Important considerations before hiring an Internet marketing company in hospitality
The Internet has become the main distribution channel in
hospitality—over 2/3 of all hotel bookings in the US will be directly
influenced by the Internet this year. Understandably, Internet
marketing has become a priority for many hoteliers who are shifting
advertising dollars to the online world from traditional media and GDS
advertising. This rush forward may have come at a cost to hoteliers
who rely on professional marketers to sort out this dynamic and highly
complicated landscape of Internet marketing. This article is not about
avoiding snake oil salesmen and Internet hucksters – those should be
self evident – it’s about asking the tough questions when evaluating
Internet marketers who will be in charge of managing your most
important revenue channel.
Background
Online advertising set a new record of $4.9 billion for the first
quarter of 2007, an increase above the record breaking $4.8 billion for
the final quarter of 2006, according to the Interactive Advertising
Bureau (IAB) and PricewaterhouseCoopers LLP (PwC). Travel is
repeatedly cited as one of the fastest growing revenue generating
categories online. According to PhoCusWright, 60% of all travel in
North America will be sold over the Internet in 2008. With such a
growth in online revenues, how prepared is your online marketing vendor
in managing the online budget and growing your direct online
distribution strategy?
Everyone Wants a Slice of the Pie
Old-fashioned advertising agencies, interactive agencies, website
designers, booking engine vendors, SEO firms, website hosting and
maintenance companies, even PR firms have all proclaimed themselves to
be Internet marketing gurus in hospitality. Web design shops that are
facing stiff competition have moved toward Internet marketing. Online
booking engine vendors have expanded their repertoire into Internet
marketing. Web masters, computer programmers, and outsourced firms from
overseas are drawn toward the world of online marketing in hospitality.
The mix of new comers and old companies who now do “all things
Internet” has resulted in a lot of over-promising, under-delivering,
burnt hotel budgets, and increasingly frustrated hotel owners and
operators. This is not an issue of competition. It is about core
competencies, quality and credibility which affect the hospitality
industry as a whole.
Too often HeBS inherits damaged clients whose budgets and online
efforts were destroyed by self-proclaimed experts, or by firms who have
no business playing in the online hotel marketing arena.
So, the next time your PR agency, booking engine vendor or in-room
Internet access provider offers to manage your search marketing, be
cautious and do your research.
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