Contrary to the popular opinion that hotels want to save as much as possible on all costs, it can make perfect sense in hotel marketing to increase the budget. The important thing is to increase the budget in a targeted way. The following article discusses the factors that might affect it.
Decision by marketing performance
If a marketing activity has the desired effect, i.e. more and higher value bookings, then the hotel marketing department will increasingly focus on the expansion of this activity. If, on the other hand, the activity is just a cost factor with no significant impact, it will be scaled back, if not discontinued altogether. Sometimes, in order to get usable figures on the output of a single new marketing activity, it makes sense to invest a little more money in it. Otherwise, the campaign may produce something, but the budget used will not be enough to differentiate it from the competition. As soon as the campaign is perceived by the target group, the analysis also provides meaningful data on the output of the measure.
Measurement and analyzing for Better Decision Making
In hotel marketing, it is essential to measure and analyze not only the input, but also the output of individual campaigns and marketing activities. This provides transparency on the cost-benefit ratio of marketing activities. Success becomes tangible. In turn, the figures provide the basis for necessary optimizations.
Once a campaign has been launched with a certain budget, the next step is A/B testing. Identical campaigns are run with different parameters. The analysis of the measurements then shows which variant resulted in more conversions in the target group. The winner from this first A/B test is then pitted against another variant. Over time, this results in the ideal advertising campaign across the various media and channels.
Online Marketing - The Art of Content and Analysis
The creation of marketing campaigns is always based on existing data. This requires targeted control and interpretation. Different audiences use different profiles and channels. It is important to maintain an overview and to communicate in a way that is appropriate for the target group and the medium. On Twitter, for example, it's all about short messages, while on Instagram it's a clever combination of a strong image and engaging text with the right hashtags.
On YouTube, on the other hand, the title and text lead users to the video, which then has only a few seconds to captivate the viewer into watching it to the end. Then it's on to the next phase: the new measures provide numbers, and based on those numbers, existing campaigns are modified. Based on these results, existing campaigns are continually optimized and new campaigns are designed accordingly. The analysis provides data that allows hotel marketing to target audiences more precisely. The targeted delivery of individual messages means that the budget is used more effectively.
Increase your marketing budget
Even Henry Ford knew: "He who stops advertising to save money can stop his watch to save time.” There is pure truth behind this statement. However, the goal of hotel marketing is to invest the budget to the point. In times when maximum efficiency in all areas is important, the marketing budget must be invested only where it will bring the desired output. The basis for deciding where to increase or decrease the budget is based on data and facts.
A clear goal concept
Good hotel marketing works with a marketing concept that is developed over a longer period of time, usually a full year. In addition to the planned activities, this concept also includes the desired goals, such as the number of bookings and the desired revenue. In turn, hotel marketing sets these goals based on past periods, which are scaled accordingly. Of course, this is a medium-term strategic plan, and the goals are clear and measurable. This is the only way to measure the success of the various campaigns.If the measurement and analysis of the output shows that a campaign is more successful than average, the budget can be increased at that point. The savings are made on another campaign that is less successful or not successful at all.
From now on, budgeting for hotel marketing should no longer be a gut decision. Download our white paper for valuable tips on how to budget for hotel marketing!