Designed to help you find the proper budget for marketing activities by considering factors such as your hotel's size, location, target audience, and business goals.
Through my experience, I have learned that finding the perfect marketing budget is crucial for a hotel's success. It's not just about throwing money into marketing efforts but rather allocating resources strategically to achieve the best results. I have honed my skills in analyzing a hotel's unique circumstances, such as its size, location, target audience, and business goals, to determine the appropriate marketing budget that aligns with its objectives.
Comprehensive Understanding: Gain a deep understanding of the key factors that influence a hotel's marketing budget, including size, location, target audience, and business goals.
Strategical Overview: Learn what strategies different hotels use based on their components and how that budget results in clear parameters more tailored towards the hotel.
Data-Driven Decision Making: Learn how to leverage data and performance metrics to make informed decisions when setting and adjusting your hotel's marketing budget.
Practical Tools and Techniques: Access practical tools and techniques that will help you effectively analyze and determine the appropriate marketing budget for your hotel, taking into account industry best practices.
Real-World Examples: Explore realworld examples and case studies of successful hotel marketing budget strategies to gain insights and inspiration for your own hotel's marketing efforts.
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INTRODUCTION TO THE HOTEL MARKETING BUDGET
#1 BUDGETING STRATEGYPERCENTAGE OF REVENUE
#2 BUDGETING STRATEGYCOST-PER-BOOKING
#3 BUDGETING STRATEGYPER OVERNIGHT STAY
HOW TO FIND JUST THE 'RIGHT' MARKETING BUDGET
Our Guide to the determining Hotel Marketing Budget goes beyond just providing budget estimates. It offers advanced features that allow you to analyze and optimize your marketing spend in real time With our calculator, you can experiment with different budget scenarios, test the impact of varying allocations across different marketing channels, and make datadriven decisions based on insights generated from comprehensive data analysis
We understand the unique challenges of the hospitality industry and have developed this tool to assist you in making informed decisions and maximizing the return on your marketing investment Take the guesswork out of your hotel's marketing budget and start making data-driven decisions with our Hotel Marketing Budget Calculator! Take control of your hotel's marketing budget today and unlock the full potential of your marketing efforts!
Hospitality is not about grand gestures, it's about making guests feel like they belong.
"
Danny Meyer
Many hoteliers would argue that the simplest and most widely used method of developing a budget is determining a fixed percentage of revenue and investing it in marketing on an annual basis.
Even though hotel brands such as Marriott or Hyatt spend between 4.3% and 8.8% on their online promotion, these types of brands are already developed franchise systems that don't depend highly on their online marketing activities. Smaller hotels need to adapt to the post-Covid era in which it is very important to have a strong online presence and multi-channel consistency. Limits of this method include the dependency of the budget on the situation the hotel is in and the challenges surrounding it. (new vs. old, seasonality vs. fullyear consistency).
According to recent data, independent hotels not older than 5 years spend around 20-30% in positioning their brand and developing their online presence. The increased ad spending, as well as the auction battle in grabbing the attention of potential guests who are presented with more options and different marketing techniques, from influencers to giveaways.
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Hotels can calculate their conversion rate per booking request by dividing the request rate by the number of bookings. That number is called the conversion rate Multiplying that number with the overall price per request, hotels can reach their cost per booking.
The target occupancy depends on the situation and goals of your hotel. Whether you want to improve or keep current occupancy, make sure to test the calculator with different
How many bookings are needed to reach the target occupancy? To reach this number, it is necessary to divide the overnights by the length of stay and the average number of guests per booking.
Not every booking requires advertisement spent, such as house-use or regular guests. This calculator focuses on targeting new guests, that can be derived from step 3.
The final step summarizes the journey and provides your hotel with a precise calculation budget based on the data input. Make sure to provide different target values and compare all possible budgets to their outcomes.
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The first step includes the calculation of all possible overnight stays based on the following variables: working days per month, number of rooms, and average number of guests per room
The second step includes calculating the target occupancy and the number of overnights based on that target occupancy.
By analyzing historical data, hotels can calculate the percentage of regular and new guests. We recommend calculating the ratio for every month of the year and using the yearly average for the budgeting strategy.
Hotels should spend less on regular guests. as the connection already exists that could lead to the guest returning, while new guests require a higher marketing budget in order to be welcomed into the hotel. A study by Invesp states that hotels should spend 5 times more to win a new guest, than a regular
The final step summarizes the journey and provides your hotel with a precise calculation budget based on the data input. Make sure to provide different target values and compare all possible budgets to their outcomes.
Every hotel has unique attributes, such as location, target audience, amenities, and brand identity, that require a tailored marketing strategy. If a hotel's marketing budget is too generalized, it may fail to effectively communicate the hotel's distinctive features and appeal to its specific target audience. This could lead to missed opportunities and decreased revenue.
Ad Meliora Hospitality treats every hotel as distinctive and unique, as the greatest threat to hospitality knowledge is generalizing.
It is important to note that budgets are based on seasonality, location, target group, and marketing goals. Hotels that want to reach new guest bases or areas would need to increase their budget to reach goals.
The three examples are all concrete examples of budget calculations based on our clients. The following possibility includes precise hotel marketing calculations that respond to all changes within your hotel or market.
By relaxing and allowing Ad Meliora Hospitality to market your property, we can respond to all changes in the market quickly and efficiently. The following pillars are included within a tailored approach to hotel marketing.
This ensures that your marketing budget is optimized to target specific periods or segments that require attention, such as filling vacant rooms during low-demand periods or enhancing guest experiences during high-occupancy periods We also adapt the budget to capitalize on emerging opportunities or mitigate risks based on market trends This strategic and dynamic approach helps you stay competitive and achieve marketing success by effectively utilizing the budget to drive revenue, increase bookings, and enhance guest satisfaction in the ever-changing hospitality industry
Expanding your hotel's guest base by promoting to new areas and target groups can bring significant benefits By reaching out to new markets, you can tap into untapped customer segments, increasing your hotel's visibility and potential bookings Additionally, when guests from these new areas have a positive experience at your hotel, they are likely to share their experience with their own network, creating word-of-mouth marketing and expanding your hotel's reach further This can lead to a snowball effect, as more guests from these new areas bring in their own target group, helping to grow your hotel's customer base and revenue
implement strategies that
short-term gains and prioritize building a strong foundation for your hotel's growth From comprehensive market research to targeted marketing campaigns, our package is designed to create a lasting impact We aim to establish your hotel as a preferred choice among your target audience, build brand loyalty, and foster repeat business Our team continuously monitors market trends, adapts strategies, and leverages innovative approaches to drive sustainable results With our hotel marketing package, you can expect long-term development and success in the competitive hospitality industry
Expanding your hotel's guest base by promoting to new areas and target groups can bring significant benefits. By reaching out to new markets, you can tap into untapped customer segments, increasing your hotel's visibility and potential bookings Additionally, when guests from these new areas have a positive experience at your hotel, they are likely to share their experience with their own network, creating word-of-mouth marketing and expanding your hotel's reach further. This can lead to a snowball effect, as more guests from these new areas bring in their own target group, helping to grow your hotel's customer base and revenue.
45
60
Days from booking until arrival
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105 Days from first contact until booking
Launch of marketing campaign prior to first arrival
Tailoring your way to success is our motto because in an industry as dynamic and unpredictable as the hotel industry, following a template is a 'journey to disaster'.
The following example is real-life example of a budgeting strategy that achieved a 221% ROI rate.
From housekeeping and back-office to F&B and front-office, our team has been through all hotel departments.
We have recognized one similarity connecting all of them.
Dedicated to perfection, in every guest interaction.
Behind every smooth and undisturbed guest experience is an impeccable system of high precision and time efficiency - I like to call it a story.
Every hotel has a unique story rooted in the property, tailored by the people, and shaped by the community.
We aim to connect you to your community through simple digital solutions and multi-channel communication based on consistency and excellence.
Your employees deserve it, your guests deserve it, and your Hotel deserves it.
Don’t be afraid to share your Story with the World
