Unfortunately, there is not a one-size-fits-all approach to marketing for hotels, and the days of dumping dollars into a single channel are long gone. Marketers must meet travelers where they shop—and in today’s digitally-dependent landscape, this means everywhere.
NB: This is an article from Travelboom
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Leveraging the proper mix of digital marketing channels is paramount in generating a long-term, sustainable revenue stream. We’ve detailed the most profitable marketing channels for hotels to help you reduce costs, improve performance and increase your bottom line.
CPC Marketing for Hotels
Cost-per-click advertising can attract and retain customers, as well as introduce your brand to a new audience. This cost-effective marketing channel offers a variety of campaign types with customizable features that provide both a short and long-term return. Paid search and metasearch campaigns are among the most profitable marketing channels for hotels.
Paid Search Advertising
Paid search, or pay-per-click (PPC) ads, allow marketers to reach a broad customers base, that may or may not know about your brand. Paid search campaigns can generate considerable returns when optimized strategically. This channel plays a crucial role in reducing OTA reliance and commissions, as well as earning highly-coveted SERP real estate. In addition, non-brand paid search can generate brand awareness and new business. Understanding the nuances of paid search ads for hotels is your first step to deciding how to integrate them into your hotel marketing strategy:
- Benefits: The cost-per-click model can help stretch budget dollars, especially when granular targeting is used, and the impact of PPC ads is felt almost immediately, providing cash flow when you may need it most. Paid search campaigns also allow you to compete for business that may otherwise be earned by OTAs, helping to reduce or eliminate high fees.
- Drawbacks: Ad spend can fluctuate based on campaign optimization and keyword selection, and ongoing management is necessary. You’ll need to spend money to make money – and upfront payment is required.
- Profits & Acquisition Costs: Depending on your target keywords, ads can be highly competitive and costly if targeting and bidding aren’t managed carefully. Combining thoughtful targeting and smart bidding strategies can provide an excellent return on investment.
Metasearch Advertising
Metasearch management for hotels on metasearch engines, such as Google Hotel Ads, allows properties to advertise real-time pricing and availability to drive direct bookings. Metasearch campaigns performance can rival the ROAS of top marketing channels, but the rate strategies and execution can be complex. Factors to keep in mind about metasearch marketing strategies include:
- Benefits: Nearly three-quarters of travelers use metasearch engines when planning vacations, so this marketing channel offers access to a wide audience. An optimized presence on metasearch engines can lead to a big boost in direct bookings. And, several partner platforms offer AI-driven management tools to reduce the need for manual campaign optimization.
- Drawbacks: The logistics, like integrating your rate feed with a metasearch engine, as well as manually-managed campaigns, can be challenging for independent hoteliers with limited technical knowledge or resources.
- Profits & Acquisition Costs: Metasearch engines charge a commission, and the cost to outrank the competition can vary based on the property type, other bidders, and more. The user-friendly interface can increase direct bookings, and is cheaper than acquiring a booking via an OTA.
