Transcript Session_7_Internet_a..

Hospitality Information
Systems and
Technology
E-Marketing
The Internet & the Hospitality and
Tourism Industry
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Electronic commerce: transactions and
interactions that occur though computer
telecommunications networks
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E-commerce: the shorthand term used to
describe electronic commerce, which consists of
transactions and interactions over computer
telecommunications networks
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B2C: Business-to-customer
B2B: Business-to-business
B2E: Business-to-employee
C2C: Customer-to-customer
E-Commerce Transaction Categories
Intranet
B2E
Internet
B2C
C2C
Extranet
B2B
Intranets and Extranets
Intranet: permits access to private network
areas by individuals who are employed or
otherwise affiliated with a hospitality
organization
Extranet: permits access to private areas
of a hospitality organization’s network for
individuals who are not employees or
company affiliates
E-commerce
applications for
hospitality organizations
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Lodging
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Entertainment
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Upscale Hotels and
Resorts
Midrange Hotels and
Resorts
Motels
Bed and Breakfast
Hostels
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Theme Parks
Attractions
Showrooms
Nightclubs
Casinos
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E-commerce
applications for
hospitality organizations
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Meetings and Events
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Travel
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Convention Centers
Conference Facilities
Banquet Facilities
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Airlines
Cruise Lines
Ground Transportation
Ground Tours
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E-commerce
applications for
hospitality organizations
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Foodservice
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Recreation
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Upscale Restaurants
Theme Restaurants
Midrange Full-Service
Restaurants
Quick Service
Restaurant
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Golf and Tennis Clubs
City and Yacht clubs
Health Spas
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Technical components
of E-commerce
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Front end: points of access for e-commerce
and users, including customers, employees,
and business affiliates
Back end: contains interfaced components
designed to provide e-commerce service to end
users
The World of E-Marketing
E-Marketing differs from traditional
marketing by
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Operating in a new environment in terms of
time, speed, market segmentation, data
collecting means, information distribution and
brand building
The internet has made some marketing
activities much easier while making others
more difficult to carry out
E-Marketing Planning
Traditional marketing questions to ask:
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Where are you now?
Product/service; market position
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Where are you going to be?
Marketing objectives; market position
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How are you going to get there?
Marketing strategies; marketing mix; budget
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How do you make sure you get there?
Implementation
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How do you know you get there?
Measurement; evaluation
Internet Marketing Tools
E-mail marketing
E-newsletter marketing
Usenet & Mailing list marketing
E-mail Marketing
Advantages:
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Inexpensive
Can be more effective than banner ads
Most people have an e-mail address
Personization & customerization
Can be personalized & the content customized
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Timeliness
Storage in the consumer in box
Measurable
Send back message
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Shorter response time
Factors that Influence the Success
of an E-Mail Marketing Campaign
Correctly identifying the target audience
Personalizing the e-mail
Customizing the message
Delivering only the content the consumer
needs and wants
Builds customer trust by providing
assurance of privacy and the option to
stop receiving the e-mail
Ways to Collect E-Mail Addresses
Through your current customer database
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Customer registration & history
Register through your website
Use companies that specialize in e-mail
marketing
Steps in E-Mail Marketing
Separate the e-mail list by market
segments
Personalize the message using the
customers name
Customize the content
Avoid spamming
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Sending e-mails to those that did not request
the information
Why You Should Avoid Spamming
Can cause hard feelings from consumers
Not tailored to the needs and wants of the
targeted receivers
Consumer privacy
Using Opt-in E-mail Marketing
Provide the receiver with and option to opt
out
Build consumer trust by not forcing
exposure to your location
Make sure to not overwhelm consumers
with information
E-Newsletter Marketing
When producing an e-newsletter, it should
be interesting and valuable in offering a
new product or sales
Should be well designed and brief
Should contain a link to your web site for
more information
Should always provide an opt out
E-mail vs. E-newsletter
E-mail
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Collection of addresses
In any formats
Audience not as highly
targeted
Lower readership due to
spam suspicion
Not as effective when using
personalization &
customization
No preset schedule
E-newsletter
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Subscription bases
Publication standards
Audience highly targeted
Readership likely to be
higher
More effective with
personalization &
customization
Sent out at regular intervals
Usenet & Mailing Groups
Usenet – focuses on specific readers
groups
Mailing lists
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Subscriber based two way e-mail system for
information sharing
Highly interactive and instant
The Web Site as a Marketing Tool
An on line storefront
The quality of the website directly reflects
the quality and the image of the business it
represents
The web site must be able to draw people
to visit it, but also make them come back
again and again
Website Construction Plan (WCP)
Defines the objective and goals of a
business and identifies the elements of a
web site
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What is the nature of the business?
Product & service
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What is the purpose of the website?
Information? Customer service? Selling?
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Who are the existing customers & who are likely to be
the customers?
What are the characteristics of the existing & potential
customers?
Young? Old? Male? Female? Active? Retired? Married?
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Where are these customers?
Local, regional, national, international
Things to Consider during Website
Construction
Can consumers find our site?
How easily & how fast can they find information?
How can we present the information in an attractive & interesting
way?
How can we make them stay longer on our website?
Are we able answer their questions on our website?
What turns the consumer “on” or “off”
What do we have to give the consumer a reason to return?
Does our website enable us to find out who the visitors to our site
are
How can we build trust with our visitors? Privacy policy? Security
measures?
What marketing tools can we use in the website
What to Check Once the Website is
Established
Can visitors find our website?
How can we increase the probability that
they will find our website?
What are the means available for us to
market our web site?
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Banner ads?
Customer communication
Traditional media
Increasing the Marketing Power of
your Website
Register with search engines
Use titles and Meta tags in your web
document
Check out your competitors Meta tags
Do a search & see who comes up first.
Then examine their Meta tags & see what
drives them
Push Marketing
A collection of internet marketing
techniques used to present and send data
to online visitors
“Push” means that information is
presented in such an attractive and easy
to access way that consumers will not be
able to resist to ask for and receive the
information
Push Marketing Techniques
Search engines
Banner ads
Interstitials (pop-ups)
E-promotion
Affiliate marketing
E-sponsorship
Rich media
Types of Search Engines
One using categories or indexes
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Yahoo
One using spidering or crawling
techniques
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Excite.com
Most Widely Used Key Words
Meta tags (keywords in the title)
Keywords near the top
Frequency of keywords
Link popularity
Mechanism for penalty for repeat
keywords
Banner Ads
Stationed banner ad
Moving banner ad
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Horizontal / vertical
Random moving ad
Ghost ad – follows you screen movement
Touch screen banner ad
Interstitials
Pop ups
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Pop on the screen to catch your attention
Pop unders
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Invisible ads
E-Promotions
Hyperlink special ad displayed on the
screen
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Offers incentive & promotions
Advantage – brings the action and
incentives much closer to the consumer
Allows advertising to be tracked instantly
Affiliate Marketing Program
Sells on allied partner websites
Beneficial for inter-related businesses
E-Sponsorship
Associates the advertiser to a brand name
The advertiser identifies a web site that
attracts the audience the sponsor wishes
to reach
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Can provide a more directly targeted
audience
Gives more exposure than banner ads
Less intrusive
Rich Media
Media rich advertising
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Any on line ad that allows for transactions,
streaming media and interactive
communication directly in the ad space
without leaving the home page where the ad
is displayed
Less interruptive in terms of clicks
Pull Marketing
Also called opt-in marketing or permission
marketing
Users explicitly request information from
internet marketers through e-mail, enewsletters, or other communications
Based on the notion that internet users
with an e-mail address will be interested in
selected information at the user’s
discretion
Guidelines for Successful Opt-in
Marketing
Obtain the target audiences e-mail
addresses
Provide valuable information the target
audience wants
Offer incentive, if necessary, to add
benefits
Provide convenient ways for the potential
audience to sign up
Provide and easy option for the consumer
to opt out
Consider privacy issues
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Cookies
The Internet and the Hospitality
and Tourism Industry
The Internet and Tourism
The industry is one that has been most
affected by the internet
Why?
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The industry is dependent upon distribution of
information about its product
Suppliers are always looking for new ways
to expand channels of distribution to
consumers
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More efficient and effective ways
Travel agents were once the most
effective way
The internet has helped reduce the cost of
Impact on Suppliers
Airlines
Cruise lines
Lodging
Rental Cars
Intermediation
Disintermediation
Airlines
Airlines have always been dependent on
travel intermediaries
Airlines are now able to bypass
intermediaries
Airline web sites
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Airlines “push” their websites by offering
specials
Customization of products
Cruise Lines
Not able to follow airlines exactly, as
products are more difficult to customize
Cruise lines walk a thin “tight rope”
between their own web sites and the
support of travel agents
Cruise lines are more likely to keep
partnerships in the future with travel
agents compared to the airlines
Lodging
Hotel industry electronic bookings have
grown exponentially over the past five
years
Uses GDS booking by consumers directly
and through third party web sites
Lodging industry has online direct booking
through secure sites
Rental Cars
Rental car companies target their web
strategies at both the leisure consumer as
well as the business consumer
Changes in the rental system
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Now: complete the rental contract at the
counter unless a club member
Future: online rental system, including
reservations, changes of schedule, signing
agreements, checking in and payments
Impact of the Internet on Travel
Agents
Direct marketing to consumers
Travel agents are being squeezed from all
sides
Suppliers have cut their commissions
Impact on Traditional
Brochure Information
Distribution
• Seeing a decline in brochure distribution
• Advantages to online travel brochures
• More accurate
• Update readily
• Customizable
• Information can be accessed 24/7
• A “walking” brochure
• Virtually unlimited information