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8/14/2019 Success in Internet Marketing[1]
http://slidepdf.com/reader/full/success-in-internet-marketing1 1/35
INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Success in Internet Marketing
TravelCLICK Webinar
May 2007
“there is a better way”Jerome WiseVP - eCommerce
8/14/2019 Success in Internet Marketing[1]
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
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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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
TravelCLICK’s experience
• Developed and hosting almost 200 hotel web sites
• Managing online marketing campaigns for over 300hotels
• Clients range from individual 2 star hotel to worldwidemajor luxury brands
• Delivered approximately $12 million in incrementalbusiness to our customers over the past 12 months
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
The importance of the web
• Online is no longer a niche channel worthy of
investment for the future.• 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 3years*
*source PhocusWright Inc 2006
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
The importance of the web
• Online travel sales will represent 41% of total travel
sales by 2008*
• A further 38% of consumers make their decisiononline, but purchase offline**
• This means that almost 80% of travel sales will either
be made online, or strongly influenced by online
*(Europe) source eMarketer ** Forester Research 2006
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
The importance of the web
• Supplier sites are fighting back against the OTAs and
in 2005 57% of online hotel sales were made on thesupplier site, up from 53% in 2003*
• This is forecast to grow further as suppliers catch upwith the OTAs in terms of technology, customer
service and marketing
* comScore Networks, April 2006 (US)
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Where are the opportunities?
There are three main opportunities that online sales
present:2. Incremental revenues
3. Reduced cost of sale
4. Enhanced brand loyalty and client relationships
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Incremental revenues
• The internet is a level playing field in terms of sales
and marketing• 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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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Reduced cost of sale
• A brand web site has the lowest cost of sale
• Enables business to be “channel shifted” from moreexpensive channels, such as travel agency or callcentres
• A strong brand web site enables the reliance on OTAs
to be reduced and relationships to be renegotiated inorder to bring down the overall cost of sale
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Net
Revenue*
Consumer
Spend
$90.00
$150.00
O p a q u e
Brand /Rep Co.
$235.50
$275.00
G D S
TravelAgent
Pegasus
Brand orRep Co
GDS
$250.00
$275.00
P r o p e r t y
W e b s i t
eBooking
Engine
Provider
$206.25
$275.00
M e r c h a
n t
Brand /Rep Co. *
Develop strategies and employ specific tactics to
shift business mix to the most profitable channels*industry averages
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Enhanced loyalty and client relationships
• A direct client should be retained for future marketing
and relationship building• 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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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
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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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
The marketing opportunities
• Before looking at the opportunities, one should
consider the four stages of customer interaction: – Conversion
– Acquisition
– Retention
– Analysis• Focussing in each of these areas
will create a solid action plan
2. Acquire
1. Convert
3. Retain4. Analyse
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
The marketing opportunities
• Equal focus and specific activities should be deployed
to address each of these key areas:Convert Acquire Retain AnalyseWeb design SEO CRM Web analysis
Booking engine PPC Web design
Content Linking Customer service2. Acquire
1. Convert
3. Retain4. Analyse
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
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• Increasing the conversion ratio of visitors to bookers isthe single best investment
• Once the site is optimised, then marketing activity to
deliver incremental consumers should start
1. Convert
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
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-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?
• Is there an easy process for capturing email addresses, withclear rationale for consumers to provide their details?
• Is the most relevant information displayed “above the fold”?• Are online security fears addressed?
1. Convert
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Measuring site conversion is essential
• Site conversion should be measured every month to
ensure optimum site performance• Measuring Visits, Persuasion and Conversion will givean accurate picture of site performance
1. Convert
Total site visits
Total number of
availability enquiries
Total number of
completed reservations
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Driving incremental traffic to the site
• Now the site is optimised and performance
measurement is in place, it is time to deploy marketingefforts.
• 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
2. Acquire
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
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 toadjust the approach accordingly
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
New and incremental customers
Search Engine Optimisation:
• Definition: the process of improving the volume andquality of traffic to a web site from search engines via"natural" ("organic“) search results
• SEO is the single-most important online marketingactivity
• The benefits of a well “SEO’d” site will be dramatic
• This is a strategic activity, that will deliver significantlong-term benefit
2. Acquire
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
New and incremental customers
Natural search results
PPC Results
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
New and incremental customers
• SEO does take up to 4 - 8 months to make a
significant impact• The best results require an iterative process, not aone-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
2. Acquire
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
New and incremental customers
• PPC is a fantastic medium for turning on traffic
immediately• A well-researched PPC campaign will deliver significant returns and will quickly become an ongoingactivity
• PPC campaigns compliment SEO activities• Running SEO and PPC side-by-side, ensures that you
own the page
2. Acquire
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Top left is the most valuable area of the page
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
TravelCLICK PPC Campaigns
• In 2007 we are running approximately 40 campaigns
• Forecast to generate: – $8 million incremental revenue
– 13,000 incremental reservations
• Year to date, we are delivering a 8:1 ROAS
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
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 offlineenvironment is vital
• Regular, and relevant, email communication will buildloyalty and reinforce the brand
3. Retain
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Existing customers
• Building the customer database is very important and
can be achieved relatively easily: – Sign-up process on web site
– Run online promotions / competitions
– Sign-up at check-in / check-out
– Ensure offline communication encourages email sign-up• A communication calendar should be developed to
ensure regular emails are sent with compelling offers
3. Retain
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Measurement and analysis
• Online offers unparalleled measurement and trackingopportunities
• There are three key areas to measure:
– Site conversion
– Site performance
– Marketing return
4. Analyse
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Measuring site conversion is essential
• Site conversion should be measured every month toensure optimum site performance
• Measuring Visits, Persuasion and Conversion will givean accurate picture of site performance
Total site visits
Total number of
availability enquiries
Total number of
completed reservations
4. Analyse
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Measurement and analysis
Site performance
• Correct use of the web site analysis tool will show: – 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 tomeet the customers’ needs
4. Analyse
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Measurement and analysis
Marketing return
• Return on investment (ROI) or return on advertisingspend (ROAS) are the most common metrics
• Equally important is the contribution that marketingefforts make to the overall business
• Other performance metrics to consider are: – Cost-per-acquisition
– Number of email sign-ups4. Analyse
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Measurement and analysis
A simple spreadsheet gives a dashboard view:
4. Analyse
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Why TravelCLICK?
TravelCLICK is your ideal online marketing partner
• 21 years experience in hotel electronic distribution
• Specialist Internet Marketing Services team workingonly within the hospitality sector
• Offers a full service suite of Internet marketingsolutions
• Ongoing relationships with over 12,000 clientsworldwide
• Shared interest in your success
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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Summary
• Today up to 80% of all bookings are influenced by theweb
• A strategic, planned, approach to online marketing willproduce 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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INTERNET MARKETING SOLUTIONSfor the international hotel industry
INTERNET MARKETING SOLUTIONSfor the international hotel industry
Success in Internet Marketing
TravelCLICK Webinar
May 2007
“there is a better way”Jerome Wise
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