As the hotel industry becomes less art and more science, hoteliers must be much more strategic in the way they operate and market their properties.
One of the most impactful trends in this pursuit is real-time marketing, or RTM.
Although it would be unwise to discount the impact of traditional marketing, RTM must take place on a regular basis and incorporate content marketing, revenue management and social media. This must be a crucial component of the marketing mix in order to master the science of hospitality.
Providing content on an ongoing basis is dominating the industry and how we reach our target guests. It consists of three main components that should be a focus within our strategic marketing plan.
1. Content is king
When implementing a RTM strategy, we must first ensure our content is creating value.
Online travel agencies understand this principle and are providing potential guests with content that is relevant and answers frequently asked questions. The hospitality industry is losing market share as a result, with intermediated bookings costing 25% or more in commissions.
To take share back from the OTAs, start with content.
The content listed via global distribution systems should be thorough, and it should clearly show how potential guests can get answers from an agent on the phone.
Content on websites must be informative. This might seem like a no-brainer, but often websites are not up-to-date or provide inadequate information for potential guests. A hotel website should be detailed and be able to answer the same questions the OTAs are answering.
We also need to tighten our mobile sites. Increasing amounts of reservations are booked via mobile devices, thus making the content on our mobile platforms as important as the content on our websites. When thinking of mobile technology, remember that mobile is the new “walk-in.”
Quality content should be shared within an organization. Many of us do not think of our guest service agents as a form of content marketing. However, they should be considered an extension of our sales team and be given the proper training, authority and tools to close the sale.
Providing guest service agents with their own business cards with their name and a generic hotel e-mail address is smart. It will allow them to have guests contact them directly to book their next stay. This simple step takes personalized service to the next level.
2. Revenue management
Revenue management always will be a factor in how we market our hotels. Whether using traditional marketing or RTM, revenue management strategies will affect a hotel’s marketing efforts.
Revenue management needs to be considered a daily task and done in “real time.” Advances in technology can support immediate measurement of competitive market forces. Hoteliers now can update prices each day for all future arrival dates to match market demands and measure the cost of guest acquisition across different channels.
A key trick: Avoid displacement of future, high-rate business by groups that are paying lower rates and ensure that goals (revenue managers versus sales teams) are in sync. Working as a team is still paramount.
3. Web 2.0
Incorporating social media strategies into the marketing mix is also critical when focusing on RTM.
Social media sites such as Facebook, Twitter and TripAdvisor have changed how the hospitality industry interacts with guests, creates experiences and offers a more highly personalized level of customer service.
Think of a property’s Facebook page as a second website with the option for guests to contact hotel staff to make reservations. Twitter will become increasingly important with the recent announcement of a strategic alliance between Twitter and Google whereby tweets show up in Google searches.
While Instagram is a very strong up-and-comer (now with more than 300 million users), the key is to pick only those key platforms that target your clientele. If we try to manage too many sites from the get go, our social media efforts will be ineffective and actually could be detrimental to our marketing efforts.
In addition to creating an experience on social media using RTM, hoteliers are also using their own guests to help market their property. Studies have shown that 75% of customers look for recommendations from people they trust before making a reservation. Programs such as Flip.to allow guests to share with family and friends about upcoming trips to particular hotels. Flip.to creates a custom experience for the guests’ social media connections that can lead toward future bookings.
When it comes to review sites, we all know how important it is to be present by responding to reviews on a regular basis. We often forget to implement a strategy on how we are going to improve ranking on these sites.
To do this, hoteliers must implement a clear strategy and have attainable goals in place. Aim to improve the hotel’s score, get staff involved in improving the score, set small goals and celebrate the achievements as a hotel.
Creating and distributing relevant content that grabs the attention of our target audience through RTM is quickly replacing traditional marketing. Hotels need to be able to recognize opportunities to market hotels and act on these opportunities. By listening to customers and reacting in real time with the right message, hotels will be able to outsmart their competition, win back share from the OTAs and transform their marketing efforts into increased bookings.
And that makes for more profitable bookings.
As president and founder of hotel management and consulting firm R.A. Rauch & Associates, Robert A. Rauch, CHA, is an internationally acclaimed hotelier with over 35 years of industry experience. Widely recognized as the “Hotel Guru," Rauch expounds upon insights and trends in the hospitality industry in his blog and “Hospitality Innsights” e-newsletter. He has been directly involved in developing several leading brand hotels, some of which the firm still owns and manages, and is a Faculty Associate at Arizona State University, where he teaches Entrepreneurial Recreation and Tourism. Contact him at rauch@hotelguru.com.
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