Laffitte Conseil

10 things you can do in response to traveler reviews

Traveler reviews have become part of the daily dialogue of web travel shoppers. The architecture of participation that is a basic hallmark of web 2.0 has resulted in users adding value to a site each time they write a review or upload a photo. It’s no wonder that up to 84% of people visiting a site hosting consumer generated content (CGC) have their hotel choices affected by what they see. Millions of travelers log on daily and may experience a property through hotel generated photos and written text, but they find reviews and candid photography much more believable.

Many in the industry feel review sites are not objective and may be manipulated. They feel the content is not controllable or actionable and reject the opportunity to manage these sites by saying the comments might be inaccurate. However, what matters in the issue of web 2.0 sites is whether guests perceive them to be accurate. So far, customer research indicates they do. Furthermore, the research shows increasing numbers of possible clients are researching on third party sites, even if they are booking on brand sites.

The model has changed from a brand or property image that was controlled by the supplier, to one that is forged in dialogue with consumers. And this image is being debated at the virtual point of purchase. The combination of increasing numbers of web-savvy consumers, the web 2.0 frenzy focusing on social media, and increased travel site volume, have created a ‘wild-west’ environment where hotels’ traditional comment card programs and advertising dollars are being trumped at the point of decision by dialogue in the public square.

Complete article

Online travel industry adapts to consumer wants

According to a recent report from Tealeaf, online travel sales will reach $142 billion this year.

According to the report about 90% of American business travelers first turn to the web to make their plans and about 83% of leisure travelers go online once each month to plan a trip.

However, many travel hubs are falling behind because the sites aren't offering what consumers really want. The report indicates that travel hubs which offer personalization services, peer-to-peer reviews, simple navigation and cross-channel experiences will do the best in the coming years. These sites will get the most benefit from the expected $213 billion that online travel revenue will bring in by 2010.

Full article

Hotel websites will rule over online agents

Up to 86% of hoteliers attending the recent WORLDHOTELS 2007 Leadership Forum in Rome believe that in the next three years, consumers would use hotel websites in preference to online agents.

And 57% believed that over the same period, control over rates and inventory would shift towards the hotel industry rather than to intermediaries.

Complete article

Marriott Seizes Bookings From Expedia to Boost Share Price

Marriott International Inc., the world's largest hotel operator, has battled back against online travel agents such as Expedia.com to become the eighth-biggest Internet retailer by sales. That's one of the reasons investors should buy the stock even after a 10 percent tumble this year.                

Through Marriott.com, the Bethesda, Maryland-based lodging company sold $3.7 billion worth of rooms in 2006, more than doubling revenue from the site in 2004. For the first half of 2007, Web sales for Marriott hotels, which range from luxury Ritz-Carltons to lower-priced Fairfield Inns, were up almost 25 percent.         

``You're looking for efficiencies any way you can, and this is a terrific place to find them,'' said Joseph Betlej, who manages $1.2 billion including Marriott shares for Advantus Capital Management in St. Paul, Minnesota. ``A room that they sell on their own Web site is the cheapest way they can sell a room.''

Complete article

Web Reputation Monitoring Tools

Several vendors have recently launched “Web Reputation” monitoring tools for hotels. The cost ranges from the absurd for more enterprise-level applications, and some come at a cost of about $150+/month. Supposedly these new tools automate the process of monitoring who says what about the hotel on as many as 25 million consumer-generated sites, plus they claim to automate the hotelier's response to such postings (e.g. negative customer reviews on TripAdvisor).

Full article

Web 2.0 vs. Search Engines: Are Search Engines Becoming Obsolete in the Web 2.0 Frenzy?

Web 2.0 continues to generate much attention in the online travel industry. Inquiring hoteliers want to understand the status and future of search engine marketing and other Internet marketing formats in this new Web 2.0 environment. Are search engines becoming obsolete? Are Web 2.0 sites going to replace the search engines as an advertising media? Will online travel consumers abandon Google as a travel planning and research tool and shift their attention to Web 2.0 sites such as TripAdvisor.com and social networks like YouTube.com? Must a hotel engage in such strategies?

Web 2.0 is the second-generation of web-based communities and hosted services (Wikipedia). Web 2.0 reflects a utilization of the Web in a new way, by both developers and Internet users. Especially of interest to hoteliers is the Internet user aspect of Web 2.0—also known as Consumer-Generated Media (CGM) or User-Generated Media or Social Media. CGM is online content created by Internet users and made available to other Internet users via Web 2.0 interactive technology applications. 

This new dynamic has caused a degree of confusion and many hoteliers are unsure about the implications of Web 2.0 on more "traditional" Internet marketing formats such as search marketing, email marketing, and display advertising. This article details the roles of Web 2.0 and search engines and their significance, as well as supporting data and case studies on how search engines remain of strategic importance long-term in online marketing and distribution.

Full article

More online consumers are consistently more receptive to behaviourally targeted ads than to contextual advertising, according to a new study

Sharing the results of a study on consumer receptivity to online advertising, Revenue Science, Inc. stated that the behaviourally-receptive audience is a higher-value than contextually-receptive consumers.

The study, conducted by JupiterResearch, found that more online consumers are consistently more receptive to behaviourally targeted ads, outperforming contextual by as much as 22 percent in some categories.

“We’re glad to see that the voice of the online consumer echoes our position that behavioural targeting is more effective—for advertisers, publishers, and for consumers—than contextual advertising,” said Marla R. Schimke, Vice President – Marketing, Revenue Science. “This study also reaffirms our belief that Internet users favour advertising relevant to them personally and that advertisers should employ behavioural targeting campaigns to maximise their return on investment.”

In April 2007, more than 2,000 people were surveyed on what types of advertising drive interest and action, as well as their receptiveness to different advertising. The responses revealed that, across all advertising, 14 percent more online consumers are more receptive to behaviourally targeted ads than to contextual ads, representing 63 percent of the total audience.

Full article

Social Media & Travel

At last week’s Hospitality Sales & Marketing Association International Hotel Sales Strategy Conference, a panel focusing on this emerging trend delved into the radical changes ahead. These industry insiders are already seeing the effects social media is having on current business models and are warning others to follow their lead.

“Customer engagement is a more effective way of getting business, but it s not a next day thing,” said Cindy Estis Green, Managing Partner of the Estis Group. “If you do it well you’ll reap benefits for years, but there is a ramp up period that will be a challenge.”

Tim Peter, Managing Director of Leading Interactive Reservations said that this paradigm shift is altering the current state of the web as a monologue provided by a specific company. Communication, it seems, is becoming a two way street and those that are doing the chatter want attention.

“If your customers are talking about your brand, it’s better to engage in a dialogue with them,” said Peter, who added that it’s important to speak directly to potential clientele. “Social sites are about authentic dialogue. Corporate speak and sales spiel will get you mocked brutally. Speak plainly or don’t talk to them.”

Full article

Online Travel Firms Map Strategies To Capture The Weekenders

Vacations these days often mean long weekends — and online travel sites are providing more services for such customers.

A study by online travel tracker PhoCusWright found that 84% of leisure travelers this year took or plan to take at least one long weekend trip.

"People are working harder than ever and are crunched for time," said Lorraine Sileo, PhoCusWright analyst. "The idea is to take a break without spending too much time away from the office."

She says the other factor is cost. High gasoline prices, credit worries and other pressures on consumers are fueling a move toward more weekend trips rather than more costly week-plus getaways, Sileo says.

The rise of long weekend vacations can be good news for online travel providers. According to the annual study by PhoCusWright, weekend travelers spend $6 of every $10 on travel Web sites, vs. just $3 of every $10 for those taking vacations of a week or longer. PhoCusWright did phone interviews with 500 online travel shoppers.

Full article

What percentage of their budget do the Hoteliers allocate for online marketing?

In June, Hospitality eBusiness Strategies asked Hoteliers what percentage of their budget they allocated for online marketing. The highest percentage of respondents, 60%, said they allocate between 26-50% of their budget to Internet marketing. 20% allocate 25% or less, 20% allocate 51-75%, and no one said they allocate more than 76% of their budget to Internet marketing.