Performance Marketing Management for Hoteliers

Hello everyone!

Welcome back to the second instalment of our marketing budget management series.

In this edition, we will be talking all about performance marketing.

Performance marketing is a key piece of every marketing strategy.

When managed effectively it is a key tool to channel shift bookings into your hotels.

In part one, we covered the different activity that makes up performance marketing, so refer back to that if you need a refresher on what we are covering.

What metrics do I need to measure?

Regarding performance marketing, we need to consider a few key things.

Performance channels are powerful because we can accurately measure their return via ad platforms or web analytics.

So for example, with Google Ads, we can see in our account how much revenue we make vs what we spend.

The key metric is ROAS (Return on ad spend)

You work this out by taking the revenue you have made and dividing it by what you have spent.

For example, if an ad returned a booking of £100 and the ads cost £10 to run, we would have an ROAS of 10.

Anything above 1 means you are making more than you spend. Everything under one, means you are making less than you spend.

How do I know what my ROAS should be?

The main place to start with this is knowing your OTA costs.