Technology : Channel management
How we ’ re boosting direct bookings david Wright global director of distribution
Meliá Hotels international , palMa de MallorCa , spain
“ We have put most of our efforts in seo , as it yields a much better return .”
– Michelle Woodley , Preferred hotel GrouP
Michelle Woodley
senior vice president , distribution and revenue management
preferred Hotel Group , CHiCaGo
What methods are being used to increase direct bookings online ?
With an investment required in research and a redirection of resources , we have put most of our efforts in SEO , as it yields a much better return . For January through February 2014 , our efforts have yielded a 50 % increase in organic traffic over the same time last year . Other tactics we use to drive business to our brand websites include databased display advertising and retargeting . We are looking at behavioral targeting , which is profiling guests that have reserved a room through our site and , through a network , identify guests with similar behavior and serve up appropriate ads to them . Of course , our call-to-action in print and email marketing is to visit our brand websites for more details and to make a booking . We strive for a minimum return on ad spend of 6:1 .
We have found that our most valuable guests research and book through our guest loyalty program , iPrefer .
When does the cost of acquiring a direct booking exceed that of an ota booking ?
This all depends on how you look at attribution . For example , one could argue that the cost of acquiring a guest for a loyalty program plus administering the program , et cetera , is more than an OTA booking . But we look longer term . It ’ s not just about the first booking ; rather , it is about the potential lifetime value of the guest and a low attribution cost once they are in the program .
What methods are being used to increase direct bookings ?
We have changed our online booking attribution models , and while paid search is still extraordinarily important for us , there are a lot of things that go on before that branded search that contributes to the direct booking .
A fine example is Facebook . Our return on investment for Facebook advertising , if you go by a last-click model , is zero . But the impact those ads create and generate is large . So the change in attribution has shown us there are areas we thought were not generating revenue that actually are , as we had a short-sighted view of the customer ’ s booking funnel .
Where does organic search fit in ?
There are alternative investments that now give a better ROI than organic search . Organic search is still very important in regards to the amount of business that it generates , but its importance is declining — particularly in the United States — given the increasingly limited amount of real estate organic results we get on the results page as Google prioritizes maximizing its own revenue with paid search and other features .
Marcos cadena group director of electronic distribution
Minor Hotel Group , BanGkok
What methods are being used to increase direct bookings ?
Organic search is almost 33 % of our entire search , and it represents 40 % of our direct booking strategy , so we consider our SMO and SEO strategies as key elements of our overall marketing strategy . Paid search is also part of our strategy with 11 % of our direct bookings . It allows us to reach markets faster , and it is a great tool to test performance and A / B testing of the main keywords and in the market .
52 HOTELS May 2014 www . hotelsmag . com