Hotel client needing to justify increased marketing spend

Challenge

The client was a hotel franchising company with several hundred million in annual revenue drawn from more than 5,000 properties in 40 countries. The portfolio included multiple economy and mid-price brands, all of which operated in an intensely competitive environment. Portfolio and brand-level marketing initiatives via multiple touch points (web, phone, walk-in) as well as diverse seasonal and location-specific factors contributed to a complex sales funnel. Final sales depended heavily on non-marketing factors, but generating strong overall awareness and consideration were considered vital to sustaining the customer funnel, and the client needed to optimize media spending against this objective.

Solution

Marketing Analytics constructed models linking multiple marketing and non-marketing drivers to awareness, stay consideration, and bookings. Drivers included all broadcast and digital media mix elements, room rates, property-specific factors, and competition.

The models found that media support delivered significant incremental awareness and consideration.

The client also asked that we recommend an optimized media plan for awareness. The plan increased awareness by 1.3 points for a 9% spend increase, which was within the client’s budget limit of +10%. The optimized plan reduced spending on network TV and magazine print in favor of greater investment in cable TV, online, newspaper, and trade publications*.

* Publications targeted to travel agents and corporate travel managers