*Hospitality eBusiness Strategies Receives "Official Honoree" Distinction for the 12th Annual Webby Awards in 2008 - the only award within the hotel category this year. Read the press release here.
*Hospitality eBusiness Strategies to Present at Eye for Travel’s Social Media Strategies for Travel Conference in San Francisco. Click here to read more.
*Hospitality eBusiness Strategies wins three Adrian Awards - two Gold awards and one Bronze award in the Web Marketing category for its clients.
*One of the leading hotel management and development companies in the United States retaines HeBS to revamp its Internet marketing strategy, boost its Internet marketing presence, and significantly increase ROIs from property websites. Jan, 2008
*A major California hotel management company retains HeBS to overhaul its Internet Marketing Strategy, provide state-of-the-art analytics, eCRM and Direct Internet marketing and distribution strategies, Jan 2008
Sign-up
for our HeBS eBusiness Report Register here to receive our
e-mail only eBusiness and eDistribution related
news, articles, white papers, eMarketing surveys
and market research findings.
Featured Articles from Past Issues
of the HeBS Report
In the increasingly dynamic online travel industry, hoteliers are challenged with keeping up with changes while also keeping an eye on the fundamentals. What are hoteliers doing to reach their customers on the web? Why are they spending their budget on some Internet marketing practices over others? Where is the most business coming from on the Internet-the hotel's own website or third party intermediaries? In the recent Benchmark Survey on Hotel Internet Marketing Budget Planning and Best Practices in Hospitality, HeBS set out to answer these questions and identify trends in online marketing in hospitality. The purpose of the survey was to assess hoteliers’ 2008 Internet marketing priorities and strategies in order to compare the responses with the results received last year, and to provide the industry with insights into how internet marketing strategies for the hospitality industry are evolving. For the second year in a row, Hospitality eBusiness Strategies (HeBS) in New York City presents the results of the 2008 Benchmark Survey on Hotel Internet Marketing Budget Planning and Best Practices in Hospitality.
In 2008 approximately 40% of all hotel bookings will be generated from the Internet (one-third in 2007, 29% in 2006). At least another third of all hotel bookings will be influenced by the Internet, but done offline (call center, walk-ins, group bookings, etc). By the end of 2010, over 45% of all hotel bookings will be completed online (Merrill Lynch). Now, more than 13 years after the first online hotel booking, are hoteliers taking full advantage of this dramatic channel shift from offline to online? Has the shift increased commoditization of the hotel product? Is there such a thing as customer loyalty in this environment? How can the hotel increase its direct online market share? What are some Web 2.0/Social Media formats and initiatives to consider, develop and implement? The 2008 Top Ten New Year’s Internet Marketing Strategy Resolutions, presented by Hospitality eBusiness Strategies (HeBS) for the eighth year in a row, provide some of these answers and action steps.
Hoteliers are in the height of the budget planning season for 2008. Understandably, there is a great level of anxiety in the industry. Are you allocating the right budget for hotel marketing? What are your peers doing with their budgets? What are the best practices for 2008? Web 2.0, social media, consumer generated media—what should you do about these new media formats? What are the latest trends in Internet marketing and how should you account for them in the new budget? For a second year in a row, Hospitality eBusiness Strategies takes a closer look at some important aspects of Internet marketing in hospitality and what marketing activities and line items should comprise the 2008 Internet marketing budget.
Web 2.0 continues to generate much attention in the online travel industry. Inquiring hoteliers want to understand the status and future of search engine marketing and other Internet marketing formats in this new Web 2.0 environment. Are search engines becoming obsolete? Are Web 2.0 sites going to replace the search engines as an advertising media? Will online travel consumers abandon Google as a travel planning and research tool and shift their attention to Web 2.0 sites such as TripAdvisor.com and social networks like YouTube.com? Must a hotel engage in such strategies?
Midway through 2007, hoteliers are already planning their marketing budgets for 2008. In the past few months, HeBS has been bombarded by hoteliers requesting information on some of our favorite topics, including the latest trends in Web 2.0, paid search marketing, eCRM, web analytics and ROI tracking, marketing strategies, technology acquisition, and other topics that influence online marketing budgets. We have collected and summarized these commentaries below. Refer to this article as you prepare your own marketing plan and budget for 2008.
Internet has become the main distribution channel in hospitality-over 2/3 of all hotel bookings in the US will be directly influenced by the Internet this year. Understandably, Internet marketing has become a priority for many hoteliers who are shifting advertising dollars to the online world from traditional media and GDS advertising. This rush forward may have come at a cost to hoteliers who rely on professional marketers to sort out this dynamic and highly complicated landscape of Internet marketing. This article is not about avoiding snake oil salesmen and Internet hucksters - those should be self evident - it's about asking the tough questions when evaluating Internet marketers who will be in charge of managing your most important revenue channel.
What will happen to traditional and online distribution channels in hospitality in the next few years? How will the direct web channel outpace competitors and third-party intermediaries? With online travel growing, how do hoteliers get their fair share? These questions reflect important trends in the marketplace. Consider how these trends will impact your hotel, resort, and brand. An estimated 1/3 of all hotel bookings will be done online this year, and another 1/3 will be directly influenced by online research and planning, but booked offline. By understanding current Internet marketing trends in hospitality, including travel consumer expectations and perceptions, hoteliers can enhance their web presence, and utilize the Internet as the most cost effective and up-to-date sales and marketing channel.
The Internet has transformed Customer Relationship Management (CRM) in hospitality. A large majority of your customers are planning and booking their hotel stay online. In fact more than two-thirds of them will do that this year: 1/3 of all bookings in hospitality in North America will be generated from the Internet (30% in 2006), and at least another 1/3 will be directly influenced by online travel planning. How do you nurture, grow and retain your customer base when the competition is just a click away? How do you prepare for the future in this very dynamic and transparent online environment? How do you beat the competition for the most lucrative customer segments? By building a comprehensive eCRM strategy and creating interactive mutually beneficial relationships with your customer, any hotel company can ensure its survival in this new environment.
Free vs. Paid Analytics: We consistently receive numerous questions from hoteliers concerning how to most efficiently track and measure the ROI of online marketing efforts down to the reservation process. What metrics should hoteliers measure and pay attention to? What are the best practices in measuring ROI from the hotels marketing efforts? Or ROI from the hotel website? What are the best analytical tools out there?
Over the past few years, hoteliers have been hard at work trying to grow their online marketing revenues. Using techniques like website design, search engine optimization, paid search marketing and email blasts, many have been very successful. However, with all of the new Internet marketing channels now available (ie. Consumer Generated Media, Meta Search) many hoteliers find themselves at a loss, with no clear structure on the best strategy to produce the highest returns. In a recent benchmark study, conducted in conjunction with NYUs Tisch Center for Hospitality, Tourism, and Sports Management, Hospitality eBusiness Strategies (HeBS) set out to identify trends in online marketing techniques that have developed in the industry to help grow this distribution channel.
In 2007, over one-third of all hotel bookings will be generated from the Internet in North America. This dramatic channel shift has created unprecedented price transparency and price-driven marketing in hospitality, thus further commoditizing the hotel product. How are hoteliers handling the increased commoditization of the hotel product, especially in the current rate parity and best rate guarantee environment? How can hoteliers de-commoditize their product offerings and provide a unique value proposition to the hotel customer?
This year at least a third of all hotel bookings will be generated from the Internet (29% in 2006, 25% in 2005). Another third of all hotel bookings will be influenced by the Internet, but done offline (call center, walk-ins, group bookings, etc). By the end of 2010, over 45% of all hotel bookings will be completed online (Merrill Lynch). Are hoteliers taking full advantage of this dramatic channel shift? Has the shift increased commoditization of the hotel product? Is there such a thing as customer loyalty in this environment? How can the hotel increase its direct online market share? What are some Consumer Generated Media formats and initiatives to consider, develop and implement? Is there more hoteliers can do to compete and succeed? The 2007 Top Ten New Years Internet Marketing Strategy Resolutions, presented by Hospitality eBusiness Strategies (HeBS) for the seventh year in a row provides some of the answers and action steps.
Consumer generated media (CGM) blogs, discussion boards, review sites, social network sites, etc., has remained a prevalent subject in hotel marketing discussions in the past year. How can hotel and travel marketers use this new medium to their advantage? Should CGM be considered an opportunity to promote the hotel product and be part of the marketing strategy, or is it a threat that needs to be contained? Can a CGM initiative help hoteliers differentiate their services and de-commoditize their product? The ideas discussed in this article could help hoteliers to benefit from the opportunities presented by CGM, and build CGM into the overall Internet marketing strategy.
It gives us great pleasure to invite you to participate in the 2007 Benchmark Survey on Hotel Internet Marketing Strategies. This groundbreaking survey is presented to you by New York Universitys Tisch Center for Hospitality, Tourism and Sports Management and Hospitality eBusiness Strategies (HeBS) in New York City. The purpose of the survey is to assess hoteliers 2007 Internet marketing priorities and strategies and create a benchmark for the future. The results of the survey will be compiled and made available to all survey respondents at no cost. The survey contains 20 questions and takes approximately 10 minutes to complete.
As many hotels enter the 2007 budget planning season, this article aims to help hoteliers construct a competitive Internet marketing budget. The hotels overall competitiveness today is determined to a great extent by how well it manages its Internet marketing and distribution efforts. It is not a question of how big the budget should be, but rather what to include and how much to allocate in the Internet marketing budget for a meaningful ROI and online revenue growth. This article takes a closer look at some important aspects of Internet marketing in hospitality and what marketing activities and line items comprise the 2007 online marketing budget. By Max Starkov and Jason Price.
Strategic Linking in hospitality and its important by-product, Link Popularity, are part of hoteliers toolkit for building a robust Web presence and taking advantage of the Direct Online Channel. Strategic Linking achieves two important goals: a) exposes your website to incremental traffic and highly qualified potential bookers, and b) builds your websites Link Popularity, a crucial criteria used by the search engines to determine how to rank the website in the search engine results).
Hotel websites are often designed by those who know nothing about the hospitality industry and without taking into account fundamental search engine marketing and online distribution principles. Hoteliers often try to resolve this problem by hiring Search Engine Optimization (SEO) vendors for a quick fix of the hotel website, believing this will boost search engine rankings and increase online revenues. However, these quick fixes are often construed as spam, and only a fully optimized website can produce the desired online revenues and position your hotel company ahead of the competition. SEO vendors do not address of two crucial criteria used by the search engines...
The online channel is the fastest growing revenue stream in hospitality. The hotel website and its cash flows from online sales can influence a hotels valuation. During the diligence process, as you would assess the boiler or electrical system of the hotel, so too must you test the strength of the online revenue channel. The robustness of a web presence and the online distribution channel is becoming more popular and increasingly important. This article explores methods to assess the online channel during the purchase or sale process and how to integrate these numbers into the valuation of the property.
Hoteliers online market share is steadily growing as hoteliers are becoming savvy Internet marketers. read more about the latest trends in Direct vs. Indirect Online Distribution in hospitality.
Over the past several years a number of online booking engine vendors have launched different versions of a one-screen booking engine (as opposed to the traditional multi-step booking engine-see Marriott.com, Expedia.com, etc). The one screen booking engine is often presented as the latest cutting edge technology that immensely increases the conversion rates on a property website. Hoteliers are justifiably confused and often ask us to provide an opinion on this hot topic: one-screen vs. multi-step booking engine is the way to go. HeBS has done extensive analysis of the one-screen technology, its pros and cons and has concluded...
Search engines are an essential component of the hotel direct online distribution strategy. According to iProspects April 2006 study, 62% of search engine users click on links returned within the first page of search results. A full 90% of users click on links within the first three pages of search results.
The ease and ubiquity of blogs and their application in hotel marketing deserves a closer look. Must we act on such bold statements as "blogs are the future" and "a blog is a marketing must"? Also, what are the implications for blogs in hospitality? Should creating a blog become part of your own hotel marketing mix? Does hospitality require a different blog strategy than in other verticals? Are there alternatives to blogs? Can a blog help you differentiate your services and de-commoditize your product? What role does a blog serve if at all and what are the pros and cons of developing a blog strategy? The ideas discussed in this article could help hoteliers conceptualize the creation of a blog strategy.
In 2006, 27%-29% of all revenues in hospitality will be generated from the Internet (25% in 2005, 20% in 2004). Another 27% of all hotel bookings will be influenced by the Internet, but done offline (call center, walk-ins, group bookings, etc). By the end of 2007, 39% of all travel sales will be online (Merrill Lynch). Are hoteliers taking full advantage of this dramatic channel shift? Has the shift increased commoditization of hotel rooms and the overall experience? Is there such a thing as customer loyalty in this environment? Can one compete with the intermediaries? Has the online channel become the companys fastest growing revenue channel? Is there more a hotelier can do to compete and succeed? The 2006 Top Ten New Years Internet Marketing Strategy Resolutions, presented for a sixth year in a row but in todays context, by Hospitality eBusiness Strategies (HeBS) provides some of the answers and action steps.
Search engine marketing is 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). Search marketing is an extremely dynamic field. Search algorithms change, new search techniques and formats introduced, new search services launched, new challenges emerge on a daily basis that keep search marketers busy. The implications of all this in hospitality are enormous and some highlighted in this article.
Over the next 5 years the merchant model as we know it will disappear. It will be transformed into a "Commission Override" convergence model. Travel agency commissions will shrink from the current 10% level to 8% then 5%, in the end becoming a flat fee of $5-$10. Online merchant operators will start earning volume discounts above current agency commission levels but at a fraction of todays levels.
In 2005 25% of all revenues in hospitality will be generated from the Internet (20% in 2004, 15% in 2003). Another 25% of all hotel bookings will be influenced by the Internet, but done offline (call center, walk-ins, group bookings, etc). By the end of 2006, the Internet will contribute over 27% of all hotel bookings (PhoCusWright, CSFB). In 2004, for the first time Internet hotel bookings surpassed GDS hotel bookings. Are hoteliers ready for this dramatic channel shift? Who owns the customer in this new environment? How can hoteliers retain customer loyalty when the competition is just a click away? The Top Ten New Years Internet Strategy Resolutions, presented for a fifth year in a row by Hospitality eBusiness Strategies (HeBS) provide some of the answers and action steps.
The Internet has changed the way lodging is negotiated, managed and purchased. This year over 20% of all revenues in hospitality will be generated from the Internet (15% in 2003). Another 20% of hotel bookings will be influenced by the Internet, but done offline (call center, walk-ins). In 2004, for the first time Internet hotel bookings will surpass GDS hotel bookings. Two years from now the Internet will contribute over 27% of all hotel bookings (PhoCusWright). Are hoteliers ready for this dramatic channel shift? Who owns the customer in this new environment? How can hoteliers retain customer loyalty when the competition is just a click away?
Email Marketing is here to stay. It is an important aspect of the hoteliers Direct Online Distribution and eMarketing Strategy. Email and eMarketing in general can be used both as a direct response vehicle (short-term, results-oriented) and as a branding tool (long-term and strategic goals). Email marketing allows hoteliers to engage the customer in a strong, personalized and mutually beneficial interactive relationship at a fraction of the cost of traditional marketing. And most importantly, email marketing allows the hotelier to "own the customer" in this new online distribution and marketing environment.
Many destinations have suffered steep declines in visitors over the past three years. And while travel to some destinations is down by 10%, 15% and in some cases 20%, online travel to these same destinations has grown by 30% annually over the past three years. Hoteliers cannot control the amount of travel to their destinations. At the same time Internet-savvy hoteliers can dramatically increase their online market share at the expense of their competitors that are ?asleep at the wheel?. Hoteliers that employ robust Destination Web Strategies have an effective means to capture new lucrative markets, boost direct distribution and decrease the need for intermediaries.
New York, NY July 15, 2003. Hospitality eBusiness Strategies (HeBS), a leading Internet, eMarketing and eDistribution consulting firm for the travel and hospitality industry, today announced signing its 100th client. Fairmont Hotels and Resorts (FHR), a unique collection of 41 world-class resorts and city center hotels based in Toronto, Canada, has contracted with HeBS to help assist in developing a comprehensive on-line distribution strategy."By working with HeBS we anticipate further success with our comprehensive direct-to-consumer online strategy," noted Jens Thraenhart, director, Internet Strategy of Fairmont Hotels and Resorts. "We well appreciate the challenges in the industry presented by intermediaries and Internet channel complexity, and HeBS is assisting us to execute our online direct-to-consumer distribution strategy."
The catch phrase "Lowest Price Guarantee" is an age-old marketing tool widely used in retail since ancient times. Even before the Romans knew how to conquer merchants were selling their wares in bazaars and marketplaces drawing in buyers with a lowest price guarantee. Fast forward to present day and some of the most successful retail companies in the US tout the lowest price guarantee. The strategy has worked effectively from the corner boutique to behemoth Wal-Mart, and continues to serve as a standard marketing tool. Why have hoteliers been slow to adopt a policy on lowest price guarantee? How can hoteliers institute such a policy without interfering or alienating its prime distribution channels? What is the applicability of the lowest price guarantee in hospitality?
A little over a year ago we published the article "Brand Erosion or How Not to Market Your Hotel on the Web", which created a lot of commentaries and, we hope, made at least some hoteliers re-examine their online distribution strategies. Since 9/11, in difficult times of unprecedented crisis in travel and continued economic downturn, the Web allowed Internet-savvy and proactive suppliers and intermediaries to establish rewarding interactive relationships with their customers, move inventory and stay ahead of the competition. At the same time it punished those suppliers who had no clear Internet strategy and understanding how the Web and online distribution work. What has changed since May of 2002?
Recently Forrester Research found that 69% of US leisure travelers prefer to buy online directly from a supplier while just 27% prefer to buy from intermediaries. This is yet another confirmation that hoteliers should focus more than ever on their direct-to-consumer online distribution and should work hard on regaining control of the Web from the online discounters and intermediaries.
Airlines and car rentals are leaders of the packTravel suppliers in other travel sectors are well ahead of hoteliers in aggressively adopting online distribution. Airlines and car rental companies are pushing hard online and non-GDS distribution and are embracing the Internet as their main distribution medium. Online distribution is expected to contribute more than 22% of the airline total passenger revenue this year and more than 28% by 2005. Car rental companies expect 25% of their sales to be online this year. (PhoCusWright).
The Internet has changed the way business travel is being negotiated, managed and purchased. According to Forrester Research, 70% of Fortune 1000 companies will have installed their own self-booking systems by the end of 2002. Jupiter Media Metrix estimates that the US online managed corporate travel bookings will grow from $12 billion in 2002 to $32.8 billion in 2005.A major trend over the past years is the blending of leisure and unmanaged business travel on the Web. Are hoteliers ready to handle these new challenges? Are they in control of price integrity or are they already losing high-paying business travelers to the online discounters?
Distribution of hotel inventory via todays main distribution channels, GDS/travel agent and call center/reservation office, is inefficient and expensive, especially in light of the current weak economic situation. Ignoring online distribution and focusing only on traditional distribution channels will result in lower occupancy rates, and higher distribution and operational costs.
A commonly asked question by hoteliers today is "How can we deal successfully with the online discounters?" Brand and price erosion have become commonplace on the Web. One can even book the landmark Waldorf Astoria on Hotels.com at steep discount. Some independent and franchised hotels derive 20%, 30% and even more of their revenues from online discounters.
In the next 2-3 years HeBS expects the big online agencies/intermediaries to become even bigger through M and A. The merchant and opaque services will become even more popular at the expense of Internet less-savvy hoteliers. The disparity between Internet savvy hoteliers that push forward with comprehensive Direct Web Distribution Strategies and well-balanced Indirect Distribution Strategies, and the less savvy hoteliers (brands, franchisees, independents and hotel management companies) that are becoming increasingly dependent on the online intermediaries, will increase even further.
