While Mobile Bookings Surge, Traditional Channels Hold Their Own
In a challenging economy, hotels more than ever before need to find the right mix of electronic channels - making sure they will be wherever consumers are shopping
Consumers are increasingly choosing the convenience of mobile keyboards and keypads to book their hotel stays. Today, a typical booking scenario for a typical guest may look like something like this. Surf the mobile Web for hotels from an iPhone, check out hotel offers on Facebook, and read guest reviews through TripAdvisor. Book a hotel. Remember that this trip is a special occasion. Return to the hotel website from your office computer to upgrade to a suite and reserve a day in the spa. Reservation complete, all without a phone call.
Recent statistics reflect the Web’s increasing emergence as the booking channel of choice. In 2009, according to TRAVELCLICK®’s eTRAK report, Internet bookings increased by 6.6 percent compared to 2008 and now account for 54 percent of all bookings—representing $2 billion in hotel revenue (PhoCusWright). This is the third year of consecutive growth we’ve seen in the online channel since eTRAK reporting began in 2006.
Driving the proliferation of Web bookings are such new and evolving online channels as mobile applications, social media, and behavioral networks. The mobile channel generated nearly $80 million in revenue in 2008 and 2009 (PhoCus Wright). This number is significantly higher than the revenue from booking air travel (around $60 million) or rental cars (around $20 million) through the mobile channel. Social networking sites have emerged with similar speed. According to Gartner, networking will be the most popular online activity by 2012, overtaking shopping and surpassing communication and entertainment. Hotel marketers who explore social networking in these early stages of development will have a clear competitive advantage as it matures.
Alongside these emerging technologies, the Global Distribution System (GDS) continues to be important for many buyers and contributes significantly to hotel distribution revenue—about 24 percent in 2009, according to eTRAK. Also, GDS hotel promotions, appearing when agents search the air, car, and hotel availability screens within their GDS, still have an influence on bookings. Research has found that the more useful, accurate, and visually engaging the information provided by hotels in the GDS environment, the more agents will rely on the system to book travel for their clients.
With so many choices in booking channels, your hotel’s marketing decisions have compounded in complexity. The recipe for success is all in the right mix of channels. Create the channel mix that works best for your hotel, depending on your property profile and target guest demographics. Consider a mix of search engine optimization, pay-per-click, and internet display advertising to lead shoppers directly to your website—still your most cost-effective channel. Leverage the power of social media to grow brand awareness, cultivate guest loyalty, and build online community. Continue to invest in GDS advertising as a targeted way to influence travel agent bookers and grow incremental revenue.
Most importantly, know your potential guests and where they are shopping. As new channel options find their way into your marketing mix, implement those that are relevant e to your customers’ personal and business travel needs— while developing strategies to differentiate the virtual presence of your property throughout the shopping and reservation purchase process.
Originally appeared on Hotelmarketing.net
About TravelClick, an Amadeus Company
TravelClick offers innovative, cloud-based and data-driven solutions for hotels around the globe to maximize revenue. TravelClick enables over 38,000 hoteliers to drive better business decisions and know, acquire, convert and retain guests. The Company's interconnected suite of solutions includes Business Intelligence, Reservations & Booking Engine, Media, Web & Video and Guest Management. As a trusted hotel partner with more than 30 years of industry experience, TravelClick operates in 176 countries, with local experts in 39 countries and 14 offices in New York, Atlanta, Bucharest, Chicago, Barcelona, Dubai, Hong Kong, Melbourne, Myrtle Beach, Orlando, Ottawa, Paris, Shanghai and Singapore. Additionally, the Company fosters more than 600 travel-focused partnerships for hotels to leverage. Follow TravelClick on Facebook, Twitter and LinkedIn.
