Here today, gone tomorrow. We all know hotel marketing moves at a rapid pace. Tactics that crushed it last year may no longer even be relevant today. So, whats worth exploring and expanding... and what needs to be jettisoned?
The hospitality industry is enjoying its longest expansion and healthiest growth in decades, yet there are some troubling trends beginning to surface that threaten profitability and overall performance. One of these trends is that net room revenue - i.e., revenue that remains with the hotel after accounting for distribution costs (OTA commissions, traditional agency commissions, and other distribution expenses)has been declining steadily over the past several years.
In April, the U.S. hotel industry reported occupancy rose 0.9% year over year to 67.9%. ADR increased 3.3% to $130.33, which drove RevPAR up 4.2% to $88.54.
Unfortunately, the cost of one of the most popular marketing tools available to hoteliers continues to rise. In just a short amount of time, weve seen dramatic surges in search engine marketing pay-per-click (PPC) costs (especially on Google), burning holes in hotel marketing budgets around the globe.