In this day and age, it is becoming more and more important to be good at sales and specifically online sales. If a hotel is to survive with the constant onslaught of competition and ever increasing dominance of online travel agents it has to have a strong online strategy.
The hoteliers of today face a tough battle, they have to ensure that they retain the traditional methods of marketing and also ensure that they gain visibility in the very competitive online world, which is heavily dominated by the bigger players and the Online Travel Agents which operate as goliaths and often control certain regions with respect to hotels and Service Apartments and Guest Houses.
So what should be done? In my opinion a hotel need to follow a regimented routine to ensure that it stays one step ahead of the curve. Although, it goes without saying that the operational aspects should be up to scratch for the marketing strategy to effectively work and be executed.
1. Monitor your presence on Online Travel Agencies:
Traditional travel agencies have been replaced by Online Marketing Agents (better known as OTA), the OTA's have vast reach and can help a hotel reach its target segment without having to invest a great deal in marketing.
But, to really do well on OTA's it is essential to keep a close watch and check the back-end regularly. Things like price parity, room inventory can really affect your ranking hence it's important to be up to date.
It also helps to register on various different portals
Expert tip: Try and register on region specific portals, eg- register on American travel portals if looking for traffic emanating from North America.
2.Look to capitalize on rating agencies:
You may be surprised, but it is quite astounding to know that if your property/ hotel rating goes from a 2-star rating to a 3-star rating (in any recognized forum / agency rankings) you can increase your top line by up to 25% (based on industry standards). The signaling effect of higher rankings cannot be ignored either, as customers prefer higher ranking properties to their lower ranked counterparts.
Expert tip: Set up property audits by top rating agencies, if your property passes the satisfactory levels then you would get upgraded or get a preferred rating.
3. Identify your clients, and spend on targeting them:
The Pareto 80-20 rule holds true everywhere and the hospitality industry is no exception. Studies have shown that 20 percent of a hotel's clients represent 80 percent its incom.
It is thus very important to understand who these 20% really are, once you know your target segment it is easier to have an online marketing strategy centered around them.
How to target each segment:
Corporate Travelers: In case of companies online marketing has to be supplemented with good old "boots on the ground", you have to ensure that you maintain top of the min share with them, do regular meetings, organize small events at your property and try and keep them engaged.
Tourists: Search Engine Optimization on tourist specific keywords coupled with strong presence on travel portals (tourist specific) such as Tripadvisor, Resorts.com etc as well as participating in trade fairs are important if you want travelers to know of your property.
For tourists, reviews are very important. So ensure you keep your guests happy and they are bound to attract others as well.
Expert tip: Understand the basic difference in B2B and B2C clients, once you separate the two segments it should be quite easy to make a different online strategy for each
4. Do not indulge in last minute markdowns !
The hotel industry should not necessarily follow the airline industry, giving last minute markdowns or cheap rooms can set a dangerous precedent with customers looking for cheaper rooms and holding off bookings till the last moment.
Expert Tip: It's better to have surprise room sales as opposed to predictable ones, that way you generate more interest from prospective customers and also gives your website more hits.
5. Start an online referral system:
Admit it, we all like free stuff. So the next time you have a happy visitor why not cash in on them. Even small things like a free meal plan, a nice gift or a free room upgrade during the next stay can motivate a happy client to refer your hotel or guest house to a friend, relative or a colleague.
Expert Tip: Try and offer a room discount or upgrade as an incentive for a room referral, that way you insure future business from both the happy client as the referred prospect!