ExcelsiorAsset Management & Advisory

ExpertiseRevenue Management Digital Marketing for Hotels

Knowledge · Marketing

Digital marketing for hotels.

Search, paid media, the agents, social, reviews and the AI assistants, judged the way an owner should judge them: by what each booking costs and what it leaves.

Eleven lessons

  1. The rule

    Pay for a booking only when its contribution beats its cost, and only for demand that would not have come anyway. Everything else on this page follows from that sentence.

  2. Five stages, one calendar

    StageThe aimWhereMeasure
    AwarenessBe found and rememberedSearch, short video, press, AI answersReach among the right audience. Searches for the hotel by name
    ConsiderationBe chosen over the alternativesThe website, reviews, metasearch, photographsVisits to room pages. Review score against competitors
    TransactionTake the booking directlyBooking engine, member rate, a benefit only the hotel’s site carriesConversion rate. Direct share. Cost of acquisition
    ExperienceDeliver the stay and learn the guestPre-arrival messages, in-stay offers, Wi-Fi sign-inUpsell revenue. Guest details captured with consent
    AdvocacyTurn the guest into the next bookingReview request, email, referral, guests’ own photographsReviews gained. Repeat rate

    Give every rupee of spend a stage and a measure before it is spent. A campaign with no stage is noise, and one with no measure cannot be stopped.

  3. The funnel, in arithmetic

    Impressions become clicks, clicks become bookings. A hotel’s own site typically converts 1.5 to 2.5 percent of visits.

    Return on ad spend is the number agencies report. Turn it upside down to get the cost of acquisition, and set that beside the commission an online travel agent would have charged. Paid search that costs more than the agent has to earn its place another way.

    Cost per booking = cost per click ÷ conversion rate. Cost of acquisition = spend ÷ revenue = 1 ÷ ROAS.

  4. Bid on the last click, not the average

    A click is worth the contribution of a booking multiplied by the conversion rate. Raise a bid only while the extra clicks cost less than that. Judge the cost of the extra clicks, because the average hides it.

    Rank in the auction is the bid multiplied by a quality score. A relevant advertisement and a fast landing page let a hotel outrank an agent who bids more. Fix the page before raising the bid.

    Value per click = contribution per booking × conversion rate.

  5. Pay only for demand that is new

    Many guests who click a paid link with the hotel’s name in it would have booked anyway. Pause brand-name advertising in one market for two weeks and count what organic search and direct visits recover.

    In one worked example only 35 percent of paid bookings proved to be new, and the true return fell from 2.5 times to under half. Report the return on the increment.

  6. Search: being found on Google

    • A complete Google Business Profile: categories, photographs, hours, attributes, and answers to questions
    • Reviews, in number and in score, answered by a named manager
    • A live rate and availability feed, so the hotel’s own price appears beside the agents’
    • A fast site built for the phone, with every page one tap from booking
    • Pages for what guests search: the destination, weddings, meetings, the restaurant
    • Structured data for the hotel, its rooms, offers, events and questions

    Organic traffic has a price: the clicks you would otherwise buy. Report it in money each month.

    Organic traffic value = organic clicks × the cost per click you would otherwise pay.

  7. Being found by AI assistants

    Assistants answer the question and name a few sources. To be one of them, state the facts plainly and identically everywhere: name, place, what the hotel is, who it is for.

    • Allow the search crawlers of the assistants in robots.txt, and check that the host or content network does not block them
    • Write pages that answer one question each, with the answer in the first two sentences
    • Mark up the facts with structured data
    • Publish a plain summary for machines at /llms.txt. It is an informal convention, cheap to adopt
    • Earn mentions on sites the assistants already trust: the press, directories, associations. These count for more than your own pages

    Once a month, put the same five questions a guest would ask to each assistant. Record whether the hotel appears and which source is quoted.

  8. Direct against the agents

    At an equal price the agent often wins, because the guest’s card and loyalty points are already stored there. Keep the public rate in parity and add something only the hotel’s site carries: a benefit, not a lower public price.

    Rank channels on net rate, after commission. A listing with an agent does send some guests to the hotel’s own site, but only about 7 percent of shoppers switch. Treat the agent as a paid channel.

    Net ADR = ADR × (1 − commission) − fixed cost per booking ÷ length of stay.

  9. Social

    Give each platform one job. Short video earns reach for the place and the food. A photograph feed is the portfolio that proves taste. Lead forms sell weddings and meetings. One piece of film cut the same way for every platform does none of these well.

    For a restaurant, the map listing, the review sites and the guests already in the hotel matter more than paid social.

  10. Reputation is pricing power

    A hotel whose review score rose by one point on a five-point scale could raise its price by about 11 percent and hold its occupancy (Anderson). Photographs matter too: doubling the photographs on a listing raised both bookings and rate in one large study.

    Fix the product and answer the reviews first. Then raise the rate. Never the other way round.

  11. The monthly report

    Direct share
    of room nights and of revenue
    Cost of acquisition
    by channel, beside the agent’s commission
    Conversion rate
    of the website and of the booking engine separately
    Organic traffic value
    in money
    Incremental bookings
    from the last pause test
    Review score and volume
    against the competitive set
    AI citations
    from the monthly five questions
    Net RevPAR
    the number all of this exists to move

Campaign funnel

From impressions to the cost of each booking, set beside what an agent would have charged.

Cost of acquisition = spend ÷ revenue. Value per click = revenue per booking × margin × conversion rate. Amounts are in currency units.

Result · example figures until you change them

Clicks—
Spend—
Bookings—
Cost per booking—
Return on ad spend—
Value per click—
Cost of acquisition—

Direct against an agent

What each channel leaves after its cost, and what moving room nights between them is worth.

Net ADR = ADR × (1 − cost). Direct cost covers payment fees, the booking engine and the marketing that won the booking.

Result · example figures until you change them

Net ADR, direct—
Net ADR, agent—
Difference per room night—
Agent keeps, per room night—
Gain in a year—

Website launch checklist

Twenty-five checks in seven tiers, in order of what breaks first. Your ticks stay on this device until you clear them.

0 of 250%

Fatal if wrong

Being discovered

Measurement

Quality

Identity

AI visibility

Email trust

Four questions for the owner

  • What did a direct booking cost us last month, and what would the agent have charged?
  • How much of our paid search would have booked anyway?
  • Where do we appear when a guest asks an AI assistant for a hotel like ours?
  • What is the one benefit a guest gets only by booking with us?

Read next

More from Revenue Management

Paper

Market Segmentation

Segments, sources and channels: the mix that sets a hotel’s rate.

Read →
Course

Revenue Management 101

Forecasting, pricing, protection, overbooking and displacement, with calculators.

Read →

Contact

A first conversation is with the principal, in confidence.

Tell us the hotel, the question and the date by which you need an answer. Accounts are read only under a signed non-disclosure agreement.

WhatsApp+91 98733 42567
OfficesNew Delhi · Jaipur