Success in Internet Marketing :Success in Internet Marketing TravelCLICK WebinarMay 2007 “there is a better way” Jerome WiseVP - eCommerce


Agenda :Agenda The importance of the Internet to the hotel industry How to impact the bottom line Taking a strategic approach to Internet marketing Building an Internet marketing plan The value of measurement and analysis


TravelCLICK’s experience :TravelCLICK’s experience Developed and hosting almost 200 hotel web sites Managing online marketing campaigns for over 300 hotels Clients range from individual 2 star hotel to worldwide major luxury brands Delivered approximately $12 million in incremental business to our customers over the past 12 months


The importance of the web :The importance of the web Online is no longer a niche channel worthy of investment for the future. It is a significant channel now and should be actively managed. Worldwide online travel sales is valued at $147 billion in 2007* Forecast to grow at 17% per year over the next 3 years* *source PhocusWright Inc 2006


The importance of the web :The importance of the web Online travel sales will represent 41% of total travel sales by 2008* A further 38% of consumers make their decision online, but purchase offline** This means that almost 80% of travel sales will either be made online, or strongly influenced by online *(Europe) source eMarketer** Forester Research 2006


The importance of the web :The importance of the web Supplier sites are fighting back against the OTAs and in 2005 57% of online hotel sales were made on the supplier site, up from 53% in 2003* This is forecast to grow further as suppliers catch up with the OTAs in terms of technology, customer service and marketing * comScore Networks, April 2006 (US)


Where are the opportunities? :Where are the opportunities? There are three main opportunities that online sales present: Incremental revenues Reduced cost of sale Enhanced brand loyalty and client relationships


Incremental revenues :Incremental revenues The internet is a level playing field in terms of sales and marketing Everyone can attract new clients through very targeted and measurable marketing Global distribution reach is available to all, not just the major brands that have global networks


Reduced cost of sale :Reduced cost of sale A brand web site has the lowest cost of sale Enables business to be “channel shifted” from more expensive channels, such as travel agency or call centres A strong brand web site enables the reliance on OTAs to be reduced and relationships to be renegotiated in order to bring down the overall cost of sale


Slide 10:Net Revenue* Consumer Spend $90.00 $150.00 Opaque Brand / Rep Co. $235.50 $275.00 GDS Travel Agent Pegasus Brand or Rep Co GDS Develop strategies and employ specific tactics to shift business mix to the most profitable channels *industry averages


Enhanced loyalty and client relationships :Enhanced loyalty and client relationships A direct client should be retained for future marketing and relationship building A customer booking through an OTA is likely to remain loyal to the booking channel Actively seek to build relationships with clients delivered through OTAs for future, cheaper marketing


How to drive incremental revenue :How to drive incremental revenue What are the various marketing opportunities? What is each of them good for? Where should the focus be?


The marketing opportunities :The marketing opportunities Before looking at the opportunities, one should consider the four stages of customer interaction: Conversion Acquisition Retention Analysis Focussing in each of these areaswill create a solid action plan


The marketing opportunities :The marketing opportunities Equal focus and specific activities should be deployed to address each of these key areas: Convert Acquire Retain Analyse Web design SEO CRM Web analysis Booking engine PPC Web design Content Linking Customer service


Site conversion is key to success :Site conversion is key to success Before investing in marketing efforts, a web site should be “fit for purpose” to convert at the highest rate Increasing the conversion ratio of visitors to bookers is the single best investment Once the site is optimised, then marketing activity to deliver incremental consumers should start


What does an optimised site look like? :What does an optimised site look like? Does it represent the brand in a clear and compelling way? Is the navigation easy and logical? Are there overt booking arguments (best rate guarantee, online-only offers, exclusive promotions) Is the content fresh, up to date and compelling? Is the “book now” button clearly displayed on every page? Is the booking process simple, quick and efficient? Is there an easy process for capturing email addresses, with clear rationale for consumers to provide their details? Is the most relevant information displayed “above the fold”? Are online security fears addressed?


Measuring site conversion is essential :Measuring site conversion is essential Site conversion should be measured every month to ensure optimum site performance Measuring Visits, Persuasion and Conversion will give an accurate picture of site performance Total site visits Total number of availability enquiries Total number of completed reservations


Driving incremental traffic to the site :Driving incremental traffic to the site Now the site is optimised and performance measurement is in place, it is time to deploy marketing efforts. Two distinct plans should be put into place to target: New and incremental customers Search Engine Optimisation, Pay-Per-Click, Linking Existing customers Email Marketing, Offline Marketing, CustomerService


Why are search engines important? :Why are search engines important? 89% of Internet users regularly use a search engine In Europe, Google accounts for 76% of all searches In Asia Pacific Google accounts for 67% In the US Google accounts for 49% It is important to know where users are searching to adjust the approach accordingly


New and incremental customers :New and incremental customers Search Engine Optimisation: Definition: the process of improving the volume and quality of traffic to a web site from search engines via "natural" ("organic“) search results SEO is the single-most important online marketing activity The benefits of a well “SEO’d” site will be dramatic This is a strategic activity, that will deliver significant long-term benefit


New and incremental customers :New and incremental customers Natural search results PPC Results


New and incremental customers :New and incremental customers SEO does take up to 4 - 8 months to make a significant impact The best results require an iterative process, not a one-time effort Ensuring high-quality incremental traffic is delivered is vital For short-term, tactical, traffic deploy Pay-per-click marketing as a complimentary activity


New and incremental customers :New and incremental customers PPC is a fantastic medium for turning on traffic immediately A well-researched PPC campaign will deliver significant returns and will quickly become an ongoing activity PPC campaigns compliment SEO activities Running SEO and PPC side-by-side, ensures that you own the page


Top left is the most valuable area of the page :Top left is the most valuable area of the page


TravelCLICK PPC Campaigns :TravelCLICK PPC Campaigns In 2007 we are running approximately 40 campaigns Forecast to generate: $8 million incremental revenue 13,000 incremental reservations Year to date, we are delivering a 8:1 ROAS


Existing customers :Existing customers Existing customers are often overlooked in the fervour to find new ones If managed effectively they can: Reduce the overall cost of sale through channel shifting Increase their loyalty and value Communication of the online proposition in an offline environment is vital Regular, and relevant, email communication will build loyalty and reinforce the brand 3. Retain


Existing customers :Existing customers Building the customer database is very important and can be achieved relatively easily: Sign-up process on web site Run online promotions / competitions Sign-up at check-in / check-out Ensure offline communication encourages email sign-up A communication calendar should be developed to ensure regular emails are sent with compelling offers


Measurement and analysis :Measurement and analysis Online offers unparalleled measurement and tracking opportunities There are three key areas to measure: Site conversion Site performance Marketing return


Measuring site conversion is essential :Measuring site conversion is essential Site conversion should be measured every month to ensure optimum site performance Measuring Visits, Persuasion and Conversion will give an accurate picture of site performance Total site visits Total number of availability enquiries Total number of completed reservations


Measurement and analysis :Measurement and analysis Site performance Correct use of the web site analysis tool will show: Where are customers visiting from Where are they leaving the site How long are they staying Which search engines are delivering the traffic This information will assist in changing the web site to meet the customers’ needs


Measurement and analysis :Measurement and analysis Marketing return Return on investment (ROI) or return on advertising spend (ROAS) are the most common metrics Equally important is the contribution that marketing efforts make to the overall business Other performance metrics to consider are: Cost-per-acquisition Number of email sign-ups


Measurement and analysis :Measurement and analysis A simple spreadsheet gives a dashboard view:


Why TravelCLICK? :Why TravelCLICK? TravelCLICK is your ideal online marketing partner 21 years experience in hotel electronic distribution Specialist Internet Marketing Services team working only within the hospitality sector Offers a full service suite of Internet marketing solutions Ongoing relationships with over 12,000 clients worldwide Shared interest in your success


Summary :Summary Today up to 80% of all bookings are influenced by the web A strategic, planned, approach to online marketing will produce far better returns than tactical activity Investing in existing customers, as well as prospecting for new ones, is crucial for overall success Measuring performance and adjusting campaigns will produce stronger returns


Success in Internet Marketing :Success in Internet Marketing TravelCLICK WebinarMay 2007 “there is a better way” Jerome WiseVP - eCommerce