Hotel Case Study

Results

We leveraged an integrated marketing strategy and reservations enablement to achieve a steady 400% marketing ROI for 12 months.

• Bookings through less preferred online travel agencies fell from 75% of room sales
  to 30% within one year
• Average visits per guest per year rose from 1.3 to 4.6 in the first year
• Average length of stay increased from 1.9 nights to 3.2 nights in the first year

Navigating Challenges in the Competitive Hospitality Industry

The hospitality sector is dynamic and highly competitive. It is widely recognized that profit margins are often razor-thin, and the competitive landscape is undeniably intense, with formidable challengers like Airbnb and VRBO commanding substantial market shares. Moreover, with the rise of mergers and acquisitions within the space, popular hotel chains make it difficult for smaller independent hotels to thrive.

For independent hotel proprietors operating within the constraints of more modest budgets and resources, it is often difficult to differentiate and compete within the hospitality industry. This was especially true for one of our hotel clients, who struggled to gain brand recognition and needed to rely on online travel agency (OTA) listings that collected a substantial share of profits for reservations. In addition, our client found it difficult to attract repeat stays and referrals, leading to high customer acquisition and marketing costs with low repeat visit rates and a low average length of stay.

Our precision-targeted marketing techniques helped our client identify and cultivate a loyal customer base while improving marketing ROI, boosting guest satisfaction, increasing length of stay, and reducing reservations from OTAs, which preserved profit margins.

Here’s How We Did It

Initially, we focused on partnering with our client to develop a cohesive, recognizable brand presence. We also developed a new website designed and scaled for growth, encouraging higher conversions and reducing our client’s reliance on OTAs. From here, we worked to define and refine the buyer’s journey, encouraging customer loyalty and repeat visits. Through our collaborative partnership and steadfast commitment to data-driven comprehensive strategies, our client gained a cohesive brand identity and began to thrive in an ever-competitive hospitality landscape.

1. We prioritized the creation of an integrated marketing strategy and brand presence across all channels and properties. We combined traditional and digital marketing initiatives into a unified strategy to compete with the OTAs, incorporating robust digital and traditional advertising mediums.
2. Simultaneously, we assisted our client in establishing a more consistent brand presence and identity. We implemented brand guidelines to be applied to every outward-facing website and social channel, unifying the brand’s image and reputation.
3. We also launched a completely redesigned, growth-driven website. Instead of taking six months to launch, we launched a growth-driven site in a matter of weeks and made ongoing adjustments to accommodate the needs of website visitors and hotel guests.
4. To harness the power of referrals, we introduced a review program that highlighted positive reviews, integrated reviews into collateral, and leveraged those reviews as a marketing tool. This included designing and implementing a customer loyalty program that encouraged referrals and repeat visits.
5. Finally, we installed robust tracking and analytics tools to track customer interactions from the first touchpoint to the Property Management System that handled their stay. Collecting and analyzing data from individual guests, we built a more robust picture of each buyer persona and more accurately directed future marketing efforts.