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Competing with Million Dollar
Marketing Budgets
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In 2014, Priceline Group increased its advertising spending to hit $2.6 billion while
Expedia Inc.’s advertising jumped to $1.6 billion1.
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15-30%Average commission OTA’s now charge hotels2.
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Branded Hotels Fight Back
Hilton: Stop Clicking Around
Marriott: It Pays to Book
Direct
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OTAs will represent 58% of US independent properties’ online volume this year, compared to a 48% share for chains3
Independent Hotels
Branded Hotels
58% 48%
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3 Ways Independent Hotels Can Maximize Budget
Finding A Niche
Using Segmentation
Creating A Marketing Mix
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1.Find Your NicheWhat Makes Independent Hotels Unique? Their Independence
Market their uniqueness. Travelers now expect for their hotel to have as much character as their vacation.
Hotels Should
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80 MillionBookings through Airbnb in 20154
The rise of Airbnb has validated the consumer’s want for more unique and personalized experience.
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2. Use SegmentationIndependent hotels know their clientele better than any brand.
Use data + segmentation to produce content directly focused on each segment of guest.
Hotels Should
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70%Of consumers now expect personalization5
From the booking process to in-stay and post-stay marketing campaigns, marketers at the independent level are able to
better communicate their guest’s needs and wants.
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Implement A Marketing MixOver the last three years, the hospitality industry has seen a boom in the amount of technology providers focused on hotels
Create a mix of tools and platforms to create the most effective digital experience for their guests.
Hotels Should
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62%# of Millennials who say online content drives loyalty6
Determining the guest behavior will tell hotel marketers which tools to implement for a strategy focused on their
niche and personalizing the experience for guests.
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Learn More
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1.https://skift.com/2015/02/20/priceline-and-expedias-advertising-arms-race-in-2014/
2.https://skift.com/2016/04/25/everything-you-ever-wanted-to-know-about-hotel-industrys-complaints-against-otas/
3.https://www.tnooz.com/article/independent-lodging-break-from-OTAs-Phocuswright/
4.http://venturebeat.com/2015/09/28/airbnb-bookings-reportedly-expected-to-double-to-80-million-this-year/
5.http://www.momentology.com/3362-70-of-consumers-want-more-personalized-shopping-experiences/
6.http://www.businesswire.com/news/home/20150212005205/en/NewsCred-Study-Reveals-62-Millennials-Feel-Online