According to recent studies, over 80% of travelers now begin their hotel search online, with 52% of them making direct bookings if a hotel’s marketing strategy aligns with their needs (The Hotel GM).
For hotels struggling to boost bookings, this statistic is a clear reminder of the power of effective marketing.
In this case study, we’ll explore how one hotel transformed its occupancy rates and revenue through a strategic approach that focused on SEO, targeted PPC campaigns, and leveraging social proof.
These steps not only increased direct bookings but also reduced reliance on costly third-party platforms, driving sustainable business growth.
The Hotel’s Initial Challenges
The hotel struggled with several issues common in the industry. Its occupancy rates were low, and the management was overly dependent on Online Travel Agencies (OTAs).
This limited direct bookings and increased commission fees. Additionally, the hotel faced tough competition in its location, and its online presence lacked visibility.
Key Challenges:
Low occupancy rates
High reliance on OTAs, reducing profit margins
Limited direct bookings
Poor online visibility compared to competitors
These challenges affected the hotel’s profitability and growth. Without a strong marketing strategy, the hotel was at risk of falling behind its competitors.
Strategic Approach: Identifying Key Areas for Improvement
To turn things around, the hotel’s management team worked on a tailored strategy focusing on several key areas.
The main goal was to increase direct bookings and reduce dependence on OTAs. Here’s how they started:
Key Focus Areas:
Improving website traffic with SEO
Enhancing the guest booking experience
Targeting ads to the right audiences
Using data-driven decisions to optimize campaigns
This strategic approach allowed the hotel to create a more targeted, efficient marketing plan that would address its specific challenges.
SEO Optimization: Driving Direct Traffic
One of the first steps in the hotel’s strategy was optimizing its website for search engines. This helped drive more organic traffic to the site, reducing reliance on third-party platforms.
Keyword Optimization: The hotel identified important search terms like “affordable hotels in [location]” and “luxury stays near [landmark]” to ensure they appeared in search results.
Improved Site Structure: The website’s navigation was simplified to make it easier for potential guests to find and book rooms.
Mobile Optimization: The website was optimized for mobile users, ensuring a smooth experience across all devices.
Local SEO: Google My Business was updated with accurate details, high-quality images, and guest reviews to increase local search visibility.
The result was a steady increase in organic traffic, which translated into more direct bookings and reduced commission fees from OTAs.
PPC Campaigns: A Focus on Conversions
Pay-Per-Click (PPC) campaigns played a major role in boosting the hotel’s online visibility. By using both branded and non-branded keywords, the hotel targeted a wide range of potential guests.
PPC Strategies Used:
Branded Keywords: Ads targeting hotel-specific searches, such as “[hotel name] in [location]” helped capture high-intent traffic.
Non-Branded Keywords: The hotel ran ads for more general searches like “best family hotels in [location]” to reach a broader audience.
Remarketing Campaigns: Ads targeted users who had previously visited the website but didn’t complete their booking, encouraging them to return.
These PPC campaigns led to a noticeable increase in bookings, especially from remarketing efforts, which converted previous visitors into paying guests.
Leveraging Social Proof: Building Trust and Credibility
Social proof became a powerful tool for this hotel’s marketing strategy. By showcasing guest experiences and reviews, the hotel built trust with potential guests.
Ways the Hotel Used Social Proof:
Prominent Reviews and Testimonials: Positive guest reviews were displayed on the hotel’s homepage and booking pages, reassuring potential customers.
User-Generated Content: Guests were encouraged to share photos of their stay on social media, and the hotel reposted this content on its platforms.
Influencer Collaborations: Partnerships with travel influencers helped expand the hotel’s reach and attract a new audience.
This social proof helped create a sense of credibility, making potential guests more likely to choose the hotel over its competitors.
Seasonal Marketing Adjustments: Maximizing High-Traffic Periods
The hotel adjusted its marketing efforts based on peak travel seasons, ensuring that ad spend was higher during busy periods and lower during off-peak times.
Seasonal Marketing Tactics:
Increased Budget for Peak Seasons: More resources were allocated to marketing during high-demand periods like summer vacations and holiday seasons.
Special Offers and Promotions: Limited-time offers, such as discounted stays during festivals or local events, helped attract guests during key periods.
Ad Scheduling: Ads were strategically scheduled to run at peak times when potential guests were more likely to book, such as weekends and evenings.
These adjustments helped the hotel maximize its marketing budget and drive bookings when demand was highest.
Local Partnerships: Expanding Market Reach
The hotel leveraged local partnerships to expand its reach and offer guests a more complete travel experience.
Local Partnership Strategies:
Collaboration with Local Businesses: The hotel partnered with nearby restaurants and tourist attractions to offer exclusive packages, such as “stay-and-dine” or “stay-and-tour” deals.
Event Sponsorships: The hotel sponsored local events, such as food festivals and concerts, providing discounted stays for event attendees.
Cross-Promotions: The hotel and local businesses cross-promoted each other through social media and email campaigns, driving mutual traffic and bookings.
These partnerships not only attracted more guests but also boosted the hotel’s reputation within the community.
Retargeting Campaigns: Capturing Lost Opportunities
Many potential guests visit hotel websites without completing their bookings. The hotel implemented retargeting campaigns to bring these visitors back.
Effective Retargeting Tactics:
Pixel Tracking: The hotel tracked visitors who browsed the website but left without booking. These visitors were then shown personalized ads on other platforms.
Email Reminders: Guests who entered their email but didn’t finalize their booking received follow-up emails with special offers to encourage completion.
A/B Testing Ads: The hotel tested different ad formats and messages to see which ones performed better in bringing visitors back to book.
These efforts led to a significant recovery of lost bookings, converting visitors who might have otherwise chosen a competitor.
Results and Key Takeaways
The hotel’s marketing strategy resulted in impressive improvements in several areas:
Results Achieved:
Increased Direct Bookings: A 40% increase in direct bookings was observed within the first six months of the campaign.
Reduced OTA Dependence: The hotel reduced its reliance on OTAs, lowering commission fees by 20%.
Higher Occupancy Rates: Occupancy rates increased by 30%, especially during peak seasons.
Improved Online Visibility: The hotel’s website saw a 50% increase in organic traffic thanks to SEO efforts.
Key Takeaways:
Focusing on direct bookings helps increase profitability by reducing reliance on third-party platforms.
Tailored marketing strategies that include PPC, SEO, and social proof can drive significant improvements in occupancy and revenue.
Seasonal adjustments and local partnerships can further boost booking numbers and enhance guest experiences.
The hotel’s marketing strategy shows how a combination of digital tools and localized efforts can significantly improve bookings and overall business performance.