As a hotel marketer, establishing a marketing budget can be a difficult thing to figure out if you are not aware of the potential revenue each digital marketing channel can generate. Revenue can be attributed in two ways either assisted or direct. Before establishing a marketing budget it is vital that you figure out which channels are the most effective in generating the most direct bookings. Generating revenue, whether assisted or direct is always a good thing but in order to get the highest return on investment, it is beneficial to know which channel resulted in the highest conversions. Every hotelier should understand that every visitor is different and will use different channels and platforms during the buying process, which is why we have to know which channels led to an assisted revenue or direct.
Which channels lead to assisted revenue?
Assisted revenue is revenue that is generated from multiple sources that led a visitor to book on the website after having done a search from various channels like social media, a review site, or/and an online travel agency. Social media is one of the most effective ways to drive assisted revenue to your hotel website. Social media may not always directly lead to a booking but it will assist in increasing the likelihood of a conversion and booking. Generally speaking, people on Facebook, Twitter and other social media sites use these channels during the research phase of the buying process. Social media and review sites may simply be an introduction to your hotel’s brand. Once they’ve done their research on these channels, they are then ready to make a decision to book with your hotel.
Which channels lead to direct revenue?
Direct revenue is typically generated after a pay-per-click ad, organic search or other paid search like Google’s Hotel Price Ads. Direct revenue often results from the last interaction of buying process. Here is an example of direct revenue: Someone starts off searching on Google and clicks on your hotel’s ad listed under the Hotel Price Ads which then leads them directly to Google Hotel Finder. Once they are on this site, they might do some researching and look at competitor rates. After doing some research, they type out your direct URL in the search bar and goes to your website to book. This is an example of direct revenue.
So which channel should you invest in?
Now that you are familiar with which channels lead to assisted versus direct revenue, you may be wondering which digital marketing channel to invest in that would potentially yield the highest conversions. The first step in deciding which channel to invest in is by analyzing the data and digging deeper into Google Analytics to find out where your potential guests are searching from and how they are getting to your site. Understanding the traveler buying process is critical when deciding on which channel to put your marketing budget towards and which to put the most time and effort. Whether the channel led to assisted or direct revenue, you must consider the profitability of each channel before investing it.