How Data Led Insights Can Influence Travel Agents To Fill More Rooms
October 16, 2018
Return on investment is one of the key KPI’s that all marketing directors keep a close eye on.
Generating healthy returns across all your marketing channels is a challenge and with the likes of AirBnB and other substitutes in the market, it’s more important than ever to succeed in your marketing and advertising.
To complicate matters, the industry landscape is in constant flux. Rapid recent changes in the environment due to inflation, uncertain economic and political conditions, and advancement in technology, mean that your place in the market is always under threat. Lower interest rates globally have resulted in new properties constantly being built. It’s estimated that 2,029,231 new hotel rooms were under construction in 2017.
One channel where hotels are seeing extraordinary returns in major cities all around the world is on global distribution platforms. These are the databases that all travel agents have access to through their desktop terminal—and these continue to be especially important to the corporate sector and high value leisure clients with whom TA’s have built up relationships over the years.
To maximize your returns, we recommend seeking expert digital media planners to help you identify your targets. They will do this by utilizing search & shop analytics, historical data trends, including intent to buy data and purchase data, geographical ROI and seasonality trend analysis of various traveler segments. All this information can then go towards making informed media buying decisions. The data insights are clear cut. No matter where you are, you will discover high returns on marketing via global distribution systems. Travelport recently analyzed ROI data points on a city by city basis and the results speak for themselves. While the global average ROI ratio is 18:1, some cities are seeing even bigger returns. For example, hotels in Hong Kong typically see an average return of up to $44 dollars for every $1 spent on preferred placement advertising. In Paris, the average return is up to $26 for every $1 spent. In Seattle, it’s $25 dollars, and in Mexico City, you can expect average returns of up to $22 dollars for every $1 spent.
To help you plan your next campaign to maximize your marketing ROI, we have put together a best practice guide on how to fill more rooms. It is based on data insights generated from the recent Phoenix Marketing International Research Study of travel agents worldwide. Read your copy now.