Increase room ADR, sell more hotel rooms direct, increase you market share, reduce channel spend on OTA’s…familiar?
NB: This is an article from UP Hotel Agency
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Well, I guess it’s time to start waving the magic digital wand for 2025. The next article will look into top ways to allocate your marketing budget in 2025.
The Golden 20%
I seriously think the OTA’s are like heroin for hotels and it’s a pretty tough habit to kick. It feels pretty good to dump a load of inventory their way and have rooms magically sold. The reality is that your hotel is immediately down in profitability by up to 20% on each booking (commission) and also losing the ability to obtain loyal customers direct. In addition, these channels are increasing the cost of your online advertising by bidding on your brand terms and driving down your avg ADR and soon this becomes a really niggling problem.
Please don’t misunderstand, I do genuinely feel that OTA’s have a part to play in the marketing mix. However, if you are able to sell rooms for the hotel direct for less than that OTA commission of 20% then why not?
Let me repeat that, if you can sell rooms direct at a lower cost per acquisition than through OTA’s then why not do it! (e.g. CPA <20%) This requires that hotels to take a different and more fluid approach to their hotel marketing budget allocation. Why not spend uncapped while your CPA remains below that of an OTA. Increase direct web conversions and slowly wean yourself off the OTA’s. Unfortunately, there is not really a magical digital wand so to do this effectively takes strategy, effort and planning. However, the rewards are great and many hotels have enjoyed taking the power back and increasing the bottom line.
SEO and GEO
A strong online presence for hotels begins with robust Search Engine Optimisation (SEO). Effective hotel SEO strategies involve crafting keyword-rich content, implementing internal links, and designing intuitive website navigation with mega menus and breadcrumbs. These techniques not only enhance website visibility but also improve content quality, ensuring higher rankings in SERPs (Search Engine Results Pages) and better engagement with users.
Generative Engine Optimisation (GEO) is transforming how hotels reach travellers by focusing on AI-friendly, context-rich content that stands out in AI-generated recommendations. Hotels can improve GEO by creating detailed FAQs about nearby attractions, local experience guides, personalised travel tips, and service descriptions, all backed by statistics, reviews, and citations to boost visibility and relevance in an AI-driven digital world.
By combining SEO and GEO, your hotel’s website remains competitive across conventional and AI-driven search engines, maximising digital marketing efforts, improving keyword optimisation, and reinforcing your brand’s online presence effectively.
PPC Campaigns
Pay-per-click (PPC) advertising is a cornerstone of successful hotel marketing, enabling properties to target potential guests with precision. Platforms like Google Ads, Microsoft Ads, and Bing Ads offer advanced targeting options based on search intent, location, and demographic data, making them essential tools for driving booking conversions.
