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Tuesday, December 13, 2011Tuesday, December 13, 20112:00 2:00 –– 3:00 PM EST3:00 PM EST

Hospitality Sales and Marketing Association International (HSMAI)

The Hotelier's Action Plan to Meet 2012 Digital Marketing

Challenges

Overview of Format and TopicOverview of Format and Topic

Webinar ModeratorFran BrasseuxExecutive Vice President, HSMAI

POLL QUESTION #1POLL QUESTION #1How many people are participating in

this webinar at your location today?

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Dr. Bill Carroll, Senior Lecturer, Cornell University

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HotelierHotelier’’s Action Plans for 2012:s Action Plans for 2012:Meeting Marketing ChallengesMeeting Marketing Challenges

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•• Integrating Social in Your PlansIntegrating Social in Your Plans

•• A Strategy for MobileA Strategy for Mobile

•• Social Buying & Flash SalesSocial Buying & Flash Sales

TodayToday ’’s s Presenters: Presenters:

Panel Moderator: Dr. Bill Carroll, Senior Lecturer, Cornell University

Panelists:

Michael HaywardCEOROI Labs

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Loren GrayDirector of E-CommerceOcean Properties, Ltd.

Max Starkov

President & CEO

HeBS Digital

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Integrating Social in Your PlansIntegrating Social in Your Plans

Humans have alwaysHumans have always

relied on their relied on their

communities. How communities. How

they do it is changing.they do it is changing.

Loren Gray

Director of E-Commerce

Ocean Properties, Ltd

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Social Media Social Media ‘‘MUST DOMUST DO’’SS’’ 20122012

•• Claim your Identities (Social & Local)Claim your Identities (Social & Local)

•• Allocate 5% online budget to social mediaAllocate 5% online budget to social media

•• Decide and define property participation / ownership / fulfillmeDecide and define property participation / ownership / fulfillmentnt

•• Outline strategies for social channels Outline strategies for social channels

1.1. Google Local / Bing Local / Yahoo LocalGoogle Local / Bing Local / Yahoo Local

2.2. FacebookFacebook

3.3. YouTubeYouTube

4.4. FoursquareFoursquare

5.5. TwitterTwitter

6.6. YelpYelp

7.7. Google PlacesGoogle Places

8.8. Google+Google+

9.9. GowallaGowalla / / FoodspottingFoodspotting / / LooptLoopt / Latitudes/ Latitudes

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Social Media Social Media ‘‘MUST DOMUST DO’’SS’’ 20122012• Augment all promotions with a social media strategy (Buzz / Announce /

Support / Remind / Respond / Reward)

• Consistency of use

• Minimum of eight standard categories of content

• Family / Soft Adventure / Eco / Historical & Cultural / Romance,Dining & Nightlife / ‘Off the beaten path’ / Properties Amenities / Cross property promotions

• Enhance channel function use (Facebook upgrades examples)

• Use of rich media and links to them

• Average Facebook Ad’s acquisition cost per follower $1.12 - $1.21

• You can never have ‘too many’ Facebook ads…. At first

• 2,000 fans are ‘critical mass’

• Get 25 followers as fast as you can and create a custom page name –think big

• Use Social Media Software (like)

• Hootsuite to schedule / ReviewAnalyst to monitor

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Social Media Social Media ‘‘MUST DOMUST DO’’SS’’ 20122012

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Social Media Social Media ‘‘MUST DOMUST DO’’SS’’ 20122012

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A Strategy for MobileA Strategy for Mobile

Mobile advertising will rise from Mobile advertising will rise from

$4.5 billion in 2010 to $24 billion$4.5 billion in 2010 to $24 billion

in 2015!in 2015!

InformaInforma Telecom and Media, 2010Telecom and Media, 2010

Mobile wallet becomesMobile wallet becomes

a reality!a reality!

Norm Rose, 2011Norm Rose, 2011

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MOBILE MARKETING

Michael Hayward

CEO – ROI Labs

@roi_labs

www.ROILabs.com

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PLANNING FOR MOBILE

� What type of device(s) are being used

� What’s the business model for the mobile site

� Web site or App? Functionality?

� How do we get up to speed on design

� In-house vs outsource - competencies and strategy

� SEO strategy

� Content structure and strategy

� Testing

� Measurement

source: Patricia Seyboldsource: Patricia Seyboldsource: Patricia Seyboldsource: Patricia Seybold

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THINKING OF MOBILE USER NEEDS FIRST

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THINKING OF MOBILE USER NEEDS FIRST

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THINKING OF MOBILE USER NEEDS FIRST

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READY FOR OTHER MOBILE CHANNELS

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Social Buying & Flash Sales Social Buying & Flash Sales

PhoCusWrightPhoCusWright’’s Innovation Summit featureds Innovation Summit featured

One in Five Innovation that involved group travel!One in Five Innovation that involved group travel!

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Social Buying & Flash Sales:

The Future of Hotel Distribution or a Recession Phenomenon?

Presented by:

Max Starkov

President & CEO

HeBS Digital

www.HeBSdigital.com

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Why Social Buying & Flash Sales Now?

Groupon Getaways with Expedia, Living Social, BloomSpot, SniqueAway, Off and Away, etc.

What are the main reasons for the emergence of these sites?

•There is nothing “revolutionary” about the technology:

�This technology has been around for many years

•There is nothing special about the business model:

� Open discount model/not an opaque model

�Member-Only Travel Clubs have existed for 165 years

� Members loyal to “50% off rack rate” religion, not to a particular site

•Social Media:�Is a mere enabler, not the cause for the emergence of these sites

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Why Social Buying & Flash Sales Now?

So what is the main reason for the explosion

of social buying & flash sales sites?

It’s the Economy, Stupid!

•Social buying & flash sales sites are a recessionary phenomenon.

�The recession brought the industry to its knees

�Desperate hoteliers = easy pickings for flash sales sites

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Case Study: Cost of Electronic Distribution

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So, To Flash or not to Flash?

NO!

•The economics does not work for the hospitality industry:

�Flawed “Open Discount” business model:

� Discounted rate is out in the open: against rate parity/BRG principles

� Destroys rate integrity: against existing contracts(OTAs, corporate trvl)

�Lack of opaqueness establishes new lower market price:

� Hotel cannot charge rack rate -customer has accepted discount rate as the new market value

�Cannibalization of existing customer base:

� 65% of daily deal buyers are already Frequent (38%) or Infrequent (27%) Customers (ForeSee 06/11)

�Deal face value is artificially ballooned to show value:

� Puts off potential guests by positioning hotel as “too expensive”

�Steep discounts of 50%-67.50% are simply unacceptable

Questions? Questions? Panel Moderator: Dr. Bill Carroll, Senior Lecturer,

Cornell UniversityPanelists:

Michael HaywardCEOROI Labs

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Loren GrayDirector of E-CommerceOcean Properties, Ltd.

Max Starkov

President & CEO

HeBS Digital

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Upcoming Webinars:

Session 10 of the HSMAI University 10-part 2011 Revenue Management Series –

•What Will the Revenue Manager of the Future Look Like? – December 20, 2011

•Watch for our 2012 Revenue Management Series and our 2012 Digital Marketing Series – starting February!

To register for this webinar and watch for upcoming webinars in 2012, please go to www.hsmaiuniversity.org

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TodayToday ’’s webinar is copyright 2011 by the Hospitality Sale s & Marketings webinar is copyright 2011 by the Hospitality Sale s & Marketing Association International Association International with All Rights Reserved.with All Rights Reserved.