7 Brutal Problem Spots that Cause Terrible Hotel Advertising ROI
Hotel advertising commonly has terrible ROI. Why? These 7 problem spots are what we see over.....and over.....and over again.
Andrew Bean
3
minute read
Has your hotel's revenue plateaued? Pretty easy to happen in today's ludicrously competitive industry.
It's a bloodbath out there.
But luckily, there are people out there (like us) that have seen enough of these problems firsthand to identity them and build solutions to solve them. So without further ado, here are the seven problem spots we see in hotel marketing efforts that are kneecapping revenue growth.
These appear over, and over, and over, and over, and over. Here's what's killing the ROI of your hotel's advertising program:
OTA dependence is bleeding you dry
Reality: Over-reliance on Online Travel Agencies (OTAs) like Booking.com and Expedia can erode your profits due to high commission fees.
Consequence: If you don't invest in strategies to drive direct bookings, you'll continue to lose a significant chunk of revenue to these middlemen.
Adaptation: Enhance your website, improve SEO, and create compelling loyalty programs to encourage direct reservations.
Ignoring mobile optimization excludes a good chunk of your sales
Reality: Mobile devices account for a growing share of travel bookings.
Consequence: A non-mobile-friendly website will alienate a significant portion of potential guests, driving them to competitors.
Adaptation: Ensure your website is fully optimized for mobile devices with a seamless booking process. And for heaven's sake, make sure your search rankings are optimized. Use our strategy to find almost free search traffic that you're likely missing.
Inauthentic, overly perfected social media posts
Reality: Social media platforms are crucial for engaging with potential guests and building a community.
Consequence: Neglecting social media means missing out on a vital channel for marketing and guest interaction, leading to reduced visibility and engagement.
Adaptation: Develop a consistent, engaging social media strategy with regular posts, stories, and interactions.
Intuition-based marketing decisions - instead of using data
Reality: The hospitality industry is becoming increasingly data-driven, and gut-feeling decisions are risky.
Consequence: Ignoring data analytics can lead to misguided marketing strategies and missed opportunities.
Adaptation: Invest in data analytics tools to understand customer behavior, preferences, and trends to make informed decisions.
Not investing in personalized experiences for guests - no matter how small
Reality: Guests expect personalized experiences based on their preferences and behavior.
Consequence: A one-size-fits-all approach will make your marketing efforts feel generic and unappealing, leading to lower engagement and bookings.
Adaptation: Use customer data to create personalized marketing campaigns, but most critically use free data and paid market research reports to decide what NOT to focus your efforts on. And tailor the guest experience using existing customer data. Be it a spreadsheet, analytics tool or whatever - the data is available, stop ignoring it. It isn't 1990 any more.
Lacking content or posting half-assed, sales-focused posts
Reality: High-quality, engaging content is essential for attracting and retaining guests.
Consequence: Poor content can damage your brand’s image and fail to inspire potential guests to book.
Adaptation: Invest in professional content creation, including videos, blogs, and photography, to showcase your property with authenticity. And for crying out loud, do not use AI to generate your images. These HAVE to be human-made, authentic and imperfect. Authenticity is what sells now, especially when perfection can be faked.
Sustainability as a sales tool, rather than being authentic
Reality: Eco-conscious travelers are growing in numbers, and sustainability is a significant factor in their booking decisions.
Consequence: Ignoring sustainability can alienate this demographic and damage your reputation.
Adaptation: Implement and promote sustainable practices, and then promote the hell out of them. But make them realistic, actual and - most importantly - provide a backdrop and story of why this particular part of environmentalism matters to you. Like protecting Miami Beach's sinking water table, or reducing plastic waste dumped in Kenyan national parks. It's gotta mean something.
The brutal costs of ignoring these 7 problem spots
If hotel owners fail to adapt to these brutal truths, the consequences will be dire:
- Financial Strain: Increased dependence on OTAs will continue to siphon off profits, leaving less revenue for improvements and growth.
- Loss of Market Share: Competitors who embrace these truths will capture more market share, leaving you struggling to catch up.
- Brand Erosion: Poor online presence, generic marketing, and lack of personalization will erode your brand's value and guest loyalty.
- Irrelevance: Ignoring sustainability and mobile optimization will render your property irrelevant to modern travelers, leading to a decline in bookings.
Real talk
Facing these brutal truths head-on is essential for hotel owners who want to grow their sales and stay competitive in 2024. By addressing these unspoken realities and adapting accordingly, you can position your hotel for success in an increasingly challenging market.
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