Is Your Property Poised for Economic Recovery?
Now is the Time to Invest in Online Marketing
The recession isn’t over for hoteliers, but we have caught a glimpse of light at the end of the tunnel. Thanks to several hospitality research companies, it's easy to see that the recovery has begun. It's also quite apparent that it will be long and gradual. But what about your property? Are you prepared for the recovery, ready to capitalize on online travel shoppers?
When focusing on U.S. hospitality industry stats, there are plenty of positive signs. PKF Hospitality Research (PKF-HR) recently forecast that the decline in U.S. hotel demand will be over during the current quarter. Whether or not that happens in the next three months is yet to be seen, but it’s a powerful sign that the recovery has begun… and that your property should be prepared to take advantage. They also expect RevPAR to decrease by 0.5% in 2010, but that’s much improved over 2009’s abysmal 17% decline. Lastly, PKF-HR’s research shows Internet bookings for the top 30 hotel brands grew by an impressive 6.6% in 2009’s third quarter, compared to 2008.
Smith Travel Research, another respected hospitality research company, also released some positive stats. Orlando, one of the most competitive hotel markets in the country, and an excellent barometer for other vacation destinations, saw occupancy rise from 66.8% March 7-13 of last year, to 71.2% the same time this year. RevPar also increased almost 2% in the same time period.
If that data’s not enough to induce optimism, TripAdvisor’s recent annual family travel survey found that 92% of families plan to take at least one vacation this year, up from 88% in 2009, while 33% plan to take both domestic and international trips, up from 28%. A poll asking customers if they plan to use some of their tax return for travel in 2010, saw nearly half (46%) respond “Yes.”
We could go on and on with stats about the recession and hotels’ recovery, with most being positive. However, what does this mean for hoteliers? Since the economy is beginning to rally and travelers are more inclined to spend, will they automatically show up in your lobby? Will your occupancy shoot up the charts? Of course not. But with aggressive hotel Internet marketing, you can at least position your property to take advantage of the recovery.
It’s understandable if your property has slashed your online marketing budget or reduced the amount of time invested on your Website, but it’s time to rethink. As the economy claws its way back, your property needs to be prepared to capture market share and online bookings. That means investing in search engine optimization (SEO), pay-per-click ads (PPC), Website updates, e-mail marketing and social media now, before you’re robbed of market share. As travel shoppers slowly gain confidence and spend more freely, they’ll be out there for the taking. Online marketing often takes time to produce, so investing now will prevent you from missing the boat later.
We’re not talking about inordinate amounts of time and money, just enough for some optimized content (focusing on location, amenities and demand generators), a fresh PPC campaign here or there, a few e-mail offers to your property’s database and time to monitor and respond to online reviews. These items will give you visibility in the search engines, where 85% to 95% of shoppers start their travel research and almost 50% of online bookers originate from, to turn new “lookers” into “bookers.” Seeing even a modest increase in occupancy and revenue will boost staff morale and provide confidence to have a better year than 2009.
Don’t invest your time and money without a plan though. Develop strategies and goals, and determine what can be accomplished in house and what needs to be outsourced. Don’t hesitate to use a hotel Internet marketing company, or at least get expert search marketing consulting first. Regardless of budget size, or if you’re outsourcing or not, make sure your plan is clear and concise. At minimum, you’re setting up your property for success and matching the competition. With the right strategies and execution, you’ll finish the year ahead of the competition, and be sitting pretty for 2011.
VIZERGY is an Internet marketing company that empowers hotels and resorts to drive revenue through the Internet. VIZERGY offers Internet marketing, search engine optimization, paid search ads, Web site design, e-mail marketing, reservation services and e-commerce strategy development to help hotels aggressively compete online.
For more information on VIZERGY and its services, please visit www.vizergy.com, call Amakeda Ponds at 904.389.1130 Ext. 179 or email [email protected]. Join us on Facebook and Twitter.
