Sales & Marketing

It was inevitable that we would move to conversational AI and on-demand UI. The writing was on the wall years ago. Hotels will be caught off guard as OTA AI agents beat them without mercy at the pricing game. It’s time to build a defensive tool.

We will still need beautifully designed websites and flows — but more as validation layers and brand showcases than as discovery engines. OTAs and suppliers will increasingly serve as structured data ecosystems rather than pure UX-driven platforms.

Are we moving to a future - interesting... Though, you remove glossy images and brand (the websites of today), don't we just return to the flat green text screens of travel agents past, but this time operated by AI? Where description and detail was the important asset to capture interest and convert the booking?

The industry average of 5-10% of total revenue makes sense for budgeting purposes. What's more important is HOW you spend your budget. Comparing a hotel's marketing budget ratio to Expedia is apples to oranges; hotels are in the service sector whereas OTAs are tech businesses.

According to HotelMarketingWorks.com, most hotels allocate between 4-8% of their total revenue for marketing activities. New hotels: 10% of projected revenue Established properties: 4-6% of actual revenue Luxury hotels: Up to 8% of revenue Seasonal adjustments are also recommended as follows: High Season: Increase budget by 20-30% Shoulder Season: Maintain regular budget Low Season: Reduce budget by 20-30% or redirect to advance bookings

The question of what percentage of total revenue should hoteliers be spending on marketing should not be answered by comparing with OTA, but rather by looking at product lifecycle and corporate goals. By product lifecycle, we mean where the hotel is standing in terms of lifetime existence: launching stage, early growth, maturity, descaling or declining?

This is ongoing learning, as LLMs continue to learn. But GEO is built on top of SEO. It has to get its knowledge from somewhere. It means UCG (ie reviews) is more important, specific content is more important and understanding your target market is more important.

I work with many hoteliers and when it comes to the topic of online discovery, the first question I ask is: have you tried to search for your property, or lodging in your area, on different AI tools lately? It's quite surprising how so few have done it.

The speed of change is extraordinary! This rapid shift to AI summaries and conversational search marks a critical turning point for hotel content. Simple keyword-stuffing is ending; AI thrives on deep context and relationships, not raw data.

Why are we always trying to oppose one against the other in terms of online search? Organic search and paid search should be seen as a single, unified digital marketing strategy. They complement and amplify each other. Why? they have a shared goal: visibility, traffic, credibility and conversion amplified by AI personalisation, the data analysis synergy: it allows to focus only on the 'converting' terms and inform the SEO content actions.

The answer is rather straightforward: if somebody is bidding on your brand terms (OTAs and affiliates, for example), you are leaving clicks and bookings on the table if you do not: that additional spot in the SERP affects your conversion rates significantly.

Who searches your hotel by its official name? These are your past guests, people referred by friends and family, people influenced by word-of-mouth, people who have read positive reviews on social media or PR about the property.