How much should a Hotel Spend on Online Advertisement?

After years of trial and error, we’ve come up with the hotelRSV’s rule of thumb for Hotel Web advertisement for constant campaigns. This approximation is based on a simple model that helps hoteliers, or the management of any receptive property (Hotels, Hostels, Motels) to have a starting point on how much to spend on online marketing budget. Although every hotel should spend in advertisement, not every hotel must spend on the same channels, nor manage your own campaigns (that’s what marketing agencies are for). But we do believe that hoteliers and property managers should have a best approximate on how much money should go to online advertisement to have an effective impact.

Our equation is based on the number of rooms and you can use the calculator below to determine the monthly estimate of online expenditure, whether it’s CPC, PPC, Views, or Adverts:

[ninja_forms id=6]

Where channel may refer to Social Network, Search Engine, Traveler Portal or to a specific campaign set. In case of the Euro-zone, instead of US$, use €; same for British Pounds. All other currencies are suggested to use US$ as reference.

Facebook Ads

Example, if your hotel has 350 rooms and this is your only campaign on Facebook, the Daily budget for a Increase conversions on your website campaign should be around

US$ 3 x 350 rooms / 30 days = US $35/day

Facebook Advert for Hotels Budget 3 per room per month

We recently published an article on how to create Facebook Ads for Hotels, Hostels, BnB’s, read it here.

TripConnect CPC Bidding

Same concept applies for Tripconnect CPC bidding, using the same example as above:

US$ 3 x 350 rooms / 30 days = US $35/day

Three differences to consider when creating Tripconnect CPC campaigns for Hotels.

  1. Check your daily bidding value: other bidders might bid higher to get in the first three spots of the Hotel PriceFinder.
  2. It’s not always to good to be first: Bidding on Tripconnect’s CPC for first place is not ideal nor recommended for desktop (whereas it might be for mobile) since analytic stats show that users will focus on the lesser price and not on the order of the buttons.
    Book on official site through tripadvisor.comtripconnect mobile bidding
  3. Keep rate parity but beware of those round-ups for cents and taxes. Make sure your rates are not fraction and your taxes are well calculated, else you risk being a little higher than an OTA. Remember that some travelers consider a $1 difference enough to avoid reserving from you.

tripconnect tips select only geographical targetsWant to create a Tripconnect CPC to appear on Tripadvisor’s PriceFinder? Check this article.

Deep Linking Call to Action

Every advert should have a tracked call to action, which is what your target will do when interested in your ad. Call to actions should take the viewer to a landing page that allows them to complete an action, this translates almost all the time into a room reservation. Use hotelRSV’s link builder, be sure to use the lead_src (lead source parameter) to track the effectiveness of a campaign, that is, the conversion rate: the amount of room reservations resulting in an online advert.

Looking for the best Hotel Booking Engine? Get your comparison chart ready, we’ll beat all of’em. Get Started or, Launch the IBE Demo or check the  Facebook IBE Demo

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