Search engine marketing is an essential component of the hotel direct online distribution strategy. According to Forrester research about 80% of overall website visits begin in a search engine or a directory service. Many other surveys also show that up to 85% of Internet users rely on search engines to locate relevant information on the Web (e.g. Google, Yahoo, MSN, etc). Search marketing is an extremely dynamic field. Search algorithms change, new search techniques and formats introduced, new search services launched, new challenges emerge on a daily basis that keep search marketers busy. The implications of all this in hospitality are enormous and some highlighted in this article.
Background
In 2005, online travel sales will account for an estimated 30 percent of total travel sales- up from 25 percent last year and 21 percent in 2003, according to a recent report by Merrill Lynch. By 2007 online travel sales will represent 39 percent of all travel revenue, with growth from direct suppliers outpacing that of online travel intermediaries.
In hospitality, last year over 25% of all revenues will be generated from the Internet (20% in 2004, 15% in 2003) (HeBS, PhoCusWright). Another 25% of hotel bookings will be influenced by the Internet but transacted offline through call center, walk-ins, group bookings, and even via email inquires. Indeed the explosive growth in online hotel reservations was best illustrated when for the first time in mid 2004 Internet bookings surpassed GDS bookings.
The same Merrill Lynch analysis concluded that search engines are driving much of the increase in online bookings. This report estimates that travel search technology accounted for $600 million in direct bookings last year. What’s more, it predicts that search-related bookings will double each year through 2007.
Search Engines & Search Behavior
Search engines and search marketing has received much global attention. Search engines are as pervasive as the Internet. Google is now a public company with a market cap of $80 billion; MSN launched a new search engine; AOL announces the creation of its own search engine; and traditional marketing budgets are being rewritten for search marketing and the web.
Top Search Engines Ranked by Search Share, July 2006:
(2006 Nielson/NetRatings): Source Net Rating from SearchEngineWatch.com
- Google | 49.2%
- Yahoo! Search | 23.8%
- MSN Search | 9.6%
- AOL Search | 6.3%
- Ask Jeeves | 2.6%
- Others | 8.5%
Search Behavior:
- 1 in 2 Internet users will use one or more search engines in a search
- 1 in 3 use a search engine tool bar installed on the web browser
- 17% use search engines for specific reason: Yahoo to search music; Google to search for a song
- Relevance is still the driver; sponsored results have to be relevant
- 3 out of 4 will start at the search engine when going to a website
- 22% are looking for a website they already have in mind
(Keynote Research)
Search engine loyalty is low:
- Searches on one search engine occurs on other search engines
- 58% of searches conducted on Google are then applied to Yahoo or MSN
- Loyalty cannot be taken for granted
- Loyalty is low b/c switching cost is low
(Nielson NetRating)
Search in Travel is Destination Focused
Unlike other e-commerce categories, Internet users search for travel and hospitality services and offerings within the context of the destination. Therefore the search engine strategy for travel and hotel websites is subject to a different methodology than what the generalist SEO (Search Engine Optimization) companies offer. Marketing a bank, eyeglass store, or dental office does not factor the characteristics or intensity of the destination. Nor do generalists differentiate travel search behaviors from general online consumers.
A destination-focused search engine strategy requires in-depth knowledge of the travel and hospitality industry, extensive destination research, destination target keyword analysis, and destination search behavior. Only a destination-focused search engine strategy can help the travel and hotel website leverage the popularity of the destination to its benefit.
Search in Travel (includes hospitality):
- 73% use search to find travel; 27% went directly to travel site
- Travel is top 4 category in use of search requests and some studies report in the top four types of searches
- Travel searches originating from a search engine tends to lead to travel being purchased two weeks out.
With such vast numbers of searches originating from search engines, clearly search engines are an essential component to the hotel’s direct online distribution strategy. Ranking high on the engines and consistently staying there along with matching the right budget to compete effectively are all major competitive issues with advertisers online.
Why Search Engine Ranking is Important - “The Golden Triangle”
The order in which the hotel appears on a search engine is of absolute importance. As far back as 2002, the Bear Stearns industry report Web Storm Rising stated, “Our research uncovered that being listed in the top five assures the highest level of bookings, and that after the fifth slot, bookings drop dramatically. Approximately 50% of people on the first page will go to the second page and so on.”
Over the last year or so, a new term, “Golden Triangle” has entered the search marketing vernacular. Novel research using beams of light that bounce off the eyeballs of online test users and onto a conditioned computer screen, captured certain patterns of online viewing behavior when on search engines. The highest concentration of visualizations appeared on the top three to four listings in the natural listings and top one to two in the sponsored listings. Basically a triangle began to form as more people tended to look in this top corner of the page now referred to in search marketing as the “Golden Triangle.”
Here are some other findings:
- Drop off begins after the 3rd natural listing
- First position in sponsored links drew 28% of visualizations
- Beyond the rank of 8 in the natural listings, there was a 50% drop off
- Bear Stearns 50-50 rule no longer stands; more like 80-20
- People who search below the fold are “more deliberate” seekers (may suggest have something already in mind to find)
So the conclusion drawn from above is that competing on the search engines by appearing as early and as often as possible is of increasing importance. How a website achieves top position is not a simply adjustment of the web page and the money starts to flow in but a concerted effort that requires time, expertise, and resources in website optimization and search marketing.
In hospitality, search marketing is part of your online distribution strategy. We have all become travel agents with our desktop, laptop, PDA, or other electronic devises and the strategy is to reach your specific customer segments when they are searching for you.
Lodging companies that do not have the marketing budget of the major intermediaries must rely even more on search engine referrals. Therefore good positioning of your hotel website on the major search engines is of critical importance and can directly affect your bottom line.
Note : The above article is based on collection various resources.