Marketing

& Advertising
Marketing investments impact market share of the overall hotel, instead of a targeted hotel
product or market segment. The level of impact on market share depends on two things. First,
the amount of marketing funds invested. And second, how this investment level ranks with
marketing investments levels made by competitors. If spending is less than the competition,
there is less market share impact. If spend is more than the competition, there is greater
market share impact. If the spend is equal, there is equal impact.

This is a list of the marketing tactics available and what they include. The monthly costs can be
found under the “Make Decisions” tab on the Marketing and Advertising Page.


Brand Agreement
! Position on brand website, central reservations
! Corporate brand marketing
! Construction and refurbishment consultancy
! Operating standards, policies, and procedures
! Legal assistance
! Financial reporting system
! Purchasing leverage

Loyalty Program
! Membership in the brand frequent guest rewards program.
! Representation rights in Reward Advertising: Web and brochures

Public Relations Agency
! Press Relations
! Community Relations
! Print Article Circulation
! Crises Assistance
! Email Campaigns

Market Information Services
! Market performance indexes: Occupancy, ADR, and REVPar
! Segment and channel ADR report
! Competition Monitoring

Guest Response Service
! On-line reputation management
! Social media management
! Hotel and Staff Blog coordination

Hotel Internet Website
! Hosting and maintenance.
! Search Engine Optimization
! Mobile friendly capabilities
! Geo-targeting
! Analytics Page 1 of 2








E-Commerce Service
! Hotel’s website promotion and Search Engine Optimization
! Third party listing and updating for online travel agents such as Expedia, Orbitz, and others
! Distribution and updating of property information to GDS
! Collection and summarizing of reputation management comments on the internet

Advertising investments are targeted promotion of specific products to specific segments and
through specific channels. The impact of advertising decisions on our market share depends on
three things:

• The amount of investment.
• The placement of the spend: the right product, the right segment, and the right channel
for the anticipated demand.
• The spend compared to the advertising spend made by competitors.

As a guideline, advertising spend of 3-4% of revenue normally has a strong market impact.
Additional spending up to 6% can add additional impact. However, it is challenging to get a fair
return on any advertising spending above 6%.

This is a list and description of the advertising tactics available for each channel. Your hotel’s
advertising impact is relative to the investments made by your competitors.

Direct
Expenses for sales materials, travel, and entertainment for in-person promotion
carried out by the hotel sales and marketing staff and the General Manager.

GDS
Service fee from Global Distribution Service (GDS) for preferred placement listing
in the four major reference sites: Amadeus, Galileo, Sabre, and Worldspan. Used
extensively by travel agents

On-Line Travel Agents
Service fee from leading third party booking merchants for display advertising
and preferred placement.

Wholesalers
Maintain contracts with hotels for discounted rates which they mark up and sell
to tour operators and packagers.
This channel also includes rates provide to Opaque sites which sell directly to
Hotel guests.