Digital Marketing: Vision and Plan

PURPOSE
• Bringing hotels up-to-speed on:
– DigiMKT understanding
– DigiMKT strategies
• To talk in the same language in
DigiMKT
• To gain MAXIMUM benefits
SOME FACTS
Internet is one of the main
source of hotel info & booking
• In 2014, in Asia Pacific there
are 5.000.000.000.000 queries
looking for hotel
• In travel section, 56,39% of all
queries are for hotel. Next is
destination (28,2%)
• 41% Asian market already use
internet for booking hotel
• 65% to compare product
SOME FACTS (2)
• In 2014, Accor Hotels
Singapore-Indonesia-Malaysia
(in sum) spent Euro. 2.250.000*
for DigiMKT.
• In average, each hotel spent
Euro 19.565,2 = Rp.
313.043.200
• This make 30% of Accor
Singapore-Indonesia-Malaysia’s
bookings are from hotel
website
(Source: Travel Rave 2015)
*Incl. for developing their new digital apps
KNOWN DATA
Ratio from website traffic to
booking,
• Shareable Snack campaign =
35 : 2666 = 0,013
• Bogor Big Benefits campaign =
31 : 4494 = 0,006
• Jakarta Big Benefits campaign
= 54 : 5212 = 0,01

• On avg. = 0,009
KNOWN DATA (2)
• Which means, to get 9
bookings, we need 1.000
traffic

• Meaning, to get 1
booking, we need 111
traffic

• Meaning, to get 1.000

bookings, we need
111.000 traffics
SIMULATION
• How much capital we need to get 1.000 bookings?

• To get 1 traffic from google ads = Rp. 2.533,5

• To get 1 traffic from facebook ads = Rp. 305,25
• Average: Rp. 1.419,375 = Rp. 1.420

• To get 111.000 traffic = Rp. 157.620.000

• Revenue: Rp. 750.000 X 1.000 = Rp. 750.000.000*

*Simulation from one of the THE 1O1 Hotels
BUT, WAIT…
• The lasting effect of traffic increase…
2015 Jan Feb Mar Apr May Jun Jul Aug Sep
Alexa
rank 2,190,005 2,427,111 2,682,360 1,454,141 1,168,447 1,034,250 1,082,953 820,964 840,259
Visitor 9547 9997 13704 23403 23391 19442 26458 24666 21218

2015 Feb Mar Apr May Jun Jul Aug Sep

Discre
pancy
of rank 237,106 255,249 -1,228,219 -285,694 -134,197 48,703 -261,989 19,295
Disc.
of
visitors 450 3707 9699 -12 -3949 7016 -1792 -3448
LASTING EFFECT OF TRAFFIC INCREASE
• There are other factors that give effect to traffic increase (content
added, visitor’s interaction, competitor’s content, Etc.)
• But, traffic is still #1 factor
• No one but Google know the exact quotation, but from our data,
the estimation is:

Level rank Increase in Increase in rank

Visitors
2 mill – 1,5 mill 3.000 1,3 mill Data confirmed
1 mill – 800K 3.000 130.000
800K – 500K 3.000 32.000 Guest based on
500K – 300K 3.000 7.500 data (need
confirmation)
300K – 100K 3.000 1.500
< 100K 3.000 300
LASTING EFFECT OF TRAFFIC INCREASE (2)
• So, with this estimation, our estimated rank will be:
2015 Oct Nov Dec Jan ‘16
Visitor
32.318 43.418 54.518 65.618
Source Sept ‘15 visitors +
(11.100 X1) Sept ‘15 + (11.100 X2) Sept ‘15 + (11.100 X3) Sept ‘15 + (11.100 X4)
Contribution
from ads
11.100 22.200 33.300 44.400
Rank
744.259 569.259 486.759 374.259
LASTING EFFECT OF TRAFFIC INCREASE (3)
So, what does an increase in page rank can give to the web booking’s number*

Month Page Rank Formula of incr. Web Booking Room Night

May 1.168.447 34 57
June 1.034.250 28 50
July 1.082.953 26 56
August 820.964 54 131
September 840.259 36 78
Simulation #1 744.259 September’s no. 54 + 100 308
of booking +
Simulation #2 569.259 (effect size X 90 + 200 580
Simulation #3 486.759 September’s) + 108 + 300 816
booking from
Simulation #4 374.259 ads 126 + 400 1.052

Assumed effect size: 200.000 increase = 100% increasing booking

*Simulation from one of the THE 1O1 Hotels

*Not accounting lost of sales caused by sold-out allotments
Ergo…
• Should we spent Rp. 157.620.000 in the next 4
months?
NO! It’s too high, with too many risk

• So, what does this means?

It means that 2016 is the year of digital marketing (see
strategies below)

And it means that, we might get the same results with

less capital
Hotels & PHM’s Task (strategies)
Hotel:
• Making a continuous Special Offer
• Utilize the Digital Ads budget in online
advertising, esp. for:
– Special Offer’s ads
– Search Engine Optimization
– Marketing for Loyalty Program
Hotels & PHM’s Task (2)
PHM:
• Making recommendation about the Special Offer
• Implement the ads budget for hotel who still
don’t have corporate CC
• Organizing Loyalty Program
• Monitoring the website’s performance
• Handling the Search Engine Management
• Coordinating the social media movements
Hotels & PHM’s Task (3)
Hotel’s Marcomm Team:
• Continue to drive traffic to the website through
social media
• Contributing web content (blog post) for SEM
betterment
• Monitoring Unit Hotel’s google analytic and
generating new ideas for better web traffic
Hotels & PHM’s Task (4)
The hoped for impact:

Search Better Search Rank

Engine
Optimization Left

Came
because Make the
better search rank
Potential Search Rank better
Customer

Ads Traffic to hotel website Buy product

Unit Hotels’ Loyalty

Social Media program
Differences between Digital & Offline Ads
Online ads Offline Ads
Pay as budget Rate card
Measureable: n People Based on Circulation
Targeted to area Depends on area circulation
Targeted to device Default media
Targeted to people’s characteristic Depends on media’s market
(gender, age, interest, etc.)
Can be paused any time Depends on media’s published
date
In Google, people already seek the People find your ads accidentally
product
Rich media Most are only images
Recap
With these strategies, we are
creating:
• Brand awareness
• Costumer engagement
• Direct Business from Special
Offer
• Returning Customer through
Loyalty program
• Lasting impact in search engine
• Better report source
• Direct business from WoM
Steps in doing the strategies
We’ll talk about it in the next
presentation.

Now, let’s see if you have some

questions 