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SHR’s Hotel Industry Trends Report 2024

Hotels explore new strategies to enhance guest acquisition amidst increasing competition 

After analyzing over 50 million room nights across more than 2,000 international hotels that are currently using one or multiple Allora products and services, SHR’s Hotel Industry Trends Report 2024 reveals a turning point for the hotel industry. This insightful report exposes for the first time the way the recent influx of marketing spend from OTAs is impacting hotels’ share of direct bookings, and discusses the marketing strategies needed to respond. 

Some key insights in the report: 

  • Understand recent shifts in the dynamics of direct bookings
  • Impact of Cost-Per-Click inflation on hotelier’s digital marketing strategies
  • Trends in the evolution of booking channel mix   
  • How AI-powered technology solutions can help hoteliers maintain competitiveness. 
Posted in Whitepaper

Unlock the Power of Seamless Integration: The SHR CRM + CRS Whitepaper

Welcome to the forefront of hospitality innovation. SHR is proud to present our latest whitepaper, The Importance of a Deep, Native Integration Between Your CRS & CRM. This ground breaking resource delves into the transformative potential of deep, native integration for hotels worldwide.

Why Deep, Native Integration Matters:

Enhanced Efficiency: Discover how seamless data flow between your CRS and CRM streamlines operations, saving time and resources for your hotel.

Improved Data Accuracy: Say goodbye to discrepancies and errors with a cohesive system that ensures accuracy across all your platforms.

Seamless Guest Experience: Elevate guest satisfaction with personalized interactions made possible by a fully integrated CRS and CRM.

What You’ll Learn:

  • Understanding Deep, Native Integration: Explore the concept in depth and learn why it’s crucial for modern hotel management.
  • Comparative Analysis: See how deep, native integration stacks up against typical API-based connections and why it’s the superior choice for your hotel.
  • Real-world Success Stories: Hear from hotels around the globe that have embraced deep, native integration and experienced tangible benefits.

Ready to Elevate Your Hotel’s Performance?

Don’t miss out on this opportunity to revolutionize your hotel’s operations and guest experience. Download our whitepaper now and discover the power of seamless integration with SHR.

Posted in Whitepaper

Embracing Guest-Centrism: Powering the Modern Era of Central Reservation Systems (CRS)

A Guest-Centric Approach Redefined

In the dynamic realm of hospitality, where the only constant is change, the unveiling of groundbreaking insights is akin to unlocking a treasure trove of opportunities. Enter the latest white paper from SHR Group, Future Proof: Key Trends Shaping Hotel Distribution in 2024, a beacon guiding hoteliers through the complexities of the evolving industry landscape. 

As we stand at the cusp of a new era, this white paper serves as a compass, charting the course for hotel management in 2024 and beyond. At its core, the paper offers a comprehensive exploration of Central Reservation System (CRS) strategies that are poised to redefine how hotels manage their bookings, streamline operations and optimize revenue streams. 

One of the key pillars of the white paper revolves around the integration of advanced technologies into hotel operations. Artificial Intelligence (AI) and automation have transcended from futuristic concepts to indispensable tools reshaping the industry’s DNA. The white paper delves into how these technologies are revolutionizing daily operations, enabling hotels to enhance efficiency and deliver unparalleled guest experiences. 

A particularly noteworthy aspect of the white paper is its emphasis on data-driven decision-making. In an era where information is power, harnessing the potential of data analytics becomes imperative. Hoteliers are guided through the intricacies of leveraging data to make informed decisions, empowering them to stay agile and responsive to the ever-shifting market demands. 

Personalization emerges as another focal point, echoing the industry’s shift towards a more guest-centric approach. The white paper highlights the role of personalized experiences in fostering guest satisfaction and loyalty. Readers will discover actionable strategies to implement effective personalization, creating bespoke experiences that resonate with today’s discerning travelers. 

The white paper doesn’t merely stop at dissecting trends; it serves as a practical guide for hoteliers looking to implement these transformative strategies. Case studies and real-world examples pepper the narrative, providing tangible insights into how hotels can translate theory into practice. 

As we traverse uncharted territories, SHR’S white paper positions itself as a beacon of innovation. It not only anticipates the challenges that lie ahead but equips hoteliers with the tools and knowledge needed to navigate the evolving landscape successfully. 

Interviews with industry experts featured in the white paper offer a deeper dive into the nuances of the trends discussed. Their perspectives add a human touch to the narrative, offering a glimpse into the minds driving innovation within the hospitality sector. 

In a world where adaptability is key, SHR’s white paper emerges as a vital resource, ensuring that hoteliers not only stay afloat but thrive amidst the changing tides. By marrying visionary insights with actionable strategies, this white paper invites hoteliers to reimagine the future of their establishments and embrace the transformative journey that lies ahead. 

As we eagerly anticipate the unfolding of 2024, the SHR white paper stands as a testament to the industry’s resilience and commitment to excellence. It beckons hoteliers to embark on a journey of transformation, armed with knowledge that transcends the mundane and propels them into the forefront of the evolving hospitality landscape, keeping them always ahead. 

Posted in Whitepaper

Future Proof – Key Trends Shaping Hotel Distribution in 2024

Successful hotel distribution strategies today require a holistic approach that encompasses each facet of the booking journey. In the coming months, hoteliers will be laser focused on optimizing their channel mix for profitability, personalizing the booking experience to increase conversion, and leaning on Artificial Intelligence to drive efficiencies.

To operate a successful hotel, there are a lot of things that have to go right. Owners need the right building in the right market tailored for the right demand generators, and operators need to build a top-notch management team equipped to offer great service.
Perhaps most importantly, though, is a well-thought out strategy to attract guests. Even the perfect hotel will not stay open long with no guests.
Gone are the days when hotels could simply open their doors next to a tourist destination and expect to fill up. As more and more hotels pop up in a market, hotels are constantly pressed to find ways to differentiate. Simultaneously, the ways travelers are searching and booking accommodations has evolved drastically, and hotels are constantly updating their strategies to ensure their offerings are in front of as many potential guests as possible.
Hotel distribution today involves a holistic approach to inventory management, digital marketing and pricing, with all teams across the commercial department acting in synchrony to ensure room availability and rates are appearing in the right places. To stay ahead of an increasingly complex landscape, hoteliers are turning to modern and innovative technology as an essential component of their distribution strategies.

  1. First, hotels must remain focused on optimizing their channel mix, which means analyzing which channels are the most profitable for them and driving as much business through these channels as possible. Ancillary channels can and should be used to fill in need periods or to reach travelers the hotel otherwise might not reach through its own channels.
  2. Next, it’s increasingly imperative for hoteliers to personalize a traveler’s booking experience, which can mean anything from using a first name in an email to presenting only offers that are relevant to that guest, based on previously identified preferences.
  3. To enable these and other modern distribution strategies at scale, hoteliers are increasingly relying on Artificial Intelligence. While the industry has long relied on machines for their ability to aggregate and normalize large sets
    of guest and transactional data, we are at the beginning stages of AI actually putting this data into action. Today, AI is helping reduce manual work across hotel distribution, from generating rate packages and descriptions to knowledgable chatbots equipped to handle any guest inquiry.
Posted in Industry Trends, Whitepaper

Embracing Guest-Centrism: Powering the Modern Era of Central Reservation Systems (CRS)

A Guest-Centric Approach Redefined

In the past, SHR placed the Central Reservation System (CRS) at the core of the distribution process. However, our vision has evolved, and we now position the guest at the heart of the system. Empowering independent hotels and regional brands, our comprehensive set of applications, featuring the Booking Engine (BE) and Customer Relationship Management (CRM), is strategically designed to boost revenue and cultivate lasting guest relationships throughout the entire guest journey. Crucially, our Central Reservation System (CRS) acts as the linchpin, seamlessly connecting hotels or brands to all their booking channels. This global reach spans both direct and indirect channels, ensuring visibility where potential guests make their purchasing decisions. By being present and bookable in diverse channels, languages, and preferred platforms, the CRS not only broadens its reach but also capitalizes on revenue-generating opportunities. Furthermore, all pricing and selling strategies are conveniently managed within the CRS, streamlining operations and providing a unified approach. Our mission remains steadfast – to establish enduring connections between hotels or brands and their guests, prioritizing meaningful relationships over short-term gains, while strategically positioning them to reach a global audience and meet guests where they are. Our pioneering approach, centered on deeply integrated, cloud-based software, built with an API-first approach, delivers scalable, brand-centric guest experiences tailored and customized to support each hotel’s unique context and strategy and our CRS tool is designed to connect the hotel to their guests in a more intuitive way, alongside our BE, CRM and RMS.

Beyond the Realm of Open Pricing – The Importance of Using a CRS

Relying solely on a channel manager raises critical considerations, primarily concerning the relationship between the channel manager and OTAs. OTAs, by their inherent nature, predominantly focus on the open-priced leisure market, utilizing a date/rate/occupancy model for essential data. This approach can provide a limited perspective on the complete distribution and booking landscape, neglecting segments like business and group/event travelers. In this constrained scenario, you might find yourself disregarding tactics related to loyalty or length-of-stay pricing, as opposed to simple open pricing. Remember the intricate distribution strategies mentioned earlier? They encompass various methods, such as blended rates, derivation, double derivation, sell limits, loyalty rates, and more, all aimed at reaching your guests and increasing online and offline bookings.
Modern CRS systems go beyond the linear model of solely connecting to OTAs, enabling the creation of finely tuned strategies and booking concepts. Guest-centric strategies demand control from the hotelier, which can be achieved by connecting to the myriad choices and strategies offered by today’s guest-focused CRS model, rather than solely relying on the standard channel manager model.

Channel Manager vs. Central Reservation System (CRS): Understanding the Differences

In the world of hotel management and distribution technology, two critical tools play a central role: the Channel Manager and the Central Reservation System (CRS). While both serve to streamline the process of distributing hotel rooms across various channels, they have distinct functionalities and purposes. Let’s delve into the differences between a Channel Manager and a CRS to understand how each contributes to an effective hotel distribution strategy.

  1. Functionality & Scope of Control:
  • Channel Manager: A Channel Manager primarily focuses on managing and updating room rates and availability across multiple external online channels, such as OTAs (Online Travel Agencies), global distribution systems (GDS), as well as the hotel’s own website. It ensures that room inventory is synchronized in real-time, preventing overbookings or double bookings and hotels can efficiently manage their presence on multiple third-party websites.
  • CRS: A Central Reservation System encompasses all the functions of a Channel Manager and more as it serves as the core system for a broad range of functions including managing a hotel’s room inventory, reservations, direct bookings on the hotel’s website and guest data. It often includes features like a booking engine (BE), reservation management, and guest profiles. The CRS serves as the centralized master hub for all aspects of reservations deploying the hotel’s selling strategy, supporting direct bookings through the hotel’s website and call center, in addition to handling third-party distribution.
  1. Data Management:
  • Channel Manager: Channel Managers handle rate and availability data, ensuring consistency and accuracy across various online platforms. They typically do not manage guest data or handle guest profiles.
  • CRS: A Central Reservation System is responsible for all transactional communications to do with managing guest profiles, preferences, and reservation data. When integrated with a CRM all this valuable guest contact and purchase information can be used for personalized marketing strategies.
  1. Direct vs. Indirect Bookings:
  • Channel Manager: Channel Managers are primarily geared towards managing indirect bookings through third-party channels and OTAs.
  • CRS: A CRS has a higher level of direct connectivity as it encompasses both direct and indirect bookings, managing reservations made through the hotel’s website and external channels, such as GDS systems.

In summary, a Channel Manager and a Central Reservation System serve distinct but complementary roles in a hotel’s distribution strategy. While a Channel Manager excels at managing rates and availability across external channels, a CRS acts as the central hub for managing all aspects of hotel reservations, including both direct and indirect bookings, guest data, and the hotel’s own website bookings. To maximize efficiency and revenue, many hotels use both systems in tandem to achieve a balanced and effective distribution strategy.

The strength of SHR’s Central Reservation System (CRS) lies in its ability to efficiently deploy strategic pricing to the various segments of the market, meeting guests where they are and on their preferred booking channel. It streamlines the reservation process and optimizes the hotel’s operations and revenue management strategies, all while enhancing guest experiences and catering to the specific needs of each client. This tailored system ensures that every step of the reservation journey is smooth and efficient, from the moment a guest makes a booking to their departure.

The CRS takes care of all the necessary tasks, from availability checks to sending confirmation emails. Hoteliers can easily manage and organize reservations, view real-time availability, and make updates with just a few clicks, thereby increasing operational efficiency. Moreover, the system boosts global reach through integration with the Global Distribution System (GDS), major Online Travel Agencies (OTAs), and multiple channel managers, leading to increased visibility and more bookings. This automation not only saves time but also reduces the risk of errors, allowing hotel staff to focus on providing exceptional guest service.

In addition to this, SHR’s innovative CRS leverages AI agents and advanced technology to revolutionize hotel operations with seamless automation and enhanced efficiency. The integrated AI assistant offers instant language translation, generates tailored content and executes personalized workflows, empowering hoteliers to maximize productivity while focusing on delivering exceptional guest experiences.

However, the strength of SHR’s CRS goes beyond operational efficiency. This user-centric reservation management system offers more than basic hotel CRS functionality. It empowers hoteliers to reach every one of their guests and is designed to work with all the other SHR tools such as CRM and RMS to personalize guest preferences, track guest history and gather valuable insights to deliver truly personalized guest experiences. This level of personalization not only enhances guest satisfaction but also fosters guest loyalty and repeat business, making it a valuable asset for hoteliers looking to excel in the competitive hospitality industry.

Furthermore, SHR’s CRS empowers hoteliers to maximize bookings and revenue by seamlessly connecting to all relevant sales channels tailored to their property and market. By meeting guests where they are – whether booking online, over the phone or through their preferred language and payment method – the CRS ensures an optimized booking experience. With built-in efficiencies and automation, hoteliers can manage everything in one place quickly and effortlessly, allowing them to focus on what truly matters: selling rooms. Complementing this, the Revenue Management System (RMS) provides intelligent pricing strategies, while the Customer Relationship Management (CRM) system delivers targeted marketing, creating a comprehensive solution for driving profitability and guest satisfaction.

Posted in Industry Trends

Mastering Relationships: The Ultimate Guide to CRM in the Hotel Industry

In the competitive world of hospitality, maintaining strong relationships with guests is crucial for success. This is where Customer Relationship Management (CRM) systems come into play. For hotels, CRM is not just a tool—it’s a strategic approach to understanding guests, enhancing their experiences and fostering long-term loyalty. In this guide, we’ll explore what CRM is, why it’s essential for hotels, its advantages, how it works specifically in the hotel industry and types of CRMs.

What is Customer Relationship Management (CRM)?

CRM, or Customer Relationship Management, refers to the practices, strategies and technologies that businesses use to manage and analyze customer interactions and data throughout the customer lifecycle. It is designed to improve customer service relationships and assist in customer retention and drive sales growth.

Why is Hotel Customer Relationship Management Important?

In the hotel industry, where guest satisfaction directly impacts revenue and reputation, CRM plays a pivotal role. Here’s why CRM is crucial for hotels:

  1. Enhanced Guest Experience: CRM systems enable hotels to gather and analyze guest preferences, enabling personalized services that enhance guest satisfaction.
  2. Increased Guest Loyalty: By understanding guest preferences and behavior, hotels can tailor offers and services, fostering repeat visits and loyalty.
  3. Improved Marketing Campaigns: CRM helps hotels segment guests based on preferences, allowing targeted marketing campaigns that yield higher conversion rates.
  4. Efficient Operations: Centralized guest data streamlines operations, enabling better coordination among departments to deliver seamless services.
  5. Data-driven Decision Making: CRM provides actionable insights through analytics, aiding in strategic decision-making to optimize revenue and operations.

5 Advantages of Hotel CRM:

  1. Personalized Guest Experience: CRM systems track guest preferences and past interactions, enabling personalized services such as room preferences, special amenities or loyalty rewards.
  2. Guest Retention and Loyalty: With CRM, hotels can engage guests with personalized offers and experiences, fostering long-term relationships and repeat bookings.
  3. Streamlined Operations: CRM integrates guest data across departments like front desk, housekeeping and marketing, ensuring a unified guest experience and operational efficiency.
  4. Targeted Marketing: CRM helps hotels segment guests based on behavior and preferences, enabling targeted marketing campaigns that yield higher ROI.
  5. Data Analytics for Insights: CRM analytics provide actionable insights into guest behavior, helping hotels optimize pricing, inventory management and service offerings.

How Does a CRM Work at a Hotel?

In a hotel setting, CRM involves:

  • Guest Profiling: Collecting guest data like preferences, booking history and feedback.
  • Personalization: Using guest data to deliver tailored services and offers.
  • Integrated Systems: Linking CRM with booking platforms, POS systems and loyalty programs.
  • Feedback and Engagement: Seeking guest feedback and using it to enhance services.
  • Analytics and Reporting: Analyzing data to derive actionable insights for operational and marketing strategies.

Types of Hotel Customer Relationship Management:

  1. Operational CRM: Focuses on automating and improving operational processes like reservations, check-ins and housekeeping.
  2. Analytical CRM: Emphasizes data analysis to understand guest behavior, preferences and trends, enabling strategic decision-making.
  3. Collaborative CRM: Facilitates collaboration across departments to deliver a unified guest experience and optimize service delivery.

In conclusion, CRM is indispensable for hotels seeking to build lasting relationships with guests, optimize operations, and drive revenue growth. By leveraging CRM technologies and strategies, hotels can transform guest experiences, foster loyalty and stay ahead in an increasingly competitive industry.
Remember, successful CRM implementation is not just about technology—it’s about leveraging guest insights to create memorable experiences that keep guests coming back and hotels always ahead.

Posted in Industry Trends

Unlocking Success: Understanding Revenue Management Systems for Hotels

In the fast-paced and competitive world of hospitality, maximizing revenue and occupancy rates is essential for sustained success. One powerful tool that has revolutionized revenue optimization within the hotel industry is the Revenue Management System (RMS). Let’s delve into what an RMS entails, why it’s crucial for hotels, its advantages, how it works and the different types available.

What is a Revenue Management System?

A Revenue Management System (RMS) is a sophisticated software tool used by hotels to strategically optimize room rates and occupancy levels based on real-time market data, demand forecasts and other factors. Essentially, it enables hotels to make data-driven decisions to maximize revenue and profitability.

Why is a Hotel Revenue Management System Important?

Implementing an RMS is crucial for hotels due to several reasons:

  1. Optimized Pricing: An RMS helps set the right prices for rooms based on demand, market trends, seasonality and competitive analysis. This ensures hotels are not undercharging during high-demand periods or overpricing during slow seasons.
  2. Maximized Revenue: By dynamically adjusting room rates according to demand fluctuations, hotels can increase revenue per available room (RevPAR) and overall profitability.
  3. Enhanced Occupancy Rates: The system assists in maximizing occupancy rates by identifying opportunities to fill vacant rooms through targeted pricing and promotional strategies.
  4. Competitive Edge: In a competitive market, an RMS provides valuable insights that enable hotels to stay ahead of competitors by offering attractive pricing and packages.
  5. Data-Driven Decision Making: RMS offers comprehensive data analytics that empower hoteliers to make informed decisions, leading to better revenue management strategies.

5 Advantages of a Revenue Management System:

  1. Demand Forecasting: Predicting demand accurately allows hotels to optimize pricing strategies and plan for busy periods efficiently.
  2. Dynamic Pricing: The ability to adjust rates in real-time based on demand trends ensures hotels capture maximum revenue potential.
  3. Inventory Management: RMS helps manage room inventory effectively, preventing overbooking and minimizing revenue loss due to underutilized rooms.
  4. Enhanced Revenue Streams: Through upselling and cross-selling opportunities, hotels can generate additional revenue by offering ancillary services or room upgrades.
  5. Improved Guest Experience: By understanding demand patterns, hotels can offer personalized packages and promotions, enhancing guest satisfaction.

How Does an RMS Work at a Hotel?

A typical RMS utilizes sophisticated algorithms and data analytics to:

  • Analyze historical data and market trends.
  • Forecast future demand based on various factors (e.g., seasonality, events, economic trends).
  • Recommend optimal pricing strategies to maximize revenue and occupancy.
  • Integrate with other hotel systems like property management systems (PMS) for seamless operations.

Types of Revenue Management Systems:

There are different types of RMS catering to various hotel sizes and needs:

  1. Traditional RMS: Software that focuses primarily on pricing and inventory management based on historical data and rules-based algorithms.
  2. Advanced RMS: Utilizes machine learning and predictive analytics to generate more accurate demand forecasts and pricing recommendations.
  3. Cloud-Based RMS: Hosted on cloud platforms, offering flexibility, scalability and real-time data updates accessible from anywhere.
  4. Integrated RMS: Fully integrated with other hotel systems like PMS, channel managers and customer relationship management (CRM) tools for holistic revenue management.

Implementing a robust Revenue Management System is imperative for hotels aiming to optimize revenue, improve occupancy rates and gain a competitive edge in the dynamic hospitality industry. By leveraging the power of data-driven insights, hotels can unlock their full revenue potential and deliver exceptional guest experiences. Embracing an RMS is not just a trend but a strategic imperative for hotels aspiring to thrive in today’s competitive market landscape, keeping them always ahead.

Posted in Company News

Unwrapping Success: SHR 7 Essential Tips for Digital Marketing and CRM During the Holiday Season

For businesses in the hospitality industry the holiday season presents a golden opportunity to connect with customers and boost revenue. Here at SHR, as the leading global specialist technology and service provider to the hotel industry, our gift to you is to offer invaluable insights to navigate the digital marketing landscape and harness the power of Customer Relationship Management (CRM) during this festive period.

Let’s unwrap the key tips to make your holiday marketing campaigns merry and bright.

  1. Create a Festive Content Calendar

One of the foundational steps in a successful holiday marketing strategy is to develop a comprehensive content calendar. This should encompass holiday-themed blog posts, social media content, and email campaigns.

For example, crafting posts like “Top Holiday Activities in Our Area” or “Delicious Seasonal Recipes from Our Chef” adds a personal touch to your brand. By maintaining a consistent and engaging presence throughout the season, your hotel stays top of mind for potential guests.

  1. Countdown to Christmas Email Campaign

Building anticipation is a powerful marketing tool and a creative way to do this is by creating a 12-day countdown to Christmas email campaign. Each email can feature an exclusive holiday offer or experience, showcasing your hotel’s cozy ambiance, festive decorations, and special in-room amenities.

Engaging subject lines, vivid imagery, and compelling calls-to-action (CTAs) will entice recipients to book and increasing bookings.

  1. Mobile Optimization for PPC/Social

Given the prevalence of mobile browsing during the holiday season, it’s crucial to ensure that your ads and landing pages are optimized for mobile devices. Remember users often browse and book on their phones, making mobile optimization essential for maximizing reach and conversions.

  1. Adapt to the Platform

Tailoring campaigns to each platform’s strengths is imperative in digital marketing. We would advise adjusting campaigns based on user behaviors on platforms like Instagram, Google Ads, Facebook, and Demand Gen. Utilizing festive creatives with enticing calls to action ensures that your ads resonate with the unique characteristics of each platform, enhancing their effectiveness.

  1. Holiday-Themed Paid Social Strategies

To capture the attention of potential guests immersed in the holiday spirit, incorporate holiday-themed videos and images into your paid social media strategy. While the lead time for conversion may be longer, this content contributes to audience building, creating a more compelling experience for potential guests.

  1. Maximizing Budget Efficiency with First-Party Data:

In the competitive landscape of holiday advertising, it is important to maximize budget efficiency. Utilizing first-party data to target consumers through lookalike audiences allows hotels to create highly targeted ads that speak directly to specific audiences, reducing waste and ensuring a higher return on investment.

  1. CRM Email Campaigns Aligned with Revenue Management:

This is a time of year to focus on the crucial intersection of CRM and revenue management, as marketing efforts should guide guests to offers that are not only enticing but also available for booking. This strategic alignment ensures a seamless customer journey, from awareness to conversion.

By incorporating our tips into your digital marketing and CRM strategy you should be able to significantly enhance your hotel’s visibility, engagement, and revenue during the holiday season. By embracing festive creativity, platform-specific tactics, and strategic CRM integration, your hotel can create a memorable and profitable holiday experience for both new and returning guests, keeping you always ahead. Unwrap the potential for success this holiday season with our expert guidance.

Posted in Blog posts

The Evolving Landscape of Digital Marketing Trends

In the ever-evolving realm of digital marketing, staying ahead of the curve is crucial. As we delve into current digital marketing trends, the first and foremost trend that demands attention is the strategic utilization of first-party data. This trend has gained immense significance, especially for hotels looking to maximize the potential of Google Ads in their marketing efforts.

First-Party Data Unveiled

First-party data is the treasure trove of information collected directly from hotel guests. This includes valuable details like email addresses, phone numbers, loyalty program memberships, and booking history. Hotels can employ this data in various ways when leveraging Google Ads for hotels, such as:

  1. Creating Custom Audiences: First-party data empowers hotels to craft custom audiences within Google Ads. This allows for precise targeting, reaching specific groups like past guests, email subscribers, or loyal patrons.
  2. Enhancing Ad Relevance: Leveraging first-party data, hotels can significantly improve the relevance of their advertisements. For instance, guest booking history can be used to display ads for specific room types or amenities that align with the guests’ preferences.
  3. Measuring Conversion Performance: First-party data aids in evaluating the conversion performance of Google Ads for hotels campaigns. This data can be instrumental in tracking how many guests, after clicking on the ads, proceed to book a room at the hotel.

Real-World Application of First-Party Data

Here are some practical examples of how hotels are employing first-party data with Google Ads:

  • A hotel chain uses its email list to create a custom audience in Google Ads for hotels, targeting individuals who have previously expressed interest in their brand.
  • A hotel tailors its Google Search ads based on guest booking history. For instance, if a guest has previously booked a suite with a balcony, the hotel showcases ads for similar suites when they search for hotels in the same area.
  • Another hotel uses first-party data to assess the conversion performance of its Google Ads for hotels campaigns, tracking the number of guests who, after clicking on the ads, book a room directly on the hotel’s website.

The Value of First-Party Data

In summary, first-party data is a valuable asset for hotels venturing into Google Ads. It enables the creation of more relevant, targeted ads, improvement of conversion performance, and a deeper understanding of guests’ needs. It has the potential to be a game-changer in the digital marketing landscape.

Incorporating CRM Data

For instance, an SHR Group client has seamlessly integrated their CRM with Google Ads, enabling weekly data segmentation. This means they can send different ads depending on the audience, offering a personalized approach that resonates with potential guests. This level of personalization plays a pivotal role in influencing customer behavior and perception.

A Paradigm Shift in Audience Targeting

Google Ads have shifted their approach towards targeting user intent rather than their actions. This AI-driven approach leads to hyper-personalized campaigns, catering to the individual behaviors and preferences of the audience.

Strategies for Leveraging First-Party Data with Google Ads for Hotels

Here are some key tips for hotels aiming to harness first-party data effectively in their Google Ads strategies:

  1. Obtain Data with Consent: Always ensure that your guests are aware of and have consented to the collection and use of their data for marketing purposes.
  2. Segment Your Data: After collecting first-party data, segment it into distinct groups based on demographics, interests, and booking behavior. This facilitates the creation of highly targeted ad campaigns.
  3. Custom and Lookalike Audiences: Maximize the impact of first-party data by creating custom audiences and lookalike audiences in Google Ads. This is a potent strategy to enhance targeting precision.
  4. Ad Relevance: Utilize first-party data to optimize ad relevance. Tailor ad copy and creatives to resonate with specific audience segments.
  5. Measure and Adapt: Leverage first-party data to measure the performance of your Google Ads for Hotels campaigns. Use this insight to refine and improve your strategies.

The Urgency of First-Party Data in Light of Google Chrome’s Changes

Notably, in January 2023, Google Chrome commenced the phasing out of third-party cookies. This significant development underscores the importance of adopting a robust first-party data strategy. If you are yet to embark on this journey, it’s essential to recognize that your audience’s data will slowly deteriorate in the first six months of 2024, rendering it virtually useless unless complemented by first-party data.

In summary, first-party data is not just a trend; it’s an imperative component of successful digital marketing for hotels. By harnessing this data effectively, hotels can enhance their targeting, ad relevance, and ultimately, the guest experience, ensuring they remain at the forefront of the ever-evolving digital landscape.

Unlocking Sustainable Growth – The Power of Demand Generation in Digital Marketing

Demand generation, a pivotal digital marketing trend, holds the key to driving sustainable growth in the competitive online landscape. In an era where customers are inundated with information, businesses must proactively create and nurture demand for their products or services. Demand generation strategies encompass a spectrum of activities, from content marketing and social media advertising to SEO and email campaigns, all designed to engage and educate potential customers.

By focusing on building relationships, providing valuable content, and aligning marketing efforts with customer needs, demand generation not only increases brand awareness but also cultivates long-term customer loyalty. In today’s digital age, where relevance and personalization are paramount, demand generation stands as a vital driver of success for businesses looking to thrive and adapt to the evolving marketing landscape.

Google has undeniably recognized the growing significance of demand generation, particularly in light of the impending challenges posed by the erosion of third-party cookies in the coming year. To address this, Google has taken an unexpected approach by drawing inspiration from Facebook, a departure from their traditional role as trendsetters. Google’s recent move, aptly named Demand Gen, mirrors Facebook’s success in targeting consumers with ads through lookalike audiences.

This innovation was introduced in early October, and our digital team at SHR Group has witnessed promising outcomes, particularly in the realm of brand awareness campaigns. We’ve successfully transitioned clients’ discovery campaigns into Demand Gen campaigns. Notably, our analysis revealed that older brand awareness Google Display ad campaigns were yielding subpar traffic quality for client websites. This shift underscores the importance of leveraging social platforms for brand awareness and reserving Google Ads for conversion-focused endeavors. It’s a strategic shift towards smarter spending and prioritizing value over mere numbers.

The Transition in Measurement Paradigms with Google Analytics 4

Google Analytics 4 (GA4) marks the latest evolution of Google’s widely-used web analytics tool, and it introduces substantial transformations that reshape the way we gauge website performance. Foremost among these changes, that took place at the beginning of July, is the transition from a session-based measurement model to an event-based one. Instead of merely tracking pageviews and sessions, GA4 now meticulously records individual user interactions, encompassing actions like clicks, video views, and form submissions. This profound shift in measurement methodology provides a more intricate and comprehensive comprehension of user behavior, equipping hotel marketers with the tools they need to finely tune their digital offerings for their target audiences.

Furthermore, GA4 introduces a suite of advanced machine learning capabilities, affording the capacity for predictive insights and in-depth analysis. This enhancement solidifies GA4 as a formidable instrument for data-driven decision-making. In summation, the impact of the measurement paradigm shift with Google Analytics 4 is a profound one, granting hotels a more precise and detailed insight into their online audience and enabling them to craft highly effective and personalized digital experiences.

At SHR Group, the seamless transition we’ve experienced serves as the ultimate gauge of success, characterized by the fact that our clients noticed no disruptions or changes. Already, we’re exploring new and intriguing data applications for the benefit of over 400 of our clients.

The Erosion of Demographic Data in Digital Marketing

Demographics have traditionally played a pivotal role in shaping marketing strategies, enabling businesses to direct their efforts toward specific demographic groups defined by age, gender, income, education, and other defining characteristics. However, the landscape of digital marketing has undergone significant shifts, driven by the prevalence of ad blockers, stringent privacy regulations, and the growing dominance of mobile devices. These changes have rendered the accurate capture of demographic data increasingly challenging, with early indications suggesting that Google Analytics 4 records only a fraction of your traffic with age, gender, and interests data.

Consequently, hotels may find themselves compelled to rely on imprecise or incomplete datasets if they persist in targeting their advertising based on traditional demographic parameters. This, in turn, can lead to resource wastage and ineffective marketing campaigns.

In response to this issue, hotels must place a premium on transparency and ethical data collection practices. This entails drawing from verified data sources and affording consumers control over their data privacy settings. Furthermore, emerging technologies like artificial intelligence and machine learning offer promising avenues for hotels to more accurately pinpoint potential guests. In sum, the erosion of demographics in digital marketing underscores the imperative of responsible data utilization and the adoption of ethical marketing practices.

Rising Cost per Click – OTAs Rejoin the Bidding War

The quest for advertising space on search engines and social media platforms has intensified, driving up the demand and consequently the cost of paid clicks in the realm of paid search. Furthermore, shifts in search engine algorithms and advertising regulations have made it progressively arduous for advertisers to secure prominent ad placements without incurring higher costs per click (CPC).

The cost-per-click (CPC) for hotel pay-per-click (PPC) campaigns has seen a continuous ascent, largely attributed to the intensified competition between hotels and online travel agents (OTAs) such as Booking.com and Expedia. This heightened competition became particularly pronounced in 2022, as we observed across our client base. With the easing of pandemic-related restrictions, OTAs resumed their marketing campaigns, unveiling a hidden cost. For instance, the average CPC for brand campaigns alone witnessed a significant surge, often reaching an increase of about 50%. The bidding war for advertising space in the digital realm has undeniably contributed to this ongoing upward trajectory in CPC, making it increasingly challenging for independent hotels to achieve a cost-effective return on investment in the ever-competitive and cost-intensive advertising landscape.

Finally, the surging popularity of mobile devices has fueled the growth of mobile advertising, inherently commanding a higher CPC compared to desktop advertising. The convergence of these dynamics has compounded the challenges faced by independent hotels striving for a profitable return on investment (ROI) in an increasingly crowded and costly advertising landscape.

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Posted in Industry Trends

We need to talk about cancellations

Allora.ai creates a personalized booking experience for every guest, which drives engagement and unparalleled guest conversion and is supported by digital marketing with outstanding website design.

2022 Cancellation Rate Trends: How can you maintain guest retention

Without a doubt, one of the most challenging things about running a hotel is the tendency for guests to make a reservation but then frustratingly cancel at the last minute.

Given the current climate we are all facing, there are multiple reasons why travellers and guests are cancelling their bookings and deciding to drop-out of their plans at the last minute. As rates rise year on year, forecasting and pricing decisions for hoteliers will continue to be undermined which magnifies inefficiencies, increases costs, and damages margins.

In 2019, we found that the share of direct booking revenue lost due to cancellations had jumped to 15%. Now in 2022, our latest research reveals this figure has skyrocketed with 20% of bookings cancelling – a 33% increase over 2019 for the same period.

So what can hoteliers do? Below, we delve into the state of cancellations in 2022, the patterns that hoteliers need to be aware of, and the tools that can help businesses deliver a proactive booking retention game plan.

Posted in Whitepaper