The Smart Hotelier's Budgeting Guide for 2017

DIRECT IS ALWAYS BETTER SERIES #1

The Smart Hotelier’s Budgeting Guide for 2017

#2017budgeting

Your Speakers

Agenda:

Google: The Travel Planning

Journey &Latest Targeting

Innovations

NAVISCase Study: Combining

Online & Voice Channel Data

Key Factors Affecting the

Industry

Structuring the 2017 Budget

Key FactorsAffecting the Industry

Supply+3.8%

ADR+1.9% +3.8%

RevPar+1.9% Demand

#1: Direct Bookings Crucial to Growing

Revenues

Source: STR

#2. The Path-to-Purchase More and More Complex

• Decision Making Time: 17 Days

• Number of Sites Visited: 18

• Sessions: 8• Clicks: 6

Dreaming Phase

Planning Phase Experiencing Phase

Sharing PhaseBooking Phase

The Answer: Multichannel Marketing to reach the right traveller at the right place, at the right time, on the right device.

SEO & SEM

DisplayInteractive

App

Social Media

Email

REVIEWS

SEO & SEM

REVIEWS

Social Media

#3: Personalization Key to Increasing Conversions

87%of companies see a lift in key metrics when personalizing

85%Internet users expect

personalization eMarketerVB Insight

75%get frustrated when content

NOT personalizedJanrain

#4: Storytelling through Content Marketing Cuts Through the Noise

We consume content at all hours of the day, across every channel.

More than ever, hotels need to ingrain storytelling into all of their digital marketing efforts.

We live our lives always on and always connected.

Structuring the 2017 Budget

2017 Recommended Budget Amount

4-6%of ROOM revenue should go to Sales & Marketing

75%of total budget should go

to digital initiatives

Overall Budget Structure Recommendation

59%: Year-Round Direct Response Marketing Evergreen initiatives such as SEM, SEO, Smart Data Marketing, Email, Meta Search, Reservation Abandonment Applications & Personalization

25%: Assets, Strategy & OperationsWebsite (hub), CMS, Book Direct Strategy, hosting, analytics

16%: Seasonal & Targeted Marketing CampaignsMultichannel campaign with one cohesive theme to fill specific business or occupancy needs

Snapshot of the 2017 Digital Marketing Budget

Breaking Down the

Budget

TheBreakdown

Search Engines: Expanding Your Strategy

SEM: New for Mid-Year 2016/2017New Ad Formats See 20% Higher CTRs: 2 Headlines

SEM: Taking a Mobile Centric Approach

Mobile search themes:• near me (like "pet friendly

hotels near me")• cheap (like "cheap hotels

in Myrtle Beach")• price (like “hotel prices")• Deal just for mobile users

74% of mobile bookings are made for same-day check-in.

Source: Think With Google

SEM: Increase Brand Exposure with Gmail Ads

RESULTS

Avg CPC$0.24

Impressions583,366CTR8.52%

Time Frame: 8 months

Google Display Network: Lightbox Ads

These types of banners work on a Cost Per Engagement (CPE) bidding model – the advertiser is charged when an ad is expanded (not upon click through)

SEO: New for Mid-Year 2016/2017

Includes links to flights, hotels, and restaurants in the destination.

Displays a collection of destinations within the region the user is searching.

Google Unveils Destinations

SEO: Create Robust Area Content & Go Beyond Website Copy

Case Study: SEO Management & OptimizationDestination-focused strategy increases organic search

revenue by 40%+ YOY

Smart Data Marketing: A 360° Approach

PAST/REPEAT GUESTS

15%-25% OF GUESTS

FUTURE GUESTS75%-85% OF GUESTS

360ºGuestCycle

Target Using CRM Data(Build Personas, Lookalike Audiences)

Target Using Intent Data(In-market Audiences, Feeder Markets)

Smart Data Marketing WORKSCASE STUDY:

COST OF SALE1.8%

ROAS5,464%

BOOKINGS214

The display campaign targeted those with travel intent and using real time rates to New York City during Q4 2015 and Q1 2016

Programmatic BuyingReal-time Data Targeting

Utilize existing customer data

from CRM, Adobe Omniture website

data, etc

Target “look-a-like” audiences in

real-time

Optimize targeting and

creative in real-time based on

campaign conversions and who is actually

booking.

Use campaign insights and data

to optimize all future campaigns

TripAdvisor Display with RetargetingRetarget hotel website visitors on TripAdvisor.

Email MarketingA Fundamental For Generating Bookings

• Responsive a MUST

• Utilize CRM Data

• Animated Visuals to Grab the User’s Attention

• Conduct A/B Testing and Analytics to Optimize Performance

Smart Personalization: Custom Content for Visitors

CUST SEGMENT | NEW VS. RETURNING | DEMO | GEO | PAST STAYS | OCCUPANCY NEEDS | LOYALTY MEMBERS

98% of your website visitors do not book.

Reservation

Abandonment Email

Reservation Abandonment

Lightbox DisplayFight against reservation abandonment and convert website visitors into bookers.

Social Media Campaigns: Keep Mobile Top of Mind

67% Time Spent on Social Media is on a Smartphone -comcast

Case Study:

96% of reach and 99% of website clicks came from mobile placements.

(Mobile News Feed and Facebook’s Audience Network)

A full-screen, highly immersive Facebook ad unit, Facebook Canvas Ads engage users through rich imagery, copy, and buttons linking to the brand website.

Storytelling through Facebook Canvas Ads

Targeting Options Age Gender Location Interests Behavior Custom Audience Lookalike Audience

Multichannel, Seasonal & TargetedCampaigns

Seasonal & Targeted Campaigns

SOCIAL MEDIA (PAID &

ORGANIC)

SEM, GMAIL ADS, YOUTUBE

TRUEVIEW

GOOGLE DISPLAY & TRAVEL AD NETWORKS

OWNED MEDIA (EMAIL

MARKETING & WEBSITE

PROMO SLIDE)

Build Customer Personas & Map the Path to Purchase

Determine Business Need Create Campaign Messaging

Plan Out Campaign Initiatives:

ENGAGING LANDING PAGE & INTERACTIVE APPLICATIONS

Facebook Promoted Post

Animated Banner

TripAdvisor Special OfferPromo Tile

Special Offer Landing Page

SEM Ad

Twitter Promoted

Tweet

Organic Social Media Contest #PalacePays2

016 Responsive Emailer

Instagram Promoted Post

Results:

Return-on-ad-spend: 5,002% Cost-of-Sale: 2%

Digital Assets, Consulting & Operations

Where Beauty Meets Science.

Your Website: Not Just a Static BrochureBeauty Large, rich hero image or imbedded video Promotional tiles Long-scroll storytelling Interactive map, events, and blog/social

features Visually engaging destination content Lifestyle imagery with people

Science Smart CMS Smart Personalization Engine Smart Booking Widget Smart Rate Promo Rooms Module Guest Portal

Merchandizing: Every Page Should Sell on Value

On-Property Version of Your Website Inform and connect with guests; generate

incremental on-property revenues

Website Hosting, Analytics & OperationsAnalytical tools ensure success of your campaigns

Case Study: Resort’s Direct Website Revenue Increases 80% It pays to invest in your website

technology, digital marketing and website revenue optimization strategy.

APPROACH: New Responsive Website smartCMS® Book Direct Strategy Full-Service Digital Marketing

RESULTS: Within first month post

launch, online revenues increased 80% year-over-year

Website Revenue OptimizationPartner with Consultants that function as a

part of your team by:

Creating digital marketingbudgets & campaigns.

Addressing propertyneeds.

Increasing bookings from key customer segments.

Keeping on top of comp set, market parity, rate

parity,& more.

Proposing new revenue opportunities.

Keeping you updated on best practices &

performance.

Google: Laura Retsos

Google: The Travel Planning

Journey &Latest Targeting

Innovations

NAVISCase Study: Combining

Online & Voice Channel Data

Key Factors Affecting the

Industry

Structuring the 2017 Budget

Travel: understand the new online consumer journey

We’re living in a world of moments

Micro-moments are the new battleground for brands

Reaching the right customersin the right moments

Intent + Context

+ Immediacy

= Travel Micro-Moments

Confidential & ProprietarySource: Google Analytics Meta Analysis from May ‘14 to May ‘15. Data is US only.

Decreasing time per visit on Travel mobile websites year-over-year.

Almost 2x increase in mobile conversion rates on the Travel mobile web year-over-year.

50%+ increase in mobile searchesin the Travel category year-over-year.

Mobile allows consumers to get inspired during their travel research and planning stages

Smartphones are often used for travel inspiration in “snacking moments” such as when waiting and commuting, before planning a trip:

● 69% of consumers use it for inspiring personal travel

● 77% of affluent travellers use it for travel inspiration

Confidential & Proprietary

I-WANT-TO-KNOWDREAM

I-WANT-TO-GOPLAN

I-WANT-TO-BOOKBOOK

I-WANT-TO-DOEXPERIENCE

I-WANT-TO-GOMOMENTS

90%of travelers in the U.S. recall researching their last vacation on a computer or tablet. 80%

of leisure travelers do not book with the first hotel brand that comes to mind in the research process.

Source: Today’s Digital Traveler, Google and PhoCusWright, October 2015, Traveler’s Road to Decision 2015, Google and Ipsos, October 2015.

Confidential & Proprietary

Google Hotel Search and Hotel Ads

260% more clicks to partners

in 2015 than 2014

Source: Google Internal Data

I WANT-TO-BOOKMOMENTS

84% of Leisure travelers made their final decision on mobile.

54% of people who booked elsewhere did so because of mobile usability.

Source: Traveler’s Road to Decision 2015, Google and Ipsos, October 2015.

Goals: Promote #ItPaysToBookDirect campaign to encourage direct bookings through Marriott

The Innovation: Partnered with YouTube beacon Grace Helbig, and let her suggest the scenarios

Three-week results: ● 370k views on “Love and

Directness” ● 352k views on “Go the

Direct Route”● 314k views on “How to

Land a Job”

Marriott leverages YouTube to drive direct bookings

Goal: Drive awareness, highlight the experience at Renaissance Hotels and show Marriott’s commitment to helping guests discover something new in-destinationWhat the did: Promote videos and imagery to guests through Gmail Ads, which delivers high ongoing reach.

Results: 25% longer time spent on site, 18% increase in pageviews per visit on RenHotels.com -- will be rolling out to additional brands globally.

Marriott Hotels delivered inspiration to consumers with Gmail Ads

Google YouMagic Consumer Moments

=

You have a real opportunity to talk to existing and new customers

Google can help you win moments that really matter

Intent Signals Email lists

Contextual + Location Signals

Past purchasers

App converters

Build a 360˚ view of your customers with Your data + Google data + Contextual signals

to win micro-moments in real time

Confidential + ProprietaryConfidential + Proprietary

Start with people you already know

Peopleyou know

Customer profiles and purchase history based on CRM data

Visited your site or app

Combine your customer data with Google’s targeting capabilities to reach precise audiences at scale

Searching

Customer Match in AdWords

Remarketing

Lists forSearch Ads

Email lists

Remarketing lists of

previous site and app

visitors

Watching

YouTubeChecking

Gmail

Full coverage across mindsets and devicesPeople

you know

Customer MatchFor Search, YouTube & Gmail

You know your customers

Whois likely to consider you?

Whoare my loyal customers?

Whohasn’t visited in a while?

...should drive your messaging across devices

Purchase history

Offline activity

Customer profiles

What you knowabout your customers...

}

Customer Match helps you strengthen connections with your known customer base and forge new relationships.

Generate awareness with customers that may be interested in your brand or productUse what you know about your customers to influence consideration of your products through tailored messaging in your marketing campaignsDrive purchases by connecting with your customers when they show intent to buy

Leverage your CRM data to drive repeat purchase and increase loyalty among your customer base

Customer Match:Harness the power of customer data to meet your marketing objectives

$

Now, it’s easier to realize the full value of your customer data with Google

Target customers that you know

Exclude current customers to only reach new customers

Reach users similar to your customers

NEW!

With Customer Match, your online and offline data is used to reach your customers on any device and across mindsets on Search, YouTube and Gmail

Customer Match:Reach consumers across channels and devices

>1 billionmonthly

users

Billionsof monthly searches

>1 billionmonthly active

users

Remarketing Lists For Search

Remarketing allows you to maximize your opportunity to re-engage users who have already visited your website

Search

after visiting your sitereturning visitors are

58%more likely to click on your ad

42%more likely to convert

28%more cost efficient

More effective campaign targeting and intelligent bidding to reach higher value audiences

Existing AdWords targeting criteria Remarketing lists for Search Ads

Device Language

Location

Keyword

Daypart

Already familiar with your products or brand

“Audiences” of higher-converting consumers

2

1

Not all search users are created equal, so we give you the power to talk to them differently

1 1 1 1

1 1 1 11 1 1 1

1 1 1 1 1 11 11 11 11 1

1 120 20

1 150 50 1 120 201 150 50

1 1100 100

Users already familiar with your site, products or brand are more likely to convert

The three reasons why Remarketing for Search is crucial for your business

Bolster the power of audience targeting to make your search campaigns more effective

Tailor bids, creatives and keywords to achieve better performance from your most desired, high value audiences

Use real time reporting and bid adjustments to optimize and deliver the best results

Confidential + ProprietaryConfidential + Proprietary

But what about the people you don’t know?

Search intent

Real-time behavioral and interest signals - not stale declared data

Intent & Data

Acquire new customers who are interested in your offering but potentially not aware you/your brand exists

People you

don’t know

In-Market Audiences

Flights Hotels Car

Rental

Prospects with active

intent to purchase

Car safety site for electric cars

Visit blog discussingelectric cars

Revisit manufacturer site to read pricing options

Visitssite to see options

for car financing

Click ad for hybrid to see interior on manufacturer site

Consumer research

Product or service listings

Content with strong conversion history to

related segment

Recency and frequency of

visits

Views and clicks on related ads

Audience data is derived from a broad variety of intent-based signals

Google’s in-market audiences uses unique intent signals to influence and convert users

Access to unique data* with no added

data feesHyper relevant

audiencesAbility to distinguish intent from interest

Behavioral signals

DurationRecency & FrequencyClicks & conversionson related ads

Contextual

signals

Page type & contentLocation

Customized

Definition of “fresh” tailored to vertical specific purchase cycle

Real-time

Audiences expired after users stop showing in-market signals

*Including proprietary sources

Air Travel Hotels Car Rental

By Destination*By Destination* Star Rating

1-2-star

4-star5-star

Ticket Class

3-star

EconomyBusiness & First

Economy, Midsize, Compacts & Subcompacts

Standard & Full Size

Luxury, Speciality, SUV & Convertibles

By Tier**

Cruises

*US Destinations: Atlanta, Austin, Boston, Chicago, Dallas, Denver, Detroit, Fort Lauderdale, Hawaii, Houston, Las Vegas, Los Angeles, Miami, Minneapolis, Myrtle Beach, Nashville, New Orleans, New York City, Orlando, Philadelphia, Phoenix, Portland, Salt Lake City, San Diego, San Francisco Bay Area, Seattle, Washington DC

*International Destinations: Beijing, Caribbean, London, Mexico, Paris, Rome, Shanghai, Tokyo, Toronto, Vancouver

Vacation Rentals

Campaigns targeting US only, English only

In-market segment for Travel

NAVIS: Jeff Robertson

Google: The Travel Planning

Journey &Latest Targeting

Innovations

NAVISCase Study: Combining

Online & Voice Channel Data

Key Factors Affecting the

Industry

Structuring the 2017 Budget

Case Study: a Florida Keys resort wanted to ensure they were not underestimating the performance of online campaigns that were driving revenues via the voice channel.

Background: with mobile bookings and visits increasing by 46% and 28% year-over-year (HeBS Digital portfolio), voice reservations are increasing as a result.

Online analytics must be viewed with voice channel data to understand the full picture.

The Approach: combine online & voice channel analytics to fully understand which digital marketing initiatives are producing the highest ROIs.

The Digital Strategy:Responsive Website DesignWebsite Technology Platform, smartCMS ® SEOSEMEmail MarketingSocial MediaSmart Data Marketing / Display

The Voice Channel Strategy:

Reservation Sales System, with real-time dataReservation Call Center, with operators trained to increase occupancyVoice Channel tracking to capture guest and prospect data

Case Study Results: 41% of digital marketing efforts came through the voice channel.

Initiative / Device Online Revenue Voice Revenue Online % Voice Channel %SEM $634,123 $303,647 68% 32%Google Display Network $582,321 $10,386 98% 2%Social Media $13,357 $7,412 64% 36%Email $33,199 $318,942 9% 91%SEO $624,243 $761,277 45% 55%TripAdvisor Business Listing $60,105 $69,890 46% 54%Mobile Site $108,090 $134,176 45% 55%Tablet Site $324,006 $15,357 95% 5%Total $2,379,443 $1,670,224 59% 41%

Not including post-impression advertising initiatives (display advertising, dynamic rate marketing, etc.)

Thank You