Gone Are The Occupancy Gaps: How Marketing Automation Improves Long-Term Occupancy

6 min read
02 August 2023

Gone Are The Occupancy Gaps: How Marketing Automation Improves Long-Term Occupancy

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Marketing automation helps hotels to specifically close occupancy gaps and sustainably improve occupancy. Learn how to efficiently utilize your capacities and increase sales with automated marketing strategies.

Optimum occupancy is the key to success in the hotel industry, but this year hoteliers in the DACH region are particularly exposed to increased competition as international travel becomes more popular again. This increased competition is causing financial strain and represents a significant problem in the long term. To successfully meet this challenge, more and more hotels are focusing on targeted performance marketing and the promotion of continuous, personalized guest communication. The basis for this communication is based on data, but in the busy hotel business this data is difficult to process manually due to the time and operational effort required.  As a result, many hotels collect guest data but make limited use of it for marketing, communication and guest loyalty. This is where marketing automation provides an efficient solution. 

Data-driven hotel marketing: how marketing automation improves occupancy

Marketing automation gives hoteliers the ability to communicate with their guests in a targeted and personalized way, without creating additional manual effort for hoteliers and staff. This makes it possible to attract new guests to the hotel and increase the number of regular guests: 

Reactivate regular guests 

Leverage existing guest and reservation data about booking behavior, preferences, and past vacation habits to create personalized offers. At the same time, ongoing communication is ensured through the channels that guests actively use. This enables reactivation of guests who were thought to be lost and increases guest loyalty. 

Marketing automation also provides cross-selling and up-selling opportunities. Up-selling enables automated recommendations based on existing data and guest preferences. With cross-selling, guests can be offered additional offers, such as spa treatments. Upselling, on the other hand, involves providing guests with an offer to enhance their booked package, such as a room upgrade that meets their needs. As a result, guests have a more positive memory of their vacation and are more likely to return to the hotel. 

Attract new guests 

The use of marketing automation systems offers the opportunity to acquire new guests for the hotel. Through lead generation, contact details of potential guests can be collected and then nurtured along the customer journey through various marketing and communication activities. The customer journey describes the entire process and experiences a guest has from first contact with the hotel to departure and beyond. This allows the communication of offers, news or special packages to interested guests. This personalized approach is delivered at the right time through the right channels, such as personalized emails or targeted social media campaigns. 

Marketing automation also enables the optimization and creation of campaigns based on guest data. The behavior and preferences of potential guests are understood and marketing efforts are tailored accordingly. As a result, potential guests feel more personally engaged and more likely to book.   It is clear that the collection and effective use of guest data leads to an increase in reservation requests, guest numbers and occupancy. However, current marketing automation programs are often not tailored to the needs of the hospitality industry. As a result, they are difficult to set up and use. 

The benefits of ADDITIVE+ MARKETING AUTOMATION for hotels: 

In addition to the common benefits of marketing automation systems, ADDITIVE+ MARKETING AUTOMATION offers additional benefits specific to the hospitality industry. These include:

Simple setup 

ADDITIVE's marketing automation system benefits from many years of experience in tourism marketing, online marketing and software. ADDITIVE+ MARKETING AUTOMATION is specifically tailored to the needs of the hospitality industry and allows for easy setup and integration without additional manual effort. With ADDITIVE+ MARKETING AUTOMATION, hotels can immediately benefit from the many advantages of marketing automation without the need for time-consuming and tedious setup. New guests can be acquired, regular guests can be created, and up- and cross-selling opportunities can be exploited to increase occupancy and optimize revenues. 

Dimitrios Panagiotopoulos, Marketing Manager at Sonnen Resort****, shares his experience with the implementation of ADDITIVE+ MARKETING AUTOMATION in a video: 

<div class="article_quote"><div class="article_quote_contain"><div class="article_quote_quote">"Our uncertainties were quickly resolved when working with ADDITIVE. The implementation of the software was uncomplicated and efficient. "</div><div class="article_quote_name u-text-style-main">Dimitrios Panagiotopoulos</div></div></div>

Learn more about the benefits of ADDITIVE+ MARKETING in our article: The Sonnen Resort on the implementation of ADDITIVE+ MARKETING AUTOMATION. 

Effective guest segmentation & targeted communication along the customer journey

ADDITIVE+ MARKETING AUTOMATION enables hoteliers to analyze their guest data and segment it into different target groups based on booking behavior and guest interests. Such data-driven marketing campaigns facilitate targeted communication along the entire customer journey. For example, in the so-called inspiration phase, a guest is first encouraged to take a closer look at the hotel with emotional content, visual stimuli and compelling offers. The potential guest is then accompanied through further contact points in the customer journey. This is done through a variety of advertising and communication efforts, each tailored to the individual touch points. This data-driven communication enables hotels to target their guests along the customer journey and effectively increase conversion rates and bookings. 

Advanced algorithm 

The advanced algorithm of ADDITIVE+ MARKETING AUTOMATION calculates the optimal time for guest communication on different channels. This promotes continuous communication throughout the year. At the same time, customized content is created to provide guests with information that is relevant to them. This can include special offers, vouchers, and the ability to change room categories or add services, such as spa treatments, prior to arrival. This targeted approach allows hotels to better reach their guests and build long-term relationships. This ultimately leads to increased occupancy and revenue. 

Determine marketing budget 

Typical marketing automation systems determine the budget for online marketing activities based on revenue share or flat rate costs, such as per overnight stay. ADDITIVE, on the other hand, is based on return on investment (ROI). The dynamic approach allows a precise determination of the actual revenue per marketing activity, taking into account both the reservation revenue and the total value added. It is a real-time measurement of the hotelier's return on investment. This data-driven approach allows the marketing budget to be invested in the most successful activities, resulting in higher conversion rates and increased occupancy. 

Increase revenue 

By using guest data, hoteliers can more effectively target their advertising budget to the audience that best matches the hotel. As a result, wasted advertising is minimized and marketing campaigns are tailored to individual guest needs and interests. By analyzing this data, automated recommendations for cross- and up-selling opportunities can be developed. For example, guests can be presented with spa treatment offers prior to their stay, which they can then book. 

Conclusion 

Marketing automation is essential to increasing occupancy in the hospitality industry. It enables an efficient communication process, builds long-term guest loyalty and attracts new guests through targeted lead generation. However, standard marketing automation systems are often not tailored to the needs of the hospitality industry. When choosing a marketing automation system, it is critical to select an industry-specific solution. 

A free consultation provides hoteliers and hotel marketing professionals with an overview of ADDITIVE+ MARKETING AUTOMATION options. 

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