Retailers are some of the savviest marketers around.  With an entire year’s worth of profitability riding on their holiday marketing plans, what are they doing to maximize revenue?  And what can hotels learn from retailers?

A recent article in the Wall Street Journal pulled the curtain back a little allowing hoteliers to take a peek.  Here are the highlights:

  • With budgets under intense scrutiny, marketers are mining their customer data bases and reaching out to customers with targeted communications.
  • Persuading a satisfied customer to return is cheaper than attracting a new one. Now, in the struggle to do more with less, this concept is becoming even more important.
  • Acquiring a new customer costs five to seven times as much as maintaining a profitable relationship with an existing customer.
  • Data base marketing and search efforts are taking money from traditional media.  (For the second year the Gap is foregoing TV advertising in favor of online promotions and targeted emails.)

Just like the retail industry, hotel marketing is becoming increasingly sophisticated and targeted. Mining customer data bases, sending relevant messages and actively managing customer relationships are all becoming more important.

Retailers are responding to the recession and adjusting their marketing plans to maximize their ROI.

What adjustments are you making?

Safe Travels – Madigan Pratt

AUTHOR: Madigan Pratt
No Comments
  • Madigan,
    Great discussion! Our experience has been that hotel companies see the value with the web and are shifting offline marketing dollars to the online channel. Your Gap retailer example is on target with what we see. The overall budgets are held steady or released more slowly but online expenses so far remain a constant and could perhaps grow. What we see and advise in the marketplace: 1) Only spend in areas that are proven to generate revenues. Today’s highly sophisticated paid analytical tools like Omniture – we can track performance and spend with confidence. 2) Consider the performance of online vs offline and what this means to your marketing plan for 09. In hospitality, online transactions continue to grow and the driver of the revenues is from online advertising. Naturally the loser is traditional marketing and traditional forms of travel transactions (brick and mortar travel agencies, tour operators, etc.) . Hotel companies inform us that online spend will hold steady, and grow in later months from the cutbacks made elsewhere.

    December 3, 2008
  • Madigan,
    Great discussion! Our experience has been that hotel companies see the value with the web and are shifting offline marketing dollars to the online channel. Your Gap retailer example is on target with what we see. The overall budgets are held steady or released more slowly but online expenses so far remain a constant and could perhaps grow. What we see and advise in the marketplace: 1) Only spend in areas that are proven to generate revenues. Today’s highly sophisticated paid analytical tools like Omniture – we can track performance and spend with confidence. 2) Consider the performance of online vs offline and what this means to your marketing plan for 09. In hospitality, online transactions continue to grow and the driver of the revenues is from online advertising. Naturally the loser is traditional marketing and traditional forms of travel transactions (brick and mortar travel agencies, tour operators, etc.) . Hotel companies inform us that online spend will hold steady, and grow in later months from the cutbacks made elsewhere.

    December 3, 2008
  • Madigan Pratt

    Thanks Jason. You and Max are always on top of these things. Every survey I see these days says traditional media will be suffering. See the previous post “Magazines Fret as Luxury Spending Collapses.” It says it all!

    December 3, 2008
  • Madigan Pratt

    Thanks Jason. You and Max are always on top of these things. Every survey I see these days says traditional media will be suffering. See the previous post “Magazines Fret as Luxury Spending Collapses.” It says it all!

    December 3, 2008

Leave a Comment

Your email address will not be published.