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Hotel Marketing Budgets: How Much is Actually Enough?

Tambourine Blog·18 September 2018
According to a recent study, Booking.com and Expedia return $16 for every dollar spent on marketing. This looks great on paper, but the reality is that over the last decade OTAs’ return on marketing investment decreased by 15%.

Why every hotel paid media campaign needs a landing page

Tambourine Blog·14 September 2018
This week’s Freebie: Every marketing campaign should lead to a corresponding landing page. So, you’ve come up with a creative marketing idea to draw in winter bookings. You create catchy marketing emails and witty social media posts to lead people back to your website.

Can paid social media advertising rescue low booking periods?

Tambourine Blog·11 September 2018
No matter how well you run and market your hotel or resort, there’s a good chance you’re going to face some seasonality in your demand patterns, which inevitably manifest themselves as the mortal enemy of hoteliers everywhere: the dreaded low period.

Friday Freebie: If you do anything this budget season... do this

Tambourine Blog· 7 September 2018
This week’s Freebie: The most critical thing you do to ensure success is getting the budget you need to achieve your revenue targets… so you better ask for the right amount!
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Tambourine announces expansion: new east and west coast offices

Tambourine · 3 September 2018
Tambourine, a marketing technology company for hotels, resorts and tourism destinations worldwide, has announced its expansion to new offices on the east and west coast.The expansion will triple the size of the Company's current offices and enable the fast-growing firm to attract expert digital talent on both coasts.As part of its expansion: Tambourine will relocate its headquarters to 25,000 sqft at Trade Center South in Fort Lauderdale, Florida. The Firm has also recently opened its first west coast office in Carlsbad, California."Our new headquarters location was selected to create a modern, positive working environment for our talented and growing team," noted Tambourine President Rafael Cardozo. "Technology enables our team to provide customized, scalable deliverables that empower the hospitality industry, but our team still thrives on close-knit collaboration and our new office will reflect that."Tambourine's expansion is a result of its rapid growth and popularity with branded and independent hotels, resorts and hotel management companies seeking to drive more direct business and consolidate the complex hotel digital marketing services required to compete for guests in today's hotel market.
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4 Smart (and FREE) Tools To Spy On Your Compset

Tambourine Blog·24 August 2018
This week’s Freebie: Monitoring your hotel’s comp set is key to staying one step ahead. Hotel marketing success doesn’t happen in a vacuum. It’s vital to keep up with all the changes in both the industry and your markets. And, just as crucial to monitor your comp set, their hotel or resort marketing strategies, then improve your own.

What's wrong with your hotel website? Ask your call center team

Tambourine Blog·21 August 2018
Hotel and resort marketers have a powerful secret weapon, which in many cases is grossly underutilized: their call center reservations team. Even for hoteliers with a robust direct website, call centers remain a vital link in the booking and communications chain and are a near boundless source of guest information and insight.

Friday Freebie: Use Data to Get More This Budget Season

Tambourine Blog·17 August 2018
This week’s Freebie: This budget season, you’ll need to prove how much hotel revenue you brought in or risk losing your funds.

What does the #1 hotel in the world know about hotel marketing?

Tambourine Blog·14 August 2018
One way great hotels can get even better is to learn from the best. In this case, we’re proud to be talking about our client, Nihi Sumba, an island resort that has earned the distinction of being the best hotel in the world according to Travel + Leisure readers. As such, James McBride, founding partner and CEO of Nihi Hotels, has a wealth of knowledge that hotel marketing professionals can leverage to grow their own successes.

School Up for The September Slow Down

Tambourine Blog·10 August 2018
When summer travel is in full swing and occupancy (and temps!) is in the 90s, it’s easy to forget what may be looming up ahead… the back-to-school slowdown.

Five ways to avoid the Summer lull in Group business

Tambourine Blog· 7 August 2018
For many hotels, summer can be a time when group business dwindles to a crawl. The large national association and annual company conventions tend to dry up during the summer, and if you're located in a warm-weather destination, convincing guests to bask in the heat may be a tall order.
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Friday Freebie: Three easy ways to tighten the bond between marketing and revenue management

Tambourine Blog· 3 August 2018
The days of hotel marketers and revenue managers working in separate silos are over. Opening up dialogue and combining intelligence between these two departments are the first steps towards becoming a profit powerhouse.
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20 free tools every hotel marketer should know about

Tambourine Blog·31 July 2018
Whether you want to supplement your current paid marketing programs or if your hotel owners didn't allocate enough to your marketing department this year, here are 20 free hotel marketing tools to use: The post 20 free tools every hotel marketer should know about appeared first on Tambourine.
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Friday Freebie: One Secret Your Booking Engine Wants You To Know

Tambourine Blog·27 July 2018
This week’s freebie: Smart hoteliers are pulling the curtain back on their booking engines to find which room types are highest in demand by the day. This vital piece of data allows them to price each room type accordingly for maximum revenue.
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Friday Freebie: Stop Hidden Costs From Driving Customers Away

Tambourine Blog·20 July 2018
This week’s Freebie: Don’t wait until guests press ‘Book Now’ in your booking engine to announce new charges. Present all costs, including resort fees, as soon as possible.
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What is 'programmatic advertising' and why should hotel marketers care?

Tambourine Blog·17 July 2018
Most hotel marketers associate traditional ad buying as a hit-or-miss strategy. Buy space in a magazine… pray for an unknown return. “Programmatic advertising,” which has generated a lot of buzz in the last few years, is data-powered and designed to help hotels target their audience with remarkable accuracy, provide greater insight into who’s responding to the ad and eliminate the guesswork behind hotel ad buys.
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Friday Freebie: Ditch the Extras to Clear the Path to Purchase

Tambourine Blog·13 July 2018
Each week we share one impactful hotel marketing tactic that you can implement immediately to drive more conversions and more revenue. This week’s Freebie: Stop cluttering the booking experience with too many options. Want to drive guests to make quicker transactions? Stop offering too many options to sift through!
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The 10 Commandments of Hotel Email Campaigns

Tambourine Blog·10 July 2018
Email marketing is one of the best ways to retain customers by engaging with past, present (and future) guests. Smart hotel marketers prioritize keeping up-to-date on email marketing best practices in order to continually improve their programs and reap a growing return on investment.
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Friday Freebie: An Extremely Costly Fix to a Common (and Costly) Hotel PPC Mistake

Tambourine Blog· 6 July 2018
This week’s Freebie: Reap more ROI from pricey PPC campaigns with this simple fix: Replace broad, generic keywords with targeted, long-tail phrases. One of the most widespread mistakes that hotel and resort marketers make with their hotel PPC campaigns also happens to be one of the most costly.
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Why Is Hotel Marketing so Hard? (And What to Do About It)

Tambourine Blog· 3 July 2018
If you’ve been in the hotel industry long enough, you’d remember when having a few wholesalers’ contracts, a fancy brochure and a telephone number were pretty much all you needed to stay in business.
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Friday Freebie: Download The Hotel Power Couple

Tambourine Blog·29 June 2018
Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 34th year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com
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Friday Freebie: 7 Cool Google Hacks for Hotel Marketers

Tambourine Blog·22 June 2018
This week’s freebie: Stop wasting time researching on Google and wading through useless pages. Efficient hotel marketers know how to properly tweak their marketing questions to get the most targeted and relevant results.
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Smart hotel marketers are going 'old school'

Tambourine Blog·19 June 2018
It’s graduation time. And as we sit on uncomfortable auditorium chairs watching our kids, nephews, nieces or grandkids beaming with eagerness for the road ahead… we can’t help think back to the good ol’ days of our own high school and college experiences.
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Take this piece of hotel marketing advice from your Dad

Tambourine Blog·15 June 2018
Welcome to the Friday Freebie! Each week we share one impactful hotel marketing tactic that you can implement immediately to drive more conversions and more revenue.
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Metasearch: is it right for your hotel?

Tambourine Blog·12 June 2018
While OTAs have long been a dominant source of indirect hotel bookings, metasearch sites like Kayak, Trivago, TripAdvisor, and Google have recently become much more relevant in hotel marketing and distribution channel discussions.

Why do some hotel marketers get everything they want?

Tambourine ·12 June 2018
With the hotel industry enjoying a period of record performance, posting all-time highs for occupancy, ADR and RevPAR, one of the most talked-about ways to improve performance (and delight ownership) is to reduce the cost of guest acquisition.And that begins with fully understanding a vital metric: your hotel's CLV-to-CAC ratio.But unlike many other industries that have already embraced the concept, too many hotel marketers are still unable to quantify their CLV-to-CAC formula.This can be overcome with a little effort, offering a major potential boost to the bottom line and a far stronger bargaining position when asking ownership for more marketing dollars (and a raise)! What It Means? To get started, there are some basic principles to know, beginning with terminology.CLV stands for "Customer Lifetime Value," meaning the revenue your hotel can expect to earn from each guest over the lifespan of that customer's relationship with you. CAC, meanwhile, is short for "Cost to Acquire Customer,"or your total sales and marketing spend to attract each customer and obtain the aforementioned CLV. The premise behind the CLV-to-CAC formula is to maximize that ratio as much as possible.There are multiple benefits from having a strong CLV-to-CAC ratio, including enabling hotel marketers to ask owners for more investment dollars, for example, imagine being able to tell ownership: "We spent $300,000 last year to attract 5,000 NEW guests, who represent a LIFETIME VALUE of three million dollars in revenue... in other words, for every dollar you give me, I'm giving you ten dollars back in gross revenue."So how do hoteliers calculate their CLV to CAC ratio?Here are the core steps:1. Making the CalculationsTo come up with your CLV, first consider how many times a guest typically stays at your hotel(s) over multi-year period. Then, deduce the total value of those stays. Multiply that value by the total amount of visits per guest and that is the CLV you will use in the formula.Next, to arrive at a value for CAC, simply divide the TOTAL amount your property spends on sales and marketing for each segment (ie: transient vs group vs corporate) by the total number of guests from that segment.EXAMPLE:So, if a hotel attracts 1,000 new guests this year and spends $100,000 to do it, the CAC equals $100.2. What to include in CAC?When calculating CAC for each demand segment, be sure to include salaries, expenses, technologies, advertising and any other investments made specifically to attract bookings for that specific segment. That may include, for example, a customer relationship management (CRM) system and trade show booth that are part of the CAC for your hotel's sales efforts for attracting the corporate business segment.Other costs, like Google pay-per-click (PPC) advertising, email marketing and social media fees should be attributed primarily to transient guest CAC calculations. On the other hand,your hotel's website, the salary for your director of sales and marketing (DOSM) and other "shared" costs can be distributed evenly across all segments that your property targets. 3. The Results:Using the calculations described above, divide the CLV by the CAC to arrive at the ratio.For example, if a hotel has a CLV of $5,000 per transient guest and the CAC for each transient guest equals $100, then the CLV-to-CAC ratio is 50x. In other words, for every dollar spent on sales and marketing to target that guest, the hotel will earn back $50.That is the kind of return owners love!And that is the kind of math that separates serious hotel marketers from those just focused on pretty pictures!Now compare results to your OTA costs!Once you know your own CLV-to-CAC ratio, you can compare it to the CLV-to-CAC of bookings derived from third-party online travel agencies (OTAs).You'll most likely be pleasantly surprised by what you find: Typically, OTA-driven guests are less loyal, and will have a lower CLV as a result. Also, the commissions on those bookings may be higher than the CAC you are achieving on your own.So, in the quest to drive hotel profitability even further into the stratosphere, make it a top priority today to learn your CLV-to-CAC ratio for each customer segment you target. By offering such compelling insight, the CLV-to-CAC ratio can be an incredibly powerful stat for hotel marketers to cite to owners when requesting more marketing dollars.You'll be much more likely to obtain the budget you need when your owner is assured their investment will lead to a far better payoff down the road.

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