Written by: Antonio Andújar
The hotel marketing budget, usually represents about 4 or 5% of total revenues. However, although it is a small amount relative to the total, most hotel success is directly proportional to that budget which is used with efficiency. In addition, so far, about 55% of hotel bookings are made on the Internet. For all these factors we say: learn how to measure the online marketing ROI in hotels to succeed.
You know we care about you. And with the hotel’s budgets already mentioned, if the return on investment (ROI) is lower than expected, you are wasting money.
SOURCE: HeBS Digital’s The Smart Hotelier's Guide to 2016 Digital Marketing Budget Planning.
In the survey conducted by HeBS through 376 hotels on the channels where they see a higher return on investment, 70% said they saw the best results in their online marketing actions. Approximately 73% of those same hoteliers say they rely on internal staff to manage their digital marketing efforts, but a recent HSMAI research indicates that increasing return on investment would be a result of outsourcing these efforts to an online marketing company.
There are several factors or best practices to consider in order to measure online marketing ROI in hotels:
Monitoring regularly the hotel’s online presence. Establish a process and assign responsibilities to ensure regular monitoring of your hotel’s online presence.
Assessing and identifying ROI for each channel. Create a sales plan to distribute most of your online business through your most profitable channel.
Tracking the dropout rate in the booking process. Identify what is missing, in terms of content and messages, that potentially attract more users to the booking process.
Measuring the time session users are on the web. Identify content that is not in your website and can help visitors stay longer on your web.
Boosting growth each year. Designed a format to track the ROI year after year.
ROI measurement and analysis play a key role in global marketing process. The great effort involved and resources needed to build a good web, ensure that content is interesting. Then market successfully implies that it is essential to learn from all actions that run on online marketing. If the initiatives are not measured, hoteliers will not know which were or were not successful. Learning from the latest initiatives will play a key role in identifying what worked and what didn’t and, therefore, what makes the hotel progress.
We don’t want to finish without recommend a post that will give you clues on how to measure your website success.