NEW YORK—As digital marketing becomes more prevalent and occupies a larger chunk of the budget, many hotel companies are struggling with how digital marketing efforts fit into the current company structure.
Does the responsibility fall under the current marketing team? The ecommerce team? The revenue management team? Or should hoteliers outsource digital marketing efforts altogether?
Panelists at the Hospitality Sales and Marketing Association International’s Digital Marketing Strategy Conference in New York this week shed light on how their companies structure digital marketing teams and offered best practices to accomplish many digital marketing goals. Most importantly, marketing experts said that no matter how the teams are structured, different organizations need to work together toward similar goals.
“I don’t want to report to (marketing) and I don’t want them reporting to me, but I want to work with them every day,” said Kathy Maher, who recently joined Wyndham Hotel Group as senior VP of revenue management. “I define the product, and they define the shelf.”
Most panelists agreed that digital marketing employees shouldn’t be housed with employees that determine the price of hotels. But it is critical that teams are structured in such a way where communication is natural and common as opposed to taking a splintered approach.
“What we do really isn’t rocket science,” Maher said. “There are a lot of catchphrases—everyone’s in their swim lanes and let’s not be in silos and all this—but whether its digital marketing, ecommerce or revenue management we need a common set of priorities so we know what we’re working toward and the goals are clear. And then check in monthly or quarterly to make sure we’re on track.”
Not only are marketing team structures evolving, they also vary greatly depending on the organization. Chuck Sullivan, principal with CCS Consulting and former senior VP of global online services at Hilton Worldwide, said Hilton went through a transition period before settling on the current structure.
“Every brand wanted to have their own digital brand advertising until we realized they could’ve shared some experiences,” he said.
Best Western International has advertising and ecommerce teams that work collaboratively and report to a single manager, said Patrick Campbell, director of advertising and online media.
“Each of those groups work together and report to the same managing director," he said. "It’s a very easy structure to work within.”
At White Lodging, an owner-operator of more than 160 hotels, digital marketing was formerly outsourced but today is being brought in house. Much of the corporate-level digital marketing initiatives will fall within the communications department, which will eventually consist of about 15 people, said Mike Bennett, VP of emarketing and communications.
“For 2013, we folded our communications department into emarketing because we have a strong belief in the storytelling aspect,” he said. “We really work as a revenue generation group. We’re held accountable that way, and we’re bonused that way.”
Bennett said the revenue generation group consisted of two people when he joined four years ago. Of the company’s total marketing spend, today about 95% to 96% is allocated to digital, he said.
Structural challenges
However, integrating multiple departments does not come without its challenges.
“Everyone has to understand their sandboxes,” Sullivan said.
Maher, of Wyndham, said as the percentage of budget shifts from traditional to digital, certain teams can feel left out, which can lead to “fighting amongst the brothers and sisters.”
That, she said, helps make the case for a strong chief marketing officer to ensure everyone gets along and works together.
Working with agencies
Most hotel companies also rely on outside agencies to assist with marketing efforts, whether it is for content creation, search-engine marketing, reputation management, etc. Hoteliers suggested choosing those agencies carefully and developing long-term relationships with them so they become almost part of the team.
“Allow (agencies) to do what they do best,” Sullivan said. “Don’t use them as an alternative to curating your own team.”
At Best Western, outside agencies are truly looked at as partners, Campbell said.
“It’s more than a client and agency relationship,” he said. “They’re invested in the brand.”
Often, it can be difficult to ensure all agencies are on the same page. To accomplish this, hoteliers suggested getting everyone together at the beginning of the campaign and assigning leads.
Be diligent with communication among the agencies, Bennett said, adding that any issues White Lodging has encountered with agencies have been traced back to poor communication.
“Have a weekly status call with all the agencies on the phone at the same time,” Campbell added. “Know what everyone is working on at all times.”