How do we achieve performance with marketing budgets in hospitality?
When, where and how much money to invest and, mostly, why??
I know it is a big and bold question. Achieve performance is an ambitious goal and a big promise to make. However, it is not so difficult. Or, it’s not difficult if you know how, where, when and why to invest the marketing budgets.
I’ve been in the hospitality business since 2009 (15 years!) in different marketing roles, from execution (very hands-on) to HOD level, involved in regional branding & positioning projects with Hilton Worldwide. I’ve seen marketing operations from both sides, hotel side and agency side, major international or small local projects. And budget optimization was always a top priority for all stakeholders.
While running a hospitality marketing agency in Romania, almost every property owner or manager I’ve met was concerned about marketing investment, wary if they should sign of on the contract or the campaign budget, if it will work or will be a waste of resources.
I have always shared this concern, because it matters to me to see the ROI, to see the value that comes out of our efforts as professionals. So I’ve learned to ask the questions that matter, to find the right way ahead.
What are we actually trying to achieve? This is The Question before anything.
Different Objectives Require Different Marketing Mixes
I will try to keep it very simple and clear, although it is a very complex system.
If you have a new property and nobody knows your brand, you need to build awareness. In this case, Google Search is usually not your first answer.
People cannot search for a hotel they have never heard of. And I wouldn’t recommend going to the open market and start bidding on keywords against seasoned competitors, unless your budget is really really large 😊
Awareness is built through:
social media content, including ads.
Video/youtube
PR;
partnerships;
influencers;
but also Display campaigns in Google
These channels bring your messages to a potential audience in a proactive way.
If you are in a pickle and reservations are low and your goal is generating bookings now
The equation changes, you need to capture existing demand. This is where Google (Paid) Search often becomes one of the strongest tools available. Because you are reaching people already looking for accommodation, restaurants, event venues or experiences. The intent is already there, you just need to capture it with the right messages and value proposition. It also helps a lot if your website is ready for AIO, so that answer engines can recommend you to the hottest audiences.
If your goal is reducing OTA dependency
The answer is different again.
Now we start talking about:
loyalty programs;
brand campaigns.
SEO, AIO, PPC
content marketing (social media, ads)
email marketing;
These are long-term investments and they rarely produce immediate results. But they can significantly reduce dependency on third-party platforms over time, and we have a portfolio of best practices for achieving excellent YoY results in this area.
If your goal is generating demand for social events
Your marketing mix changes once more.
Demand generation often becomes just as important as demand capture.
While Google Search can help you reach people actively looking for event venues, private parties, birthdays or celebrations, Meta platforms are often essential for generating interest before the search even begins.
This is where visual content, event highlights, testimonials and social proof start playing a critical role. Potential guests are not always searching for your venue yet. Sometimes, they need to discover the idea first. This is why a combination of Meta campaigns, Google Ads, organic social media and local partnerships often delivers the strongest results.
Some channels help create demand and others help capture it. The objective determines the marketing mix.
Before Choosing a Channel, Choose a Goal
Successful hospitality marketing is not about choosing between Google, social media, SEO or influencers. I believe it is about understanding what role each of them plays in helping you achieve a specific objective.
When hotel owners and hospitality managers ask me where they should invest their marketing budget, it is rarely with curiosity, it is mostly with concern, caution and sometimes with disbelief.
My role is not to tell them where to spend more money. It is to bring clarity, help them understand what each marketing activity is designed to achieve, what expectations are realistic and where data, experience and market context suggest their next investment is most likely to create value.