Search engine marketing (keyword buys such as PPC Marketing, etc) should have already become part of hotelier’s marketing mix by now. Here is why hoteliers should consider enhancing and even boosting their keyword buys in 2007.
Search engines have become a primary tool by consumers for the purchasing and planning of travel. A recent study by DoubleClick states the following:
- Approximately one out of every two online purchases is preceded by research on a search engine.
- In the case of the travel segment, nearly three out of four travel buyers consulted search engines before making a purchase.
- Travel buyers averaged 6 relevant searches in the 12 weeks before their transaction.
- The study shows that brand names of online retailers were in the minority of all the purchase-related searches; most searched using generic terms like “Boston Hotel” or “Hotel in Boston” etc.
Trends in Search Marketing
Search engines are an essential component of the hotel direct online distribution strategy:
- According to Forrester research about 80% of overall website visits begin in a search engine or a directory service. Many other surveys also show that up to 85% of Internet users rely on search engines to locate relevant information on the Web (e.g. Google, Yahoo, MSN, etc).
- PhoCusWright surveys found that three-fifths of online travel shoppers cite search engines as resources to research their vacations.
- According to a recent study by the comScore Networks (February 2005), some 73% of online travel buyers conducted relevant keyword searches in the weeks prior to an online travel purchase.
- Merrill Lynch predicts that search-related travel bookings will double each year through 2007.
Reasons Travelers Use Search Engines
Reasons why US Online Travelers use search engines by type of travel
(as % of respondents)
Leisure Business
To get info about a destination: 61% 64%
To see available specials offers/promotions: 56% 53%
To find out about fares or rates: 52% 53%
To find things to do at my destination: 7% 46%
To learn which travel suppliers serve a market: 41% 39%
To find pictures of a destination to visit: 33% 35%
Top Ten Search Engines Among US Users
(ranked by searches, July 2006):
Searches (000) Share of Searches YOY growth
Google Search 2,783,169 49.1% 34%
Yahoo! Search 1,298,916 22.9% 42%
MSN Search 600,820 10.6% 13%
AOL Search 363,431 6.4% N/A
Ask.com Search 146,585 2.6% 67%
(Mielsen/NetRatings, August 2006) (YOY growth=year over year growth)
Conclusion
Search engine marketing plays an important role in the hotel marketing mix. Hoteliers that currently have keyword buy campaigns should continue to do so in 2007, and those not participating should consider allocating a percentage of their marketing dollars to this. At the same time we would not recommend shifting away from the other online marketing formats, such as banner advertising, strategic linking, etc.
In our view hoteliers should consider search marketing initiatives only as part of a comprehensive Direct Internet marketing strategy, together with other important aspects such as email marketing, website optimization, strategic linking and link popularity, online sponsorships and display ads, consumer generated media initiatives such as blogs, etc.
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