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Major issues concerning the online marketers in Europe were discussed in detail by some of the most experienced professionals on the field gathered in the first European Hotel Internet Marketing Strategy Conference. The event took place in London last May and was sponsored by Institute de Management Hotelier International (IMHI) in conjunction with the HSMAI Hotel Internet Marketing Committee, Americas Board. Some of the most important issues are:
The issue of domain name protection
The CEO of Demys Limited, Andrew Lothian, raised the issue of domain name protection on the Internet. The comparison between domain names and doorways was made – stating that the objective of getting people into your business is a similar objective for both in the online and offline world respectively. However online doorways are not trouble-free – specifically that if they are not properly managed. It is easy for somebody to hijack it and use it for improperly that sometimes may lead up to competition! In addition the need to take a proactive approach to managing domain names was stressed, insuring that each one is registered to the company itself instead of third parties. Finally the suggestion was made that companies should not target dot-com acronym, focusing solely on their brand(s).com sites to the detriment of country domains that can be just as powerful at guiding customers to the website.
Active management of the internetresources
The theme of active management of the internet resources was brought up by Kristofer Peterson, senior consultant at Cogent IPC. Focusing on the issue of online brand protection, failing to protect your brand online could lead customers being diverted to other websites, leading to customer confusion and eventually commoditization of the hotel product. Some of the techniques being used, including paid placements, are third parties bid on brand name keywords in the search engines and thus divert the customer to the site of their choice rather than the brand.com site, to look-alike domains which on the surface appear to the site of the brand in question but are in reality a third party intermediary. Failure to manage brand online heads to a loss of direct business to intermediaries and thus higher costs, and also leads to a loss of ownership of customer data. The issue is so crucial that building clauses into contracts with third party intermediaries prohibiting them from engaging in such practices was suggested.
Guaranteeing reservations using credit cards
The problem of guaranteeing reservations using credit cards is also a major issue of concern. Ms Wilmott explained that legislative restrictions make the use of credit cards as a guarantee mechanism impossible in many parts of the Middle East, and other panel members pointed out that in some European nations, remarkably Germany, consumers simply refuse to use their cards for this purpose. Current practice is to trust the customer, but it is a very useful illustration of how regional and cultural differences must influence the way in which we do business. How differences in language and culture mean that to effectively market yourself electronically outside the US, you have to be prepared to invest a lot of time and effort understanding each marketplace and developing specific promotions and solutions that address its unique characteristics was highlighted and concluded that a single Anglo-Saxon orientated approach is unlikely to work.
“Multi-Lingual Websites / Globalization”
The panel highlighted how localization of both content and sales messages was the key to success. Simple translation or, as they phrased it “transliteration” is unlikely to succeed. The challenge is to have an international site but remain local, present the content in a clear, concise and relevant way to the local situation. This is possible to achieve by devolving responsibility for such content down to the local level, which, from a technological perspective, can be facilitated relatively easily using a content management system. However it is the soft factors that are more troublesome, and the corporate level needs to spend a lot of time and effort on training and communication as to the importance of maintaining such data regularly and to the role that it plays in the marketing and distribution process is key.
Measurement to understand patterns and trends
The overall message is the speed at which the online marketplace is changing and becoming more diverse. Those players of the industry that wish to do well online have to develop an in-depth understanding of their customers and react quickly and proactively to changing needs. Technology now exists to measure and help understand patterns and trends in customer data and help companies to succeed online. However, traditionally the hotel sector in particular has been slow to make use of such tools, and thus lags behind other sectors, in particular the online intermediaries. Failure to start managing all aspects of a company’s electronic presence proactively will ultimately lead to a further loss of control, and help drive customers into the arms of intermediaries and competitors.
“Global Differences in Hotel Internet Marketing”
There are key differences in the behavior of consumers in the US, Europe, the Middle East and Asia. For example, Mr d’Auvigny highlighted differences in travel patterns and specifically the importance of trains in the European marketplace, where far more consumers make use of the high-speed rail network to travel distances of up to three hours than in other regions, a characteristic that has influenced Accor’s marketing strategy and prompted the introduction of their innovative scheme “Train et Hotel”.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
