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[Case Study] How Hotel Marketing Boosted Profits [Part 2 of 2]

Posted on Mar 1, 2018 10:52:51 AM

 

In this second part of our two-part series we examine how the right hotel digital marketing helped the Montcalm Hotel Group increase profitability by more than 10%.

The properties of The Montcalm Hotel Group provide their guests with the height of indulgence, offering design-led suites, luxurious amenities, and locations in the exciting heart of London.

Unfortunately, their hotel marketing efforts were not effectively translating these benefits into direct bookings, and like many hotels, The Montcalm watched their profits plummeting by commissions paid to the OTAs. Those profits were reduced still further by advertising spends that weren’t generating a positive return on investment (ROI).

The Montcalm needed a measurable hotel marketing plan that would drive qualified traffic to their website, bump up conversions, reduce customer acquisition costs, and help them regain control of their profitability.

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They turned to Pegasus for a solution. Pegasus transformed the hotel group’s revenue and profit goals into an actionable, comprehensive digital marketing plan that resulted in a strong ROI, by employing effective tactics such as:

Email marketing. Users of email marketing systems achieve $38 in ROI for every $1 spent. Personalized email marketing campaigns allowed the hotel group to get the most “bang for their marketing buck” - keeping the hotel top of mind with their contacts, and making their offers personalized (and relevant) for their customers.

Affiliate marketing. Referrals from other websites significantly expanded the hotel group’s reach, improving search engine results rankings and improving their conversion rates overall.

Social media marketing. Interacting in social media channels allowed the hotel group better brand awareness and engagement with their current and former hotel guests. It also increased the number of former guests enrolled in special rewards programas.

Overall, the hotel group realized more than a six-time return on their marketing investment. The campaign helped drive a 27% increase in total booking volume, sliced customer acquisition costs in half, and improved profitability by more than 10%.

 

 

Topics: Pegasus Solutions, Hotels, booking engine, direct booking, hotel marketing

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