Increase room ADR, sell more hotel rooms direct, increase you market share, reduce channel spend on OTA’s…familiar? Well, I guess it’s time to start waving the magic digital wand for 2025. The next article will look into top ways to allocate your marketing budget in 2025.
The Golden 20%
I seriously think the OTA’s are like heroin for hotels and it’s a pretty tough habit to kick. It feels pretty good to dump a load of inventory their way and have rooms magically sold. The reality is that your hotel is immediately down in profitability by up to 20% on each booking (commission) and also losing the ability to obtain loyal customers direct. In addition, these channels are increasing the cost of your online advertising by bidding on your brand terms and driving down your avg ADR and soon this becomes a really niggling problem.
Please don’t misunderstand, I do genuinely feel that OTA’s have a part to play in the marketing mix. However, if you are able to sell rooms for the hotel direct for less than that OTA commission of 20% then why not?
Let me repeat that, if you can sell rooms direct at a lower cost per acquisition than through OTA’s then why not do it! (e.g. CPA <20%) This requires that hotels to take a different and more fluid approach to their hotel marketing budget allocation. Why not spend uncapped while your CPA remains below that of an OTA. Increase direct web conversions and slowly wean yourself off the OTA’s. Unfortunately, there is not really a magical digital wand so to do this effectively takes strategy, effort and planning. However, the rewards are great and many hotels have enjoyed taking the power back and increasing the bottom line.
SEO and GEO
A strong online presence for hotels begins with robust Search Engine Optimisation (SEO). Effective hotel SEO strategies involve crafting keyword-rich content, implementing internal links, and designing intuitive website navigation with mega menus and breadcrumbs. These techniques not only enhance website visibility but also improve content quality, ensuring higher rankings in SERPs (Search Engine Results Pages) and better engagement with users.
Generative Engine Optimisation (GEO) is transforming how hotels reach travellers by focusing on AI-friendly, context-rich content that stands out in AI-generated recommendations. Hotels can improve GEO by creating detailed FAQs about nearby attractions, local experience guides, personalised travel tips, and service descriptions, all backed by statistics, reviews, and citations to boost visibility and relevance in an AI-driven digital world.
By combining SEO and GEO, your hotel’s website remains competitive across conventional and AI-driven search engines, maximising digital marketing efforts, improving keyword optimisation, and reinforcing your brand’s online presence effectively.
PPC Campaigns
Pay-per-click (PPC) advertising is a cornerstone of successful hotel marketing, enabling properties to target potential guests with precision. Platforms like Google Ads, Microsoft Ads, and Bing Ads offer advanced targeting options based on search intent, location, and demographic data, making them essential tools for driving booking conversions.
To maximise ROI, consider:
- Cost-Effective Platforms: Google Ads, Microsoft Ads and Bing Ads often deliver lower cost-per-click rates while helping hotels reach niche audiences.
- Optimised Campaigns: Use compelling ad copy, well-designed landing pages, and robust conversion tracking to refine your PPC strategy.
By aligning these tactics, hotels can drive high-quality traffic, increase direct bookings, and achieve sustainable revenue growth.
Meta Search
Meta search marketing is a game-changer for hotels aiming to compete with big OTAs and chains. Platforms like Google Hotel Ads, Trivago, and TripAdvisor (TripConnect) allow hotels to reach potential guests during their booking journey, leveraging metasearch advertising to increase online visibility and drive direct bookings. These platforms often use pay-per-click (PPC) models, ensuring you only pay for actual clicks rather than additional commissions.
Different bidding methods, such as manual bidding, cost-per-acquisition (CPA), and commission-based models, offer flexibility in controlling your advertising spend. Advanced platforms like Triptease and Cendyn help optimize your campaigns through intelligent bidding, targeting high-conversion users and maintaining price parity. Triptease excels in delivering competitive rates through dynamic bidding algorithms, while Cendyn simplifies managing campaigns across multiple channels.
Working with a professional team that understands how to push your hotel into such areas and maximise returns on your spend in these lucrative Meta channels can make a real difference. For more information on the potential of Meta Search Marketing follow this link.
Email Marketing
Hotels have a unique advantage with access to sizable email lists, yet many fail to maximise their potential. Compared to other industries, hotels often have a wealth of client data at their fingertips, but the big shame is that much of this data is underutilised. If you aren’t already communicating with your clients regularly via email, start with an easier goal of sending updates once every quarter.
Plan your emails around engaging content, such as events, travel tips, or exclusive insights—not just promotions. Hotel emails should be more than just offers or the digital equivalent of dropping flyers. Instead, provide recipients with added value, like bonus information or exclusives, that keeps them interested and eager to remain on the list—even if they’re not immediately ready to book. Regular updates like these help build brand trust, foster loyalty, and encourage direct bookings.
For greater impact, implement personalised and segmented email campaigns:
- Automated Emails: Thoughtful messages, such as birthday greetings or the anniversary of a guest’s last stay, foster customer loyalty and target moments when rebooking is more likely.
- Upselling Emails: Post-booking offers, including room upgrades, breakfast packages, or all-inclusive deals, are an excellent way to boost ancillary revenue.
With the support of a CRM system, you can ensure your email campaigns remain timely, relevant, and GDPR-compliant, ultimately increasing guest satisfaction, strengthening loyalty, and optimising revenue growth.
Social Media Ads: Facebook, Instagram, and LinkedIn
Paid social media advertising is a critical component of any modern hotel marketing strategy. Leveraging platforms like Facebook Ads, Instagram Ads, and LinkedIn Ads can drive direct bookings, boost brand awareness, and improve engagement rates through effective audience targeting. Here’s how to make the most of each platform:
- Facebook Ads: With extensive audience targeting options, Facebook enables hotels to showcase their offerings to users based on location, interests, and behaviours. Pairing engaging visuals with strong calls-to-action is essential for success.
- Instagram Ads: Ideal for highlighting the aesthetic and experiential aspects of your property, Instagram’s Stories and Carousel ads are excellent tools for creative storytelling, sparking interest and inspiring travel plans.
- LinkedIn Ads: Perfect for targeting a professional audience, LinkedIn effectively promotes business travel packages or event-hosting services. With advanced targeting options based on industry, job title, and company size, it ensures your message reaches key decision-makers.
By integrating these strategies into your social media strategy, hotels can enhance brand awareness, increase engagement rates, and convert interest into direct bookings effectively.
Cart Recovery
Many hotels are fully aware that the although traffic numbers can be high, encouraging users to make the final booking can sometimes be quite difficult. There are a number of factors that can cause the user to drop out before clicking the all important final “Book” button. The user may need to check one more time before confirming, experience interruptions, read reviews or simply check that it’s the cheapest place to buy. This is where cart recovery can really help to increase the propensity of many to finalise the booking. If the user goes through the booking process, but does not purchase, it’s possible to send an email to the user with their booking saved and prompting them to pick up their booking with just a click of a button. Many hotels have found this to be a great way to catch some bookings which could have slipped through the net. It’s especially more tempting when many of the “cart recovery” services only charge a percentage fee on the bookings that are recovered.
Influencer Marketing: Visibility & Credibility
Influencer marketing has emerged as a powerful tool for boosting hotel visibility and credibility. Partnering with influencers, content creators with dedicated followings, enables hotels to showcase their unique offerings through authentic and engaging content.
This strategy builds trust and reaches targeted audiences more effectively than traditional advertising. By selecting influencers whose followers align with your ideal guest demographic, you can increase brand awareness, attract new guests, and drive bookings.
The Way Forward
By modernising your approach to email marketing, influencer collaborations, PPC campaigns, SEO/GEO strategies, and social media advertising, your hotel can significantly improve its ROI in 2025. These strategies not only optimise revenue but also strengthen guest relationships, ensuring long-term success in a competitive industry.
UP Hotel Agency Specialises in helping hotels to drive online sales and increase profitability through direct channels. Why not contact UP to see how they can help your hotel to succeed online today?
