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Meta Search Marketing: A Huge Revenue Generator for Hotels
Real-time availability + pricingUltimate “OTA-killer”
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What is Meta Search Marketing?Hoteliers can now take back the guest that is rightfully theirs.
Online advertising that allows hotels to display real time availability and
pricing, and leads users to the hotel booking engine. Today we are witnessing
and explosion of meta search travel sites and features.
Any hotel can now display their rates alongside the OTAs
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Why is meta search marketing a "Must” for Hoteliers?Guests are given the chance to book directly with the hotel.
Part of efforts to shift bookings to the direct online channel
Online media business model, not an OTA
Levels the playing field with the OTAs
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4Tremendous value proposition to travel consumers providing 360-degree hotel research, planning and booking
Meta search marketing is not a distribution channel and is
not a “set and forget” marketing initiative.
What is Needed to MakeMeta Search Marketing Work?Hotel distribution, availability, and pricing
have become extremely complex.
Requires:
Real-timehotel inventory
availability+ pricing
Marketingcampaign,
budget, and bidmanagementby property
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HeBS Digital MetaSearch GatewayProprietary Meta Search Enablement Technology
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HeBS Digital MetaSearch GatewayComplex Management Technology: Bid & Budget Management to Maximize ROIs
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Display real-time ratesUser will choose dates and rates/availability will update automatically
User chooses hotel websiteUser clicks on the property’s logo and is directed to the property’s booking engine
Increase direct booking opportunitiesOption to include direct links to website with ‘Hotel Amenities’ and ‘Professional Photos’ links
Meta Search Marketing: TripAdvisor
Level the playing field with the OTAs by providing TripAdvisor users with a direct booking option to the hotel.
From October 2012 – May 2013, a Boston hotel saw a 1554% ROAS from this initiative.
Steal share away from OTAs, drive highly qualified traffic to site, encourage direct bookings, and display real-time rates.
Meta Search: Google Hotel Finder (HPA)Appears within:
1 Google Maps
2 Google Hotel Finder Beta
Google Search Results Pages3
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What about TripAdvisor Connect & Other Self-Serve Options from Meta Search Travel Sites?
The OTAs will push the property down from the top three positions that matter.
The property still needs a CRS API technology to feed availability and pricing.
Unfortunately, merely enabling meta search is meaningless.
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3The property needs to manually manage, for each travel site:
• Daily bids based OTA bidding • Daily advertising spend & monthly
budgets• Enabling and disabling campaigns• Rate parity and attempts from OTAs
to game the system• Tracking codes• Conversion and ROAS reports
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What about Booking Engine Vendors Offering a Commission Model (CPA)?
In order to make a profit, they would need an ROAS of at least 1,000% (see below).
The industry average ROAS is only 500% - 700%.
Thus, they would lose money and most likely:• Discontinue the campaign • Advise the property that meta
search Is “not working” for them
Unfortunately, they require returns higher than the industry averages to successfully operate.
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Commission Rate = 15%
Ad Spend= $1,000
ROAS = 1,000%
Return = $10,000
Actual Commission
= $1,500Profit = $500
Scenario for Booking Engine Vendor to Make a Profit:
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What about Hotel Chains Offering a Commission Model (CPA)?
In order to break even (since they do not need to make a profit), they would need an ROAS of at least 1,111% (see below).The industry average ROAS is only 500% - 700%.
Thus, the hotel chain would most likely:• Lower the bid to decrease the cost,
kicking the property out of the top spots
• The campaign would linger and not produce
• The OTAs would continue taking advantage of the property
Unfortunately, hotel chains require returns higher than the industry averages to successfully operate.
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Commission Rate = 9%
Ad Spend= $1,000
ROAS = 1,111%
Return = $11,111
Actual Commission
= $1,000
Scenario for Hotel Chain to Break Even:
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Meta Search Marketing, In Summary
It is not a distribution channel. Nor is it a “set and forget” initiative.
It is a complex advertising format that requires:• Hourly and daily ad spend and bid management• Instant reaction to bidding by the OTAs• Monitoring of budget spend on a daily basis• Monitoring of rate parity (often abused by the OTAs)
Utilizing commission models by some hotel chains and booking engine vendors deprive hotels of direct revenue opportunities from meta search.
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4 It must be part of hotelier’s efforts to shift share from the OTAs to the hotel website.
The HeBS Digital MetaSearch Gateway is a one-stop meta search marketing platform that enables, runs,
manages, tracks and reports on any property’s meta search campaigns.
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Contact HeBS Digital at [email protected]