Friday, September 23, 2005

Search Engine Marketing in Hospitality

Hospitality Net - Industry News - Search Engine Marketing in Hospitality | By Max Starkov and Jason Price: "Search Engine Marketing in Hospitality | By Max Starkov and Jason Price

Search engine marketing is an essential component of the hotel direct online distribution strategy. According to Forrester research about 80% of overall website visits begin in a search engine or a directory service. Many other surveys also show that up to 85% of Internet users rely on search engines to locate relevant information on the Web (e.g. Google, Yahoo, MSN, etc). Search marketing is an extremely dynamic field. Search algorithms change, new search techniques and formats introduced, new search services launched, new challenges emerge on a daily basis that keep search marketers busy. The implications of all this in hospitality are enormous and some highlighted in this article.

Background
In 2005, online travel sales will account for an estimated 30 percent of total travel sales- up from 25 percent last year and 21 percent in 2003, according to a recent report by Merrill Lynch. By 2007 online travel sales will represent 39 percent of all travel revenue, with growth from direct suppliers outpacing that of online travel intermediaries....

Search in Travel is Destination Focused
Unlike other e-commerce categories, Internet users search for travel and hospitality services and offerings within the context of the destination. Therefore the search engine strategy for travel and hotel websites is subject to a different methodology than what the generalist SEO (Search Engine Optimization) companies offer. Marketing a bank, eyeglass store, or dental office does not factor the characteristics or intensity of the destination. Nor do generalists differentiate travel search behaviors from general online consumers.

A destination-focused search engine strategy requires in-depth knowledge of the travel and hospitality industry, extensive destination research, destination target keyword analysis, and destination search behavior. Only a destination-focused search engine strategy can help the travel and hotel website leverage the popularity of the destination to its benefit.

Search in Travel (includes hospitality):

73% use search to find travel; 27% went directly to travel site
Travel is top 4 category in use of search requests and some studies report in the top four types of searches
Travel searches originating from a search engine tends to lead to travel being purchased two weeks out

With such vast numbers of searches originating from search engines, clearly search engines are an essential component to the hotel’s direct online distribution strategy. Ranking high on the engines and consistently staying there along with matching the right budget to compete effectively are all major competitive issues with advertisers online.


CASE STUDY A Boutique Hotel in California

Background: In highly competitive northern California market this boutique hotel needed to outsmart its competition and boost ADRs, revenues and occupancy rates. Internet distribution and marketing strategy developed from scratch.

Actions: HeBS launched an aggressive Direct Online Distribution and Marketing Strategy for the hotel, including an award-winning designed website, email marketing, search marketing and link popularity strategies.

Results: Within 12 months the hotel opt-in e-mail list grew from practically zero to over 10,000 recipients. The website ranks in top positions on all major search engines for most popular keyword terms. The hotel website, supported by powerful email, search marketing, link creation and online sponsorship campaigns has indeed become the “first point of contact” with customers and over 50% of hotel bookings come via the hotel website.

CASE STUDY Body Copy and Link Popularity of a Hotel Brand Website

Using HeBS’ proprietary CyberScore Rating System, we evaluated the website of a prestigious hotel brand (body copy and descriptions) and the site Link Popularity and compared it to the industry average derived from similar evaluations of over 20 brand websites.


The body copy on the property pages consistently failed to disclose the location of the hotel and to “associate” the property with its respective destination
Extremely low Keyword Density
No customer segmentation strategy resulting in the absence of rich content related to the key customer segments (e.g. meeting planners, wedding planners, business travelers, etc)
No destination web strategy to make the hotel the “hero” of its destination.
Low link popularity and even lower number of links recognized by Google, which inevitably will hurt the search engine ranking.
Audit Results: The hotel brand utilizes only 27% of the “best practices” opportunities, way behind the industry average of 48%.

Conclusion:

Online distribution has become the main distribution channel in hospitality. This year over 50% of all hotel sales will be directly influenced by the Internet. Search marketing is an essential component of the hotel direct online distribution strategy. It is part of a comprehensive eMarketing Strategy in hospitality, together with other important aspects such as email marketing, link popularity, online sponsorships. Search marketing and its main aspects: natural listings, paid inclusion, PPC and Local Search should become an integral part of the overall hotel marketing strategy, and an important line item in hotelier’s 2006 budget.

Hoteliers should focus all of their efforts and resources on building and expanding their existing Direct Online Distribution and Marketing Strategies. Consider seeking advice from an experienced Internet marketing hospitality consultancy to help navigate the Internet and utilize the Direct Online Channel to its fullest potential. From experts who can teach hoteliers and their staffs best practices and provide crucial professional development, as well as guide hotel company’s direct Internet distribution and marketing strategies, including search marketing and online brand building strategies, e-CRM, website optimization and email marketing strategies"

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