PLANNING MARKETING OBJECTIVES FOR THE REOPENING OF A HOTEL

To achieve a correct planning of digital marketing objectives and to be able to plan the investment in a temporary period without ups and downs derived from the COVID is a really complex task. However, we are facing a major challenge if we take into account this new COVID era in which the pace of vaccination as well as the progressive opening of restrictions at national and international level will determine our ability to react (and invest).

In a highly complex model, both internally and externally, the key is to be able to develop a good strategic digital marketing plan. A "roadmap" that shows us the ideal way to achieve our objectives, without forgetting that in the hotel model our spending scale is set by the average intermediation cost of the OTAs and that we will have to work hand in hand with the Revenue Management department.

Maximizing direct sales for maximum balance is the fundamental key to our equation. A balanced ROI on a maximum distribution of direct sales, without forgetting that in times of COVID we need to push in all directions to achieve maximum occupancy as well. In short, a major challenge for any marketing team that is required to plan investment and sales objectives in which the weight of historical data is so uncertain, since we are practically in a situation similar to the opening of a new establishment.

Strategic planning and sales distribution
Regardless of the situation in which we find ourselves, everything depends on a good strategy, a roadmap that sets out an "a priori" path, which may well require shortcuts or major detours if the situation so requires. However, our strategic model must be our "compass", our "metronome", which allows us to go back and forth, to accelerate or decelerate, without the risk of getting lost.

A hotel digital marketing strategy encompasses many needs, but it should focus on a single main objective because, otherwise, we run the risk of not knowing in which direction it is necessary to push, something only achievable in complex quantum physics models based on cones. Can anyone imagine having to move a car in different directions at the same time without being able to split the vehicle?

Although this quote comes from a theoretical physicist like Carlo Rovelli, it is totally extrapolable to our model of building objectives with time planning. So we are going to simplify and work based on an indicator that over the years we have seen that it is better adapted to the needs of the sector: ROI (Return On Investment). But we are going to do it from a slightly different perspective to the classic marketing model to match it to the concept of commission. In this way our ROI is actually the commission percentage of the direct channel and in this way we establish a comparison as if it were just another OTA. We know it is a somewhat particular way, but the hotel context requires an adaptation of the models so that everything is clearer.

Main KPIs and tools
Now that we have targeted our main indicator, ROI, let's talk about some of the indicators (or KPIs) that are essential for our target model. However, let's never forget the ecosystem in which we find ourselves, since the hotel sector has some very specific particularities compared to other business models (in fact, each business model has its own ecosystem framed in a historical and social context). One of these particularities lies in the need to establish a fully synchronized strategy with the Revenue Management department. We cannot imagine a hotel marketing model without a high degree of knowledge in Revenue Management, and vice versa. The key to success is precisely the synergies between both departments.

To develop a good Data Set, we will need to define a starting point for both Marketing and Revenue. We could draw up a very long list, but let's focus on the essential players:

• Marketing

  • Sesiones

  • Bounce rate

  • Input to engine (action of outputting the website to a proprietary or external engine)

  • Transactions

  • Revenue

  • Phone and email events

  • ROAS

  • Average position in search engines
     

• Revenue

  • ADR

  • OCC

  • Average Online Reputation Value (Booking would be enough)

  • Advantages of direct booking
     

We will need to work on this set of data based on target audiences and segments of interest, assuming that there is a professional Revenue work behind it, which will allow us to work with the peace of mind that all the details are controlled: disparities, balanced sales in OTAs, competitive advantages for direct sales, etc. In short, the Revenue strategy pursues the same objective of maximizing direct sales.

In terms of areas of action, there is a wide range of possibilities in the current market (SEO, SEM, meta search engines, social networks, communication) and in each of these areas there are many tools (in SEM alone we find Google Ads, Bing Ads, RTB or programmatic, Native Ads...). Therefore, it is important to first have clear objectives because having a well-balanced direct sales implies being very skillful with the tools we are going to use. In an ideal scenario, growth should always be qualitative, i.e. use the minimum to achieve the maximum. This is the secret to generating the most balanced ROI possible.

Balancing an ROI
Here lies the big difference between working with a development of static actions and working with highly qualified professional teams and, especially, with an important knowledge of Revenue strategies in the hotel sector. Can anyone imagine an F1 car driven by someone who has no idea of mechanics? How will he adapt his speed if he is told that he has a loss of power in the differential if he does not know what the differential is? Knowing how to differentiate between an ADR and a REVPAR, to give a very basic example, but also being able to understand and participate in the evolution of a Revenue strategy is something that any hotel marketing strategist should be very clear about. And this is the only way to find the maximum ROI balance.

It is simply necessary to understand that the marketing strategy does not rely solely on direct sales, since without ROI control this indicator could be totally unbalanced. I have seen projects with 70% direct sales and an ROI of 18%, which makes me wonder if it is worth the investment in time and effort to be equal to an OTA.

Let's ask a simple question with a unique sales model between OTA and direct sales: What generates the highest profit margin for a store if we have had annual revenues of 1,000,000 €?

Simulation scenario:

• Hotel with X rooms
   

• Gross annual turnover of 1.000.000 €.
   

• OTAs and direct sales only
   

• Direct sales include:

  • Agency fee/s

  • Investment in campaigns

  • Booking engine
     

Model A

• Distribution of sales

  • OTA 40% | Direct sales 60%

• Intermediation

  • OTA 18% | Direct Selling 10%.
     

Model B

• Distribution of sales

  • OTA 50% | Direct sales 50%

• Intermediación

  • OTA 18% | Direct Selling 6%
     

Model C

• Distribution of sales

  • OTA 60% | Direct sales 40%

• Intermediación

  • OTA 18% | Direct sales 2%