Many hotels do not have an email strategy. Emails are at the bottom of the to-do pile. Mostly, emails are used to send out blanket offers. But a strategy is essential to wringing the real value out of email marketing. First, emails are a one-to-one channel. Even if you send to a list of 150k names, each recipient sees it as a direct communication from your brand. Second, emails are an opt-in channel with an incredibly high ROI if done properly. Third, email performance is measurable and trackable. You know what went right and what went wrong, so you can constantly fine-tune your campaigns.
There are many ways to build an email strategy. We begin with the list and the guest profile data points that can be used for segmentation. We also map out the customer/guest journey. People enter your marketing funnel at different times with different expectations. Some may be web leads who are still researching their vacations. Others may be past guests who originally booked through an OTA but now have an understanding of your brand experience. If you do not collect data on guests, specifically names and emails and information about their stay and accommodations, it will not be possible to use automation to its fullest extent. And automation is one of the strengths of email marketing.
The goal of any hotel e-marketing strategy should be to reduce reliance on room discounts. Instead, emails should promote brand awareness and the benefits of the brand hospitality experience.
A hotel in Miami has emailed me eight times in the past eight months. Every single email has been about a seasonal deal or discount in the range of 25% to 40% off the current rates. That's absurd! I have been a full rate customer who booked direct with them when I stayed at their property. Why do they insist on bringing me back there at at discount? What if I don't want or need a discount? Furthermore, I start wondering if there is something wrong with the hotel.Vikram Singh
A content calendar will hold you accountable to your strategy. Map out your strategy month-by-month and include content topics. Topics should always be relevant to your audience and their stage in the guest lifecycle. So, you might send web leads general information about the destination but past guests might be more interested in hotel upgrades or a unique local event.
Hoteliers have a unique relationship to their customers. Unlike merchants, a hotel's customers are guests who purchase a brand experience that goes beyond a utilitarian place to sleep. It's important for hoteliers to avoid the trap of engaging with customers as transactions. Because email is a direct form of communication, it is ideal as a channel for building relationships. Your guests are interested in relevant communication; they have opted into it. Put your brand experience on display and engage your audience in stories that are authentic and tailored to their interests.
Segmentation can boost your ROI if done properly. CRM software provider Revinate stated in its first Hotel Email Marketing Benchmark Report that segmented emails result in a 20% higher open rate, a 70% higher click-through rate and 73% higher revenue per recipient than non-segmented campaigns.
An example of segmentation would be sending a last-minute travel offer to people who live within a short distance of a hotel. Staycations target local residents. You can target families with children for summer travel.
Segmentation depends on the data points attached to your guest profiles. Many hotels have skimpy guest profiles: just the name, date of prior stay, and resort stayed at. Consider sending out a survey that asks guests for information so that you can provide more relevant travel information and offers. Do not include more than five questions in your survey and tell recipients upfront how many questions there are and how long it will take to complete the survey. For example: "Please answer 5 short questions so we can send you offers you'll love. The survey takes no more than 3 minutes."
There's no short answer to the question of how often hotels should send emails. It depends on your brand and the quality of your offers and content. Generally, once to twice a month is enough. Do not skip a month because consistency is a factor in deliverability.
If you are sending too often, you will see low open rates and high unsubscribe rates. Revinate reported in its Benchmark study that hotels in Europe, the Middle East, and Africa (EMEA) see the highest engagement and conversions, but those hotels send about half as many emails as North American hotels.
Constant discounting cheapens your brand and erodes your room rates. I am not a revenue manager, but my feeling is this: If you must constantly discount your pricing by 50% to 60%, your pricing structure is too high and guests do not see value delivered. Hoteliers have known since 2003 that discounting does not deliver more business. Discounting persists because hotel rooms are perishable. You can't replace a lost room night. Airlines face the same dilemma with unsold plane seats.
The prevailing wisdom is that reducing room rates entices new consumers to enter the market and buy more rooms. This has never worked for the hotel industry, and it won't work in this era of proliferating hotel room discounts and Web-based travel deals, because new consumers do not enter the market in response to hotel discounting. Instead, existing consumers simply get more for less, and hotel revenues fall.Cathy Enz, Cornell University
Further, discounting drives consumers to OTA sites to book. Think about it. If the mentality is "get it cheap," consumers will turn to OTAs because they do not realize hotels offer the same rates. The common misconception if that OTAs always have the cheapest rates. Hotel discounting has created a frugality mindset that makes it very difficult for hotels to keep their revenues intact.
Whenever possible, add value instead of discounting pricing. Hotels can also use this tactic to fight OTAs, to some extent.
CURVE stands for curiosity, urgency, relevance, value, and emotion. The CURVE approach recommends making sure your subject lines have two or more of these attributes.
Sometimes, it is best to be extremely straightforward in your headline. An offer should be stated clearly. Make sure it is relevant to your audience and represents a real value. This you might send a romance package to people who traveled as couples. Or you could send it to families with free babysitting thrown in.
Dedicated landing pages can increase conversions by up to 400%. A dedicated landing page is a campaign-specific webpage that drives visitors to complete a single action, usually in the form of a "book now" CTA. Dedicated landing pages are powerful because:
Gateway landing pages are not dedicated landing pages. Gateway landing pages act as an enticing invitation to something more. It could be an overview of hotels that have something in common (for example, they are all adults-only) or a grouping of hotels by location.
Gateway landing pages on a website might include location pages with hotels in those areas, category pages, keyword pages that describe a product or service. Because we are sending to a targeted group (email recipients), we would not use keyword pages. Instead, we would use location or category pages designed specifically to be relevant to the email structure and/or offer.
Core landing pages are not dedicated landing pages. Instead, they are part of the main website and can be found through the site's navigation. Core landing pages can include category and sub-brand pages that link out to specific properties. They can also be room type pages.
Think of your email campaign as an invitation to learn more. Most often, recipients are not planning a vacation when you email them. They are probably in the inspiration phase. When they click on "learn more" in the email, they are making a low commitment that is appropriate for their stage in the sales funnel.
The landing page's job is to be a selling page. It should contain all the information needed to move a prospect from "thinking" to "acting." Salesmanship of this sort requires focus. You can't sell a Chinese menu of properties. You have to zero in one one.
The other reason dedicated landing pages are conversion powerhouses is that they are uncluttered and free of distractions. Most pages on the website have too much information to create a clear and convincing sales pitch for one desired action. Visitors can be easily distracted or wander off into the site's navigation.
Email recipients can process between five and seven ideas. But this does not mean you should include five offers or five hotels in your email. Ideally, all email campaigns will have just one call-to-action. And the landing page will be completely geared for that call-to-action.
It's astounding how many hotels do not have a web form on their site to collect leads. Or, they bury the web form as a nondescript "subscribe now" somewhere below the fold. Ewww, these hotels are missing out on pure gold.
Website lead forms collect contact information from people who are interested in knowing more about your hotels. These people have never stayed in your hotel. They represent a fresh source of new guests who book direct. Wowzie.
Further, every list will experience churn. New web leads will replace some of these un-subscribers, but you have to approach them differently in your email marketing if you want to get optimal results.
Not long ago, the most powerful hurricane in history, Dorian, was on everyone’s mind. What should hotel marketers do to prepare for after the storm?
In 2017, the Caribbean suffered from two significant hurricanes. With the national media heavily covering the devastation in Puerto Rico, many Americans made the assumption that ALL of the Caribbean suffered major damage or were completely shut down.
In actuality, the storms impacted only about 25% of the region. 75% of the Caribbean – more than a million square miles and 30 countries – remained untouched and were fully operational shortly after the storms.
Let’s face it, geography isn’t a lot of people’s strong suit, so it’s important for hotels to immediately communicate that your property and destination is in great shape, the sun is shining and you’re open for business.
Send an email updating your database of the post storm recovery or perhaps provide a more human touch with a story of how their favorite staff members weathered the storm, how the property is undamaged and you can’t wait to welcome them back.
It’s important to notify your trade partners immediately that the airport is open, property is up and running and fully staffed to welcome their clients.
The fastest you are able, post an image or, better yet, a video to all your social channels showing the beach, grounds and property. State how the island weathered the storm and the sun is shining again, the rum is flowing, and holiday vibes are in full effect.
Provide a quick status that the property is open and undamaged. This can be done with a pop-up window or a banner on the home page.
The quicker the above tips are in place, the faster the bookings will start rolling in again and you’ll be back to business as usual.
Let's look at at a specific example of how email marketing can reduce reliance on OTAs and discount offers while generating revenue.
In this case, we have three very different properties operating under one flagship luxury brand:
We have three opportunities for increasing revenue:
Most hotels use the website as a landing page for their email campaigns. Let's say this particular hypothetical brand is relaunching its website.
Hotel websites are generally built to provide a brand experience. This means that these sites do very poorly as an e-commerce (booking) channel.
One-third of people now book on mobile. OTAs own 45% of mobile bookings compared to 16% for hoteliers. And while OTA mobile bookings are increasing by 61%, hotel mobile bookings are barely moving forward at 11%Travel Flash Report by Criteo
Like most hotels, our hypothetical example sends out e-bast offers on an as-needed basis. This is a bad idea for many reasons, but the most serious consequence is that it erodes the brand and ultimately drives down pricing.
Automated emails place less of a burden of hotel marketing staff. They also have a much higher ROI than e-blast offers, especially if list segmentation is used.
Together, these strategies will require three to five months to implement.
This is where hotel email marketing goes from being about driving sales to building profitable relationships. Sales emails are important, certainly, over the short-term, but they do not create guests with a high lifetime value.
Strategies paint the big ideas that drive results. Tactics outline how those strategies are executed. There are two ways to implement tactics.