For many years, hoteliers have used traditional advertising techniques but Dynamic Rate Marketing (DRM) is a next-generation marketing technique that allows you to adjust rates; both higher and lower in real-time based on demand, availability and other factors. Your property’s pricing can be inserted in various marketing initiatives like banner advertising, meta search and email marketing.
DRM- to your rescue!
Due to the increase in tourism, travelers, nowadays, demand hotel information with real-time pricing and DRM allows hotels to combine online advertising and marketing campaigns with real time hotel inventory availability and pricing to launch DRM campaigns.
Pricing of your property will be reflected in various marketing initiatives like banner ads, meta search and email marketing. Take a look:
Meta Search Marketing: This tool is the grandest of DRM process due to its successful revenue generation and could be a potent tool to shift share from OTAs. Over the years we have seen a tremendous explosion of meta search travel sites, facilitated by advancements in digital technology and these sites act as an unbiased online media players compared to the OTA. (Also Read: 7 Ways to Inspire Direct Bookings Without Breaking OTA Rules)
Banner ads: This is a very successful direct-response advertising format on several specialized ad networks, generating significantly higher conversions and ROIs than banner advertising without dynamic rates.
Display or text retargeting allows hotel marketers to serve follow-up marketing messages and promotions to users who are already familiar with the hotel product and services. Retargeting via Google Display Network (GDN) has been the most efficient advertising format.
Email marketing: This new type of email promotion allows the hotel promo rate to change dynamically every time the customer opens their mail box to reflect any rate changes in the property PMS or CRS.
Dynamic rates Google AdWords: With rates and availability being one of the top decision factors in hospitality, dynamic rate paid search is definitely a game changer for any hotel!
Why is DRM important for your hotel?
DRM is important for hotels as it provides value preposition to travelers. Travelers are given everything they need to research and book their hotel by adding real time availability and pricing. Moreover, hoteliers have an option to shift share from OTAs to the hotel website. By adopting various DRM initiatives, hotels are rising to the level of the OTAs and giving travelers a chance to book directly with the hotel and generate additional revenues at more acceptable ROAS (return-on-ad-spend).
Most of the big hotels have already adopted the DRM phenomena, especially in meta search and dynamic rate display advertising. In order to shift to DRM, small and mid-size hotels need to partner with a specialized digital technology and marketing companies.
The DRM phenomena will act as a powerful tool to shift share from OTAs. Hotels can now provide the customers an opportunity to book directly with the hotel.
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Disclaimer: This blog was originally published by Hotelogix on Linkedin Pulse