Sell All Rooms - Sell All Rooms - EverydayEveryday

Hotel IndustryHotel Industry

The importance of the Internet to the Hotel IndustryThe importance of the Internet to the Hotel Industry

SEO & PPCSEO & PPCSocial Media OptimizationSocial Media Optimization

Second Life & Virtual Hotels Second Life & Virtual Hotels Conclusion Conclusion

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Cyberweb Hotel Cyberweb Hotel ExperienceExperience

Developed and hosting almost 500 hotel web Developed and hosting almost 500 hotel web sitessites

Managing online marketing campaigns for over Managing online marketing campaigns for over 300 hotels300 hotels

Clients range from individual 2 star hotel to Clients range from individual 2 star hotel to worldwide major luxury brandsworldwide major luxury brands

Delivered approximately $12 million in Delivered approximately $12 million in incremental business to our customers over incremental business to our customers over the past 12 monthsthe past 12 months

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The importance of the The importance of the WebWeb

Online is no longer a niche channel Online is no longer a niche channel worthy of investment for the future.worthy of investment for the future.

It is a significant channel now and It is a significant channel now and should be actively managed.should be actively managed.

Worldwide online travel sales is Worldwide online travel sales is valued at $147 billion in 2007valued at $147 billion in 2007**

Forecast to grow at 17% per year Forecast to grow at 17% per year over the next 3 yearsover the next 3 years**

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Super ObjectiveSuper Objective

Provide you the top tips and tools that can Provide you the top tips and tools that can absolutely enhance your: absolutely enhance your:

Hotel BookingsHotel Bookings Hotel Brand EquityHotel Brand Equity Lower your marketing costLower your marketing cost Leadership position Leadership position Technology Technology

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Super ObjectiveSuper Objective

These are the top strategies you must These are the top strategies you must be using if you are to prosper – or be using if you are to prosper – or even survive in today’s marketplace.even survive in today’s marketplace.

Give you ongoing resources and Give you ongoing resources and hands on assistance to help you hands on assistance to help you succeed, long after this conferencesucceed, long after this conference

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Travel & Technology FactsTravel & Technology Facts

86% of all travel and vacation research 86% of all travel and vacation research now done online now done online

Over 50% of all travel reservations Over 50% of all travel reservations done onlinedone online

If you are NOT Strongly Online - If you are NOT Strongly Online - You You Are Not In the GameAre Not In the Game

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The importance of the The importance of the webweb

Online travel sales will represent 41% Online travel sales will represent 41% of total travel sales by 2008of total travel sales by 2008**

A further 38% of consumers make A further 38% of consumers make their decision online, but purchase their decision online, but purchase offlineoffline****

This means that almost 80% of travel This means that almost 80% of travel sales will either be made online, or sales will either be made online, or strongly influenced by onlinestrongly influenced by online

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The importance of the The importance of the webweb Supplier sites are fighting back against Supplier sites are fighting back against

the OTAs and in 2005 57% of online hotel the OTAs and in 2005 57% of online hotel sales were made on the supplier site, up sales were made on the supplier site, up from 53% in 2003from 53% in 2003**

This is forecast to grow further as This is forecast to grow further as suppliers catch up with the OTAs in suppliers catch up with the OTAs in terms of technology, customer service terms of technology, customer service and marketingand marketing

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Where are the Where are the opportunities?opportunities?

There are three main opportunities There are three main opportunities that online sales present:that online sales present:

1.1. Incremental revenuesIncremental revenues

2.2. Reduced cost of saleReduced cost of sale

3.3. Enhanced brand loyalty and client Enhanced brand loyalty and client relationshipsrelationships

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Incremental revenuesIncremental revenues

The internet is a level playing field in The internet is a level playing field in terms of sales and marketingterms of sales and marketing

Everyone can attract new clients through Everyone can attract new clients through very targeted and measurable marketingvery targeted and measurable marketing

Global distribution reach is available to Global distribution reach is available to all, not just the major brands that have all, not just the major brands that have global networksglobal networks

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Reduced Cost of SaleReduced Cost of Sale

Web site enables the reliance on OTAs Web site enables the reliance on OTAs to be reduced and relationships to be to be reduced and relationships to be renegotiated in order to bring down renegotiated in order to bring down the overall cost of sale A brand web the overall cost of sale A brand web site has the lowest cost of salesite has the lowest cost of sale

Enables business to be “channel Enables business to be “channel shifted” from more expensive channels, shifted” from more expensive channels, such as travel agency or call centressuch as travel agency or call centres

A strong brand A strong brand 1111

Reduced cost of saleReduced cost of sale

Net Revenue*

Consumer Spend

$90.00

$150.00

OpaqueBrand / Rep Co.

$235.50

$275.00

GDS

TravelAgent

Pegasus

Brand or Rep Co

GDS

$250.00

$275.00

Property

WebsiteBooking

Engine

Provider

$206.25

$275.00

Merchant

Brand / Rep Co. *

Develop strategies and employ specific tactics to shift business mix to the most profitable channels

*industry averages

Enhanced loyalty and client Enhanced loyalty and client RelationshipsRelationships

A direct client should be retained for A direct client should be retained for future marketing and relationship future marketing and relationship buildingbuilding

A customer booking through an OTA is A customer booking through an OTA is likely to remain loyal to the booking likely to remain loyal to the booking channelchannel

Actively seek to build relationships with Actively seek to build relationships with clients delivered through OTAs for clients delivered through OTAs for future, cheaper marketingfuture, cheaper marketing

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How to drive incremental How to drive incremental revenuerevenue

What are the various marketing What are the various marketing opportunities?opportunities?

What is each of them good for?What is each of them good for? Where should the focus be? Where should the focus be?

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Why are search engines Why are search engines important?important?

89% of Internet users regularly use a 89% of Internet users regularly use a search enginesearch engine

In Europe, Google accounts for 76% of In Europe, Google accounts for 76% of all searchesall searches

In Asia Pacific Google accounts for 67%In Asia Pacific Google accounts for 67% In the US Google accounts for 49%In the US Google accounts for 49% It is important to know where users are It is important to know where users are

searching to adjust the approach searching to adjust the approach accordingly accordingly

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Why are search engines Why are search engines important?important?

New and incremental New and incremental customerscustomers

SEO does take up to 4 - 8 months to SEO does take up to 4 - 8 months to make a significant impactmake a significant impact

The best results require an iterative The best results require an iterative process, not a one-time effortprocess, not a one-time effort

Ensuring high-quality incremental Ensuring high-quality incremental traffic is delivered is vitaltraffic is delivered is vital

For short-term, tactical, traffic deploy For short-term, tactical, traffic deploy Pay-per-click marketing as a Pay-per-click marketing as a complimentary activity complimentary activity

1717 2.

Acquire

New and incremental New and incremental customerscustomers

PPC is a fantastic medium for turning PPC is a fantastic medium for turning on traffic immediatelyon traffic immediately

A well-researched PPC campaign will A well-researched PPC campaign will deliver significant returns and will deliver significant returns and will quickly become an ongoing activityquickly become an ongoing activity

PPC campaigns compliment SEO PPC campaigns compliment SEO activities activities

Running SEO and PPC side-by-side, Running SEO and PPC side-by-side, ensures that you own the page ensures that you own the page

18182. Acquire

Top left is the most Top left is the most valuable area of the pagevaluable area of the page

Existing customersExisting customers Managed effectively they can:Managed effectively they can:

Reduce the overall cost of sale Reduce the overall cost of sale through channel shiftingthrough channel shifting

Increase their loyalty and valueIncrease their loyalty and value Communication of the online proposition Communication of the online proposition

in an offline environment is vitalin an offline environment is vital Regular, and relevant, email Regular, and relevant, email

communication will build loyalty and communication will build loyalty and reinforce the branreinforce the bran

2020

Existing CustomersExisting Customers Building the customer database is very Building the customer database is very

important and can be achieved important and can be achieved relatively easily:relatively easily: Sign-up process on web siteSign-up process on web site Run online promotions / competitions Run online promotions / competitions Sign-up at check-in / check-outSign-up at check-in / check-out Ensure offline communication Ensure offline communication

encourages email sign-upencourages email sign-up A communication calendar should be A communication calendar should be

developed to ensure regular emails are developed to ensure regular emails are sent with compelling offerssent with compelling offers

2121 3. Retain

SummarySummary Today up to 80% of all bookings are Today up to 80% of all bookings are

influenced by the webinfluenced by the web A strategic, planned, approach to A strategic, planned, approach to

online marketing will produce far online marketing will produce far better returns than tactical activitybetter returns than tactical activity

Investing in existing customers, as Investing in existing customers, as well as prospecting for new ones, is well as prospecting for new ones, is crucial for overall successcrucial for overall success

Measuring performance and Measuring performance and adjusting campaigns will produce adjusting campaigns will produce stronger returnsstronger returns

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