Sometimes, ignorance is not bliss.
In hotel marketing, having outdated assumptions or incorrect information can cost your hotels millions in lost revenue… and perhaps even cost you your job. So we’ve put together a quick list of 5 current myths we see being perpetuated in the hotel marketing world:
Myth #1: OTA Revenue Has No Cost
We placed this at the top of our list because it couldn’t be any further from the truth. With commissions ranging 15-30% for each reservation, OTAs are the most expensive distribution channel you have. But, it’s easy to miss. After all, OTAs send you money, not the other way around. However, remember that OTAs are taking out your expense BEFORE they send your hotel a check. Meaning, you never see how much they are taking out of your room revenue.
Remind yourself of that each time you get money from your OTAs partners. They are not cost-free. And too many hotel marketers have no idea how much their OTA revenues actually cost.
Myth # 2: Your Flag Provides All Your Marketing Needs
Your brand’s marketing team is servicing hundreds of hotels (often in the same city!) and providing the same tools to all of its properties. Think about that – every hotel in their family is getting the same marketing templates, the same access to the loyalty database, the same website and reservation system.
Whether you are a seaside property in Santa Monica, a mountain resort in Breckenridge, or an urban high-rise in Seattle, every property is given the same assets to market their property, regardless of target market or unique facets.
And, if you have a period of need or want to target a specific segment with a customized campaign? Your far away brand team is often unable to deploy an effective campaign that captures the unique essence of your property in a reasonable amount of time.