travel industry bench marking

8/3/2019 Travel Industry Bench Marking

1/18www.chr.cornell.edu

Cornell Hospitality ReportVol. 11, No. 9, April 2011

2011 Travel Industry Benchmarking:

Marketing ROI, Opportunities, and Challenges in Online and

Social Media Channels or Destination and Marketing Firms

by Rohit Verma, Ph.D., and Ken McGill


2/18

Advisory Board

The Robert A. and Jan M. Beck Center at Cornell University

Cornell Hospitality Reports,

Vol. 11, No. 9 (April 2011)

2011 Cornell University

Cornell Hospitality Report is produced or

the beneft o the hospitality industry by

The Center or Hospitality Research at

Cornell University

Rohit Verma, Executive Director

Jennier Macera,Associate Director

Glenn Withiam, Director of Publications

Center or Hospitality Research

Cornell University

School o Hotel Administration

489 Statler Hall

Ithaca, NY 14853

Phone: 607-255-9780

Fax: 607-254-2922

www.chr.cornell.edu

Back cover photo by permission oThe Cornellianand Je Wang.

Niklas Andren, Group Vice President Global Hospitality &Partner Marketing, Travelport GDS

Raanan Ben-Zur, Chief Executive Ofcer, French QuarterHoldings, Inc.

Scott Berman, Principal, Real Estate Business AdvisoryServices, Industry Leader, Hospitality & Leisure,

PricewaterhouseCoopersRaymond Bickson, Managing Director and Chief Executive

Ofcer, Taj Group o Hotels, Resorts, and Palaces

Stephen C. Brandman, Co-Owner, Thompson Hotels, Inc.

Raj Chandnani, Vice President, Director of Strategy, WATG

Benjamin J. Patrick Denihan, Chief Executive Ofcer,Denihan Hospitality Group

Brian Ferguson, Vice President, Supply Strategy and Analysis,Expedia North America

Chuck Floyd, Chief Operating OfcerNorth America,Hyatt

Gregg Gilman, Partner, Co-Chair, Employment Practices,

Davis & Gilbert LLPTim Gordon, Senior Vice President, Hotels, priceline.com

Susan Helstab, EVP Corporate Marketing,Four Seasons Hotels and Resorts

Jeffrey A. Horwitz, Chair, Lodging + Gaming, and Co-Head,Mergers + Acquisitions, Proskauer

Kevin J. Jacobs, Senior Vice President, Corporate Strategy &Treasurer, Hilton Worldwide

Kenneth Kahn, President/Owner, LRP Publications

Kirk Kinsell, President of Europe, Middle East, and Africa,InterContinental Hotels Group

Radhika Kulkarni, Ph.D.,VP of Advanced Analytics R&D,SAS Institute

Gerald Lawless, Executive Chairman, Jumeirah Group

Mark V. Lomanno, CEO, Smith Travel Research

Betsy MacDonald, Managing Director, HVS Global HospitalityServices

David Meltzer, Senior Vice President, Global BusinessDevelopment, Sabre Hospitality Solutions

William F. Minnock III, Senior Vice President, GlobalOperations Deployment and Program Management,Marriott International, Inc.

Mike Montanari, VP, Strategic Accounts, Sales - SalesManagement, Schneider Electric North America

Shane OFlaherty, President and CEO, Forbes Travel Guide

Thomas Parham, Senior Vice President and General Manager,Philips Hospitality Americas

Chris Proulx,CEO, eCornell & Executive Education

Carolyn D. Richmond, Partner, Hospitality Practice, FoxRothschild LLP

Steve Russell,Chief People Ofcer, Senior VP, HumanResources, McDonalds USA

Michele Sarkisian, Senior Vice President, Maritz

Janice L. Schnabel, Managing Director and Gaming PracticeLeader, Marshs Hospitality and Gaming Practice

Trip Schneck, President and Co-Founder, TIG Global LLC

Adam Weissenberg, Vice Chairman, and U.S. Tourism,

Hospitality & Leisure Leader, Deloitte & Touche USA LLP
http://http//www.hotelschool.cornell.edu/industry/executive/http://http//www.hotelschool.cornell.edu/industry/executive/


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Tnk t genes Cpte Memes

FriendsAmerican Tescor, LLC Argyle Executive Forum Berkshire Healthcare Center or Advanced Retail Technology Cody Kramer Imports Cruise Industry News DK Shiet & Associates ehotelier.com EyeorTravel 4Hoteliers.com Gerencia de Hoteles & Restaurantes Global Hospitality Resources Hospitality Financial andTechnological Proessionals hospitalityInside.com hospitalitynet.org Hospitality Technology Magazine Hotel Asia Pacifc Hotel China HotelExecutive.com Hotel Interactive Hotel Resource International CHRIE International Hotel Conerence International Society o Hospitality Consultants iPerceptions JDA SotwareGroup, Inc. J.D. Power and Associates The Lodging Conerence Lodging Hospitality Lodging Magazine LRA Worldwide, Inc. Milestone Internet Marketing MindFolio Mindshare Technologies PhoCusWrightInc. PKF Hospitality Research Resort and Recreation Magazine The Resort Trades RestaurantEdge.com Shibata Publishing Co. Synovate The TravelCom Network Travel + Hospitality Group UniFocus USA Today WageWatch, Inc. The Wall Street Journal WIWIH.COM Wyndham Green

PartnersDavis & Gilbert LLPDeloitte & Touche USA LLPDenihan Hospitality GroupeCornell & Executive EducationExpedia, Inc.Forbes Travel GuideFour Seasons Hotels and ResortsFox Rothschild LLPFrench Quarter Holdings, Inc.HVSHyattInterContinental Hotels GroupJumeirah GroupLRP PublicationsMarriott International, Inc.Marshs Hospitality Practice

Maritzpriceline.comPricewaterhouseCoopersProskauerSabre Hospitality SolutionsSchneider ElectricThayer Lodging GroupThompson HotelsTravelportWATG

Senior Partners

Hilton WorldwideMcDonalds USA

Philips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global


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4 TeCenterorHospitalityResearchCornellUniversity

ExECuTivE SuMMary

Seniorlodginganddestinationmarketingexecutivesofenmakevendorandmarketingchannel

decisionswithoutsucienttimetoinvestigatetheROIoalternativestrategiesoremerging

media choices. An internet-based survey o 426 marketing executives, drawn rom theravelCom 2011 conerence and Cornell Center or Hospitality Research database, with

support rom Vantage Strategy and iPerceptions, ound a wide range o expenditures on online

marketing,aswellasconsiderablediversityinorganizationalstructures.wo-thirdsothesample

comprised accommodation marketers, with the remainder being destination marketers or those

responsibleorothertypesomarketing.Nearlythree-quartersotherespondentsreportedspending

lessthan$10,000onmobilemediain2010,abouttwothirdsspentlessthan$10,000onallsocialmedia

marketing.About80percentothemarketerssaidthattheyproducedwittercampaignsandsocial

promotionsin-house,butsuchunctionsassearchengineoptimizationandpay-per-clickadvertising

arelargelyoutsourced.Accommodationrmsaremorelikelytooutsourceallsocialmediaunctions,

includingpay-per-call,wittercampaigns,andpay-per-clickmanagement.Destinationmarketers,on

theotherhand,generallyhandlemoreunctionsin-house.wo-thirdsotheentiresamplesaidthe

2010 e-commerce budgets had increased with respect to 2009. Sixty percent o accommodation

marketersanticipatedaurtherincreasein2011,and71percentothedestinationmarketerssaidtheir

2011budgetswouldincrease.

2011ravelIndustryBenchmarking:Marketing ROI, Opportunities, and Challenges

in Online and Social Media Channels or

Destination and Marketing FirmsbyRohitVermaandKenMcGill


5/18

CornellHospitalityReportApril2011www.chr.cornell.edu 5

abouT ThE auThorS

rohit vema, Ph.D., is proessor o operations management and executive director o the Center or

Hospitality Research at the Cornell University School o Hotel Administration ([email protected]). Among

his research interests are product-and-service design and innovation, customer choice modeling, and quality

process improvement o supplier selection strategies. His work has appeared in such publications as MIT Sloan

Management Review, Journal of Operations Management, and Cornell Hospitality Quarterly.

Ken McGll is EVP o Research or Vantage Strategy (ken.mcgill@vantagestrategy.

com). He directs Vantages Travel & Tourism Research division where he deliversinsight and intelligence to DMOs and Travel & Tourism suppliers. Prior to Vantage, he

was Executive Vice President or IHS Global Insight and head o its Travel & Tourism

Practice. McGill directed both existing client relationships and spearheaded new development eorts, particularly

in the unctional areas o market research, economic impact assessment, and resource planning. In his 30 years

in economic and strategic consulting, McGill has developed an expertise in research and planning methods

that has been successully applied to business problems in a variety o corporate and government settings. He

is particularly known or his work in combining primary market research with traditional economic and industry

analysis. A particular ocus o McGills work has been in tourism economic impact assessment. Moreover, McGills expertise has oten been

called upon to estimate the economic impact o specifc destinations, attractions, convention acilities, resort/hotel developments, events, and

tourism policy decisions.

The authors grateully acknowledge the support o the TravelCom Conerence and Vantage Strategy in conducting this study.


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CorE hoSiTaiTy rEorT

As part o the planning or ravelCom 2011, conerence organizers consulted the

ravelComadvisoryboardmemberstoidentiytheirmostpressingissues.Tesechie

marketing ocers and marketing executives identied the acceleration o online

marketingorcesasacommonconcern.TeexecutiveseelthattheyarebeingcalledontomakevendorandmarketingchanneldecisionswithoutsucienttimetoinvestigatetheROIo

alternative strategiesoremergingmedia choices, aswell as benchmarkingwhat others aredoing.Uncomortablewithad hocdecisionmaking,theexecutivesrequestedastudythatwouldestablish

benchmarksororganizationalpracticesanddecisionmaking.

2011TravelIndustryBenchmarking:

Marketing ROI, Opportunities, and Challenges in Online andSocial Media Channels or Destination and Marketing Firms

byRohitVermaandKenMcGill


7/18


Tisstudyistheresultothatexpressedneed.Withthe

supportoVantageStrategyandiPerceptions,wedeveloped

aquestionnairethatwouldallowustoassessthestateo

electronicmarketingestablishingbenchmarksandprovide

acomparisonpointorresourcesdevotedtoelectronic

marketing.

Wedividedthesurveyquestionsintothreeoverarching

themes:

(1) Inormationthatplacesarmintoacompetitiveset;

(2) Howdollarsarespentintheonlinemarketingspace

(3) Howresourcesareallocated

Wecategorizedtheresponsestothesurveyquestionsto

assessdierentaspectsoonlinemarketinginitiativesinthe

ollowingareas

Budgetandresourceallocation, Marketingandpromotion,

Internationalstrategydevelopment,

Commerceandconversion,

Loyaltyandreputation,

Analysisandresearch,

Challengesandutureopportunities.

WeconductedthesurveyonlineduringJanuaryand

February2011.RespondentswerepartotheCHRandrav-

elComdatabasesotravelindustrymarketingexecutives.

Atotalo426industryrespondentscompletedthesurvey,

andtheywereassuredthatnoprivateoridentiyinginor-

mationwouldbeshared.Tepurposeothestudywasonly

tocreateapublicbenchmarkandallowprivatecompari-

sonsotheparticipantsrmswiththosebenchmarks.

ExecutiveProleSixty-eightpercentotherespondentsworkedinaccom-

modationrms,20percentweredestinationmarketers,

andtherestworkedinavarietyotravel-relatedrms(see

Exhibit1).

Terespondentsreportedanoticeabledierencein

averageannualbudgetsormarketingandecommerce.At

$1.354million,theaveragebudgetreportedbymarketersoraccommodationrmswastentimestheaverageor

destinationmarketers,whoreportedanaverageo$136

thousanddollars.Bothgroupsreportedthattheelectronic

marketingportionothosebudgetswasincreasingyearto

year.

Tetwotypesoorganizationalsoreporteddierent

structuresordeployingmembersotheonlinemarket-

ingservicesteamandtheecommerceteam(seeExhibit2).

87

291

48

Destntn MketngEectes

annl dget f mketngnd e-cmmece eged

$136,000 n 2010; tw-tdsepted tt ts ws n

ncese e 2009; seenf ten ntcpted n

ncese n 2011

accmmdtnMketng Eectes

annl dget f mketngnd e-cmmece eged$1,354,000 n 2010; tw-tds epted tt tsws n ncese e 2009;s f ten ntcpted nncese n 2011

ote Tel-elted Fms

Exhibit 1

Smple cmpstn


8/18


ecommerceteamspartotherevenuemanagementdepart-

ment,andanother17percentwereinthesalesdepartment.

Lookingspecicallyatthepeoplewhodeterminestrat-egyoronlinepricinganddistribution,weagainseethatthe

marketingdepartmentisoremostordestinationmarket-

ingrms,butthatisnottrueoaccommodationrms(see

Exhibit3).

Welloverhalotheaccommodationrms(54%)put

theirpricingstrategistsintherevenuemanagementdepart-

ment,withanother18percentinsales.Just10percentothe

accommodationrmshadtheirpricingstrategyunction

Tree-quartersothedestinationmarketingorganizations

housedtheironlinemarketingteaminthemarketingde-

partment,butthatwastrueojust41percentotheaccom-modationmarketers.Instead,17percentotheonlineteam

washousedintheaccommodationrmssalesdepartment,

andanother9percentintheecommercedepartment.

Asimilarrelationshipoccurredortheecommerce

team.Justoverhalothedestinationmarketingrmsput

theecommerceteaminthemarketingdepartment,while

thatwastrueinonlyone-thirdotheaccommodationrms.

Instead,40percentotheaccommodationrmsmadetheir

87

291

48

Exhibit 2

onlne mketng seces nd e-cmmece tem plcement

onlne Mketng Seces

Mketng deptment 75%Sles deptment 4%

eCmmece deptment 2%

opetns deptment 6%

eCmmece

Mketng deptment 51%

Sles deptment 6%

We seces deptment 11%

opetns deptment 12%

onlne Mketng SecesMketng deptment 41%

Sles deptment 17%

eCmmece deptment 9%

opetns deptment 5%

eCmmece

Mketng deptment 33%

reene mngement deptment 40%

Sles deptment 27%

We seces deptment 5%

opetns deptment 3%

87

291

48

Exhibit 3

onlne pcng stteg nd dsttn tem plcement

onlne cng Stteg Tem

Mketng deptment 25%

Sles deptment 4%


opetns deptment 12%

Dsttn Stteg

Mketng deptment 53%

onlne cng Stteg Tem

Mketng deptment 10%

Sles deptment 18%


opetns deptment 5%

Dsttn Stteg

Mketng deptment 14%

AccommodAtion Firms

dEstinAtion Firms

AccommodAtion FirmsdEstinAtion Firms


9/18


0

10

20

30

40

50

60

0

10

20

30

40

50

60

inmarketing.Forthedestinationmarketers,25percento

rmsputpricingstrategyinmarketing,andjust12percent

intherevenuemanagementdepartment.Fordistributionstrategy,welloverhalothedestinationrmshouseddistri-

butionstrategyintheirmarketingdepartment,butthatwas

trueoonly14percentoaccommodationrms.

Intermsobudgetallocations,marketingandpromo-

tionwasbyarthelargestsingleonlinemarketingand

ecommercecategoryorbothdestinationandaccommoda-

tionrms(seeExhibit4).Toseexpenditureswereollowed

inorderbycommerceandconversion,loyaltyandreputa-

tion,andanalyticsandresearch.Terespondentsreported

similarpercentageallocationsostatime(Exhibit5).For

theentiresample,theaveragenumberostamembersinvolvedinonlinemarketingandecommercewas3.25.

Terangeobudgetedonlineadvertisingexpendi-

tureswasremarkable,withsomermsreportingbudgets

olessthan$10,000andothersover$1million(Exhibit

6).Tebudgetsskewedtowardthelowerendotherange,

however,astheaverageonlineadvertisingbudgetorac-

commodationrmswasapproximately$60,000,whileor

destinationmarketerstheaveragewasabout$80,000.In

accmmdtn FmsDestntn Fms

Mrke

tingnd

prom

otion

Comm

ercend

conv

ersion

oylty

ndrepu

ttion

anlytic

snd

rese

rchp

e

r

c

e

n

t

a

g

e

Exhibit 4

onlne mketng nd e-cmmece dgetllctn

Exhibit 5

ecentge llctn f stff tme (ege f 3.25stff)


Mrke

tingnd

prom

otion

Comm

ercend

conv

ersion

oylty

ndrepu

ttion

anlytic

snd

rese

rchp

e

r

c

e

n

t

a

g

e

0 10 20 30 40

Less than $10,000

$10,000 -$24,999

$25,000 -$49,999

$50,000 -$99,999

$100,000 -$249,000

$250,000 -$499,999

$499,999 -$1,000,000

Over $1,000,000

Exhibit 6

onlne detsng dget f 2010

accmmdtn Fms

Destntn Fmsaege $80,000

aege $60,000


10/18


termsothepercentageothemarketingbudget,online

mediaplacementalsovariedwidely(Exhibit7).

Althoughtheaverageonlinebudgetallocationsrepre-

sentedanaverageo40percentodestinationrmsmarket-

ingbudget,sevenothe87destinationrmsand20othe

216accommodationmarketersreportedonlinebudget

allocationsolessthan10percentothemarketingexpendi-

tures.wo-thirdsothermsreportedthattheyspendless

than$10,000onsocialmedia,andthree-quartersspendless

than$10,000onmobilemedia.

Tebreakdownopurchasingchannelsoradvertisingin

onlinemediaissimilarordestinationandaccommodation

rms(seeExhibit8).Whilesubstantialpercentagesorms

handlepurchasesinternally,manyalsousemultipleagencies.

Arelativelysmallpercentageusejustoneagencyoronline

mediabuys.Lookingmorespecicallyathowtheserms

0 5 10 15 20 25

Exhibit 7

ecentge dget f nlne med plcement

accmmdtn Fms

Destntn Fms

aege ~40%

aege ~45%

Me tn 95%

85 t 94%

75 t 84%

65 t 74%

55 t 64%

45 t 54%

35 t 44%

25 t 34%

11 t 24%

ess tn 10%

Exhibit 8

Sce f nlne med nd detsement pcsng

one

genc

21%

Mltple

genc

39%

hndledntenll

35%

tse

5%

onegenc

27%

Mltple

genc

28%

hndledntenll

40%

tse

5%

DestntnFms

accmmdtnFms


11/18


20 30 40 50 60 70 80 90

Twitter Campaigns

Social Influence

Video Distribution

Press Release Distribution

Branding

Link Building

SMS/Text Messaging

Ad Exchanges

Pay Per CallSearch Engines

Pay Per Click ManagementAccommodation Destinatio

0.0 20.0 40.0 60.0 80.0

Pay Per Click Management

Link Building

Search Engines

Video Distribution

Social Influence

SMS/Text Messaging

Ad PlacementAffiliate Marketing

Twitter Campaigns

Branding

Pay Per Call

accmmdtn Fms

Destntn Fms

otherperspective,accommodationrmsarearmorelikely

thandestinationrmstoretainspecializedrmsoronline

marketingcampaigns(seeExhibit10).

Tedierenceinapproachesshowsupmostnotice-

ablyinpay-per-call,branding,wittercampaigns,and

aliatemarketingprograms.Destinationrmsreported

outsourcingtheseunctionsonly25percentothetime,

whileaccommodationrmsrequentlyoutsourcenotonly

handlethemanyaspectsoonlinemarketing,weseethat

suchmattersaswittercampaignsandsocialinuenceare

largelyhandledinhouse(seeExhibit9).

Indeed,destinationmarketingrmsare,ingen-

eral,morelikelytohandleallonlinemarketingunctions

in-house.Ontheotherhand,pay-per-clickmanagement,

searchenginemanagement,andpay-per-callcampaigns

arequiterequentlyoutsourced.akingthisissueromthe

Exhibit 9

Sltns f nlne mketng: ecentge n-se

Exhibit 10

Sltns f nlne mketng: ecentge tsced t speclzed ms

accmmdtn Fms Destntn Fms


12/18


OpenSource

28%

Enterprise18%

Custom38%Other

8%

None8%

OpenSource

29%

Enterprise17%

Custom34%

Other12%

None8%

Exhibit 12

Cntent-mngement sstem


thoseunctions,butalsoadplacementandsocialinuence

campaigns.

Temarketersweremuchmoreinclinedtohandle

socialmediasitesandcorporatewebsitesontheirownthan

theyweremobileappsandthemobilewebsite,whichwere

mosttypicallyoutsourced(seeExhibit11).

Again,destinationmarketerswereslightlymorelikely

thanaccommodationmarketerstohandlemostothese

unctionsontheirown.Tebreakdownosourcesorthe

contentmanagementsystemwassimilarorbothdestination

marketersandaccommodationrms:justunder30percent

wereopensource,noteven20percentwereenterprisesys-

tems,andoverone-thirdwerecustomwritten(seeExhibit

0 20 40 60 80

Corporate Website

Mobile Website

Mobile Apps

Social Sites

Site Hosting

Exhibit 11

implementtn sltns: ecentge n-se

accmmdtn Fms

Destntn Fms

opensce29%

Entepse17%

Cstm34%

ote12%

ne

8%

ote

8%ne

8% opensce28%

Entepse18%

Cstm38%


13/18


12).Formostrms,thedevelopmentcycleonthesesystems

typicallyoccupiedtwoorthreeyears(seeExhibit13).

Tetwotypesocompaniestookrelativelysimilarap-proachestosocialmediapoliciesandunctionality,withone

exception.Destinationrmswereoverwhelminglymore

likelytoselladvertisingspaceontheirsitesthantheaccom-

modationrmswere.Asaresult,thedestinationrmswere

somewhatmorelikelytomaintainanadvertisingmanage-

mentsystem.

Ontheotherhand,theaccommodationrmswere

morelikelytoprovideonlinepurchasingcapabilities(see


Exhibit 13

aege deelpment ccle

Exhibit14).Responsibilityormanagingsocialmedia

residedoverwhelminglyinthemarketingandsalesdepart-

ment(58%orespondents),withasmallpercentageinpub-licrelations(15%),ecommerce(12%),orasmatteringother

departments(15%).Askedwhichsocialmediaweremost

eective,themarketersratedFacebookatthetop,ollowed

bywitter,Youube,andLinkedIn(Exhibit15,nextpage).

Accommodationrmswerearmorelikelythandesti-

nationmarketerstoreportthattheymaintainblogs.Fify-

onepercentotheaccommodationrmsreportedblogging,

comparedtojust31percentodestinationrms.Teperson

0 25 50 75 100

...se n detsng mngement sstem

...pde e-cmmece fnctnlt

...selll detsng spce

...e ntenl stff f scl med epttnmngement

...pde nlne pcse cplt

...e scl med stteg.

Exhibit 14

ecentge f ccmmdtn nd destntn ms tt...

accmmdtn Fms

Destntn Fms

Eetw

es34%

Ee e

23%

Ee teees30%

t

se7%

Eef +

es6%

Eetw

es21%

Ee e10%

Ee teees

30%

tse

15%

Eef +es15%



14/18


0

20

40

60

80

100

Faceb

ook

Tw

itter

YouT

ube

LinkedIn

F

lickr

MySp

ace

Foursquare

Gow

alla

Xing

B

ebo

Ning

Hi5

O

rkut

Hyves

Xa

nga

responsibleormanagingtheblogwasalmostneverthe

CEOorpresident.Instead,bloggingellprimarilytothe

directoromarketing,thesocialmediaorpublicrelations

sta,orinsomecasesexternalpartners.

FrustrationsAsshowninExhibit16,themarketerscitedbudgetand

resourcelimitationsastheirnumber-oneissue.Otherissues

weretheabsenceoastrategicplan,limitedmarketknowl-

Exhibit 15

ecentge f ccmmdtn nd destntn ms pdng tng f e effecte f scl medstes

accmmdtn Fms

Destntn Fms

0 10 20 30 40 50 60 70

Budget Limitations

Resource Limitations

No Strategic Plan

Limited Market Knowledge

Implementation Speed

Technology Limitations

Sign-Off Progress

Unreliable Vendors

Exhibit 16

Fcts cted s fsttns n nlne mketng ccmmdtn nd destntn mketes (pecentges)


15/18


Acknowledgingthepossibilityohurlingmoneyintothe

blackvoidotheinternet,itseemslikelythatthecompa-

niesthathavecareullycommittedresourceswillenjoythe

rewardsoavibrantelectronicdistributionstrategy.

ConclusionOvertime,weanticipatethatbothdestinationandaccom-

modationmarketingrmswillocusspecicallyonwherein

theirorganizationtheonlinemarketingservicesandstrategy

unctionwillbehoused.Partothatdecisionisaunctiono

corporateculture,ocourse,butitmaybethatecommerce

willevolvetobecomeadisciplineoitsown,asrevenue

managementhasdoneinthepastewyears.

Tekeyactoristoensurethatelectronicmarketing

andsalesstrategiesarecongruentwiththeorganizations

overallmarketingapproaches.Whileonlinesalesandcom-

mercecanonlygrowastimegoeson,theactremainsthat

asubstantialportionothetravelbusinessisstillsoldvia

traditionaldistributionchannels.

Perhapsthekeytestoraccommodationanddestina-tionbusinessesismanagingthetransitionromtraditional

channelstoelectronicchannels,especiallysincetheresno

guaranteeoagradualchangeromonetoanother.Te

historyothegrowthanddevelopmentosocialmediahas

beenoneodiscontinuity,andtheresnoreasontothinkthat

weveseenanendtonewandunexpectedcommunication

channels.n

edge,andissueswithimplementationspeedandtechnology

limitations.Aewmentionedunreliablevendors.

DiscussionTissurveyshowsanindustrystillintransitionwithregard

toonlinemarketingandelectroniccommerce.Basedon

theirbudgetexpenditures,itsclearthatsomermshave

jumpedwholeheartedlyintoonlinecommerce,whileothers

arestilltestingthewaterswithrelativelysmallexpenditures.

Onenoteontherangeoexpenditureshowever,wedid

notnormalizethebudgetsonaper-roombasis,soitmaybe

thatacompanythatreportedarelativelysmallbudgetex-

penditureinabsolutedollarshasactuallycommittedalarge

percentageoundsinrelationtoitscompanysize.

Tatsaid,weweresurprisedtondsuchtinybud-

getallocationsoronlinemedia.Asubstantialnumbero

accommodationrmsreportedunder$50,000inannual

expenditures,andarelativelylargepercentageodestination

rmshadallocatedunder$25,000.Inthiscontext,itsworth

underscoringtheactthatrespondentscitedbudgetandre-sourcelimitationsastheirchierustration.echnologyand

vendorsarenotstandinginthewayoonlinemarkeitngini-

tiativesandstrategies.Apparently,moneyisdoingso.While

itistruethatmuchcanbeaccomplishedontheinternet

orree,itsclearthatseveralrmshavedeterminedthatit

makessensetocommitresourcestodevelopacomprehen-

siveelectronicstrategy,insteadoabootstrapapproach.


16/18

Cornell Hospitality Quarterlyhttp://cqx.sagepub.com/

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Vol.11No.3Compendium2011

Vol.11No.2PositioningaPlace:DevelopingaCompellingDestinationBrand,byRobertJ.Kwortnik,Ph.D.,andEthanHawkes,M.B.A.

Vol.11No.1TeImpactoHealthInsuranceonEmployeeJobAnxiety,WithdrawalBehaviors,andaskPerormance,bySeanWay,Ph.D.,BillCarroll,Ph.D.,AlexSusskind,Ph.D.,andJoeC.Y.Leng

2011 Hospitality ToolsVol.2No.1Megaips2:wentyestedechniquesorIncreasingYourips,byMichaelLynn

2011 ProceedingsVol.3,No.4BraveNewWorld:OnlineHotelDistribution,byGlennWithiam

Vol.3,No.3SocialMediaandtheHospitalityIndustry:Holdingtheigerby

theail,byGlennWithiam

Vol.3No.2TeChallengeoHotelandRestaurantSustainability:FindingProtinBeingGreen,byGlennWithiam

Vol.3No.1CautiousOptimism:CHRSExaminesHospitalityIndustryrends,byGlennWithiam

2010 ReportsVol.10No.18HowravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisions,byLauraMcCarthy,DebraStock,andRohitVerma,

Ph.D.

Vol.10No.17PublicorPrivate?TeHospitalityInvestmentDecision,byQingzhongMa,Ph.D.andAthenaWeiZhang,Ph.D.

Vol.10No.16BestPracticesinSearchEngineMarketingandOptimization:TeCaseotheSt.JamesHotel,byGregBodenlcos,VictorBogert,DanGordon,CarterHearne,andChrisK.Anderson,Ph.D.

Vol.10No.15TeImpacto Prix FixeMenuPriceFormatsonGuestsDealPerception,byShuoWangandMichaelLynn,Ph.D.

Vol.10No.14TeFutureoHotelRevenueManagement,bySherylKimes,Ph.D.

Vol.10No.13MakingtheMostoPricelinesName-Your-Own-PriceChannel,byChrisAnderson,Ph.D.,andShijieRadiumYan

Vol.10,No.12CasesinInnovativePracticesinHospitalityandRelatedServices,Set4,byCathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A

Vol.10,No.11WhosNext?AnAnalysis

oLodgingIndustryAcquisitions,byQingzhongMa,Ph.D.,andPengLiu,Ph.D.

Vol.10,No.10CasesinInnovativePracticesinHospitalityandRelatedServices,Set3:CayugaSustainableHospitality,Chic&Basic,JetBlueAirlinesJumeirahEssexHouse,TeRitz-CarltonHotelCompany,Runtriz,TeSeaportHotel,TayerLodging,ripelevision,andXsenseExperientialDesignConsulting,byCathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A.

Vol.10,No.9BuildingCustomerLoyalty:enPrinciplesorDesigninganEectiveCustomerRewardProgram,byMichaelMcCall,Ph.D.,ClayVoorhees,Ph.D.,andRogerCalantone,Ph.D.

Vol.10,No.8DevelopingMeasuresorEnvironmentalSustainabilityinHotels:AnExploratoryStudy,byJieJ.Zhang,NitinJoglekar,Ph.D.,andRohitVerma,Ph.D.

Vol.10,No.7Successulacticsor

SurvivinganEconomicDownturn:ResultsoanInternationalStudy,bySherylE.Kimes,Ph.D.

Vol.10,No.6IntegratingSel-serviceKiosksinaCustomer-serviceSystem,bysz-Wai(Iris)Lui,Ph.D.,andGabrielePiccoli,Ph.D.

Vol.10,No.5StrategicPricinginEuropeanHotels,20062009,byCathyA.Enz,Ph.D.,LindaCanina,Ph.D.,andMarkLomanno

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rnell.edu/research/chr/pubs/reports/abstract-15499.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15499.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15521.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15521.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15521.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://cqx.sagepub.com/


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