In response to the latest investment by Airbnb with the purchase of Lyric, small properties are raising questions around what this means for them.
We captured an exchange between two property owners that are both trying to compete with big name hotels and Airbnb in a large frequently traveled city. Here is some advice from one (Inn) to another (Hotel) about the benefits of rezStream’s digital marketing and how it has helped them “stay on top.” It’s advice worth listening to.
Airbnb is not a threat
“How do we combat ‘Why stay with us instead of an Airbnb?’”
Do not think of Airbnb as a threat to combat, but a competitor just like any hotel that shares in a similar business of providing rooms for travelers. Airbnb speaks to a certain kind of traveler who does not mind staying in another person’s home or room. That is only a segment of all travelers. There is still a large customer base out there that will never stay in someone’s home. Simply put, Airbnb opened a new way to travel but has not replaced or re-invented the larger pool of traditional travelers.
What we (independent lodging operators) need to combat is the overwhelming threat of the OTA, the Online Travel Agent. Both Booking.com and Expedia.com are 50+ billion-dollar companies. They did not exist 20 years ago (Airbnb, on the other hand, was a concept before the internet). What both Airbnb and the OTAs have done with wonderful expertise is taking a product and MARKETING it for modern times.
How do you compete
“How do we positively and effectively compete with this.”
The key here is digital marketing. Your monthly budget is only $500 per month with rezStream. Before there was the Internet, you probably spent that in print advertising, annual subscriptions to travel books, articles, print brochures, joining organizations, etc.
The Inn spends six times your (Hotel’s) monthly budget (about $3,000) and has almost double your sales monthly.
Your (Hotel) monthly budget with Google AdWords should be a minimum of $2,000 per month to start. Forget contacting companies directly to increase ‘business’ clients; get into the current market of using digital marketing.
We have built a huge business clientele by word of mouth once people found us online. One guest tells his company colleagues and before you know it whole companies are staying with us. You probably get email solicitations daily asking for your business and you ignore them. Contacting companies directly will have the same results. The business community needs to find you themselves on the internet. Then spread the word.
How to promote your business online
“How do we stress our strengths and well-established positive reputations which should be powerful attractions for a prospective guest?”
rezStream brought your Hotel into the online modern world with a new website, proper keywords, and updated content to make the Hotel relevant to today’s modern traveler. You now have a product and a brand, now sell it out there. Build on these advances, get the word of mouth out there, sell, sell, sell online. It is the only way to go; ask those two multi-billion-dollar (OTA) companies.
The Inn is currently (Jan 1 thru May 31) up 5.6% over last year on top of the 12% increase they had for all last year.
Your Hotel is currently up 19.3% over last year on top of a flat year in 2018 and several decreases for years before that. Revenue for this period is $58,683 more than last year. Increase that Google AdWord budget NOW!!! Let rezStream do what they do best, MARKETING. There is an old, old saying, no one ever went out of business by spending money on marketing. It is what sets the OTAs apart from all the hotels and inns in the world. They market you to death and take hefty commissions. How did the hotel industry ever let that happen?
Most companies are happy with a 3 or 4% increase year over year. You are off to a great start. Don’t stall now.
To learn more about how rezStream has helped other clients view our case studies here.
Pull up your website page and I guarantee that Booking.com is above you with the placement they paid for. They think you are worth every penny they pay for that placement, and they only get 6 or 7 of your rooms and you have 25. And guess which rooms are booked every month. Your worst sellers you give them. If Booking.com believes your worst rooms are worth selling, then do the same. You have a profit machine (at least the OTA’s think so) so, turn your investment into a 6:1 ROI. Feed it dollars and watch the dollars return at least six-fold.
How can rezStream help you stay on top?
We know there is a lot to navigate when it comes to marketing your property online. So why not let the experts at rezStream help you? With our knowledgeable marketing team, modern cloud reservation software, and turn-key websites we have what you need to run a successful online business.
To learn more about our products and services, schedule a demo with one of our customer success team members today!
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