David vs Goliath or how independents can beat the OTAs at their own marketing game
In 2024 Expedia spent on marketing $6.8 billion, which represents 49.6% of revenue, while Booking Holdings spent $7.3 billion which was 31% of revenue. These two mega OTAs spent on marketing a total of $14.1 billion. In total, last year the two mega OTAs spent on marketing $14.1 billion
Many hoteliers feel defeated by this marketing might and give up on their own direct channel marketing. “We cannot outspend the OTAs, why even try?” But if you do a simple math, you will see that the OTAs spend on marketing approximately $250 per month per hotel available on their platform. This is it!
Now, the question is, can even a small hotel spend $250/month to increase its Internet presence and steer people to book direct? Of course! Independents - even smaller properties - need to spend on marketing at least 4% of their room revenue.
Hoteliers have tremendous advantages over the OTAs - the know their destination, location and product far better than the OTAs do. In addition, using the Pareto Principle, hoteliers can focus on their feeder markets and customer segments that generate 80% of their business thus being much more efficient than the OTAs.
Where do you start when you are an independent hotel, even a property with smaller budget?
1. Fix your website! Is it mobile-first? Is the textual, visual and promotional content fresh, unique and truly representing your product and property?
2. Does the website SEO: on-page, back links and technical - fully optimized?
3. With the explosion of AI search, is your website ready for AIO (Artificial Intelligence Optimization)?
4. Implement CRM technology and Guest Appreciation Program to increase significantly your repeat business. The fully automated CRM initiatives keep “the conversation going” with your past guests, keep them engaged and steer them in the right direction: to book your hotel when they visit your destination again.
5. Establish solid social media presence with original posts and tons of user-generated content and customer reviews and comments.
6. Take advantage of all the freebies out there: free Google Business Profile, free booking links on Google Hotel Ads, free business directories, CVB listings, Chamber of Commerce listings, etc.
7. Launch Google Ads (GA) campaign for your branded keyword terms to capture all friends and family referrals, repeat guests, etc. the goal is to “own” 100% SOV (share of voice) You will be surprised how inexpensive these search campaigns are!
8. Invest in Content Marketing, the least expensive from all digital marketing initiatives. Content Marketing engages and entices the travel consumer in the Dreaming and Planning Phases and creates ready-to-book customers for the Booking Phase of the digital customer journey.
9. Hire a knowledgeable digital marketing agency to handle all of the above and help you steer through the complexities of the digital world we live in.
