Being in the
hotel business is not easy—let’s not kid ourselves.
Just when you think you have discovered the secret to success for your hotel, you find out that all your competitors have been doing it for months.
We read a great deal, and we know there are many ways to attract guests, some of them innovative, yet the tried-and-tested principles of
marketing always seem to hold a trick that escapes us.
The truth is, if it were that easy, wouldn’t every hotel be applying the same techniques? Wouldn’t we all be doing well?
Perhaps the answer is that while some hotels remain focused on the 4 Ps of Marketing, others have already moved on to the 3 Is.
The 4 Ps of Marketing
In the world of marketing, we have four variables to explain how it works:
the 4 Ps of marketing. These variables are:
- Product: What are you trying to sell?
- Price and positioning: What will you charge, and where will you sit within the competitive market?
- Point of sale: Where do you expect to attract your guests?
- Promotion: How will you put your product in front of your guests?
Speaking specifically about the 4 Ps of marketing for hotels, it would look something like this:
- Product: Most likely hotel rooms, although it could also be meeting space
- Price and positioning: Are you a motel, a midscale hotel, a boutique hotel or a luxury hotel? What is your ADR?
- Point of sale: most people reading this will focus on conversion in a digital
format
- Promotion: What sets you apart, and which channels will you use to publicise your offering?
While the Four Ps are a good place to start, there has to be something more. Something that could give us a better chance of converting. The Four Ps were created at a time when direct marketing was what drove business. Now that digital plays a more important role in the customer journey, there needs to be some adjustment.
Moving into the 3 Is
There are certainly some similarities with the classic four Ps.
- Identity: What is your brand identity? How do you intend to serve them?
- Intent: How do you know who is ready to buy and when?
- Information: How will your potential guests know whether your product is right for them?
Again, since we are hoteliers, let us assume you are a mid-priced hotel with an ADR of between €160 and €180, looking to sell more rooms to new guests through digital channels.
Identity
This will depend on your particular competitive set, but essentially it is what differentiates you from your competitors. This is not who you think your competitors are, but rather who your guests think your competitors are.
Hotels in this price range can lose a great deal of money competing against far more expensive brands that are not in the same market.
Intent
Since the booking process is long and sometimes complex, how will you distinguish between guests who are ready to book and those who are simply browsing? This goes beyond demographics. If you are looking only at demographic data, you risk missing 70% of mobile buyers. Imagine what that means when combined with your entire marketing strategy. It is about ongoing push and pull.
You need to dive deeper into the data to see exactly which search terms and locations buyers use compared with those who are merely curious.
Push your marketing efforts as far from the purchase as possible, and pull them in once they have shown interest. It takes time, but it is worth its weight in gold.
Information
No guest likes being sold to. The days of intrusive advertising and marketing are behind us. The guest must make the decision for themselves. If they do not choose you, it is because you did not truly meet their needs or because they were confused about who you are and do not know whether you will fulfil their wishes. The information you provide must align with your guests’ intent and their perception of your identity.
If you focus on the guest through the 3 Is, you can expect to see better results. The four Ps are excellent and have their place, but they focus on what you believe you are selling the guest, rather than what the guest believes is being offered to them. Sometimes, it is as simple as putting yourself in the guest’s shoes to reach many conclusions.
