The complexity and range of objectives, strategies and outcomes associated with marketing make it a particularly challenging area to manage effectively in hotels. Hotels face the additional challenge of operating in a market where they have relatively limited control over customer behaviour. There are unique principles underpinning the fundamentals of hotel marketing that can ensure a lower marketing budget delivers optimal results. In my view, the following principles should form the foundation of any hotel’s marketing efforts:

UNDERSTANDING THE LIMITS AND POSSIBILITIES OF HOTEL MARKETING

The hotel industry is unique in marketing terms. This is because marketing initiatives are often far removed from the booking engine. If we review historical booking data, changes in booking volume are likely to be attributable to one of three key elements:

1. Seasonality and predictable changes in consumer behaviour across your key market segments.
2. Market segmentation factors (for example, changes in one or more of your target demographics).
3. Competitive factors.

In fact, your marketing efforts may account for as little as 5% of the growth in booking volume. This does not mean that hotel marketing is unnecessary or irrelevant. It simply means that it should not be approached in the same way as it is by businesses in other industries, where marketing has a more direct influence. One of the greatest opportunities offered by a hotel marketing strategy is to increase brand awareness. This means that a long-term approach focused on a broader range of channels, both traditional and digital, is usually the best way forward.

BE PRESENT ACROSS MULTIPLE TOUCHPOINTS

Once again, variety is an important element. The booking journey customers go through is becoming increasingly diverse and complex. It involves a complex mix of digital and traditional touchpoints. Therefore, for your brand to be effective, you need to be present at as many touchpoints as possible. This does not mean you need to be everywhere at all times, but rather that marketing efforts should be focused where they genuinely make an impact. Identify the sources your customers use and establish a presence there. You can do this through data analysis to understand the purchasing behaviour of your market segments, and then specifically target the channels where your customers are.

DO NOT UNDERESTIMATE TRADITIONAL CHANNELS

While the internet has become essential, it is not replacing traditional channels. Hotels must be particularly cautious about overvaluing digital channels at the expense of traditional ones, as many bookings are still made offline. This is especially true for independent and luxury hotels with high added value. For example, global distribution systems (GDS) remain a dominant channel for corporate bookings, and their share of this market segment continues to grow steadily. Many people also book by phone because they prefer to speak to a real person before making a reservation. These telephone bookings are even more valuable because they generally secure higher average daily rates. This is due to the strong upselling opportunities generated during a phone call when it is handled effectively by the reservations team. Never ignore online channels, but avoid prioritising them simply for the sake of it. Think carefully about where and how your most profitable customers book.

EXCELLENCE IN PUBLIC RELATIONS AND COMMUNITY ENGAGEMENT

The local community surrounding the hotel is often one of its most important resources. A hotel should be an active and supportive member of the local business community. Local businesses and organisations can act as advocates and help drive bookings. Strong relationships and cooperation agreements will form the basis of excellent public relations and propel your hotel to the top whenever any of these local channels is asked to recommend a hotel to its customers.

BALANCING THE COSTS AND BENEFITS OF OTAS

In the digital sphere, online travel agencies (OTAs) are an unavoidable necessity. Up to 76% of online bookings result from OTAs, so your digital strategy simply cannot afford to ignore them. In addition, a considerable proportion of your direct online bookings come from customers who first discovered your hotel through an OTA. These channels are even important to your efforts to increase direct bookings. There is simply no way around OTAs. That said, you should avoid the extreme of trying to be present on every OTA. You need to be selective because:

• The cost of acquisition through these channels is generally around 25% due to commission and other expenses.
• Your target customers do not use every OTA. They are likely to gravitate towards just a few.
• Different OTAs use different approaches, and not all of them are equally beneficial to your brand.

It is very important to closely analyse the costs and benefits of each OTA based on factors such as its approach, the customers it reaches and the commissions it charges.

FOCUS YOUR DIGITAL STRATEGY ON BRAND AWARENESS AND ENGAGEMENT

In addition to OTAs, there are other ways to optimise your online presence. As with traditional marketing, a hotel’s digital marketing strategy should focus on building brand awareness and engaging with the community. The difference here is that you are not limited to the local community surrounding the hotel. You can engage with your customers wherever they are in the world. With this in mind, some of the key activities that should form part of your digital efforts include:

• Building a website optimised to generate direct bookings, which means paying attention to SEO and web design.
• Using remarketing, a technique whereby you use cookies to track visitors to your website and show them your ads on other sites they visit.
• Maintaining active social media accounts, with particular attention to Facebook, Twitter, YouTube and Instagram.
• Being active and responsive on review sites, most importantly TripAdvisor.
• Starting a blog and publishing regularly.

All these strategies genuinely enhance brand awareness. They can also deliver short-term benefits, such as increased traffic and even bookings. But once again, hotel marketing is generally more effective for long-term objectives and should not be measured exclusively by short-term results.

BE VERSATILE AND ACCESSIBLE

This principle is linked to the previous one about being present across multiple touchpoints. You want your brand to be present wherever your customer is. However, here we are speaking specifically about bookings. Your customer should be able to book through the channel with which they feel most comfortable. If they prefer to book by phone, you need a team of qualified call-centre agents. If they prefer to book online using their smartphones, you need a website that is easy to use on smartphones. If corporate travellers represent an important market segment for your hotel, you cannot overlook global distribution systems. Essentially, you must adapt to the preferences of your target customer. Be accessible through the channels they use. By the same logic, do not waste your budget or efforts on channels they do not use. To summarise, paying attention to these hotel marketing fundamentals lets your target customers know you exist and ensures that your brand is the one that comes to mind when they are ready to book. A marketing approach guided by the principles above will successfully achieve both aspects of that objective.