Exclusive to Hotel Yearbook 2010
There are big changes in the world, and many of them impact the hospitality and tourism industry. This is especially true in social media which, in 2010, I believe will reach a tipping point of credibility and use in our industry, yield lucrative ROI operator strategies, and create niches that equal riches.
Social Media Tipping Point in 2010
Forecast 2010: Management companies and independent hotels will embrace social media en masse, following the example of early leader brands like Marriott International, Fairmont Hotels & Resorts, and indie properties like:
- New York’s Roger Smith Hotel (@rshotel),
- The Bryant Park Hotel in Manhattan (@bryantparkhotel), and
- Los Angeles’ Westin Bonaventure (@thebonaventure).
According to the 2nd Benchmark Survey on Hotel Internet Marketing Budget Planning and Best Practices in Hospitality by Hospitality eBusiness Strategies, hoteliers planned these types of Web 2.0 marketing initiatives last year in 2008:
| A blog on the hotel website | 47.06% |
| Photo sharing functionality on the hotel website | 41.18% |
| Sweepstakes and contests on the hotel website | 29.41% |
| Survey and comment card on the hotel website | 59.8% |
| Subscribe to a reputation monitoring service | 27.45% |
| Create profiles for my hotels on social networks (Facebook, MySpace, etc.) | 43.14 |
| Actively participate in blogs that concern my hotel | 26.47% |
| Advertise on social media sites | 9.8% |
Operators Execute Effective Social Media ROI Strategies
New platforms and services like Nevistas Connect and CoMMingle will facilitate the social media expansion in hospitality. Blogs, short-form video, Twitter, Facebook and Search Engine Optimization will continue to be favorite tactical tools among operators. New efficiencies will be achieved as entrants execute successful ROI strategies and use social media technology tools to boost occupancy and revenue. My favorite tools include:
- HootSuite to organize multiple time-released Twitter streams and
view analytics;
- Twinfluence, which rates the social capital of a tweeter;
- Radian6 listening tool to show which social marketing channels deliver the biggest ROI, and for drill down into an instant response on Twitter or a blog.
To further quantify the ROI on your social media spend, KDPaine & Partners, communications measurement specialists, suggests these steps:
- Use unique URLs for each channel. i.e. www.kdpaine.com/facebook so that you can track specific traffic over time in your web analytics tool (Softscribe uses both Google Analytics and Yahoo Web Analytics).
- Collect all items that mention your company and at least one competitor. SocialMention.com is a free alternative to Radian6, but KDPaine & Partners likes Radian6 because it is so easy to export the data.
- Export the data into a file, then analyze the data to determine the major subject or topic, and how close it comes to your “optimal content.” Does it recommend the brand; does the item leave a reader more or less likely to make a reservation; does it contain a key message?
- Track those items over time for at least six months. Make sure your reporting intervals are the same for your web analytics, sales/reservation data, and your mentions. If you gather Web analytic data weekly, capture your content weekly as well.
A word to “bean counters”: do not expect to track a dollar for dollar return on social media. Return on Engagement is more slippery than a P&L; just ask the Banff Lake Louise Tourism destination marketing group which netted 82 million TV, print and online impressions in two weeks from its Banff Crasher Squirrel meme. As far as I know, BLLT has not yet counted revenue from its Banff Springs, Banff National Park, and Lake Louise destinations or the 800 area businesses it supports.
Niches = Riches
The dominant social media theme for 2010 will be the continued separation of populations into niches, also called tribes, or your “1000 true fans”. Just as the green trend influences all aspects of hospitality including operations and marketing, similarly, in 2010 the “niches equals riches” trend will drive many aspects of our industry. Can operators boost revenue through cultivating property-specific communities of guests? Will their success be more profitable than using third-party booking channels? It depends on the level of trust operators create with their communities, and may already be happening.
A recent article, which suggests how operators can win their independence from OTAs, hints at the benefits of using these two direct online strategies to build profitable communities:
- “Direct Online Channel: Invigorate the push in the Direct Online Channel on unprecedented levels. A comprehensive ROI-centric Internet marketing strategy can help hoteliers continue to generate much-needed incremental revenues and out-smart their competition. Hospitality eBusiness Strategies (HeBS)
- “Local Direct Online Channel Strategy: Hotel brands and multi-property hotel companies should develop and implement a robust strategy to take advantage of abundant local revenue opportunities at the property level.” - Hospitality eBusiness Strategies (HeBS)
Direct online channels could include your social media venues and your property’s website. Examples of online guest communities already being cultivated include:
- Starwood’s Preferred Guest social media portal: http://bit.ly/qHLoO
- Fairmont’s http://www.everyonesanoriginal.com/ (coming soon)
- Peabody Duck Facebook fan page: http://www.facebook.com/peabodyducks
- Sample of Facebook communities:
- Grand Hyatt Atlanta: http://bit.ly/3VCKsp
- Ritz Carlton: www.facebook.com/ritzcarlton
- Sheraton: www.facebook.com/SheratonHotelsandResorts
- Sample of Twitter communities:
- Howard Johnson: @twitter.com/happyhojoworld
- Ritz Carlton: @RitzCarltonPR
- Best Western: twitter.com/TheBestWestern
- Blog communities:
A year from now, it will be informative to count the proliferation of niched guest communities in our industry and quantify their ROI versus revenue from third-party booking channels. Which brands will have developed the greatest degree of trust with their stakeholders? What are you and your company doing to participate in the social media trend?
Resources:
Video: “YouTube and Video Marketing An Hour A Day” by Greg Jarboe
Social media primer here: http://bit.ly/2iJbO5 .
Search Engine Optimization: http://bit.ly/wDzlo.
Banff Crasher Squirrel: http://bit.ly/16QFlN
“Finding Your Village of Customers:” http://bit.ly/R0tI6
“The Pros and Cons of Using Facebook: http://bit.ly/4zFxVJ
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Julie Keyser-Squires, APR, is CEO of Softscribe Inc., a digital marketing + PR firm. Give her a shout on twitter @Juliesquires; comment on her First Light business blog http://softscribe.wordpress.com/ or sign up for her free quarterly video email snack at www.marketingsnacks.com.
