse
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Measurement and analysis
Marketing return
• Return on investment (ROI) or return on advertising

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spend (ROAS) are the most common metrics
• Equally important is the contribution that marketing
efforts make to the overall business

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• Other performance metrics to consider are:
– Cost-per-acquisition
– Number of email sign-ups 4. Analyse
Measurement and analysis
A simple spreadsheet gives a dashboard view:

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4. Analyse
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Why TravelCLICK?
TravelCLICK is your ideal online marketing partner
• 21 years experience in hotel electronic distribution
• Specialist Internet Marketing Services team working only
within the hospitality sector
• Offers a full service suite of Internet marketing solutions
• Ongoing relationships with over 12,000 clients worldwide
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• Shared interest in your success
Summary
• Today up to 80% of all bookings are influenced by the
web

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• A strategic, planned, approach to online marketing will
produce far better returns than tactical activity
• Investing in existing customers, as well as prospecting
for new ones, is crucial for overall success
• Measuring performance and adjusting campaigns will
produce stronger returns
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Success in Internet Marketing

TravelCLICK Webinar

I
May 2007

f
Jerome Wise
VP - eCommerce “there is a better way”