HTMT 360ST Online Marketing for Hospitality and Tourism Introduction

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HTMT 360STOnline Marketing for Hospitality and
Tourism Introduction

• August 21, 2007
• Bing Pan
• Office Beatty 315
• Office Phone [phone]
• http//www.ota.cofc.edu/pan/

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My Background/Birth Place
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B.E. and M.S. from Nanjing University
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Ph.D. from University of Illinois at
Urbana-Champaign
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Worked as a Post-Doctoral Fellow at Cornell
University
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Worked in the Office of Tourism Analysis in CofC
for Two Years
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Enjoy the traveling from time to time
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NOW YOUR TURN

• Your name?
• Where are you from?
• What did you do during the summer break?
• Why did you choose this 1 hour course?
• What is your ideal job after graduation?
• Tell us something unique about you so we can
  remember your name.

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An IT Faces Quiz!
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Who are these two guys?
Bill Gates and Paul Allen
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Larry EllisonFounder of Oracle
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Mmmm Who are these two ugly guys?
Sergey BrinLarry Page
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Mmmm Who is he?
Mark ZukerbergFounder of FacebookA college
dropout
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• IT is about exciting new opportunities need to
  embrace new technologies
• College education is more about people and
  wisdom

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Course Plan

• Four Sessions
• Intro, search engine marketing 1 and 2, create
  online buzz, and presentations
• Attendance is important! Let me know if you could
  not attend
• Group assignment individual contributions are
  counted (or not?)

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The story of Google
Is marketing necessary/relevant?
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• What is marketing?
• Two usage of Marketing
• In popular usage, "marketing" is the promotion of
  products, especially advertising and branding a
  misconception
• American Marketing Association (AMA) marketing
  is the process of planning and executing the
  conception, pricing, promotion, and distribution
  of ideas, goods, and services to create exchanges
  that satisfy individual and organizational
  objectives.
• in professional usage the term has a wider
  meaning which recognizes that marketing is
  customer centered a business orientation and a
  process or your personal philosophy?

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• Traditional Marketing 4P models..
• Product the specifications of the actual goods
  or services, and how it relates to the end-user's
  needs and wants, including supporting elements
  such as warranties, guarantees, and support.
• Price the process of setting a price for a
  product, including discounts.
• Promotion advertising, sales promotion,
  publicity, and personal selling
• Place/Distribution how the product gets to the
  customer point of sale placement or retailing.

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Two Aspects of Marketing

• Acquisition recruitment of new customers
• Base Management the retention and expansion of
  relationships with existing customers

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Two Levels of Marketing

• Strategic Marketing
• determine how an organization competes against
  its competitors in a market place to generate a
  competitive advantage.
• Operational Marketing
• executes marketing functions to attract and keep
  customers and to maximize the value derived for
  them, as well as to satisfy the customer with
  prompt services and meeting the customer
  expectations determination of the marketing mix
  (4P).

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• Those are traditional models of marketing and
  models of marketing.
• THEY ARE ALL WRONG!

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• If Thomas Edison started with marketing research
  he would have invented huge candles instead of
  light bulbs!!
• An outside - inward looking of marketing
• Product Innovation Focus iPod? iPhone? Google?
  Camera phone?
• Herd behavior in marketing

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Then the Internet came

• BOOM!
• It did not only added new channels but changed
  the rules
• The advantages of small businesses
• More power to the customers

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Producer
Consumer
mySpace
Google
youTube
Facebook
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Web 2.0

• Wikipedia, youTube, flickr, Google, facebook,
  mySpace, Mashup
• From Web as information source to
  participatory Web.
• Power to the people! Or
• Power to the users!!

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Web 2.0 and Marketingandin Charleston
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Traditional Marketing Channels

• Ads on newspapers, magazines, TV, and etc
• Direct Mail
• Stationary (letterheads)
• Press release
• PR events, sponsorship

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Online Marketing Channels

• Websites
• Affiliate program
• Blogs
• FAQs
• Email
• Signature blocks
• Newsgroups
• Chatroom
• YouTube
• Guestbook
• MySpace
• Audio and video
• Wiki
• Surveys
• Testimonial
• Vlog
• Whats new page
• Award site submission
• Inbound link campaign

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Advantage of Online Marketing

• Low cost
• Has the potential to reach a large customer base
  
• More Interactive..
• Can be personalized

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Disadvantage of Online Marketing

• No human touch experiential aspect of tourism
• Lack of trust
• Security and privacy concerns
• Customers are gaining more power!
• Information overloading!

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Lonely Girl 15
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Online Marketing for Hospitality and Tourism
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Lets Start with a Research
Tourists use of restaurant webpages Is the
internet a critical marketing tool? -- Stephen W.
Litvin, Julia E. Blose and Stephen T. Laird
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A Marketing Plan Project

• .the restaurant located within a major hotel
  that caters to upscale vacation travelers, had a
  page on the hotels website, but not an
  independent site that would pop up when the
  restaurant name was entered into search engines.
  Further, the students found the restaurants
  page, when located, uninspiring.
• Recommendation on investment on web marketing
• GM disagrees

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• How important is a web site to a restaurant?
• The last restaurant you visited last time

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Past Research
NRA study the earlier adopters of web sites
indicated that the purpose of their sites was
primarily to offer consumers information about
the restaurant and to provide location details.
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Past Research

• Lubetkins study on BB web site
• from the guests the internet ranked in
  importance below word of mouth, BB guidebooks,
  Mobil and AAA guidebooks, and magazine and
  newspaper advertising, and above only CD-ROMs,
  travel agencies, and chambers of commerce.
• BB managers were even less impressed, ranking
  the internet last in importance among these media.

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A Survey on Last Nights Restaurant Choices
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Another Question
Did you search the internet for restaurant
choices before coming to Charleston? 25
respondents (18 percent), indicated that they had
done so the majority having accessed internet
dining guides, with only a single respondent
having visited a restaurant website before their
Charleston visit. 22 of these 25 respondents
indicated their intent to visit a researched
restaurant during their stay in Charleston.
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Conclusions
Not useful in attracting visitors to come Why
intention didnt translate into purchase? Do you
need a web site for your restaurant? New trends
and technological improvements? Different usages
of web site
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The Importance of the Internet to Travel and
Tourism Industry
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• Trip Planning Online, 2005

• 9 of 10 online travel planners planned a personal
  trip in 2005 1 in 4 planned a business trip
• In addition, 1 in 3 online travel planners check
  Web sites and then calls a toll-free number
• 31 percent consulted a travel agent (39 percent
  2004)
• Today, 34 of online travel bookers make all of
  their travel purchases online.

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• Trip Planning Online, 2005

• there was significant growth in online bookings
  for cultural event tickets, theme/amusement park
  tickets, travel packages and tickets for sporting
  events.
• Leisure travelers spent an average of 1,288 when
  booking online business travelers spent an
  average of 1,357.
• Women are more likely to be online travel
  planners (56) and bookers (55)

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• Trip Planning Online using travel sites, 2005

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• Trip Planning Online, 2005

• Most popular types of Web sites online travel
  agency (Expedia, Travelocity and Priceline, 67
  percent) search engines (Google or Yahoo!, 64
  percent) and company sites (hotel and airline
  54 percent)
• Half of online travel planners also use
  destination Web sites (CVB sites)

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• Our CVB Survey, 2006

Question 14. Many people use the Internet to
research travel destinations. Which of the
following web sites did you use when planning
this trip?
The most often cited Other Internet web sites
include hotel.com, MapQuest, and SpoletoUSA.
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• Trip Planning Online using search engines, 2005

more than three-quarters of the searches
performed by these consumers were based on
generic terms as opposed to merchants brand
names.
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• Usage of search engines, 2005

From e-sex to e-Commerce, 2002
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• Trip Planning Online, 2005

• Most effective online marketing techniques that
  trigger a consumer response
• Unsponsored search engine results (36 percent)
• e-mail recommendations (34 percent)
• links on Web sites (26 percent)
• opt-in e-mails or e-newsletters (21 percent).

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• Overview of the main content of this course

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1. Website Evaluation

• Customers/audience of your site
• Design
• Content
• Navigation

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2. Search Engine Marketing
Paid Listing
Paid Listing
Organic Listing
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2. Search Engine Marketing

• How to increase your organic search engine
  ranking?
• Which keywords to work on?
• How to design your site appropriately?
• How to track and measure the performance of your
  web site?

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2. Search Engine Marketing

• What keywords to bid on?
• How to track and measure your performance?
• How to buy online ads?

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3. Create Online buzz

• Lets the customer and the market work for you
• Create online buzz with blogs, emails,
  newsgroups, chatrooms, youTube, mySpace,
  facebook, and etc.
• Using online communities