Hotel marketing in the 21st century

Michael Perhaes

Fri, Oct 15, 2010 (3 a.m.)

Perhaes

Las Vegas marketers are facing the most difficult environment in a generation. In addition to a lingering recession eroding the customer base, more room inventory is coming on line and regional gambling expansion continues.

Now is the time to leave our comfort zones and embrace a new paradigm in hotel marketing, a model that truly embraces integration of digital and traditional media strategies.

Branding and tactical marketing efforts exploit three “spheres” of opportunity: In-market, out-of-market and on-property. Each sphere has unique challenges and solutions, with its own vehicles for maximizing customer marketing communication.

Examples:

• In-market: Radio, out-of-home (billboards, taxi-tops)

• Out-of-market: E-mail marketing, print, TV

• On-property: SMS (text) messaging, location-based services (foursquare).

Currently, marketing strategy is executed via a multipronged approach, with individual spheres managed by different stakeholders (corporate and property marketing) and enablers (agencies, internal and external), while using various marketing communication channels. Generally, there is alignment between digital and traditional media, but not tactical convergence or shared, measurable success with accountability — actual integration.

Communication channels now include: Print, out-of-home, on-property messaging (posters, video, in-room collateral), e-mail, SEO/SEM (search engine optimization/search engine marketing), online display (engagement and performance-based), TV, radio, SMS, social, on-device apps and location-based services.

Bridging the divide between traditional and digital marketing, DMI (digital marketing integration) collaborates with stakeholders and enablers to create synergies between traditional and digital marketing opportunities, fully leveraging resources across all spheres, maximizing ROI (return on investment) and ROM (return on messaging).

Since digital is actually the only hub for any measurable activity in terms of revenue, (and according to eMarketer, the web is the source of 50 percent of all travel-related transaction revenue in 2010) targeted online tactical placements are critical to succeed. However, before you throw the brand dollars out with the print and radio bath water, the optimal demographic (18-49) still reads and listens. Also, once in-market, the challenge is exacerbated by the competitive noise. And at $30,000 per month for a well-placed billboard in the tourist corridor, smart media strategy is vital to budgetary survival. And when the customer is on-property, the challenges are unique. Keeping them under your roof — communicating the benefits of dining at your restaurants and seeing your shows — becomes the province of the mobile device and its highly personal, engaging messaging capabilities.

Here’s a scenario: The customer acquisition net is cast simultaneously across print and online placements, driving customers to either a website or a Facebook page to book an advertised offer or to receive additional information.

At point of sale, this booking engine transaction is completed by entering a valid cell phone number, e-mail address or loyalty account number.

Upon completion of the transaction, the guest receives a “thank you” e-mail outlining their itinerary, with an option to book spa appointments, dining reservations, purchase show tickets, etc., in addition to an invitation to receive SMS messages during their stay.

When arriving on property the guest will elect to receive SMS offers during their stay, incented by a drink coupon sent via MMS (multimedia messaging service, i.e. photos and video) to their phone. The coupon is scanned at the restaurant or venue POS (point of sale) for redemption. Similarly, prepurchased spa appointments or show tickets are also sent via MMS for device scanning at the POS.

At check out, the guests’ SMS information is transferred to a separate database, identifying them as “past guest” no longer eligible to receive on-property messaging, but perhaps out-of-market room and promotional offers.

So, what has happened? Using both traditional and digital tactics, the guest was “acquired.” Once on property, they are retained with on-property messaging, and their behavior is mapped via mobile device offers. Once home, they can be reacquired via e-mail or SMS. And we have detailed guest preferences, based on their recent behavior, to customize future offers and segment future campaigns.

Soon there will be no “traditional” or “digital” marketing, just “marketing.” I’m already hearing “tradigital” in reference to online banners placements versus social media engagement.

Michael Perhaes is senior vice president of Edelman Digital in Chicago