Thursday, September 04, 2008

Travel Search Marketing: Time for a Test Drive?

The travel search space is diverse, made up of companies with many types of offerings and business models. It hardly seems fair to lump such vastly different types of sites together in the same category. To understand exactly what we mean by "travel search," it's important that we look at the parts that make up the whole.

Travel search breaks down into six primary categories:

* Comparison Shopping (Kayak, Sidestep, FareCast, FareCompare)
* Travel Aggregators (Travelocity, Expedia, Orbitz, Hotwire, Priceline)
* Direct Purchase (branded airline and hotel sites)
* Social/Review Sites (TripAdvisor, Gusto.com)
* Map/Local Search (MapQuest, Google Maps, Yahoo Maps)
* Independent Travel Providers (agents, resorts/destinations, outfitters)

The Consumer Perspective

Many of us use travel search pretty regularly in our daily lives, whether it's planning for business travel, leisure or adventure vacations. As consumers, we tend to seek out Web sites that best fit our specific needs and provide an answer to our query. So it makes sense that we may often look at several sources during the "travel conversion funnel."

Business travelers certainly have a different motivation than the typical leisure traveler, and a corporate travel planner may or may not be involved in the search process. The most difficult parts of the conversion process are already answered at the beginning: Where? When? How quickly? How much?

A leisure traveler goes through a much different cycle to get to their intended destination. First, they must be inspired to take a trip, and begin the research phase. The second component of this step is that they must have a general idea of where on the planet they'd like to go. Then a traveler will move into planning mode, gathering the initial details for the itinerary -- what general area to stay in, what to do, and so forth.

Next is the comparison shopping stage, checking for availability and best pricing. Finally, the purchase decision is made. Of course, there are variations in the shopping stage, as some travelers are motivated by aspects other than lowest price. Experiential and emotional factors come into play.
The Search Marketer's Perspective

Your job as a search marketing professional is to fully understand and appreciate the needs of your client's target market when considering playing in the travel search space. If you are working for a major conglomerate of hotels, you will likely need to use a mix of data feeds to the broad aggregator channels, as well as consider organic SEO and paid placement for the individual locations of the hotels.

For smaller clients, the focus may be more on organic SEO and targeted keyword buys. Quality content will play a major role, offering an opportunity to find your niche and target very specific customers online. Be sure to accurately represent the service and play up the unique aspects of the business – is it luxury or rustic accommodations, family- or couples-oriented? Recognize that the overall Web site design and content strategy plays a critical role, since travel is an emotional decision. Quality images and copy elements that sell the experience can also act as potential link bait.

In today's travel sector, search marketers mush also go beyond geo-targeting efforts and local search strategies to social media. More and more consumers today will look to review sites and social media outlets for advice from their online peers. Search marketers need to be sure travel clients are well represented in the ever-growing list of social travel sites and come up with a plan to encourage satisfied users to share their positive experiences in such social media venues.

The first step is to make sure your client is present in the relevant sites, including newcomers World66, 43Places, RealTravel, Vcarious and Travelistic, among a host of others. Ensure that the descriptions of their services and amenities are up to date, and that they are presented in such a way to attract travelers. Most travel search sites provide a mechanism for proprietors to add or edit information, so it's important to take advantage of these options to present your client in the best light.

From an ethical perspective, I do not advocate writing falsified reviews, touting the excellence of your clients' travel related service, nor do I recommend writing disparaging reviews of your closest competition. Besides inviting karma to come back and bite you for this, it's also an incredible waste of time, since the "wisdom of the crowds" will eventually prevail. The time you waste here would be much better spent focusing on how your client can improve their business and online strategy.

The next step is managing your client's reputation. It's human nature for people who are upset by service to be much more likely to share their bad experience, than for someone who has had a good experience to make the effort to do the same. That makes it doubly important for you to give satisfied customers a reason to do so, whether that's in the form of a discount on future services, or other incentive.

It's important to note that you cannot stop people from sharing bad experiences with your client, so the first step is for them to deliver solid service. You cannot successfully manage a client's reputation online if the bad reputation is deserved. Part of that is appropriately representing the service on the official Web site – if guests book a stay at a place you described online as a "five-star resort," they will be sorely disappointed when they arrive to find a run-down motel.

Finally, no matter what category of travel search you fit into, it's imperative to implement a solid reporting system for conversion rates and ROI metrics, because it's far too dangerous to play in this space while blindfolded. Paid campaigns can quickly spiral out of control if not adequately managed. When using social media tactics, it's much more difficult to put a direct ROI on referrals that may have occurred over a long research cycle, but you must recognize the word-of-mouth component is a critical aspect of any travel-related business.

Reviewing historical data is the first step in discovering successes, failures, and often the best source of new ideas and opportunities. The old adage rings true in this space: you can't know where you are going without considering where you have been.

The search space is going vertical, and travel search is one of the first verticals leading that charge. If you take the time to get to know this space, it can reap rewards for you, both now and down the road. Not only will it strengthen the services you can offer existing clients, and open up a new client base; but it will also help you develop techniques that you can use in the future to enter other verticals as they emerge.

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Key Themes in Today's Online Travel World

1. Is the certainty of organic SEO declining? With so many well-established brands, and early adopters of SEO, is there any room for new entrants? However, most travel marketers agree that you must get SEO 100 percent right.
2. At what point does SEM become saturated in the travel vertical? Smart advertising is going to be your savior, and implementing strategic dayparting and re-targeting techniques will stretch your ad dollars even further. Greg Johnston, director of eCommerce at Hyatt Hotels, gave a particularly telling example of rising costs and competition: In 2005, Hyatt's average CPC was $0.25; in 2006, it rose to $0.35; in 2007, it jumped to $0.89; today, it's averaging $1.25.
3. How will brand marketing continue to affect SEM in this maturing industry? Branded searches are up 15 percent on the major search engines. How can smaller companies create an impact and compete in well established market segments? Narni Ilagan Yoder, a senior manager at Google, noted how setting the tone and expectations within the PPC medium will become more important, presumably in both conversions and in creating brand awareness and loyalty.
4. Customer service and retention crosses over from offline to online attitudes. Use your call center to help improve the quality of your Web site, and fill in the content gaps, said Steve Pinetti, SVP of Sales and Marketing at Kimpton Hotels.
5. Get smarter about social media marketing, get buy-in, budget, and make it profitable for your company. Cassanda Jeyaram, social marketing manager for InterContinental Hotels, gave the most practical advice for crafting social media programs, by employing Forrester Research's P.O.S.T. (people, objectives, strategy, technology) rather than just throwing anything up to see what sticks. You'll find that creating measurable social campaigns provide more long term value and cost savings when you consider these elements: exposure/PR, retention, and revenue.
Elisabeth Osmeloski is the Director of Online Media at Zonder.com, a vacation rentals search service that connects travelers and property owners in popular vacation destinations.

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Search Engine Marketing in the Travel Industry

Search Engine Marketing For Travel-Related Sites
By Shari Thurow, Search Engine Watch, Oct 26, 2004Columns Contact Shari Subscribe to Newsletters RSS Feeds

Search marketing in the travel industry is brutally competitive, with intense jockeying between travel agencies, affiliates, wholesalers and travel products companies themselves vying for top positioning. What's the most effective approach to search marketing in this cutthroat environment?
A special report from the Search Engine Strategies conference, August 2-5, 2004, San Jose, CA.
At this session of the Search Engine Strategies conference, expert panelists discussed issues and strategies for the travel industry.
According to Jupiter Research, for each dollar generated online, travel companies recorded an additional $5 revenue from traditional channels as a direct result of research that consumers did online. In addition, by 2005, 20% of all hotel bookings will be made online: half directly with hotel companies and half from third-party intermediaries, according to a Cornell study. Therefore, search engine marketing, particularly geo-targeting, should be an integral part of the hospitality industry's online marketing campaigns.
"In researching travel, consumers typically know the destinations they are interested in," said John Waddy, President of Travel eMarketing, LLC. "65% of hotel buyers check three sites before making a buying decision in a study by Phocus Wright. So your SEM campaign should be geo-targeted."
Waddy recommended creating a multi-channel internet marketing strategy that includes search marketing. However, hospitality marketers need to keep in mind how competitive the travel industry is.
"To keep visitors on your site, always provide enough content on your site about the destination for visitors to make a buying decision," he said. "If a site visitor has to go to some other site to find out information on your hotel or event, you're probably going to lose that visitor as a conversion and repeat visitor." With plenty of keyword-rich content, search engine optimization can be a cost-effective means of marketing a travel Web site.
Search engine paid strategies
"If you are search engine marketer doing it internally for a client, I would say that (a)it's extremely competitive, (b)it continues to change, and (c)there are all these new niche marketing opportunities popping up on the horizon," said Jon Schepke, Vice President and Principal at Meandaur.
Schepke uses a number of SEM strategies that include PPC advertising, paid inclusion, and natural search engine optimization. "We're promoting over 5,000 terms for this client," he said. "Because the travel space is so competitive, tracking is essential."
For his clients, Schepke uses Overture's Tracking Console. "Everyone needs to figure out what campaign management tool is best for them," he continued. "With the URL string, we can track the campaign, the channel, the keyword, and the tactic. What's also pretty compelling is we can put a conversion tag on conversion pages, and you can pass a conversion string that associates the revenue type, or revenue amount, with the actual campaign and the channel."
To hit the majority of your keywords, he recommended using the Broad Match options on Google and Overture. Schepke also uses search engine advertising at FindWhat, Kanoodle, and Enhance Interactive (formerly Ah-Ha).
Since the travel industry is a specialized field, Schepke also takes advantage of specialized search services, such as SideStep (travel) and NexTag (shopping). "These are comparison search engines for the travel space," he said. "Travel specialists can use their email campaigns and geo-targeted advertising."
In addition, Waddy recommended the following marketing channels for travel sites:
Hotel or branded sites (such as Hilton.com)
Destination/travel sites (such as Chamberofcommerce.com)
Third-party intermediaries (such as Expedia.com)
The self-funding model
Not all hospitality sites have deep pockets for marketing sites across all channels. All too often, travel sites can only market through a single channel. This was the case with Wyndham Hotels.
"We wanted to create a self-funding model and so the client was no longer dependent on anemic ecommerce budgets," said Cheryle Pingel, Chairman & Co-Founder, Range Online Media. "The client had $30K of seed money. The goal was to generate $200K for every $10K spent."
Reinvesting 7, 10, or 13 percent of revenue was part of the self-funding strategy. "Assuming the same gross revenue and reinvestment percentage, your campaigns can begin to grow monthly," said Pingel. Within one month, revenue jumped from $10K to $26K. ROI can be determined by gross revenue or bottom line profit.
Pingel initially invested in Overture paid advertising, then in paid inclusion. "We always had to make sure we had the money to propel us along," she said. "In the beginning when our budgets were lower, we were daypart bidding with wild peaks going up and down. When we had more money to work with, we could think more long-term."
90 days should be the minimum time period before beginning a self-funding model.
"Success breeds success," said Pingel. "This self-funded model allows you to capitalize on your successes."
Travel site tips
Panelists offered the following tips for marketing travel and hospitality sites on the search engines:
Divide travel-related keyword phrases into categories. Waddy recommended combining city/state keywords with general keywords (Miami Florida family vacation), targeted geo-searches (city name + lodging keyword), vacation packages, and other destination keywords (shopping, golf, weather, maps).
Take advantage of event marketing strategies. "We'll work closely with a property on their local events and promote those related keywords," said Schepke. "10 out of the 20 keywords that generated the most traffic for one of our international travel clients were event-driven."
Use travel packages whenever possible. "The best conversions came from package keyword," he said. "First visit purchases accounted for 57% of conversions, and repeat visit purchases accounted for 43% of conversions."
Create customized landing pages for each campaign. By matching ads to specific landing pages, it increases the overall conversion rates. "We also created a particular property and worked that within the property management system," he added. "We passed that particular event through to the hotel, providing tracking both online and offline for the hotelier."
Offline and online conversion tracking is crucial. "Consider using landing pages with unique 800 numbers or dynamic discount codes identifying the customer lead," said Waddy."
Be aware of seasonal fluctuations. "You need to know when to hold back or when to invest based on your business model," said Pingel. Search engine advertising is often the best form of marketing for seasonal fluctuations since SEMs can turn campaigns on and off during specified months, days, and hours.
Want to discuss or comment on this story? Join the Search Marketing in the Unfriendly Skies discussion in the Search Engine Watch forums.
Shari Thurow is the Marketing Director at Grantastic Designs, Inc. and the author of the book Search Engine Visibility.
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