Search Engine Marketing In Hospitality
By Max Starkov and Jason Price, Hospitality eBusiness Strategies (HeBS) -- HOTELS Magazine, 12/1/2005
Search engine marketing is an essential component of the hotel direct online distribution strategy. According to Forrester research, about 80% of overall Web site visits begin in a search engine or a directory service. Many other surveys also show that up to 85% of Internet users rely on search engines to locate relevant information on the Web (e.g. Google, Yahoo, MSN, etc.)
Background
Online distribution has become the main distribution channel in hospitality. In 2005, more than 50% of all hotel sales were directly influenced by the Internet: 25% of all revenues were generated from the Internet (20% in 2004, 15% in 2003 – HeBS, PhoCusWright), and another 25% of hotel bookings were influenced by the Internet but transacted offline through call center, walk-ins, group bookings, and even via e-mail inquires.
Search marketing should become an integral part of the overall hotel marketing strategy, and an important line item in hoteliers’ 2006 budgets.
Why Search Engine Ranking Is Important - “The Golden Triangle”
The order in which the hotel appears on a search engine is of absolute importance. As far back as 2002, the Bear Stearns industry report Web Storm Rising stated, “Our research uncovered that being listed in the top five assures the highest level of bookings, and that after the fifth slot, bookings drop dramatically.”
Over the last year or so, a new term, “golden triangle,” has entered the search marketing vernacular. Novel research using beams of light that bounce off the eyeballs of online test users and onto a conditioned computer screen captured certain patterns of online viewing behavior when on search engines. The highest concentration of visualizations appeared on the top three to four listings in the natural listings and top one to two in the sponsored listings. Basically a triangle began to form as more people tended to look in this top corner of the page, now referred to in search marketing as the “golden triangle.”
Here are some other findings:
- Drop off begins after the 3rd natural listing
- First position in sponsored links drew 28% of visualizations
- Beyond the rank of 8 in the natural listings, there was a 50% drop off
- Bear Stearns’ 50-50 rule no longer stands; it’s more like 80-20
- People who search below the fold are “more deliberate” seekers (may suggest they have something already in mind to find)
Search In Travel Is Destination Focused
Unlike other e-commerce categories, Internet users search for travel and hospitality services and offerings within the context of the destination. Therefore the search engine strategy for travel and hotel Web sites is subject to a different methodology than what the general SEO (Search Engine Optimization) companies offer. A destination-focused search engine strategy requires in-depth knowledge of the travel and hospitality industry, extensive destination research, destination target keyword analysis, and destination search behavior.
Search Marketing vs. eMarketing Strategy
Search marketing is only one of the many aspects of a robust eMarketing strategy. An effective eMarketing strategy in hospitality utilizes all the market resources and channels available on the Internet. eMarketing and its various formats can be used successfully as a direct response vehicle (short-term, results-oriented) or as a branding tool (long-term and meets strategic branding goals). Due to budget limitations, seasonal demand, and the perishable character of hotel inventories, HeBS usually recommends that hoteliers focus their resources on eMarketing formats that are best used as a direct response tool:
- Search Engine Marketing
- E-mail Marketing
- Link Popularity
- Online Sponsorships
Aspects Of Search Engine Marketing
Search engine marketing has five unique aspects:
- Natural (Organic) Listings
- Paid Inclusion marketing
- Keyword Search Marketing (Pay-per-click Marketing - PPC)
- Local Search marketing
- Vertical Search marketing
Each has its own business application, pricing model and cost, and method of practice to fully exploit the opportunities in direct marketing and distribution.
Natural Listings
Natural search is the most popular type. Contrary to popular belief, natural (organic) listings are not free. Good search engine rankings of your Web site require extensive, ongoing Web site optimization efforts that have to be budgeted. But this is definitely the most inexpensive form of search marketing in the long run, as optimizing the site is a long-term investment in the site.
The search engines serve up natural listings using ever-changing algorithmic formulas, whose composition is a closely guarded secret. These algorithms are based on a different number of variables for each search engine, over 100 in the case of Google. Some of the variables are: Web site navigation and architecture, relevancy of content, keyword density, link popularity, meta tags, description tags, page titles, traffic rank, page rank, fresh content, activity and traffic on the Web site, and many more.
Web site Optimization vs. Search Engine Optimization
Direct online distribution begins and ends with the hotel Web site. A well functioning, fully optimized Web site is a real asset that serves as the chief instrument to capture new markets and facilitate transactions, and to communicate with a) your customers and b) with the search engines.
Good search engine natural rankings require systematic, ongoing Web site optimization, which takes a comprehensive look at the Web site and prepares it for both optimal performance (maximum user experience, book-ability and conversion rates) and for the search engines.
Web site optimization includes, among other things: optimizing the architecture of the site, introducing tiered navigation on the site, optimizing the body copy and drastically increasing the keyword density of the site, introducing rich content addressing all of the key customer segments, turning your hotel into the hero of the destination, creating landing pages for various e-mail marketing and PPC marketing campaigns, enriching the Web site with relevant and fresh content, creating additional entry points to the site, boosting the traffic rank of the site, launching a comprehensive link popularity strategy for the Web site, and optimizing the page titles, description and meta tags to support the body copy.
Many of these important criteria used by the search engines are typically not addressed by a SEO company.
Paid Inclusion Search Listing Services:
Paid inclusion is an alternative method to appearing on the search engines in the natural listings. By registering specified URLs through paid inclusion, these pages become cataloged and indexed every more frequently (e.g. every 48 hours with the Yahoo! Search Submit program). Paid inclusion is ideal for pages rich with keyword density copy or copy that changes frequently.
Pay Per Click Marketing:
Pay-per-click (PPC), or pay-for-performance services as they are sometimes known, have become extremely popular and are a smart way to position your hotel as a "sponsored link" or enhanced listing in the search engine results. Over 50% of every online advertising dollar in 2005 was spent on PPC and paid-inclusion vs. less than 20% on display advertising (e.g. banner ads).
PPC is the most aggressive way to influence your appearance on the search engines. HeBS foresees increasing importance of this search marketing format and considers it as a major short to mid-term distressed inventory disposal tool:
- Direct-to-consumer channel
- Customers visit and book on hotel Web site
- Preserves brand integrity
- Ideal distressed hotel inventory disposal tool
- Captures new customer segments
- Takes advantage of local events and happenings
- Free impressions—great branding effect at no cost
Based on the goals of the marketing campaign, the hotel needs to develop a differentiated marketing approach and PPC strategy. For example, PPC can be used successfully for:
- Global PC and local PPC campaigns
- Direct response PPC campaigns
- Brand building PPC campaigns
- Thematic PPC campaigns
- Event-based PPC campaigns
- E-mail capture PPC campaigns
Local Search
A survey by The Kelsey Group and BizRate.com found that 74% of respondents conducted local searches online and that an average 27% of U.S. consumers’ total online searching is for local listings and content.
All of the major search engines have introduced local search functionality (e.g. Yahoo, Google, etc). Local search marketing can pursue several simultaneous avenues: local search directory listings, online yellow pages enhanced listings, local search PPC campaigns, etc.
HeBS strongly believes that the local search marketing format will increase in importance and that it is ideally suited for the hospitality industry.
A Word About The Travel Search Engines (Vertical Search)
Travel search engines facilitate comparison shopping by compiling results from various sources and providing a price comparison of the product searched.
Seasoned online travelers treat online intermediaries like Expedia and Travelocity as travel search engines and use them to comparison shop. A recent survey by PhoCusWright finds that four out of 10 online travel shoppers have shopped on online intermediary sites, but ultimately purchased direct from a supplier.
Based on the history of comparison shopping in online retail, current realities in the marketplace (suppliers maintain strict rate parity and best Internet rate guarantees), well established online purchasing habits, and other factors, HeBS does not believe that travel search engines can gain widespread recognition and acceptance in the marketplace. We expect only a few of the existing players to remain in the long haul. Comparison shopping has always been a narrow niche market.
About Hospitality eBusiness Strategies (www.hospitalityebusiness.com)
Max Starkov and Jason Price are the principals of Hospitality eBusiness Strategies Inc. (HeBS), an Internet distribution and marketing strategy consulting firm for the hospitality and travel verticals based in New York City. HeBS has pioneered many best practices in Internet marketing in hospitality.You can reach Max and Jason at (212)752-8186 or info@hospitalityebusiness.com.
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