Debunking the Myths: Marketing in Travel
What if we tell you that 89% of travel-related searches get done on mobile devices? How about the fact that 30% of travel website traffic come from organic searches? These are crucial statistical data to know what your consumers want, but are you harnessing it in the most effective manner with the right tools and strategy, or is there still room for improvement?
With expert tips from Blessy Townes from Discovery Hospitality and Chris Legaspi of Archipelago International Hotels, Resorts & Residences, we navigate through the hot phrase, if ‘Content is King” is an overrated piece of advice or truly useful for your company as well as conventional way properties allocate digital ad spend, which hinders growth of direct booking revenue.
Words of advice gets thrown everywhere. What’s one advice you think shouldn’t be followed blindly?
Chris: In the hotel and travel industry, I've often heard the advice that "Content is King." While there's some truth to it, I find this piece of advice a bit overrated, especially when it's taken to the extreme. Here's why: Simply creating a ton of content without understanding your target audience or having a clear marketing strategy can lead to a lot of wasted effort. Sometimes businesses, including hotels, get caught up in churning out blog posts, videos, or social media updates without thinking about what they're trying to achieve. The result is often a lot of noise without much return on investment.
So what can hotel marketers do?
Chris: If you're in the hotel industry, what's more practical and impactful is crafting content that genuinely connects with potential customers. Think about what your guests really want and need, and then create content that addresses those needs. Don't just create content for the sake of having it. So, if someone in your team brings up the "Content is King" mantra, remind them that it's not about the quantity, but the quality and relevance of the content that matters most. That's how you create meaningful connections with your audience and, ultimately, drive more business.
Can marketing be used to further increase revenue?
Blessy: We need to learn the practice of setting ad spend or budget based on cash flow, P&L Statement or just how much we are willing to shell out. We should learn how to measure our ROIs and make data-driven decisions based on that figure. You need money to make money. If you want to make more money, then you may need to put in more marketing dollars. In more strategic campaigns, even ROIs are not measured on the basis of revenue generated, but the Customer Lifetime Value (CLV) of the guests.
What are some common mistakes hotels make when setting marketing budgets and how can we avoid them?
Blessy: Marketing ad spend is a critical factor in driving and growing direct bookings. We need to shift our mindset from setting ad spend or marketing budget based on cash flow, P&L Statement, or just how much the property is willing to spend. Instead, we should measure and maximize our direct booking ROI. While it’s true that you need money to make money, it’s important to continue investing in the right channels that yield the highest returns. In more strategic campaigns, even ROIs are not measured solely on the basis of revenue generated, but also on the Customer Lifetime Value (CLV) of the guests. By taking into account the long-term value of a customer, we can make data-driven decisions about how much to invest in marketing and which channels to prioritize rather than working on a fixed budget, especially if we see that our direct booking campaigns are performing exceptionally.
Chris Legaspi
Vice President
Archipelago International Hotels
