What is the role of CGM in the Hotelier’s Direct Internet Marketing Strategy?
In 2007 nearly one-third of all reservations in hospitality in North America will be generated from the Internet (29% in 2005). By 2010 over 45% of all travel reservations in the U.S. will be done via the Internet (Merrill Lynch, HeBS). Next year over 60% of these Internet reservations will be via hotel-branded websites, though some major hotel brands already enjoy a very healthy 85:15 direct vs. indirect online distribution ratio. In our view hoteliers should consider CGM initiatives only as part of a comprehensive Direct Internet marketing strategy, together with other important aspects such as search marketing, email marketing, website optimization, strategic linking and link popularity, online sponsorships and display ads. CGM initiatives like blogs should become a line item in the overall hotel marketing budget. On the other hand Hospitality eBusiness Strategies considers CGM a vital part of the comprehensive de-commoditization strategy of the hotel, a potent tool to provide a uni
