Google and Hotel Distribution (2020)
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Google is taking a primary role as a gatekeeper between hotels and guests. That provides both an opportunity and a threat for hotel distribution and marketing. Here's why hotel marketers should care -- and what you can do about it for your property.
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Google and Hotel Distribution (2020)
- 1. THE BIGGEST THREAT TO DIGITAL MARKETING AND DISTRIBUTION Tim Peter President, Tim Peter & Associates © 2020 Tim Peter & Associates - Proprietary and Confidential 1
- 2. INCREASING TOLLS ON THE ROAD TO REVENUE 2
- 3. GOOGLE: YOUR MOST IMPORTANT DISTRIBUTION CHANNEL Accounts for >40% of all traffic to OTAs and hotels alike Captures greater than 57% of all metasearch spend But ads are taking over 3
- 4. 4
- 5. DEEP POCKETS: COMMISSION PER STAY PROGRAM 5
- 6. “Google is our biggest competitor. The internet has been littered with the bodies of companies put out of business by Google.” - Mark Okerstrom, Expedia CEO
- 7. “Google is our biggest competitor. The internet has been littered with the bodies of companies put out of business by Google.” - Mark Okerstrom, FIRED Expedia CEO
- 8. SAME STORY IN SOCIAL...
- 9. • It’s a feature • Not a product • Contribute roughly 7% of traffic to OTA’s • Compare with ~1% to hotels THE MYTH OF META 9
- 10. WHAT DO YOU DO ABOUT IT? 10
- 11. CONTENT IS, WAS, AND ALWAYS WILL BE KING
- 12. NO CONTENT? NO SEARCH
- 13. NO CONTENT? NO SOCIAL
- 14. NO CONTENT? NO EMAIL
- 15. LEARN SOME NEW METRICS Dwell Engagement
- 16. CUSTOMER EXPERIENCE IS QUEEN
- 17. GIVE GUESTS A GREAT STORY TO TELL
- 18. DATA IS THE CROWN JEWELS
- 19. SECRET SALES FORCE Key measures Rooms 100 Occupancy 60% Guests/room 1.4 Total guests served/year 31,000 Average Facebook friends/guest 200 Total potential reach 6,200,000
- 20. WHAT IF YOU ONLY HIT 10%? Key measures Rooms 100 Occupancy 60% Guests/room 1.4 Total guests served/year 31,000 Average Facebook friends/guest 200 Total potential reach 6,200,000 Represents over 600,000 people you can reach each year
- 21. DRIVEN BY “ADULTS UNDER 40” ● Millennials – digital natives – play a key role among your customers ● The are the largest single demographic category ○ ~73m vs. 72m Boomers vs. 66m Gen X ● Largest share of employees at most companies ● Largest share of business and leisure travelers — but they have different needs
- 22. AMAZON REMOVING INFORMATION FROM EMAILS 22 Amazon appears concerned about Google scraping details in GMail Amazon doesn’t want Google to know what people bought, average order value, etc.
- 23. REDUCE TOLLS: CHANGE THE GUEST RELATIONSHIP
- 24. HOW ABOUT A FAIRYTALE ROMANCE?
- 26. THANK YOU 26 Web: timpeter.com Phone: 201-305-0055 Email: tim@timpeter.com Twitter: twitter.com/tcpeter © 2020 Tim Peter & Associates - Proprietary and Confidential