What is the main difference in marketing cost and the cost of using OTAs from a hotelier’s perspective? IMEG client data shows there is a 10% – 15% difference in the cost to generate an online booking with marketing strategies versus using a OTA. The average OTA fee to generate a online reservation is between 18% – 25% depending on your relationship with the OTA.
Both candidates Donald Trump and Hillary Clinton invested millions of dollars into their marketing campaigns throughout the 2016 presidential race. How much of that budget was invested in digital marketing? According to reports by Bloomberg, Trump’s campaign invested 59 million dollars into digital and Clinton’s campaign invested 17 million. Bringing the difference in budget between the two of 42 million dollars.
OTAs can grow your business by generating bookings with your brand by driving traffic to their sites like Expedia.com, Orbitz.com, Hotels.com and Booking.com. In return for their booking production, they charge you 15% – 25%. Good or bad deal?
Since February 2000, TripAdvisor has grown at an astonishing rate. Now, the world’s largest travel site brings in over 170 million reviews related to hotels, vacation rentals, attractions and restaurants. Averaging nearly 280 million unique visitors each month, it’s safe to say a brand’s presence on the site is comparable to the importance of the way you dress for a job interview. A study of an online panel totalling 2 million people was completed by comScore for TripAdvisor. This case study revealed that 50% of travelers who book online visited TripAdvisor during their online journey. With this size segment of data, there is no argument that TripAdvisor plays a major role in the guest’s decision about where to stay. As a brand, what strategies are there to increase and sustain your presence on the site?
Data is everywhere, and, most likely, the data that businesses have stored about you have led to your transactions with them. This is not a bad thing, it just means businesses know more about us as consumers and what we value. This leaves less friction B2C and higher conversion rates, growing revenue at an optimal rate. Any business that is focusing on growing revenue is using data on the consumer’s actions online to market to back into their values.