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How Much Should My Hotel Spend on Internet Marketing?


Running a hotel business is extremely competitive, and it can be challenging to stay at the top of customers’ minds. Because of this, more and more hotel professionals are choosing to increase their allocated budget for internet marketing with the goal of increasing consumer awareness and enticing more guests.

 

One of the reasons why the most successful hotels now work with a hotel internet marketing agency is because competition is tougher than ever. Hotels are having to compete with the growth of Airbnb’s market power. Not only that—they also have to deal with the popularity of online travel agencies. These travel agencies spend a sizable sum every year on marketing campaigns while getting commissions and cuts from hotel profits because of customer referrals. Did you know that revenues generated by online travel agencies are now expected to exceed revenue generated from hotel websites, even for the leading hotel brands? Hotels that do not invest in internet marketing enough are becoming increasingly and heavily reliant on these OTAs.

 

Due to the threat that is posed by travel agencies and other industry players, more hotels are starting to spend their money on campaigns that entice potential guests to book direct—and it will serve you best to do the same. The question is, how much should you spend on internet marketing? Well, this depends on your total room revenue. Experts agree that around 4% to 6% of that revenue should be allocated to your advertising/marketing budget, and ideally, 75% of that budget must be spent on the services of your chosen hotel internet marketing agency. It is recommended that you categorize your overall digital marketing budget into three, which are the following:

 

 Year-round marketing: This consists of initiatives that generate high revenue and increase direct bookings. Such initiatives include SEO, SEM, Google Display Network, email marketing, website conversion enhancements, online media, and Smart Data Marketing.

 

 Targeted and seasonal marketing: These marketing campaigns are aimed toward occupancy and seasonal needs. They are supposed to help fill rooms in times that the property needs it. It is also important during holidays and special events, where key customer segments such as family travelers and leisure travelers are expected to be looking for accommodation.

 

 Strategy and operations, technology assets: This is the foundation of the internet marketing strategy of any successful hotelier. This includes a responsive website, analytics, consulting of website revenue optimization, and cloud hosting.

 

About The Author:

 

This article is written by one of the representatives of Altitude Lifestyle. Altitude Lifestyle is one of the best hotel marketing agencies providing digital marketing services for the hotel industry. They provide best quality internet marketing solutions, which helps hoteliers drastically increase direct bookings and profitability.