In the hotel industry, advertising has become a crucial aspect of maintaining a strong market presence and driving bookings. Major players like Booking.com and Expedia have long been instrumental in generating traffic, but increasingly, hotel businesses are seeking to diversify their marketing strategies to boost direct revenue and reduce reliance on third-party platforms. 

This article explores key challenges faced by hotel owners and marketing managers, and provides insights into effective advertising strategies.

The Role of Major Platforms: Booking.com and Expedia

There’s no denying that Booking.com and Expedia play a significant role in the hotel industry, acting as primary distribution channels for attracting guests. These OTA platforms serve as virtual billboards, where hotels can showcase their services to a global audience. 

After exposure on these sites, a large percentage of guests may visit the hotel’s own website to finalise bookings. The ability to maintain a healthy ROAS (Return on Advertising Spend) for branded search terms is relatively straightforward, and many hotels benefit from the organic traffic these platforms bring.

However, the challenge arises when hotels aim to reach customers who have not previously interacted with their brand via Booking.com or Expedia. In this case, advertising costs can rise, and ROAS may not be as straightforward to maintain.

The Challenge of Attracting New Customers

Advertising to guests who have not previously seen your property through major platforms can be both challenging and expensive. It’s often difficult to acquire these customers at an optimal cost when compared to the commission fees paid to Booking.com and Expedia. As a result, many hotels find themselves grappling with the high cost of customer acquisition when trying to achieve competitive ROAS.

The key here is finding ways to attract guests directly to your website, bypassing the need for third-party commissions. This can be achieved through a variety of hotel digital marketing strategies, including paid search ads, social media campaigns, and retargeting efforts. By building a solid brand presence and offering compelling reasons for potential customers to book directly, hotels can see increased profitability while maintaining a higher ROAS.

Measuring Success: Time Lag and Campaign Impact

One of the most common questions in digital marketing is how to measure the success of advertising campaigns, particularly when it comes to generating direct bookings. Unlike impulse purchases, hotel bookings often involve a longer decision-making process, especially when potential guests are comparing options across multiple websites. As a result, there is often a time lag between when a customer sees an ad and when they actually complete their booking.

Understanding this time lag is essential. It’s important for hotels to recognise that immediate returns from digital campaigns may not always be possible. Rather, success should be measured over time, with careful tracking of customer behaviour and conversion rates to assess the effectiveness of campaigns.

Increasing Direct Revenue Through Your Own Website

Ultimately, most hotels aim to increase direct revenue from their own website rather than relying on third-party platforms. Achieving this goal requires a multi-faceted approach. First and foremost, it is essential to optimise the hotel’s website to ensure a seamless user experience, making the booking process as straightforward as possible.

Hotels should also focus on creating engaging hotel content on their websites to attract visitors. This can include informative local guides, enticing promotional offers, and high-quality images that showcase the property’s unique features. Additionally, ensuring that the website is fully optimised for conversion is vital. This includes implementing features such as easy-to-navigate booking engines, special offers, and flexible payment options.

Wrapping It Up: What Works for Us

To sum it up, the key to successful advertising in the hotel industry is balancing your efforts across multiple channels and being patient as guests move through their buying journey. At Heads On Pillows, we help hotels optimise their digital marketing strategies, ensuring they don’t just rely on third-party platforms, but also increase their direct bookings.

• Leverage your brand: Use paid ads for brand terms and retargeting to get guests who already know about you.
• Attract new guests: Use a mix of advertising strategies to reach those who haven’t heard of you yet.
• Track your campaigns: Be patient, as the time lag between seeing an ad and making a booking can vary. Monitor the long-term results.
• Focus on direct revenue: Optimise your website for bookings and create content that attracts visitors.

We hope these insights help answer some of the big questions you’ve been grappling with. If you’re interested in chatting more about how we can help you increase your direct bookings, feel free to reach out to us at Heads On Pillows. We’re always up for a good discussion and ready to help you grow your hotel’s digital presence.

Heads On Pillows – Your trusted digital marketing partner in the hotel industry.