Search Marketing Blog
Searching for Value
Posted by Kent Schnepp on 12.08.2008“No other form of marketing is more critical to your success in the travel and tourism industry than Search Engine Marketing.”
If it were possible for a conference to give a quote, this would be the statement given by The PhoCusWright Conference, which took place last week at the Renaissance Hollywood Hotel in Hollywood, California.
As reported by comScore at this prestigious annual event, more than fifty percent (50%) of all online traffic, and more than seventy percent (70%) of total online sales is generated through search engines. Now more than ever, it is paramount that your Web site be rapidly found by qualified visitors and eager customers through the world’s most popular search engines.
The PhoCusWright Conference
EngineWorks just returned from this invigorating conference, which brought together the world’s most prestigious group of leaders and executives from travel and tourism companies of all sizes. This conference also provided outstanding insight into the most effective means of reaching new customers and acquiring new business.
The signature event at this year’s conference was presented under the audacious title, ‘The Perfect Storm, Search, Shop, Buy’, and featured representatives from the biggest players in the online marketing industry, including Google and Microsoft. Fielding engaging questions from a capacity audience during the Center Stage presentation, these C-level executives explained why now is the time for The Perfect Storm in the travel and tourism industry.
The Perfect Storm
The term ‘Perfect Storm’ refers to several events that occur simultaneously, which create a much more powerful result than if they happened independent of each other. The Perfect Storm in the travel industry has been created by the millions of individuals that search for, and visit, the plethora of travel related Web sites, resulting in numerous customer touchpoints, and a multitude of selling channels.
The dramatic growth of advertising and referral-based revenue is challenging the dominance of traditional bookings-driven business models. In addition, hybrid business models are appearing, with suppliers and intermediaries alike mixing and matching offerings to assume new roles in the online buying process. The travel purchase itself is no longer the complete story, as innovation in search applications and shopping tools have made these once-minimized parts of the process much more influential.
Cost-Conscious Travelers
Another current phenomenon that is occurring in the travel industry is the significant increase in the number of individuals searching for affordable flights, accommodations, and attractions. As conveyed by Rob Torres, Managing Director of Travel at Google, Inc., during the Center Stage presentation, Google has seen a substantial increase in the popularity of travel search terms centered around the keywords ‘budget’, ‘cheap’, and ‘discount’. Obviously, these search queries reflect a customer base which has shifted its preference to cost conscious traveling and lodging.
Interestingly enough, here at EngineWorks, we have also seen a powerful surge in online traffic and Web site conversions at one of our renowned hospitality clients that targets this cost-conscious audience. Shilo Inns and Suites, whose tag-line is “Affordable Excellence”, is considered the largest private, independently owned and operated hospitality company in the Western United States. In the most recent three (3) months, EngineWorks has achieved greater than eighteen times (18x) return-on-ad-spend (ROAS) for this prominent client.
Return-On-Ad-Spend
One of the most crucial online marketing metrics in the travel and tourism vertical is return-on-ad-spend. This statistic identifies the number of dollars earned in revenue for each dollar spent on advertising. As noted above, EngineWorks is currently delivering $18.00 to Shilo Inns on every $1.00 spent on our professional Search Engine Marketing (SEM) services.
In addition to this superb performance, online search marketing is also the most measurable form of advertising available today. This is why more and more marketing managers in the travel industry are shifting significant portions of their marketing budgets to professional SEM campaigns. They realize that it’s much more effective to commit precious resources to campaigns that deliver – and fully measure – qualified visitors and customers, than to spend money on traditional marketing channels that lack the ability to account for each and every advertising dollar.
