Into 2016 hotel marketing benchmark issue 009

Into 2016

HOTEL MARKETINGBENCHMARK

Compiled by Sebastien Felix @fleexit & Martin Soler @martinsoler

2015 was an incredible year for hotel marketing, Google entered the book direct world, rate-parity clauses got a shakeup and industry consolidation shifted gear.

In this edition, we cover some of the recent changes, and, as always, we bring inspiration to make it all exciting and fun.

If there was one word that marks the future of hotel marketing, it should be Experience.

Wishing you a great 2016 and thank you for reading our new Hotel Marketing Benchmark!

Sebastien Felix @fleexit and Martin Soler @martinsoler

HOTEL MARKETING BENCHMARK Sebastien Felix @fleexit • Martin Soler @martinsoler

Into 2016

INTRODUCTION

https://www.linkedin.com/pulse/what-hotel-marketers-revenue-managers-read-most-2015-martin-soler

https://twitter.com/fleexit?lang=en

https://twitter.com/martinsoler

BEST OF2015


Into 2016

The hottest topic of 2015 was rate parity and the recent cases against rate parity plus booking.com’s not so good management of the PR crisis that resulted from it. It seems the majority of the rate parity issues were targeting Priceline and booking.com, which is a bit unfair to them. But they didn’t do themselves any favors when they officially went after Triptease and their widget which may have some negative effect on goliath (booking.com) but really there are better ways to manage it. While it is understandable that some want rate parity to continue, it has never been a hugely successful to try and stop evolution from happening. Rate parity is bound to die, history has proven that in many verticals already.

RATE PARITY IS UNDER ATTACK#revenue


Into 2016

Are meta-search engines becoming OTAs is a question that has been on many people’s minds in 2015. The shift of TripAdvisor and then Google to instant booking. And not Trivago who promised they would never do that have worked out their own alternative (one needs to install their booking engine). So everyone is essentially shifting to a commission model. Is it a good or bad thing well if everyone sticks to last-click model it is a good thing for cheap hotels, expensive thing for high end hotels. But it will reduce the risk of meta-search and turn it into just another channel one can activate. If everyone is on a commission model the race will be towards conversion rather than clicks which means hotels won’t have to pay for multiple clicks across numerous platforms but just to the one who got the reservation. And in that scenario, meta-search will definitely be competing with OTAs.

METASEARCHBOOK#advertising


Into 2016

Instagram launched their ad-platform and as the most linear and visually driven social media this meant hotels could now begin visual story-telling ads to travellers. This opens a new opportunity for hotels to advertise at the inspiration stage of the booking which is an advertising channel that hotels need more. Current channels such as metasearch and search ads are later on the funnel. While inspiration is closely related to destinations more than hotels, certain destinations will be driven by property and great story-telling (resorts for example) which is where Instagram ads can open a whole new area of opportunity. Still too few are using this channel and we believe it will have a big influence on the future of advertising for hotels.

INSTAGRAM GOT ADS

#advertising


Into 2016

As marketers we’re always on the lookout for new ways to advertise and get in front of the right people at the right time. Facebook ads were a big hope a few years back but never seemed to have worked for hotels. Probably due to the lack of buying intent and emotional impact. The two main competitors were TV which had a linear approach and great emotional impact and of course Google’s Adwords which had intent. In 2015 Facebook seemed to have finally found a way for hotels to advertise efficiently and Booking.com reported some success with social advertising, Facebook’s slew of additional advertising products begin to make sense for hotels. And there is a hidden maxim in the hotel marketing world, if Booking.com does it, then hotels should do it.

FACEBOOK ADVERTISING STARTS TO WORK

#advertising


Into 2016

Templated hotel websites have been around for a while, but they never really got much traction. 2015 saw 5 new companies enter the market and it is only a matter of time before they become the norm. Innovative hotel companies have already recognized that photography is a greater asset than website layout and are focusing their resources on simple and easy to use websites with stunning photography. As the disruption theory goes, one starts with a small side market nobody wants and slowly grows to the larger market, DIY or Templated websites are going just that route and with the power behind them (Priceline, Sabre, Leonardo, Siteminder and more) it is only a matter of time before they take over.

DIY WEBSITES GET REAL#design


Into 2016

TRENDSFOR 2016


Into 2016

Influencer marketing has been used by lifestyle brands for a long time. Hospitality has used it to some extent but there are almost no tools out there for hospitality and travel. That is changing and while 2016 may not be the year of mainstream, it certainly will be the year of breakthrough. New apps like Buzz&Go and several others are starting to put some order into the chaos of hotel influencer marketing by assisting both hotels and influencers connect up and measure results. Working to fill the void of Inspiration marketing for travellers influencers will assist people find the right place for them and the whole ecosystem of travel needs tools to manage and monitor influencer marketing.

INFLUENCER MARKETING IS COMING#tech


Into 2016

http://www.buzzandgo.com/

To start working with Big Data one must master Small Data, small data is the data that already exists through PMS, Website Analytics and many other platforms. Once this is properly being used one can add the Big Data layer. Some applications (mainly Revenue Management and Reviews) already have a big data layers. With tools such as SnapShot Analytics, hotels will finally be able to access their small data and structure is properly so big data can begin to be accessed. The potentials for big data and predictive analytics in the hotel sector is unlimited. For example predicting the effect of currency changes on hotel rooms before the effect begins to negatively impact occupancy and rates is just a micro moment. Full disclosure Martin Soler works at SnapShot.travel

BIG DATA FOR HOTELS #tech


Into 2016

http://www.snapshot.travel/

As the rate-parity clauses drop and hotel revenue managers find new ways to optimize their rates we will see quite some changes in the pricing structures. Channel specific deals or geo-targeted rates will eventually emerge. Mistakes will be made and lessons will be learned. Where this will go and how this can affect the guests and their acceptance is uncertain, what is certain is that life for revenue managers is about to become a whole lot more complicated and this is where Revenue Management Software tools such as Duetto, IDeaS, Booking’s PriceMatch and others will need to help control the evolution.

POST-RATE PARITY ERA #tech


Into 2016

Acquiring new customers has always been more expensive than taking care of your best customers. With the variety of channels we have, emails still remain something tangible for the travelers (booking confirmations, upselling, etc.). And contrary to the assumptions of many, emails remain one of the most efficient ways to interact with guests. Tech products like Sellinity, Mailchimp, Hubspot and Revinate are evolving from marketing platforms into a CRM/customer oriented approach allowing hotels to improve customer loyalty by understanding when and where to interact with guests and retain them longer. Maybe the future of loyalty is personalization rather than just discounts and points.

THE IMPORTANCE OF LOYALTY #tech


Into 2016

http://www.sellinity.com/

“Suggest five weekend breaks for April 9th” is a request we could soon be asking to our phones. Facebook’s M, Google Now, Microsoft’s Cortana and Apple’s Siri are all heading to voice controlled future and the one with the most personalized data is likely to win in the travel space. Facebook has a fair chance of coming out on top of this one. Booking travel through online search is still not a great experience and smart concierge services could be coming from the above. Once the five suggestions are found, the next step will be “Book option 2” and the app will book, flights, Uber and Hotel in one shot. This is most certainly the future of Travel Agency. It will most likely not be ready for 2016 but hotels should already ensure their data is available to such services as OTAs already have the lead here with unified APIs to hundreds of thousands of hotels, and booking possibilities.

THE FACEBOOK CONCIERGE #tech


Into 2016

Virtual and augmented reality will be the next major computing platform that will change the way we all connect and communicate. By providing a new way of experiences, people will be able to travel and discover places like never before. It will be a useful technology to promote destination or places. Marriott already organized a pilot with the Occulus Rift technology.Few days ago M. Zuckerberg officially announces that the Occulus Rift is ready to be pre-ordered and it sounds really cool: “When you put on Oculus, you'll feel like you instantly teleported into adventures like deep-sea diving, piloting a starfighter or playing in a band on stage.”

VIRTUAL REALITY #tech


Into 2016

Connected watches may not be the biggest tech breakthrough since the smartphone but they are here to stay. Making technology easier to use and with less human interaction is an inevitable future. Checking-in and Checking-out plus door-keys are some obvious uses, but that is just the beginning. Interacting with clients through easy to manage “Yes/No” text messages is a low-tech way to ensure there is always a human touch with the hotel and could be achieved without installing apps etc. The fact is there will be more connected watches and hotels need to get creative on how to use these to enhance guest experience.

MORE CONNECTED WATCHES#tech


Into 2016

New and more focused hotels are emerging and more to come. With hotels like citizenM tailored for one particular segment, Elegancia for others, Generator Hostels and more. The hotel industry is changing to bring in a better and more specific experience, away from the generalist approach of yesteryear. Inspired from the success of Airbnb hotels like Sweet Inn are evolving to bring hotel level experience to the privacy and individuality of apartment rentals and the BnB concept. Finding niche markets and building hotels to cater for them is only going to continue. We’ve become so accustomed to individual apps that do smaller tasks better - why not individual hotels that do some segments better. Watch the video

HOSPITALITY NEW CONCEPTS

#innovation


Into 2016

http://www.sweetinn.com/

https://www.youtube.com/watch?v=0wLYuApgZ0s

FRESHINSPIRATION


Into 2016

Cheapflights’ “Flying Stuntman” takes a fun look at booking travel for “normal” people.

Watch the video here: https://www.youtube.com/watch?v=Xjnlu8PkzwQ

THE STUNTMAN TRAVELS#inspiration


Into 2016

https://www.youtube.com/watch?v=Xjnlu8PkzwQ

Thomas Cook shows just how much fun kids have when travelling. Both with and without soundtrack.

Watch the video here: https://www.youtube.com/watch?v=TNCJh9WwU6w

KIDS HAVE MOST FUN

#inspiration


Into 2016

https://www.youtube.com/watch?v=TNCJh9WwU6w

Spies Rejser, the Danish travel agency that was founded by Denmark’s most notorious party animal, has worked out how to solve Denmark’s aging population through travel. And it is all kinds

of weird, here is “Do it for mom”

Watch the video here: https://www.youtube.com/watch?v=B00grl3K01g

DANES GO FAR FAR OUT#inspiration


Into 2016

https://www.youtube.com/watch?v=B00grl3K01g

Another travel agency getting creative. A ring-binder and a paperclip is enough to imagine an entire vacation.

http://kielo.net/en.html

SIMPLICITY STILL WORKS

#inspiration


Into 2016

http://kielo.net/en.html

About us

Martin SolerA passionate marketing guy focused on the hotel industry. I love all the new shiny objects but I know they’re just shiny things until they’ve been tested. I believe that while we need some lofty philosophic ideas on the future, what we need more is helpful tips on how to manage today and the day after, and until we’ve done that the future is incredibly far away. I’m the Chief Marketing Officer of SnapShot.travel building great hotel analytics and data tools. Am reachable on twitter at @martinsoler or via About.me/martinsoler.

Sebastien FelixInspired by the latest tech, always ready to try out the new innovations. Big Star Wars fan, I love traveling when I’m not busy trying out some geek stuff. Formerly head of online marketing for a luxury hotel group, I also co-founded the first influencer marketing platform for hospitality. Currently building what will be the new generation of storytelling and content for travel brands. Reach me on Twitter at @fleexit or my About.me/sebastien-felix page.


Into 2016

http://www.snapshot.travel/

https://twitter.com/martinsoler

https://about.me/martinsoler

https://twitter.com/fleexit?lang=en

https://about.me/sebastien-felix

Into 2016 hotel marketing benchmark issue 009

Marketing

Transcript of Into 2016 hotel marketing benchmark issue 009