How does an independent hotel differentiate itself online in an industry that has largely become commoditized? Although a little to standardized, the hotelier digital marketing breakdown for 2012 has some interesting incites on the relevance of different distribution channels for the industry, and shows some awareness of the problems OTAs pose for hotels. http://www.eyefortravel.com/news/hotels/finalising-decisive-factors-hoteliers-should-target-2012-digital-marketing-budgets
Yet, it fails to address how hotels can compete with online intermediaries whose core competencies are precisely online marketing, and who are able to allocate large percentages of their operational expenses to digital distribution. The OTAs have continued to capture large percentages of room night revenues and have become some of the most recognizable travel brands. So, does it really matter if in 2012 a hotel allocates 20% of its online marketing budget to redesigning its website or 25% to SEM, if the conversion happens on Expedia’s site?
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