Global Update
TheDisruptors
Lost business
The term big data can sound scary or even cliché these
days , but successful hoteliers would be wise to look beyond just customers making purchases on a website to gain valuable insight into future demand and price sensitivity .
Tracking web shopping regrets and denials is a great example . A regret is when a customer searches a date on your site but does not book . A denial is when the customer is turned away because of a lack of availability . Too many regrets can signal your price is too high , while denials can
by Looking beyonD just customers making a purchase on your website , you can gain valuable insighT inTo fuTure demand and price sensiTiviTy . show you who you ’ re turning away and why selling out too soon can be a costly mistake .
I remember many years ago consulting for a casino-based client in Las Vegas when an Expedia market manager asked us about a huge amount of searches they were getting on a slow weekend in June . We checked bookings and competitive rate shops and had no answer , and left several promotions at discounted prices .
It should have been a red flag . Rumors about a music festival called Electric Daisy Carnival relocating from Los Angeles led to those early searches . When it was announced , the city sold out for that weekend in 24 hours at rock-bottom prices . The market lost tens of millions of dollars because no one listened to Expedia . If we ’ d been tracking lost business , we could have raised rates — or at least been ready to . Patrick Bosworth , Duetto , San Francisco the Disruptors addresses issues ranging from the impact of emerging booking channels and metamediaries to how to best implement new strategies related to mobile technologies and social media .
Facebook ads for customer acquisition
GCommerce performed an evaluation across its portfolio of independent hotels advertising on Facebook for 2015 . The study showed an average of a 40:1 return on Facebook advertising campaigns with an average cost-perclick ( CPC ) of $ 0.22 , which represented the lowest CPC of any other marketing campaign these hotels pursued in 2015 .
Despite this and other supporting industry case studies , there continues to be a misperception in our industry that Facebook serves hotels better as a branding and consumer engagement channel , more so than a customer acquisition channel . However , Facebook can also be an effective customer acquisition channel when applying several key components :
Targeting and relevancy are critical . Facebook ’ s options include custom and lookalike audiences , retargeting website visitors , location , relationship status , behaviors , interests and connections .
Visual content is treated more favorably in the Facebook algorithm and is more engaging and likely to catch the eye of your potential customer . Utilize imagery that speaks to your target audience .
Enticing value proposition gives readers a reason to click on your ad . Making it exclusive to Facebook can make it even more powerful .
A clear call to action , like “ buy now and save x %,” will drive higher click through rates and maximize campaign performance .
The losT opporTuniTy for incremenTal revenue is what you shouLD be Losing sLeep over if you ’ re not using facebook aDvertising .
Tracking campaigns on an attribution model , as well as through A / B testing , will provide valuable insight into needed campaign adjustments . With over 1.5 billion users , low cost-per-clicks relevant to other mediums , and solid returnon-ad-spends , the lost opportunity for incremental revenue is what you should be losing sleep over if you ' re not using Facebook advertising . Nowhere else will you find users so forthcoming with personal information . Facebook advertising continues to evolve , providing advertisers nearly infinite possibilities for the build-out of custom audiences , moving closer and closer to the segment of one that marketers have been dreaming about for decades . Chris Jackson , GCommerce , Park City , Utah
20 HOTELS March 2016 www . hotelsmag . com