Catégories
etourism and technology Management Marketing @en

Web marketing for SMEs

You may think it’s impossible to increase your company’s Internet effectiveness with a marketing budget of only $3,000, but a variety of low‑cost strategies exist, whether you need to enhance your Web presence or conduct an email campaign. According to Merrill Lynch, over 39% of all travel‑related transactions will be conducted online by 2007. Many hotels already book over half their rooms online. For other businesses, embracing the World Wide Web is more difficult and takes longer to produce results.

Start with a Website

The first basic principle is that no business is ever too small for a website. Many web design tools do not even require specialized computer knowledge. This accessibility is just one reason that the number of online blogs has mushroomed in the last year (over 100 million).

However, the best solution is to call on the services of a web design firm, who will be able to produce professionally looking content that delivers the desired result. By the way, not all site design techniques are created equal. It is crucial that the selected supplier be well-versed in tourism marketing. On average, a small inn would need to set aside a budget of $2,000 to $4,000 for the design and creation of a website.

Search engine optimization

If a site is well designed, it will be easily found by search engines. However, there are many strategies for increasing site traffic. The technique of search engine optimization can be very effective, but it may be too expensive for organizations with limited budgets.

Another, less expensive, way to increase visibility is to get other sites to include links to yours. Link popularity is an important criterion used by search engines like Google and Yahoo when ranking sites in search results. Incoming links to a site are interpreted as a « vote of confidence » by search engines and are considered in placement rankings. In a Google search using the same terms, this can make the difference between appearing on page 1 or page 10. Regardless of the strategy used, time is also an important factor. Often, the longer a site has been online, the more success it enjoys with search engines.

Develop networking opportunities

One does not need an enormous marketing budget to build online business connections, simply some time. Here are some strategies for increasing the number of sites with links to yours:

  • Explore and identify the main points of contact with potential customers. Place a link to your organization on sites containing some tourism-related content such as your local business development centre, a directory of small hotels and inns, a tourist attraction in your region, a snowmobile club, your regional tourism association, etc.
  • Create links on sites frequented by potential customers, even if they are not exactly travel-related (e.g., a bird club, wedding planner, chamber of commerce, etc.).
  • Target only high-quality sites relevant to both your product and your clientele.
  • Ensure your website address is clearly visible in all your communication tools, especially your email signature.

One way to assess the performance of your referencing strategy and the true contribution of your business partners, in terms of incoming links, is through tracking tools such as Alexa. This site instantly supplies very pertinent data on any website, completely free of charge. As an example, we used Alexa to analyze the site for Auberge des Falaises in Charlevoix (Illustration 1). Although not an exact science, Alexa produces statistics like traffic generated, number of pages visited, percentage increase in the past three months, etc. If a site generates enough traffic, one can also get graphs illustrating the breakdown of visitors and visits during a specified time period.

Illustration 1

Alexa1

The Related Links section in particular contains highly relevant information to help you better understand the influence of other sites in relation to your organization. Alexa draws up a list of the sites that send visitors to your site (Illustration 2). This data enables you to quickly see which sites send the most visitors and their traffic ranking, whether you are familiar with these sites or unaware of their existence.

Illustration 2

Alexa2

Finally, it is interesting to find out where else your visitors browse. If you have a lot of traffic but very few transactions, this information will give you a better idea of where your lost customers are going. You will also find out more about your potential customers’ interests. In our example, the most popular site among browsers of the Auberge des Falaises site was that of the Corporation du parc régional du mont Grand-Fonds (Illustration 3).

Illustration 3

Alexa3

Convert visitors into customers

The ultimate goal of attracting a visitor to one’s site is obviously to encourage this potential customer to make a reservation. However, according to search engine statistics, only 3.7% of visits to hotel websites translate into a sale. What usually makes the difference is the site’s professional appearance and usability.

The firm eMarketer has published a ranking of the best online marketing tactics, as well as the worst performing, according to a survey of tech-savvy online advertisers (Figure 1). Paid search ads and house email lists are the two methods that received the highest ranking. On the other hand, sending emails using rented lists was relatively ineffective.

Figure 1

CP_2007-02_marketing_web_grphq1

Email segmentation

If you operate a small business, segmenting your email lists may be an effective marketing strategy. Purchasing email lists from specialized distributors may well be beyond your means and this strategy offers mixed results at best, so the ideal solution is to build your own email list.

Segmenting your list means grouping current and potential customers together by what they have in common: interests, purchasing behaviour, demographics, etc. Compiling this data enables you to more effectively target your efforts, adapt your message and obtain a better response rate than you would with blanket email marketing initiatives. On average, specialized firms that conduct such email campaigns charge anywhere from $15 to $150 per month, depending on the size of your list.

Regardless of the company’s size, a well-segmented house email list can encourage customer loyalty and increase sales, convey information relevant to the needs of potential customers, and create a high-quality channel of communication with customers.

There are many tools and strategies available to business owners; one has only to adopt them and use them effectively. We live in an era when the role of technology is to further the development of small business, not hinder it. With a minimum of investment, some good advice, several hours of research, a little curiosity and a dash of resourcefulness, you will be well positioned to market your business like the big players.

Sources:
– eMarketer. « What Works, and What Doesn’t, in Online Marketing, » February 7, 2007.
– Goodman, Gail. « Email Segmentation for Small Businesses, » iMedia Connection, August 30, 2006.
– Husin, Linda. « Booking Is the Keyword, » ehotelier, November 29, 2006.
– Salerno, Neil. « So, You Have a New or Improved Hotel Web Site – Now What – How to Promote Your Web Site, » HotelOnline, November 2006.
– Salerno, Neil. « Production Benchmarks for Your Hotel’s Web Site, » HotelOnline, August 2006.
– Max Starkov and Jason Price. « Strategic Linking in Hospitality: Build a Robust Link Popularity, » HotelOnline, September 2006.

Catégories
Accommodation

Marketing 101 for small inns and hotels

Marketing is never an easy undertaking, especially for small inns and hotels with limited time and budgets. While the following does not provide an exhaustive list of advice, options and how-tos, it does offer a checklist of various suggestions for improving visibility.

Turn an improvised strategy into an effective one

Starting with some general information (e.g. the typical guest at a small inn or hotel is a leisure tourist who has selected this type of lodging for its ambience and personalized service, and more often than not, these customers reserve by phone) and doing a little background work (defining the target audience, determine distinctive features, etc.), a business can begin the marketing process.

Exploiting the opportunities of the internet

Although the internet is not currently the means by which most small inn and hotel guests make their reservations, it is still a primary source of information. More and more people are automatically turning to the Web when they need to find or recommend a place to stay.

While the internet offers a sea of opportunities, there is also the danger of drowning in it. For this reason it is not enough to have a Web presence; the site must also be searchable. However, understanding how search engines work is a complex task requiring time and expertise. At the same time, because these engines evolve and change along with the competition’s positioning, there must be a strategy for periodically reviewing the process.

Trying to compete with the major players on their own territory is a waste of time, so small inns and hotels are better off using other methods. Instead of associating the site with the most popular terms typed into search engines, focus on those used by the target audience. For example, many such people will refine a search by typing « Saguenay inn » rather than « Quebec hotel. » Another option is to sponsor a link on the search result page of a local festival.

Improve and assess the effectiveness of methods used

Once again, to make a product stand out from competing major hotel chains, one must innovate and adopt original presentation methods (visuals, ways of communicating, etc.).

  • Clearly define the target audience so reach it effectively
  • Develop a specific niche (such as family parties, company activities, honeymoons, special events, etc.)
  • Establish partnerships with companies – even those outside the industry – to develop an unusual product or innovative marketing strategy

To measure the validity of promotional efforts and retain only the most effective measures, ask guests where they found about the establishment and how they made their reservation.

Sources:
– Carroll, William J. et al. « A Comprehensive Guide to Merchandising Bed and Breakfast Inns, » Cornell University, School of Hotel Administration, The Center for Hospitality Research, CHR Tools, No. 8, August 2006.
– Hursh, Patricia. « Winning Big with a Small Search Marketing Budget, » [searchenginewatch.com], August 28, 2006.

Catégories
Accommodation Marketing @en Trends

Are tourism brochures still effective?

Technological advances have called into question many traditional models, including the common tourism brochure. And yet, this form does not appear on the brink of extinction. Two studies have confirmed its usefulness, for it remains one of the most popular information sources for tourists. This is all the more true since most travellers alter their plans while travelling. In this respect, brochures play a greater role than the Internet, for example, in influencing the decisions of travellers who have already left home.

Measuring effectiveness

A traveller’s impression of a destination and choice of vacation spot and tourism services are influenced primarily by the individual’s prior experience. When a traveller opts to visit a place for the first time, other information sources like name recognition, reputation, price, advertising, the Internet, word of mouth, etc. are all very influential.

Kathleen L. Andereck, a professor at Arizona State University, wanted to better understand the effectiveness of the tourism brochure as a decision-making tool for tourists. To that end, she administered a survey to a sampling of people who had requested tourist information about Glendale, Arizona. According to Professor Andereck, the study showed that traditional brochures still have a major influence on travel decisions. Potential tourists who had requested a brochure showed an increased interest in the region, thanks to the information they received (Figure 1). In fact, 51% of respondents said they were interested or extremely interested in visiting Glendale after they received the brochure, while only 19% said this before they received the brochure.

Tourist brochures have a significant influence on other major travel decisions, particularly the decision to include the region in one’s travel plans (33%) or stay longer in the region (15%). The study’s author concludes, nonetheless, that a traveller’s initial impressions of a destination remain the strongest predictor of whether or not it will be included in one’s travel plans. On the other hand, a brochure’s effectiveness definitely increases interest in the destination and plays a part in determining how much time a tourist spends in the area.

The experience factor

Two segments were defined to measure the effect of the brochure: repeat visitors (those who had already been to Glendale) and visitors with no previous visits. The data showed that repeat visitors were more interested in visiting the area than the others were, before receiving the brochure. Interestingly, however, the two groups expressed virtually identical interest levels after receiving the information.

Therefore, among tourists who have never visited a given destination, a brochure can be very effective at positively influencing their level of interest. In addition, tourists who had never visited Glendale also indicated that the advertising had significantly altered their initial image or expectations.

Brochures appeal to women

The study sampling also illustrated significant differences in brochure effectiveness, according to the socio-demographic profile of potential visitors. The researchers noted that women were more likely than men to be positively influenced by this form of advertising. This was also true for the population segment of middle-aged people with lower incomes.

For destinations that are further away or less popular, as well as for organizations with limited financial means, confirmation of the traditional brochure’s effectiveness is good news. Relatively low production and distribution costs make the brochure accessible to everyone. However, it is important to take full advantage of the brochure’s two primary strengths, simplicity and colourfulness, and to find appropriate distribution points.

What about the Internet?

There has been much discussion about the importance of the Internet as a travel planning tool. According to the latest data from the CEFRIO (Centre francophone d’informatisation des organisations), 35% of all Quebeckers report that they use the Web to plan their travel. Obviously, destinations need not question the importance of a strong online visibility strategy. On the other hand, it is important to remember that not all travel decisions are made before leaving home and that many details get worked out during a trip. In fact, 62% of travellers look for information while travelling.

Professor Patrick Tierney from San Francisco State University interviewed 2569 tourists in Canada, the US and Ireland at hotels, attractions and visitor centres. His study reveals that once travellers leave home, brochures become the top planning tool (21%), followed by friend/relative and travel guides (15% each). Few people bother consulting the Internet while they are on vacation (11%).

The study also points out that, among tourists who had taken a brochure from a rack, 37% changed their travel plans due to the information in the brochure and 47% purchased something featured in the brochure.

Adapting the message

Another important consideration is the role of women in deciding and planning family vacations. Too often advertising is geared towards men, when women are the ones making the decisions. Furthermore, since women are more likely to be influenced by this form of marketing, it is crucial that promotional strategies be adapted to ensure that women can identify with the message.

Many experts are predicting a rosy future for electronic brochures, because they cost less to produce and are easier to update. However, they do not meet the needs of travelling tourists. It is also important to remember that the behaviours described above were in fact observed among people who wanted to receive a tourist brochure. The expected results of a mass mailing via a major daily or through other unsolicited channels would certainly not be comparable to the examples presented here.

Producing an attractive brochure is only half the battle. It must then find its way into the proper hands at the proper moment.

Sources:
– Andereck, Kathleen L. « Evaluation of a Tourist Brochure, » Journal of Travel & Tourism Marketing, Vol. 18 (2), 2005.
– Bieger, Thomas and Christian Laesser. « Information Sources for Travel Decisions: Toward a Source Process Model, » Journal of Travel Research, Vol. 42, May 2004.
– Riseley, Mark and Adam Daum. « Tour Operators Taking First Steps to Shelve Traditional Brochures. »
– Tierney, Patrick. « Comparison of the Effectiveness of Brochure Distribution in Racks to Other Tourist Information Sources, » San Francisco State University, December 15, 2003.