The Smart Hotelier's Guide to 2015 Digital Marketing Budget Planning
By Max Starkov President & CEO, Hospitality eBusiness Strategies Inc | October 05, 2014
Co-authored by Mariana Mechoso Safer, Senior Vice President, Marketing at HeBS Digital
The 2015 Budgeting Season Is Already Here!
The season for digital marketing reflection is here. As an industry we reflect on the performance of this year's initiatives, forecast next year's performance, and look ahead to the big ideas and proven initiatives that will generate increased online revenue opportunities. Hoteliers, we've quickly found ourselves in the midst of budgeting season.
Similar to this year, 2015 is expected to be another year that sees growth in all 3 key metrics for the U.S. hotel industry. By the end of 2014, the industry is predicted to have seen increases in occupancy (1.4%), ADR (4.2%), and RevPAR (5.7%). In 2015, occupancy is expected to increase 0.6 percent to 63.5 percent, ADR by 4.3 percent to US$119.93 and RevPAR by 4.9 percent to US $76.13. Demand is expected to grow 2.2 percent, supply by 1.6 percent (STR and Tourism Economics).
Capturing increased demand, shifting share from the OTAs to the property website, and bringing in higher ROIs takes a smart digital marketing strategy. Hoteliers that underspend in digital marketing and underestimate the sheer volume of consumers researching and booking online will continue to lose market share to their competitors and the OTAs.
This article outlines how to structure your budget so that you can shift more bookings to the direct online channel, better utilize your marketing dollars by increasing campaign effectiveness, and generate the highest returns possible from your property website and digital marketing initiatives.