HeBS President and CEO Max Starkov has been invited to lead the “Successful eMarketing” blog on HOTELS magazine’s website. The following is an excerpt from Part 3 of 4 of Starkov’s article: “Hoteliers’ Action Plan to Capitalize on Rising Travel Demand.”

Action Plan: Engage your customers with social marketing

Social Media has changed how travel consumers research and plan travel, access travel information, and perceive credibility of information. eMarketer reports that more than 70% of Internet users under age 35 browse social networks. That percentage decreases for older users but is still significant, with 43.1% of those ages 35 to 54 and 18.9% of users ages 55 and older visiting social networks.

There is no doubt that Internet users are increasingly influenced by social media sites and peer reviews. By utilizing a comprehensive social media strategy, hoteliers can create social media “buzz” around the hotel, target receptive audiences, and ultimately stimulate hotel website visits, interactions and bookings.

HeBS’ 2010 Benchmark Survey on Hotel Internet Marketing Budget Planning and Best Practices showed that half of hoteliers surveyed (50% exactly) responded that in 2010 they are planning to create profiles for their hotels on the social networks.

Social marketing should become an important component of any hotel’s marketing mix and part of the comprehensive Direct Online Channel Strategy for any hotel company. Naturally, it is important to use the right ROI metrics to measure the success of social marketing efforts of the hotel.

As discussed above, social media and social marketing initiatives should be reviewed with “sober eyes” and within the context of the impact of the multi-channel marketing strategy of the hotel.

Instead of only focusing on bookings and revenue when measuring results from social media marketing, remember that currently the best uses of social media are:

• Serving as one important component of hotel’s multi-channel marketing
• Buzz-building
• Brand-building
• Interacting with and engaging customers
• Keeping up with the times, making the hotel look current, cool and up-to-date
• Driving engaged and relevant traffic to the property’s own website

What are the initiatives hoteliers can deploy in 2010 and expand in 2011?

• Facebook Fan Page with reservation widget, email capture functionality, custom design tabs, photo albums, hotel blog feeds, etc.
• Twitter Profile with customized look and feel design, contests and sweepstakes, SEO-friendly posts, etc.
• LinkedIn profile to reach out business travelers and meeting planners
• Flickr with photo albums addressing your main business segments
• YouTube hotel profile: virtual tours are out, videos are in. Develop hotel videos presenting hotel services and amenities to your different customer segments and post them on the hotel website and YouTube.

A word of caution: if your hotel cannot allocate bandwidth and resources or cannot afford to hire an external social marketing firm, do not start with social media initiatives such as Facebook Fan page or Twitter profile. The social media battleground is full of “corpses” of abandoned hotel fan pages and profiles that do more harm than good to their owners. Social marketing is a very engaging process that requires skills and consistent engagement with the travel consumer.

Action Plan: Utilize mobile marketing to communicate in real time with your customers

Mobile travel bookings are projected to grow 700% in two short years. U.S. M-Commerce will reach a staggering $1 billion in 2010 (ABI Research). Sixty-seven percent of business travelers already use their mobile devices to view hotel locations via maps (Sabre Travel Network Survey). Mobile marketing must become a vital component of the marketing mix for any hotelier.

HeBS own research and other industry sources show that between 1% – 1.5% of visitors to hotel websites already come from travel consumers accessing the hotel site via mobile devices.

Hotel guests—past, current and potential—are increasingly becoming mobile-ready, and hoteliers have to respond adequately to this growing demand for mobile services. This is the reason why all major hotel brands, travel suppliers and OTAs have mobile Internet initiatives in place, including mobile brand websites and mobile applications including iPhone apps, m-CRM and mobile marketing. In order to meet the enormous growth in consumer demand for mobile services, hoteliers must start with a clear understanding of current best practices in mobile marketing.

As shown by HeBS’ 4th annual Benchmark Survey on Hotel Internet Marketing Budget Planning and Best Practices, while a number of hoteliers surveyed were not yet planning on mobile marketing initiatives for 2010 (32.8%), many are taking some very crucial first steps.

What can hoteliers do in the remaining months of 2010 and 2011? Mobile marketing must become a vital component of the marketing mix for any hotelier.

An excellent first step is to create a mobile site, which by default is the “gravitational” center for all future marketing efforts: from text messaging and Google mobile ads, to mobile sweepstakes and applications. Budget limitations are no longer an excuse for not launching a mobile-ready hotel site.

Imagine the user experience of trying to squeeze your wide-screen hotel website, designed to fit screen resolutions at 1280 x 1024 pixels and above, onto the tiny screen of a mobile device. Our analysis shows that more than 90% of mobile users access the hotel website via mobile devices with screen sizes of 320 x 480 pixels. Accessing a “conventional” website via a mobile device, even the latest iPhone, often results in an undesirable user experience: the inability to find information needed and a predictable outcome of abandoned websites and reservations.

What should hoteliers plan for 2010 and beyond? In addition to a mobile-ready website, launching mobile contests, quizzes and sweepstakes as part of the hotel multi-channel marketing initiatives will allow you to “test the waters” of mobile marketing. Adding  Google Mobile ads as part of a comprehensive search marketing strategy is another natural step. Also, start soliciting sign-ups to the mobile opt-in list (m-list) on the website via hotel email marketing campaigns, social media initiatives, interactive sweepstakes and contests.

Location-based services, m-CRM and mobile apps are initiatives in need of careful planning, sophisticated technology, and a better economic environment. Even so, hoteliers should start thinking about how to incorporate these initiatives in the upcoming years.

Read the full article, including case studies on the Hotels Magazine’s “Successful eMarketing” Blog. I look forward to our continued dialogue. Next week, we’ll conclude our eight-step action plan with metrics and achievable objectives for the rest of 2010 and 2011.

The Travel Distribution Summit, now in its twelfth year, is North America’s largest forum for travel industry professionals. The conference will address trends, innovations, challenges, and opportunities within the industry. During his keynote, Starkov will outline a concrete mobile marketing action plan for hoteliers; offer case studies from the mobile marketing trenches; and discuss mobile booking engines, m-CRM, m-marketing lists, mobile advertising, location-based services and more. Hoteliers in attendance will gain a clear understanding of the importance of mobile strategies and learn how to launch and manage a robust mobile marketing plan for their hotels.

“Mobile travel bookings are projected to grow 700% in two short years, and US M-Commerce will reach a staggering $1 billion in 2010 (ABI Research),” said Starkov.  “Mobile marketing must become a vital component of the marketing mix for any successful travel marketer and hotelier. In order to meet the enormous growth in consumer demand for mobile services, travel marketers must start with a clear understanding of current best practices in mobile marketing, and then launch a targeted mobile strategy and campaign—starting with a mobile website. As the professional development of hoteliers and travel marketers is our passion at HeBS, I welcome the opportunity to provide attendees with a step-by-step mobile marketing action plan on how to drive incremental revenues using a sound, cutting-edge mobile marketing strategy.”

HeBS is a pioneer of mobile strategies in hospitality, creating and implementing mobile websites and mobile Internet marketing strategies for its clients. HeBS’ principals have written influential articles and research papers on the subject including “Wireless in Travel and Hospitality: Hype or Necessity?” (September, 2001) and “Mobile Marketing & Distribution Strategy in Hospitality: the Future is Already Here” (August, 2009). The firm recently won an Internet Advertising Competition (IAC) award for Best Hotel and Lodging mobile application for The Allison Inn & Spa mobile-ready website. Starkov also led presentations on mobile marketing at the last EHTEC conference, as well as at HSMAI’s Revenue Management & Internet Marketing Strategy Conference this past June.

HeBS, the hospitality industry’s leading Internet marketing and distribution consulting firm today announces the firm will present at the Hospitality Sales and Marketing Association International (HSMAI) “Revenue Management & Internet Marketing Strategy Conference” in Orlando, FL. HeBS’ Chief eBusiness Strategist, Max Starkov, will discuss “Mobile Marketing for Today and Tomorrow” on June 21, 2010 at 9:30 AM at the Orange County Convention Center. A range of topics will be discussed including the mobile distribution channel in hospitality, mobile-ready sites, an action plan for the hotel ‘m-marketer,’ and more.

The 2010 conference will focus on the latest trends in revenue management and Internet marketing, and explore revenue optimization, pricing, e-commerce and Internet marketing topics in the context of today’s challenging economic environment, through keynotes and twelve breakout sessions.

“Many hoteliers do not fully realize that the mobile Internet is not wireless access to the conventional Internet,” said Starkov.” The mobile Internet adheres to different rules than the conventional Web. For example more than 90% of mobile users access the hotel website via mobile devices with screen sizes of 320 x 480 pixels (vs. 1280×1024 pixels and above for regular websites), hence the need for mobile-ready hotel websites. Hotel guests—past, current and potential—are already mobile-ready and hoteliers have to respond adequately to this growing demand for mobile services. I look forward to sharing the latest trends and best practices in mobile marketing with the HSMAI conference attendees, and to providing concrete and actionable recommendations on what every hotelier needs to be doing in the mobile space in 2010.”

HeBS, a pioneer of mobile strategies in hospitality, creates and implements mobile-ready websites and mobile Internet marketing strategies for its clients. HeBS’ principals have written popular articles and research papers on the subject including “Wireless in Travel and Hospitality: Hype or Necessity?” (September, 2001) and “Mobile Marketing & Distribution Strategy in Hospitality: the Future is Already Here” (August, 2009). The firm recently won an Internet Advertising Competition (IAC) award for Best Hotel and Lodging mobile application for The Allison Inn & Spa mobile-ready website. Additionally, during the last EHTEC conference in February, Starkov led a presentation on mobile initiatives hoteliers should invest in for 2010 and how to apply the latest trends and best practices to their mobile Internet marketing strategies.

For more information on the “Revenue Management & Internet Marketing Strategy Conference,” or to view a full schedule, visit www.revmanagement.org or www.travelinternetmarketing.org.

Starkov presented the facts about mobile:

• The number of mobile devices has surpassed the number of personal computers.
• 41% of leisure guests and 54% of business guests with mobile phones with data plans used their phones for travel-related purposes.
• 10% of hotel guests with mobile phones with data plans have used them to reserve rooms.
• Mobile bookings are expected to exceed $1 billion in 2010.

Mobile marketing is the fastest growing sector in travel marketing. As technology continues to improve and mobile usage increases, Starkov maintains, hoteliers need to have an action plan in place to take advantage of the market.

The first step, as many have noticed when accessing their current sites from mobile devices, is a mobile-ready website, designed and developed for viewing on small screens. Once a mobile-ready website is in place, hoteliers should begin m-marketing including mobile search, m-CRM, and other initiatives to round out a comprehensive Mobile Web strategy.

Starkov’s presentation at EHTEC, “Mobile Marketing in Hospitality: the Future is Already Here,” explained to hoteliers why they can no longer ignore mobile marketing, its importance to the travel and hospitality industries, and where to begin.

To read HotelNewsNow.com’s coverage of this event, please click here. For more about mobile marketing, please click here.

Indian Wells Interactive Scavenger Hunt by HeBS

For ten days, entrants can register for the Indian Wells Interactive Scavenger Hunt and start collecting four branded clues that will be revealed via Facebook, Twitter, Email, and Text Message. First, contestants must become a fan of Indian Wells on Facebook and a follower of Indian Wells on Twitter to be officially registered for the contest and start collecting clues. Once contestants successfully collect all four clues, they are entered in a drawing to win a $1,000 free vacation that includes a two-night stay, spa treatment, dinner, and a choice of tennis or round of golf for two.  A second, third, fourth, and fifth place prize of a free hotel room will also be rewarded.

“Multi-channel marketing should become the foundation of the hotelier’s marketing efforts in 2010 and beyond,” said Max Starkov, HeBS’ Chief eBusiness Strategist.  “This new interactive initiative not only generates buzz surrounding the destination, it actively engages customers in their own environment on the social web.  In this interactive age, a destination’s website can no longer afford to serve as a mere online brochure. With the importance of social media and mobile marketing taking a forefront in the online industry, interactive initiatives that incorporate these elements become increasingly more imperative. This is not just one step in an online marketing plan to engage consumers, but an important step into the next frontier of online marketing.”

An innovative, “outside the box” multi-channel marketing solution that steps inside social media and mobile marketing, the Interactive Scavenger Hunt helps build Indian Wells’ number of fans and followers on Facebook and Twitter. It additionally helps the destination to expand its email and mobile list for future marketing initiatives.  Beyond information capture, the scavenger hunt is also an interactive branding tool that uses four clues that best describe Indian Wells as a destination.  As contestants discover each clue, they uncover four strategic words that are key to Indian Wells’ brand positioning.

The Indian Wells Interactive Scavenger Hunt ends on January 28^th when the grand prize winner of the $1,000 free vacation package and the winners of the free hotel rooms will be announced.

1. Would it be right to say that mobile still is much more a retention than a transaction channel, and mobile is not to be viewed as a direct commerce channel yet?

Max Starkov: The mobile channel has already become an important transaction channel in the U.S. and worldwide.The promise of “immediate, anywhere and anytime” Internet access, instant information and transaction capabilities, location-based services and personalization are the key advantages of the mobile Internet.

There were 4 billion cell phone subscribers worldwide at the end of 2008, according to the United Nations International Telecommunications Union (ITU) – compare this to less than 1 billion in 2002.

A recent Nielsen Mobile poll found that in 2008 only 9.2 million U.S. mobile subscribers purchased goods or services with their handsets. Yet today, mobile customers are much more at ease with the idea of m-commerce.

How serious is the demand for mobile services in the travel space? A recent report by PhoCusWright projects mobile bookings to reach $160 million in 2010 alone. Sixty-seven percent of travelers and 77% of frequent business travelers with Web-enabled mobile devices have already used their devices to find local services (e.g. lodging) and attractions.

Another poll by Harris Interactive, conducted April-May 2009, shows that 71% of U.S. adults felt that it was safe to make a purchase via a mobile phone. Forty-three percent of respondents are willing to purchase hotel rooms and 40% tickets for travel via their mobile devices.

In other words, hotel guests and travel consumers in general—past, current and potential—are increasingly becoming mobile-ready, and hoteliers and travel suppliers have to respond adequately to this growing demand for mobile services. This is the reason why all major hotel brands, travel suppliers and OTAs have mobile Internet initiatives in place, including mobile brand websites, mobile applications, including iPhone apps, m-CRM and mobile marketing.

2. Hotels have introduced their mobile site to support its guests. Hoteliers say many of their guests live on-the-go lifestyles and are technologically on all the time. How do you think mobile phone functionalities have moved on in the past 6-12 months?

In my view there are 2 dramatic events in the history of the mobile channel that are “game changing”:

• The introduction of NTT DoCoMo’s i-mode in Japan back in 1999. The i-mode converted the bland, unappealing cell phone from a purely communication device to an interactive, mobile Internet enabled personal tool. And it did this on a mass scale. i-mode users have access to various services such as e-mail, sports results, weather forecast, games, financial services and ticket booking.
• The introduction of the first iPhone in June 2007.  Apple rewrote the rules of what a smart phone can and should do, and took this device to an entirely different level. The App Store invigorated the collective creative spirit worldwide and now has over 50,000 mobile apps.

3. The choice of hotel for most people is an involved process – location, facilities, brand, price all have a role to play especially when people are choosing their annual holiday. This perhaps makes it more suitable for PC-based browsing. What do you think are pros and cons at this stage which one needs to consider to ensure mobile-related efforts get optimal results?

The  mobile Internet is not wireless access to the conventional Internet. The mobile Internet does not merely duplicate the traditional Web.  Many retailers and travel companies who literally “translated” their conventional websites for the wireless world failed to achieve any significant usage and conversions. Why? The mobile Internet adheres to different rules than the conventional Internet. Mobile users have even shorter attention spans. They have less time to browse and are often on the go. Slower speeds, yet to be perfected mobile browsers, smaller displays, limited data-input capability (e.g. the number of keywords that may be typed in a search), multi-step booking and information retrieval processes are some of the limiting factors.

Imagine trying to squeeze your wide-screen hotel website, designed to fit screen resolutions at 1280×1024 pixels and above, onto the tiny screen of a mobile device. Our analysis shows that more than 90% of mobile users access the hotel website via mobile devices with screen sizes of 320 x 480 pixels. Accessing a “conventional” website via a mobile device, even the latest iPhone, often results in an undesirable user experience: the inability to find information needed, and a predictable outcome of abandoned websites and reservations.

To solve this issue, hoteliers should offer a mobile website specially designed to provide an excellent user experience in a mobile environment.

Mobile users demand mobile sites that download fast, provide short and concise textual content with no fluff, minimalistic visual content, and navigation that is straight to the point. Efficient and simple navigation is of particular importance so people can easily find short descriptions of hotel amenities and services, maps and directions to the hotel, a toll-free phone for information and reservations, and an easy-to-use, basic booking engine.

4. Airline mobile web services have centered around making available flight schedules, fares, plus destination and airport information for all mobile phone users. How are travellers typically using airlines’ mobile web services and what are transaction-related opportunities? What new trends have you witnessed in this arena?

The airlines, in general, have mastered the mobile Internet and are ahead of the other travel suppliers. This particularly refers to the m-CRM, the mobile customer relationship management.

M-CRM or mobile CRM already rules the mobile Internet. Customer relationship management (CRM) and mobile services were meant for each other: mobile devices are constantly present, always on and usually used by only one person. Hence, using the mobile space to provide intelligent, unobtrusive and highly personalized services convinces customers that this is their service. Custom-tailored services and offerings, based on knowing your customers, matching customer preferences, and predicting behavioral techniques are only part of personalizing the customer service in this space.

Here are only some of the m-CRM and customer service initiatives possible, already in use by many of the major U.S. airlines, and some of the hotel brands:

• Mobile reservations
• Reservation confirmation text messaging
• Pre-Arrival texts (up-selling opportunity; reservation reminder; value add – e.g. what will the weather be during your stay, events and happenings at the hotel or in the neighborhood, etc.)
• Post-stay texts with short guest satisfaction surveys
• Text Alerts: weather alerts, airport delay alerts, traffic alerts (construction on a main highway into town, etc)
• Mobile check-in reminders and easy-to-use mobile check-ins

When conceptualizing and delivering m-CRM, hoteliers have to tackle serious issues like data security, privacy concerns, how to make services and applications non-invasive, and solicit customer opt-in and consent.

5. Airlines in the US are starting to allow travellers to book a flight, log on to FFPs, view schedules, and check flight status. How do you think consumers are using these services especially with a variety of web enabled devices including the iPhone and Blackberry?

In the U.S., the number of mobile phone lines has already surpassed the number of  land lines.  More than 90 percent of the U.S. population has a mobile device of some sort.

Mobile devices have become truly ubiquitous, and mobile users expect instant access to information—as well as an Internet experience that rivals the one via traditional PCs and laptops. A significant number of cell phone subscribers have access to the mobile Internet and use some kind of data service such as texting, email, Web browsing, etc.

New research from EyeforTravel shows the average number of Americans who browsed the Internet via their mobile devices grew by 61% in 2008 vs. 2007. eMarketer estimates 26.3% of mobile phone subscribers will log on to the mobile Web at least once per month in 2009, for a total of 73.7 million mobile Internet users.

6. Travel companies have been focusing on increasing loyalty and gaining advocacy of their customers via mobile phones. For instance, hotels have been delivering services to their guests via their mobile device, making their travel and stay experience easier and more convenient. How do you think mobile as an  important touch point is set to become the new form of immediate two-way communication? Also, since its permission-based, how is mobile paving way for true 1-1 relationship marketing?

In my view, Location-based services (LBS) have already created an environment  for true one-to-one relationship marketing. Location plus personalized services are not only the essence of the mobile Internet, but the very definition of what travel is all about.

Location-based services (LBS) are based on the unique ability of the mobile Internet device to determine its exact location by using GPS, and then to use that knowledge to perform functions, provide information, suggest activities, check out if friends are in the neighborhood, etc.

eMarketer estimates that there were 63 million location-based services (LBS) users worldwide in 2008, and expects this number to reach 486 million in 2012.

Ultimately, the location-based services’ success is closely tied to addressing existing and significant privacy concerns. CTIA, the international mobile industry organization, has already issued guidelines addressing user notice and user consent.

Location-based services have already greatly improved the travel consumer experience. These mobile services are expanding in use and popularity among travelers who expect to receive services such as mapping, navigation services, city guides, etc. upon arriving at the destination.

For example, a traveler approaching New York City and using LBS can obtain information on the city’s main tourist attractions, Broadway show times and ticket availability, exciting events, hotel information and promotions. They may plan or adjust existing travel plans, as well as make reservations via the LBS-equipped mobile device.  Furthermore, if they are browsing a neighborhood such as the West Village in Manhattan, they can easily search for the nearest Italian or sushi restaurant, read customer reviews, select a place, and make an instant reservation.

LBS also allows guests at large hotels and resorts to be notified of new and unscheduled performances, dining promotions, cancellation of events, and new special offers (i.e. 2-for-1 seafood buffet, 25% off day trips, $50 off spa treatments, etc). These services not only provide useful information to hotel guests, but allow good hotel marketers to sell auxiliary services and do ad-hoc promotions.

In addition to these “conventional” services, new types of LBS are already here: services like buddy beacons and friend-finders help travelers and pub hoppers alike hook up with friends who happen to be at the travel destination or in the neighborhood.

Location-based services are poised to become a great marketing tool in the hands of pro-active DMOs, resorts, hotel and restaurant chains, and tourist vendors.

7. How do you assess the availability of mobile website solution or software which works in conjunction with the hotel’s URL (which means it can take advantage of existing search engine rankings and linkage partnerships from the mobile device)? These solutions automatically detect and redirect visitors that are using a mobile device to hotelier’s customised mobile website.

Any travel supplier website, including hotel websites, if developed correctly, should be able to detect the nature of the browser used by the Internet or mobile users and serve an appropriate version of the website: a mobile site to mobile users, a “regular” website to the Internet users. The technology is even more sophisticated than that, and now there are different versions of a mobile site: for iPhone, for BlackBerry, etc

8. What trends do you foresee in travel planning, booking and post booking phase in the next year or so? From booking angle, where do you see the utility of mobile phones for core revenues and ancillary revenues?

The mobile Internet is already here. Mobile marketing allows travel companies and hoteliers to take advantage of a unique marketing and distribution medium where mobile services, marketing messages or applications are delivered via a very personal device (e.g. your cell phone or smart phone). This creates an additional responsibility for m-marketers to “thread carefully” and strictly adhere to best practices and standards due to the highly sensitive privacy concerns of mobile users and wireless carriers alike.

Travelers are already using their mobile devices to plan and book travel and hotels. Even mobile sites of small, single properties are being visited by thousands of mobile customers. Some travel and hotel companies are already taking advantage of the growing mobile traveler population and generating incremental revenues from their mobile sites, marketing and apps.

What can travel suppliers and hoteliers do in the remaining months of 2009? An excellent first step is to create a mobile site, which by default is the “gravitational” center for all future marketing efforts: from text messaging and Google mobile ads, to mobile sweepstakes and applications. As discussed in this article, budget limitations are no longer an excuse for lacking an inexpensive mobile-ready hotel site.

Launching Google Mobile ads as part of a comprehensive search marketing strategy is another natural step. Also, start soliciting sign-ups to the mobile opt-in list (m-list) on the website via hotel email marketing campaigns, social media initiatives, interactive sweepstakes and contests.

What should travel suppliers and hoteliers plan for 2010 and beyond? Location-based services, m-CRM and mobile apps are initiatives in need of careful planning, sophisticated technology, and a better economic environment. Even so, hoteliers should start thinking about how to incorporate these initiatives in the upcoming years.

Note: Max Starkov will present the session “Mobile Marketing in Travel & Hospitality: The Future is Already Here – An Action Plan for the M-Marketer” at the upcoming EyeForTravel’s Mobile Strategies for Travel USA Conference, September 16-17, 2009 in Chicago. Starkov will discuss a range of topics including the Mobile Distribution Channel, why travel marketers should care about mobile, mobile booking sites, an action plan for the travel ‘m-marketer’, and more.

Max Starkov, HeBS’ Chief eBusiness Strategist will present the session “Mobile Marketing in Travel & Hospitality: the Future is Already Here – an Action Plan for the M-Marketer.” Starkov will discuss a range of topics including the Mobile Distribution Channel, why travel marketers should care about mobile, mobile booking sites, an action plan for the travel ‘m-marketer’, and more.

“The mobile Internet has already become a reality and a part of everyday life. Mobile users expect instant access to information and an Internet experience that rivals the one via traditional PCs and laptops – and hoteliers must respond to this growing demand,” said Max Starkov. “What should hoteliers plan for 2010 and beyond? Mobile-ready websites, location-based services, mobile Internet marketing, m-CRM, and mobile apps have already quickly become part of the hotelier’s comprehensive Internet strategy.”

How serious is the demand for mobile services in the travel space? A recent report by PhoCusWright projects mobile bookings to reach $160 million in 2010 alone. Sixty-seven percent of travelers and 77% of frequent business travelers with Web-enabled mobile devices have already used their devices to find local services (e.g. lodging) and attractions.

According to Helen Raff, Eye for Travel’VP North America, “Mobile Strategies for the Travel Industry is a vital event for travel industry executives looking to increase market share by marketing, selling, and servicing your customers through their mobile phones. Fueled by the incredible growth-US mobile web browsing is increasing at an incredible rate (over 60% + last year)-we are running this event to allow travel companies to meet, debate, and understand if they should invest and if so where and how. Its fantastic to see Max Starkov, an industry thought leader, joining senior executives from top travel companies including Hilton, Hyatt United, and Travelocity on our panel of speakers.”

HeBS, one of the pioneers in mobile strategies and implementations in hospitality, creates and implements mobile-ready websites and mobile Internet marketing strategies for its clients. HeBS’ principals have written some of the most popular articles and research papers on the subject, including “Wireless in Travel and Hospitality: Hype or Necessity?” (September, 2001) and “Mobile Marketing & Distribution Strategy in Hospitality: the Future is Already Here.” (August, 2009). During the EyeforTravel conference, Max Starkov will discuss how hoteliers can take advantage of the mobile channel, how they may implement mobile marketing formats that make the most sense for their hotels, and how to apply the latest trends and best practices in their mobile Internet marketing efforts so they can realize respectable ROI and incremental revenue growth.

About EyeforTravel’s Travel’s Mobile Strategies for Travel USA Conference:

EyeforTravel’s Mobile Strategies for Travel USA conference, the premier mobile travel event to be focused 100% on mobile strategies, mobile technology and mobile marketing, will take place this September 16-17 in Chicago. The conference will offer 2 full days of practical, real-world advice from the world’s most innovative travel brands. Find out more at http://events.eyefortravel.com/tdsusa/mobile-travel/

Back in September 2001, HeBS presented an article titled “Wireless in Travel and Hospitality: Hype or Necessity?” Today, just as in 2001, the media hype on anything mobile has not eased up. Hoteliers are rightfully confused about the real impact of the mobile Internet and about the importance of the mobile distribution channel in hospitality. Eight years later, we revisit the analysis and recommendations we made back in 2001, offer an update on industry best practices, and provide hoteliers an action plan on mobile marketing and mobile channel distribution.

Note: Max Starkov will present the session “Mobile Marketing in Travel & Hospitality: The Future is Already Here – An Action Plan for the M-Marketer” at the upcoming EyeForTravel’s Mobile Strategies for Travel USA Conference, September 16-17, 2009 in Chicago.

How Big is the Mobile Marketplace?

The mobile Internet is a reality: 3G (broadband wireless services) is the standard wireless technology, G4 (much faster than 3G) is already offered in the U.S., and smart phones like the iPhone, BlackBerry, Treo, LG, etc. are a part of everyday life.

Mobile devices are truly ubiquitous, and mobile users expect instant access to information-as well as an Internet experience that rivals the one via traditional PCs and laptops. A significant number of cell phone subscribers have access to the mobile Internet and use some kind of data service such as texting, email, Web browsing, etc.

Worldwide mobile communications usage has increased dramatically since 2001:

• The number of cell phone subscribers has surged nearly 25% annually for the past eight years.
• Mobile penetration stood at 12% in 2000, and has grown to reach over 60% in 2008.
• There were 4 billion cell phone subscribers worldwide at the end of 2008, according to the United Nations International Telecommunications Union (ITU) – compare this to less than 1 billion in 2002.
• Around the world more people use their mobile phones than PCs to access the Web because mobile phones are cheaper and easy to carry around (“constant presence”).

What is the situation in the U.S.?

The number of mobile phone lines has already surpassed the number of land lines in the U.S.  More than 90 percent of the U.S. population has a mobile device of some sort.

New research from EyeforTravel shows the average number of Americans who browsed the Internet via their mobile devices grew by 61% in 2008 vs. 2007. eMarketer estimates 26.3% of mobile phone subscribers will log on to the mobile Web at least once per month in 2009, for a total of 73.7 million mobile Internet users.

Why Should Hoteliers Care?

The promise of “immediate, anywhere and anytime” Internet access, instant information and transaction capabilities, location-based services and personalization are the key advantages of the mobile Internet.

A recent Nielsen Mobile poll found that in 2008 only 9.2 million U.S. mobile subscribers purchased goods or services with their handsets. Yet today, mobile customers are much more at ease with the idea of m-commerce.

How serious is the demand for mobile services in the travel space? A recent report by PhoCusWright projects mobile bookings to reach $160 million in 2010 alone. Sixty-seven percent of travelers and 77% of frequent business travelers with Web-enabled mobile devices have already used their devices to find local services (e.g. lodging) and attractions.

Another poll by Harris Interactive, conducted April-May 2009, shows that 71% of U.S. adults felt that it was safe to make a purchase via a mobile phone. Forty-three percent of respondents are willing to purchase hotel rooms and 40% tickets for travel via their mobile devices.

In other words, hotel guests-past, current and potential-are increasingly becoming mobile-ready, and hoteliers have to respond adequately to this growing demand for mobile services. This is the reason why all major hotel brands, travel suppliers and OTAs have mobile Internet initiatives in place, including mobile brand websites, mobile applications, including iPhone apps, m-CRM and mobile marketing.

The Future is Already Here: Location-Based Mobile Services (LBS)

Location plus personalized services are not only the essence of the mobile Internet, but the very definition of what travel is all about.

Location-based services (LBS) are based on the unique ability of the mobile Internet device to determine its exact location by using GPS, and then to use that knowledge to perform functions, provide information, suggest activities, check out if friends are in the neighborhood, etc.

eMarketer estimates that there were 63 million location-based services (LBS) users worldwide in 2008, and expects this number to reach 486 million in 2012:

Ultimately, the location-based services’ success is closely tied to addressing existing and significant privacy concerns. CTIA, the international mobile industry organization, has already issued guidelines addressing user notice and user consent.

Location-based services have already greatly improved the travel consumer experience. These mobile services are expanding in use and popularity among travelers who expect to receive services such as mapping, navigation services, city guides, etc. upon arriving at the destination.

For example, a traveler approaching New York City and using LBS can obtain information on the city’s main tourist attractions, Broadway show times and ticket availability, exciting events, hotel information and promotions. They may plan or adjust existing travel plans, as well as make reservations via the LBS-equipped mobile device.  Furthermore, if they are browsing a neighborhood such as the West Village in Manhattan, they can easily search for the nearest Italian or sushi restaurant, read customer reviews, select a place, and make an instant reservation.

LBS also allows guests at large hotels and resorts to be notified of new and unscheduled performances, dining promotions, cancellation of events, and new special offers (i.e. 2-for-1 seafood buffet, 25% off day trips, $50 off spa treatments, etc). These services not only provide useful information to hotel guests, but allow good hotel marketers to sell auxiliary services and do ad-hoc promotions.

In addition to these “conventional” services, new types of LBS are already here: services like buddy beacons and friend-finders help travelers and pub hoppers alike hook up with friends who happen to be at the travel destination or in the neighborhood.

Location-based services are poised to become a great marketing tool in the hands of pro-active DMOs, resorts, hotel and restaurant chains, and tourist vendors.

What Should Hoteliers Do?

What are the “killer” applications for the hospitality space?  What are the mobile services that will allow hoteliers to take full advantage of the exploding mobile channel?  Over a third of travel companies will be investing in mobile this year (EyeForTravel).

Here at HeBS, we believe that the following mobile Internet services and applications will make the biggest impact in hospitality over the next few years.

Mobile Hotel Websites

A word of caution: the mobile Internet is not wireless access to the conventional Internet. The mobile Internet does not merely duplicate the traditional Web.  Many retailers and travel companies who literally “translated” their conventional websites for the wireless world failed to achieve any significant usage and conversions. Why? The mobile Internet adheres to different rules than the conventional Internet. Mobile users have even shorter attention spans. They have less time to browse and are often on the go. Slower speeds, yet to be perfected mobile browsers, smaller displays, limited data-input capability (e.g. the number of keywords that may be typed in a search), multi-step booking and information retrieval processes are some of the limiting factors.

Imagine trying to squeeze your wide-screen hotel website, designed to fit screen resolutions at 1280×1024 pixels and above, onto the tiny screen of a mobile device. Our analysis shows that more than 90% of mobile users access the hotel website via mobile devices with screen sizes of 320 x 480 pixels. Accessing a “conventional” website via a mobile device, even the latest iPhone, often results in an undesirable user experience: the inability to find information needed, and a predictable outcome of abandoned websites and reservations.

To solve this issue, hoteliers should offer a mobile website specially designed to provide an excellent user experience in a mobile environment.

Mobile users demand mobile sites that download fast, provide short and concise textual content with no fluff, minimalistic visual content, and navigation that is straight to the point. Efficient and simple navigation is of particular importance so people can easily find short descriptions of hotel amenities and services, maps and directions to the hotel, a toll-free phone for information and reservations, and an easy-to-use, basic booking engine.

The economy and budget limitations are no longer an excuse for lacking an inexpensive mobile-ready hotel site. Designing and building a “starter” hotel mobile site can be fairly inexpensive: from $495 for a 4-page starter site to $1250 for a 10-page mini-site. Many of our clients have some type of m-commerce site: from mobile-ready starter sites and more comprehensive mini-sites, to full-blown m-commerce sites for multi-property hotel clients.

A recent Internet Retailer survey found that 7% of online retailers already had an m-commerce site in late 2008. Having a mobile hotel site, due to the nature of location-based and in many cases impulse-driven services the hospitality industry provides, has become a priority.

Here are the typical hotel mobile site features being implemented today:

• Multi-property hotel companies and brands – automatic detection of mobile browser access, ability to search and book hotels by location, bookable special offers, interactive maps and directions to the property, area attractions information, reward program login for quick reservations and account information, Omniture or other enterprise analytical tools to track traffic and conversions, special 1-800 numbers to track mobile phone reservations, etc.
• Single property hotels and resorts can start with a simple 4 to 10-page mobile mini-site, featuring code allowing the mobile device to automatically detect the mobile site. Information on this mobile site should include the hotel’s contact information (email and phone number), reservation information with a link to the mobile version of the booking engine or a simple reservation request form, a description of the hotel’s main services and amenities, information addressing the main customer segments, and an interactive map and directions to the property. HeBS tracks traffic and conversions on mobile sites via Omniture and uses a special 1-800 phone functionality to track mobile site calls and conversions.

Case Study:

Browsing on hotel mobile websites is becoming more and more popular among mobile customers.

Mobile Booking Functionality

Enabling reservations via the hotel mobile site is another very important, though more complicated, issue. Today all major hotel brands’ mobile sites have booking capabilities. Independent hotels and resorts are usually at the mercy of their third-party PMS or booking engine vendors. Unfortunately, only a handful of these vendors have developed mobile booking capabilities, most recently SynXis and InnLink.

To facilitate mobile reservations due to the mobile devices’ limited functionality for data input, secure customer profiles need to be stored either via the hotel mobile site, the mobile booking engine vendor, or a subscription to specialized m-commerce digital wallet services. For example, for the major hotel brands, the reward program guest ID number should be sufficient to pull up all customer data and preferences needed for a hotel booking. The property selection, arrival date, number of room nights and number of rooms, all selected from easy to use drop-down lists and calendars, should be the only missing parameters.

Independent hotels and resorts can either use a mobile engine from their third-party booking engine vendor or, for the time being use a simple reservation request form. Today, either way is correct, since the majority of mobile reservations for independent hotels and resorts come from the mobile site’s toll-free telephone number. HeBS’ research shows that as much as 8 out of 10 mobile reservations come via the special 1-800 from the hotel mobile site, and only 2 are “true” mobile reservations.

Case study:

Multi-Property Hotel Company:  Bookings via the mobile booking engine and the special toll-free reservations number, January-July 2009

During the same period, the mobile site had a total of 78,953 mobile visitors. Therefore, the conversion rate was approximately 1%.

Naturally, as mobile reservations become more widespread and the comfort factor increases, hotel mobile sites will have to offer mobile booking functionality.

M-CRM and Customer Service

M-CRM or mobile CRM will rule the mobile Internet. Customer relationship management (CRM) and mobile services were meant for each other: mobile devices are constantly present, always on and usually used by only one person. Hence, using the mobile space to provide intelligent, unobtrusive and highly personalized services convinces customers that this is their service. Custom-tailored services and offerings, based on knowing your customers, matching customer preferences, and predicting behavioral techniques are only part of personalizing the customer service in this space.

Here are only some of the m-CRM and customer service initiatives possible, already in use by many of the major U.S. airlines, and some of the hotel brands:

• Reservation confirmation text messaging
• Pre-Arrival texts (up-selling opportunity; reservation reminder; value add – e.g. what will the weather be during your stay, events and happenings at the hotel or in the neighborhood, etc.)
• Post-stay texts with short guest satisfaction surveys
• Text Alerts: weather alerts, airport delay alerts, traffic alerts (construction on a main highway into town, etc)

When conceptualizing and delivering m-CRM, hoteliers have to tackle serious issues like data security, privacy concerns, how to make services and applications non-invasive, and solicit customer opt-in and consent.

M-Lists: Opt-in Customer Mobile Text List Creation

Text messaging is huge and growing. In 2008, over a trillion text messages were sent worldwide, and on average there were 357 texts vs. 204 phone calls/per month per cell phone subscriber.

Unlike email marketing, which is free, unregulated (except the toothless CAN SPAM Act of 2003) and susceptible to massive abuses in the form of unsolicited spam, mobile text marketing has to overcome two very serious obstacles:

• Mobile users, all of them burned by the email spam experience, are vehemently guarding their privacy and protecting their cell phone/PDA numbers. People are willing to share their email with just about anybody, while entrusting their mobile number only to close friends and relatives.
• Wireless carriers are taking the privacy of their subscribers very seriously and reacting fiercely to any attempts of cold calling or unsolicited text campaigns.

Therefore it is not an easy task for the hotel to create an opt-in list of existing guests and potential customers’ cell phone numbers (m-list). These guests would have to provide the hotel with explicit consent to receive special promotions or event announcements via their mobile devices-many people are wary of this.

How should you create and expand the hotel m-list?  Here are some techniques and approaches to solicit opt-ins for the hotel’s m-list, all of which require a very carefully thought-out solicitation of the mobile user’s consent:

• Guest check-in/check-out solicitations
• Website sign-ups
• Interactive sweepstakes, contests, games that require the input of a cell phone number or sending a text message to a shortcode
• Mobile barcode coupons and initiatives
• Social media initiatives
• Quizzes and polls

Mobile Advertising

eMarketer projects that mobile advertising will rise from $648 million in 2008 to $3.3 billion in 2013. This year alone marketers will spend $760 million in mobile advertising (+17.3%) and almost a billion dollars in 2010 ($995 million or an increase of 30.9% vs. 2009). Forrester projects mobile marketing to grow from 2009 through 2014 with a CAGR (compound annual growth rate) of 27%, second only to the growth rates projected in social media.

Mobile advertisers should take into account several unwritten rules that differentiate the mobile space from general online advertising.

Mobile advertising should:

• Deliver real value that goes beyond price
• Provide real convenience for the mobile travel consumer
• Be conceptualized in a way that puts the mobile travel consumer in charge

Many “ugly” advertising approaches from the e-commerce world, such as pushy, “in your face” advertising campaigns, cold calling in the form of unsolicited email marketing, “bait and switch” type of paid search campaigns, etc. should be discarded once and for all. These advertising formats will never work in the mobile space due to the existing overt hostility toward any intrusion in customer privacy by both consumers and mobile carriers.

What are the mobile marketing formats that are of particular interest for hoteliers? In our view there are 4 areas of interest for hoteliers:

1.       “Traditional” Mobile Advertising

This includes proven advertising formats from the non-mobile Internet world: sponsored mobile search listings (e.g. Google mobile ads), mobile banners, and mobile barcode-type of advertising initiatives.

Due to space constraints, creating short but appealing marketing messages is a challenge with both the mobile search and display formats. Mobile barcodes, similar to Japan’s very popular QR code, are already becoming part of the marketing mix of retailers worldwide.

Case Study:

Google Mobile Ads

More and more people are browsing the mobile Internet via their mobile devices and are being exposed to Google mobile ads, which results in visits to the hotel mobile site or reservation calls via the 1-800 number. Here are the Google mobile ad views/impressions for sample hotels across the U.S. from January-July 2009, which constitutes a significant increase of 35%-50% vs. the same period of 2008:

Hoteliers have to be prepared to work with conversion rates and campaign tracking technology that are different from the Internet world.  Website analytical vendors like Omniture and ad delivery and tracking technology vendors like DoubleClick have already deployed mobile campaign and conversion tracking technology. For example, DoubleClick Mobile provides full compliance with Mobile Marketing Association (MMA) standards, reports on impressions, clicks, jump pages and third-party metrics, dynamically displayed ads, and handles custom executions for jump pages – coupons, media downloads and more.

2.       Location-Based Services (LBS)

LBS-based advertising is a “hot” new area where m-marketers are already testing interesting initiatives to promote businesses to travelers based on their physical location. LBS-based advertising includes a wide range of marketing formats and options that have one thing in common: advertising is tailor-made to fit the concrete GPS location of the mobile user at any given time. Examples include offering discount coupons for the closest Starbucks, special pre-fixe dining at a nearby restaurant, and banners for businesses based in the vicinity.

Imagine the impact LBS-based advertising could have in hospitality, which is location-based itself: from “beaming” deals for hotels at the next exit to travelers on the interstate, to offering 2-for-1 drinks at the hotel bar to hotel guests or passers-by, to giving $50 off all massages for walk-in guests to come to the hotel spa within the next hour. For example, HotelPal, a new app for iPhone, takes your physical location via GPS and then shows you all the hotels in your vicinity including rates and special offers, and provides booking capability.

3.       Mobile Text Marketing

There are two approaches for mobile text marketing: 1) to the hotel’s own opt-in m-list, or 2) to “rented” m-lists.  Similar to email marketing to the hotel’s own email list, the preferred and recommended m-marketing approach is to target the hotel’s own opt-in m-list. Once the hotel addresses the privacy and customer consent issues as discussed above, and generates an m-list of opt-in cell phone subscribers, the next logical step is to conceptualize the text campaigns and decide on their frequency. Providing real value and building expectation should be the underlying considerations.

Text marketing to “rented” m-lists is not considered best practices, similar to renting email lists. With rented m-lists there is an additional aggravating factor, which is the extra sensitivity of mobile users about privacy issues.

Here are sample text message marketing campaigns:

• M-Coupons – e.g. discount coupons for a free drink at the bar, 10% off a reservations, etc.
• Sweepstakes – e.g. text “sweeps” to a shortcode and enter our Free Room Giveaway
• Contests
• Interactive games

4.       Mobile Applications

Mobile applications or “apps” have exploded in popularity with the introduction of the first iPhone. Apple boasts over 50,000 applications (both free and paid) that people can download via the iPhone Apps Store. BlackBerry has a similar apps storefront with a growing number of apps.

From interactive maps, to Frommer’s and Lonely Planet travel guides, restaurant and hotel reviews, to flight status, personal tours and currency exchange calculators, there are apps for practically everything.

A number of hotel brands have launched their own apps. For example, Omni Hotels’ new free iPhone application enables iPhone or iPod touch users to book hotel rooms, search rates and reservations and receive special offers directly through the app. The app gives full access to Omni’s mobile site, and includes features like mobile check-in and loyalty account sign-in.

Here are just some of the intriguing downloadable apps currently available for hospitality and travel:

• Interactive games themed around a travel brand, destination or type of travel: cruising, foreign travel, family travel, etc.
• Interactive contests
• Apps sponsored by travel/hotel brands
• Personal tours of a city/destination (e.g. tour starts/ends at your hotel or resort)
• Interactive games where the hotel/resort is at the center of the activity

Mobile apps are good branding tools, though not many hotel companies can afford the expense in this economic environment.  Application development costs vary, but can start from $25,000 for an app that people would want to download.

Conclusion

When HeBS released the article “Wireless in Travel and Hospitality: Hype or Necessity?” in September 2001, no one could foresee how big the mobile channel would become. Luckily, many of our predictions materialized, some beyond our most optimistic expectations.

The mobile Internet is already here. Mobile marketing allows hoteliers to take advantage of a unique marketing and distribution medium where mobile services, marketing messages or applications are delivered via a very personal device (e.g. your cell phone or smart phone). This creates an additional responsibility for m-marketers to “thread carefully” and strictly adhere to best practices and standards due to the highly sensitive privacy concerns of mobile users and wireless carriers alike.

Travelers are already using their mobile devices to plan and book travel and hotels. Even mobile sites of small, single properties are being visited by thousands of mobile customers. Some travel and hotel companies are already taking advantage of the growing mobile traveler population and generating incremental revenues from their mobile sites, marketing and apps.

What can hoteliers do in the remaining months of 2009? An excellent first step is to create a mobile site, which by default is the “gravitational” center for all future marketing efforts: from text messaging and Google mobile ads, to mobile sweepstakes and applications. As discussed in this article, budget limitations are no longer an excuse for lacking an inexpensive mobile-ready hotel site.

Launching Google Mobile ads as part of a comprehensive search marketing strategy is another natural step. Also, start soliciting sign-ups to the mobile opt-in list (m-list) on the website via hotel email marketing campaigns, social media initiatives, interactive sweepstakes and contests.

What should hoteliers plan for 2010 and beyond? Location-based services, m-CRM and mobile apps are initiatives in need of careful planning, sophisticated technology, and a better economic environment. Even so, hoteliers should start thinking about how to incorporate these initiatives in the upcoming years.

Consider seeking advice from a mobile-ready, full-service hotel marketing and direct online channel strategy firm to actively help you take advantage of the mobile channel one step at a time. Learn which mobile marketing formats make the most sense for your hotel and how to implement latest trends and best practices in your mobile Internet marketing efforts so you can realize respectable ROI and incremental revenue growth.

About the Author and HeBS:

Max Starkov is Chief eBusiness Strategist at Hospitality eBusiness Strategies (HeBS). HeBS is an award-winning, full-service Internet marketing and Direct Online Channel Strategy firm, strictly dedicated to the hospitality and travel verticals. Having pioneered many of the “best practices” in hotel Internet marketing and direct online distribution, HeBS specializes in helping hoteliers profit from the direct online channel and transform their websites into the hotel’s chief and most-effective distribution channel, establish interactive relationships with their customers, and significantly increase direct online bookings and ROIs. Visit us online at www.hospitalityebusiness.com

A diverse client portfolio of over 500 top tier major hotel brands, luxury and boutique hotel brands, resorts and casinos, hotel management companies, franchisees, independents, and CVBs has sought and successfully taken advantage of HeBS’ hospitality Internet marketing expertise. Contact HeBS consultants at (212)752-8186 or info@hospitalityebusiness.com.