8/3/2019 Travel Industry Bench Marking
1/18www.chr.cornell.edu
Cornell Hospitality ReportVol. 11, No. 9, April 2011
2011 Travel Industry Benchmarking:
Marketing ROI, Opportunities, and Challenges in Online and
Social Media Channels or Destination and Marketing Firms
by Rohit Verma, Ph.D., and Ken McGill
8/3/2019 Travel Industry Bench Marking
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Advisory Board
The Robert A. and Jan M. Beck Center at Cornell University
Cornell Hospitality Reports,
Vol. 11, No. 9 (April 2011)
2011 Cornell University
Cornell Hospitality Report is produced or
the beneft o the hospitality industry by
The Center or Hospitality Research at
Cornell University
Rohit Verma, Executive Director
Jennier Macera,Associate Director
Glenn Withiam, Director of Publications
Center or Hospitality Research
Cornell University
School o Hotel Administration
489 Statler Hall
Ithaca, NY 14853
Phone: 607-255-9780
Fax: 607-254-2922
www.chr.cornell.edu
Back cover photo by permission oThe Cornellianand Je Wang.
Niklas Andren, Group Vice President Global Hospitality &Partner Marketing, Travelport GDS
Raanan Ben-Zur, Chief Executive Ofcer, French QuarterHoldings, Inc.
Scott Berman, Principal, Real Estate Business AdvisoryServices, Industry Leader, Hospitality & Leisure,
PricewaterhouseCoopersRaymond Bickson, Managing Director and Chief Executive
Ofcer, Taj Group o Hotels, Resorts, and Palaces
Stephen C. Brandman, Co-Owner, Thompson Hotels, Inc.
Raj Chandnani, Vice President, Director of Strategy, WATG
Benjamin J. Patrick Denihan, Chief Executive Ofcer,Denihan Hospitality Group
Brian Ferguson, Vice President, Supply Strategy and Analysis,Expedia North America
Chuck Floyd, Chief Operating OfcerNorth America,Hyatt
Gregg Gilman, Partner, Co-Chair, Employment Practices,
Davis & Gilbert LLPTim Gordon, Senior Vice President, Hotels, priceline.com
Susan Helstab, EVP Corporate Marketing,Four Seasons Hotels and Resorts
Jeffrey A. Horwitz, Chair, Lodging + Gaming, and Co-Head,Mergers + Acquisitions, Proskauer
Kevin J. Jacobs, Senior Vice President, Corporate Strategy &Treasurer, Hilton Worldwide
Kenneth Kahn, President/Owner, LRP Publications
Kirk Kinsell, President of Europe, Middle East, and Africa,InterContinental Hotels Group
Radhika Kulkarni, Ph.D.,VP of Advanced Analytics R&D,SAS Institute
Gerald Lawless, Executive Chairman, Jumeirah Group
Mark V. Lomanno, CEO, Smith Travel Research
Betsy MacDonald, Managing Director, HVS Global HospitalityServices
David Meltzer, Senior Vice President, Global BusinessDevelopment, Sabre Hospitality Solutions
William F. Minnock III, Senior Vice President, GlobalOperations Deployment and Program Management,Marriott International, Inc.
Mike Montanari, VP, Strategic Accounts, Sales - SalesManagement, Schneider Electric North America
Shane OFlaherty, President and CEO, Forbes Travel Guide
Thomas Parham, Senior Vice President and General Manager,Philips Hospitality Americas
Chris Proulx,CEO, eCornell & Executive Education
Carolyn D. Richmond, Partner, Hospitality Practice, FoxRothschild LLP
Steve Russell,Chief People Ofcer, Senior VP, HumanResources, McDonalds USA
Michele Sarkisian, Senior Vice President, Maritz
Janice L. Schnabel, Managing Director and Gaming PracticeLeader, Marshs Hospitality and Gaming Practice
Trip Schneck, President and Co-Founder, TIG Global LLC
Adam Weissenberg, Vice Chairman, and U.S. Tourism,
Hospitality & Leisure Leader, Deloitte & Touche USA LLP
http://http//www.hotelschool.cornell.edu/industry/executive/http://http//www.hotelschool.cornell.edu/industry/executive/8/3/2019 Travel Industry Bench Marking
3/18
Tnk t genes Cpte Memes
FriendsAmerican Tescor, LLC Argyle Executive Forum Berkshire Healthcare Center or Advanced Retail Technology Cody Kramer Imports Cruise Industry News DK Shiet & Associates ehotelier.com EyeorTravel 4Hoteliers.com Gerencia de Hoteles & Restaurantes Global Hospitality Resources Hospitality Financial andTechnological Proessionals hospitalityInside.com hospitalitynet.org Hospitality Technology Magazine Hotel Asia Pacifc Hotel China HotelExecutive.com Hotel Interactive Hotel Resource International CHRIE International Hotel Conerence International Society o Hospitality Consultants iPerceptions JDA SotwareGroup, Inc. J.D. Power and Associates The Lodging Conerence Lodging Hospitality Lodging Magazine LRA Worldwide, Inc. Milestone Internet Marketing MindFolio Mindshare Technologies PhoCusWrightInc. PKF Hospitality Research Resort and Recreation Magazine The Resort Trades RestaurantEdge.com Shibata Publishing Co. Synovate The TravelCom Network Travel + Hospitality Group UniFocus USA Today WageWatch, Inc. The Wall Street Journal WIWIH.COM Wyndham Green
PartnersDavis & Gilbert LLPDeloitte & Touche USA LLPDenihan Hospitality GroupeCornell & Executive EducationExpedia, Inc.Forbes Travel GuideFour Seasons Hotels and ResortsFox Rothschild LLPFrench Quarter Holdings, Inc.HVSHyattInterContinental Hotels GroupJumeirah GroupLRP PublicationsMarriott International, Inc.Marshs Hospitality Practice
Maritzpriceline.comPricewaterhouseCoopersProskauerSabre Hospitality SolutionsSchneider ElectricThayer Lodging GroupThompson HotelsTravelportWATG
Senior Partners
Hilton WorldwideMcDonalds USA
Philips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
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4 TeCenterorHospitalityResearchCornellUniversity
ExECuTivE SuMMary
Seniorlodginganddestinationmarketingexecutivesofenmakevendorandmarketingchannel
decisionswithoutsucienttimetoinvestigatetheROIoalternativestrategiesoremerging
media choices. An internet-based survey o 426 marketing executives, drawn rom theravelCom 2011 conerence and Cornell Center or Hospitality Research database, with
support rom Vantage Strategy and iPerceptions, ound a wide range o expenditures on online
marketing,aswellasconsiderablediversityinorganizationalstructures.wo-thirdsothesample
comprised accommodation marketers, with the remainder being destination marketers or those
responsibleorothertypesomarketing.Nearlythree-quartersotherespondentsreportedspending
lessthan$10,000onmobilemediain2010,abouttwothirdsspentlessthan$10,000onallsocialmedia
marketing.About80percentothemarketerssaidthattheyproducedwittercampaignsandsocial
promotionsin-house,butsuchunctionsassearchengineoptimizationandpay-per-clickadvertising
arelargelyoutsourced.Accommodationrmsaremorelikelytooutsourceallsocialmediaunctions,
includingpay-per-call,wittercampaigns,andpay-per-clickmanagement.Destinationmarketers,on
theotherhand,generallyhandlemoreunctionsin-house.wo-thirdsotheentiresamplesaidthe
2010 e-commerce budgets had increased with respect to 2009. Sixty percent o accommodation
marketersanticipatedaurtherincreasein2011,and71percentothedestinationmarketerssaidtheir
2011budgetswouldincrease.
2011ravelIndustryBenchmarking:Marketing ROI, Opportunities, and Challenges
in Online and Social Media Channels or
Destination and Marketing FirmsbyRohitVermaandKenMcGill
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CornellHospitalityReportApril2011www.chr.cornell.edu 5
abouT ThE auThorS
rohit vema, Ph.D., is proessor o operations management and executive director o the Center or
Hospitality Research at the Cornell University School o Hotel Administration ([email protected]). Among
his research interests are product-and-service design and innovation, customer choice modeling, and quality
process improvement o supplier selection strategies. His work has appeared in such publications as MIT Sloan
Management Review, Journal of Operations Management, and Cornell Hospitality Quarterly.
Ken McGll is EVP o Research or Vantage Strategy (ken.mcgill@vantagestrategy.
com). He directs Vantages Travel & Tourism Research division where he deliversinsight and intelligence to DMOs and Travel & Tourism suppliers. Prior to Vantage, he
was Executive Vice President or IHS Global Insight and head o its Travel & Tourism
Practice. McGill directed both existing client relationships and spearheaded new development eorts, particularly
in the unctional areas o market research, economic impact assessment, and resource planning. In his 30 years
in economic and strategic consulting, McGill has developed an expertise in research and planning methods
that has been successully applied to business problems in a variety o corporate and government settings. He
is particularly known or his work in combining primary market research with traditional economic and industry
analysis. A particular ocus o McGills work has been in tourism economic impact assessment. Moreover, McGills expertise has oten been
called upon to estimate the economic impact o specifc destinations, attractions, convention acilities, resort/hotel developments, events, and
tourism policy decisions.
The authors grateully acknowledge the support o the TravelCom Conerence and Vantage Strategy in conducting this study.
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6 TeCenterorHospitalityResearchCornellUniversity
CorE hoSiTaiTy rEorT
As part o the planning or ravelCom 2011, conerence organizers consulted the
ravelComadvisoryboardmemberstoidentiytheirmostpressingissues.Tesechie
marketing ocers and marketing executives identied the acceleration o online
marketingorcesasacommonconcern.TeexecutiveseelthattheyarebeingcalledontomakevendorandmarketingchanneldecisionswithoutsucienttimetoinvestigatetheROIo
alternative strategiesoremergingmedia choices, aswell as benchmarkingwhat others aredoing.Uncomortablewithad hocdecisionmaking,theexecutivesrequestedastudythatwouldestablish
benchmarksororganizationalpracticesanddecisionmaking.
2011TravelIndustryBenchmarking:
Marketing ROI, Opportunities, and Challenges in Online andSocial Media Channels or Destination and Marketing Firms
byRohitVermaandKenMcGill
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CornellHospitalityReportApril2011www.chr.cornell.edu 7
Tisstudyistheresultothatexpressedneed.Withthe
supportoVantageStrategyandiPerceptions,wedeveloped
aquestionnairethatwouldallowustoassessthestateo
electronicmarketingestablishingbenchmarksandprovide
acomparisonpointorresourcesdevotedtoelectronic
marketing.
Wedividedthesurveyquestionsintothreeoverarching
themes:
(1) Inormationthatplacesarmintoacompetitiveset;
(2) Howdollarsarespentintheonlinemarketingspace
(3) Howresourcesareallocated
Wecategorizedtheresponsestothesurveyquestionsto
assessdierentaspectsoonlinemarketinginitiativesinthe
ollowingareas
Budgetandresourceallocation, Marketingandpromotion,
Internationalstrategydevelopment,
Commerceandconversion,
Loyaltyandreputation,
Analysisandresearch,
Challengesandutureopportunities.
WeconductedthesurveyonlineduringJanuaryand
February2011.RespondentswerepartotheCHRandrav-
elComdatabasesotravelindustrymarketingexecutives.
Atotalo426industryrespondentscompletedthesurvey,
andtheywereassuredthatnoprivateoridentiyinginor-
mationwouldbeshared.Tepurposeothestudywasonly
tocreateapublicbenchmarkandallowprivatecompari-
sonsotheparticipantsrmswiththosebenchmarks.
ExecutiveProleSixty-eightpercentotherespondentsworkedinaccom-
modationrms,20percentweredestinationmarketers,
andtherestworkedinavarietyotravel-relatedrms(see
Exhibit1).
Terespondentsreportedanoticeabledierencein
averageannualbudgetsormarketingandecommerce.At
$1.354million,theaveragebudgetreportedbymarketersoraccommodationrmswastentimestheaverageor
destinationmarketers,whoreportedanaverageo$136
thousanddollars.Bothgroupsreportedthattheelectronic
marketingportionothosebudgetswasincreasingyearto
year.
Tetwotypesoorganizationalsoreporteddierent
structuresordeployingmembersotheonlinemarket-
ingservicesteamandtheecommerceteam(seeExhibit2).
87
291
48
Destntn MketngEectes
annl dget f mketngnd e-cmmece eged
$136,000 n 2010; tw-tdsepted tt ts ws n
ncese e 2009; seenf ten ntcpted n
ncese n 2011
accmmdtnMketng Eectes
annl dget f mketngnd e-cmmece eged$1,354,000 n 2010; tw-tds epted tt tsws n ncese e 2009;s f ten ntcpted nncese n 2011
ote Tel-elted Fms
Exhibit 1
Smple cmpstn
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8 TeCenterorHospitalityResearchCornellUniversity
ecommerceteamspartotherevenuemanagementdepart-
ment,andanother17percentwereinthesalesdepartment.
Lookingspecicallyatthepeoplewhodeterminestrat-egyoronlinepricinganddistribution,weagainseethatthe
marketingdepartmentisoremostordestinationmarket-
ingrms,butthatisnottrueoaccommodationrms(see
Exhibit3).
Welloverhalotheaccommodationrms(54%)put
theirpricingstrategistsintherevenuemanagementdepart-
ment,withanother18percentinsales.Just10percentothe
accommodationrmshadtheirpricingstrategyunction
Tree-quartersothedestinationmarketingorganizations
housedtheironlinemarketingteaminthemarketingde-
partment,butthatwastrueojust41percentotheaccom-modationmarketers.Instead,17percentotheonlineteam
washousedintheaccommodationrmssalesdepartment,
andanother9percentintheecommercedepartment.
Asimilarrelationshipoccurredortheecommerce
team.Justoverhalothedestinationmarketingrmsput
theecommerceteaminthemarketingdepartment,while
thatwastrueinonlyone-thirdotheaccommodationrms.
Instead,40percentotheaccommodationrmsmadetheir
87
291
48
Exhibit 2
onlne mketng seces nd e-cmmece tem plcement
onlne Mketng Seces
Mketng deptment 75%Sles deptment 4%
eCmmece deptment 2%
opetns deptment 6%
eCmmece
Mketng deptment 51%
Sles deptment 6%
We seces deptment 11%
opetns deptment 12%
onlne Mketng SecesMketng deptment 41%
Sles deptment 17%
eCmmece deptment 9%
opetns deptment 5%
eCmmece
Mketng deptment 33%
reene mngement deptment 40%
Sles deptment 27%
We seces deptment 5%
opetns deptment 3%
87
291
48
Exhibit 3
onlne pcng stteg nd dsttn tem plcement
onlne cng Stteg Tem
Mketng deptment 25%
Sles deptment 4%
reene mngement deptment 12%
opetns deptment 12%
Dsttn Stteg
Mketng deptment 53%
onlne cng Stteg Tem
Mketng deptment 10%
Sles deptment 18%
reene mngement deptment 54%
opetns deptment 5%
Dsttn Stteg
Mketng deptment 14%
AccommodAtion Firms
dEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
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CornellHospitalityReportApril2011www.chr.cornell.edu 9
0
10
20
30
40
50
60
0
10
20
30
40
50
60
inmarketing.Forthedestinationmarketers,25percento
rmsputpricingstrategyinmarketing,andjust12percent
intherevenuemanagementdepartment.Fordistributionstrategy,welloverhalothedestinationrmshouseddistri-
butionstrategyintheirmarketingdepartment,butthatwas
trueoonly14percentoaccommodationrms.
Intermsobudgetallocations,marketingandpromo-
tionwasbyarthelargestsingleonlinemarketingand
ecommercecategoryorbothdestinationandaccommoda-
tionrms(seeExhibit4).Toseexpenditureswereollowed
inorderbycommerceandconversion,loyaltyandreputa-
tion,andanalyticsandresearch.Terespondentsreported
similarpercentageallocationsostatime(Exhibit5).For
theentiresample,theaveragenumberostamembersinvolvedinonlinemarketingandecommercewas3.25.
Terangeobudgetedonlineadvertisingexpendi-
tureswasremarkable,withsomermsreportingbudgets
olessthan$10,000andothersover$1million(Exhibit
6).Tebudgetsskewedtowardthelowerendotherange,
however,astheaverageonlineadvertisingbudgetorac-
commodationrmswasapproximately$60,000,whileor
destinationmarketerstheaveragewasabout$80,000.In
accmmdtn FmsDestntn Fms
Mrke
tingnd
prom
otion
Comm
ercend
conv
ersion
oylty
ndrepu
ttion
anlytic
snd
rese
rchp
e
r
c
e
n
t
a
g
e
Exhibit 4
onlne mketng nd e-cmmece dgetllctn
Exhibit 5
ecentge llctn f stff tme (ege f 3.25stff)
accmmdtn FmsDestntn Fms
Mrke
tingnd
prom
otion
Comm
ercend
conv
ersion
oylty
ndrepu
ttion
anlytic
snd
rese
rchp
e
r
c
e
n
t
a
g
e
0 10 20 30 40
Less than $10,000
$10,000 -$24,999
$25,000 -$49,999
$50,000 -$99,999
$100,000 -$249,000
$250,000 -$499,999
$499,999 -$1,000,000
Over $1,000,000
Exhibit 6
onlne detsng dget f 2010
accmmdtn Fms
Destntn Fmsaege $80,000
aege $60,000
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10 TeCenterorHospitalityResearchCornellUniversity
termsothepercentageothemarketingbudget,online
mediaplacementalsovariedwidely(Exhibit7).
Althoughtheaverageonlinebudgetallocationsrepre-
sentedanaverageo40percentodestinationrmsmarket-
ingbudget,sevenothe87destinationrmsand20othe
216accommodationmarketersreportedonlinebudget
allocationsolessthan10percentothemarketingexpendi-
tures.wo-thirdsothermsreportedthattheyspendless
than$10,000onsocialmedia,andthree-quartersspendless
than$10,000onmobilemedia.
Tebreakdownopurchasingchannelsoradvertisingin
onlinemediaissimilarordestinationandaccommodation
rms(seeExhibit8).Whilesubstantialpercentagesorms
handlepurchasesinternally,manyalsousemultipleagencies.
Arelativelysmallpercentageusejustoneagencyoronline
mediabuys.Lookingmorespecicallyathowtheserms
0 5 10 15 20 25
Exhibit 7
ecentge dget f nlne med plcement
accmmdtn Fms
Destntn Fms
aege ~40%
aege ~45%
Me tn 95%
85 t 94%
75 t 84%
65 t 74%
55 t 64%
45 t 54%
35 t 44%
25 t 34%
11 t 24%
ess tn 10%
Exhibit 8
Sce f nlne med nd detsement pcsng
one
genc
21%
Mltple
genc
39%
hndledntenll
35%
tse
5%
onegenc
27%
Mltple
genc
28%
hndledntenll
40%
tse
5%
DestntnFms
accmmdtnFms
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CornellHospitalityReportApril2011www.chr.cornell.edu 11
20 30 40 50 60 70 80 90
Twitter Campaigns
Social Influence
Video Distribution
Press Release Distribution
Branding
Link Building
SMS/Text Messaging
Ad Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destinatio
0.0 20.0 40.0 60.0 80.0
Pay Per Click Management
Link Building
Search Engines
Video Distribution
Social Influence
SMS/Text Messaging
Ad PlacementAffiliate Marketing
Twitter Campaigns
Branding
Pay Per Call
accmmdtn Fms
Destntn Fms
otherperspective,accommodationrmsarearmorelikely
thandestinationrmstoretainspecializedrmsoronline
marketingcampaigns(seeExhibit10).
Tedierenceinapproachesshowsupmostnotice-
ablyinpay-per-call,branding,wittercampaigns,and
aliatemarketingprograms.Destinationrmsreported
outsourcingtheseunctionsonly25percentothetime,
whileaccommodationrmsrequentlyoutsourcenotonly
handlethemanyaspectsoonlinemarketing,weseethat
suchmattersaswittercampaignsandsocialinuenceare
largelyhandledinhouse(seeExhibit9).
Indeed,destinationmarketingrmsare,ingen-
eral,morelikelytohandleallonlinemarketingunctions
in-house.Ontheotherhand,pay-per-clickmanagement,
searchenginemanagement,andpay-per-callcampaigns
arequiterequentlyoutsourced.akingthisissueromthe
Exhibit 9
Sltns f nlne mketng: ecentge n-se
Exhibit 10
Sltns f nlne mketng: ecentge tsced t speclzed ms
accmmdtn Fms Destntn Fms
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12 TeCenterorHospitalityResearchCornellUniversity
OpenSource
28%
Enterprise18%
Custom38%Other
8%
None8%
OpenSource
29%
Enterprise17%
Custom34%
Other12%
None8%
Exhibit 12
Cntent-mngement sstem
accmmdtn FmsDestntn Fms
thoseunctions,butalsoadplacementandsocialinuence
campaigns.
Temarketersweremuchmoreinclinedtohandle
socialmediasitesandcorporatewebsitesontheirownthan
theyweremobileappsandthemobilewebsite,whichwere
mosttypicallyoutsourced(seeExhibit11).
Again,destinationmarketerswereslightlymorelikely
thanaccommodationmarketerstohandlemostothese
unctionsontheirown.Tebreakdownosourcesorthe
contentmanagementsystemwassimilarorbothdestination
marketersandaccommodationrms:justunder30percent
wereopensource,noteven20percentwereenterprisesys-
tems,andoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Exhibit 11
implementtn sltns: ecentge n-se
accmmdtn Fms
Destntn Fms
opensce29%
Entepse17%
Cstm34%
ote12%
ne
8%
ote
8%ne
8% opensce28%
Entepse18%
Cstm38%
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CornellHospitalityReportApril2011www.chr.cornell.edu 13
12).Formostrms,thedevelopmentcycleonthesesystems
typicallyoccupiedtwoorthreeyears(seeExhibit13).
Tetwotypesocompaniestookrelativelysimilarap-proachestosocialmediapoliciesandunctionality,withone
exception.Destinationrmswereoverwhelminglymore
likelytoselladvertisingspaceontheirsitesthantheaccom-
modationrmswere.Asaresult,thedestinationrmswere
somewhatmorelikelytomaintainanadvertisingmanage-
mentsystem.
Ontheotherhand,theaccommodationrmswere
morelikelytoprovideonlinepurchasingcapabilities(see
accmmdtn FmsDestntn Fms
Exhibit 13
aege deelpment ccle
Exhibit14).Responsibilityormanagingsocialmedia
residedoverwhelminglyinthemarketingandsalesdepart-
ment(58%orespondents),withasmallpercentageinpub-licrelations(15%),ecommerce(12%),orasmatteringother
departments(15%).Askedwhichsocialmediaweremost
eective,themarketersratedFacebookatthetop,ollowed
bywitter,Youube,andLinkedIn(Exhibit15,nextpage).
Accommodationrmswerearmorelikelythandesti-
nationmarketerstoreportthattheymaintainblogs.Fify-
onepercentotheaccommodationrmsreportedblogging,
comparedtojust31percentodestinationrms.Teperson
0 25 50 75 100
...se n detsng mngement sstem
...pde e-cmmece fnctnlt
...selll detsng spce
...e ntenl stff f scl med epttnmngement
...pde nlne pcse cplt
...e scl med stteg.
Exhibit 14
ecentge f ccmmdtn nd destntn ms tt...
accmmdtn Fms
Destntn Fms
Eetw
es34%
Ee e
23%
Ee teees30%
t
se7%
Eef +
es6%
Eetw
es21%
Ee e10%
Ee teees
30%
tse
15%
Eef +es15%
accmmdtn FmsDestntn Fms
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14 TeCenterorHospitalityResearchCornellUniversity
0
20
40
60
80
100
Faceb
ook
Tw
itter
YouT
ube
F
lickr
MySp
ace
Foursquare
Gow
alla
B
ebo
Ning
Hi5
O
rkut
Hyves
Xa
nga
responsibleormanagingtheblogwasalmostneverthe
CEOorpresident.Instead,bloggingellprimarilytothe
directoromarketing,thesocialmediaorpublicrelations
sta,orinsomecasesexternalpartners.
FrustrationsAsshowninExhibit16,themarketerscitedbudgetand
resourcelimitationsastheirnumber-oneissue.Otherissues
weretheabsenceoastrategicplan,limitedmarketknowl-
Exhibit 15
ecentge f ccmmdtn nd destntn ms pdng tng f e effecte f scl medstes
accmmdtn Fms
Destntn Fms
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Fcts cted s fsttns n nlne mketng ccmmdtn nd destntn mketes (pecentges)
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CornellHospitalityReportApril2011www.chr.cornell.edu 15
Acknowledgingthepossibilityohurlingmoneyintothe
blackvoidotheinternet,itseemslikelythatthecompa-
niesthathavecareullycommittedresourceswillenjoythe
rewardsoavibrantelectronicdistributionstrategy.
ConclusionOvertime,weanticipatethatbothdestinationandaccom-
modationmarketingrmswillocusspecicallyonwherein
theirorganizationtheonlinemarketingservicesandstrategy
unctionwillbehoused.Partothatdecisionisaunctiono
corporateculture,ocourse,butitmaybethatecommerce
willevolvetobecomeadisciplineoitsown,asrevenue
managementhasdoneinthepastewyears.
Tekeyactoristoensurethatelectronicmarketing
andsalesstrategiesarecongruentwiththeorganizations
overallmarketingapproaches.Whileonlinesalesandcom-
mercecanonlygrowastimegoeson,theactremainsthat
asubstantialportionothetravelbusinessisstillsoldvia
traditionaldistributionchannels.
Perhapsthekeytestoraccommodationanddestina-tionbusinessesismanagingthetransitionromtraditional
channelstoelectronicchannels,especiallysincetheresno
guaranteeoagradualchangeromonetoanother.Te
historyothegrowthanddevelopmentosocialmediahas
beenoneodiscontinuity,andtheresnoreasontothinkthat
weveseenanendtonewandunexpectedcommunication
channels.n
edge,andissueswithimplementationspeedandtechnology
limitations.Aewmentionedunreliablevendors.
DiscussionTissurveyshowsanindustrystillintransitionwithregard
toonlinemarketingandelectroniccommerce.Basedon
theirbudgetexpenditures,itsclearthatsomermshave
jumpedwholeheartedlyintoonlinecommerce,whileothers
arestilltestingthewaterswithrelativelysmallexpenditures.
Onenoteontherangeoexpenditureshowever,wedid
notnormalizethebudgetsonaper-roombasis,soitmaybe
thatacompanythatreportedarelativelysmallbudgetex-
penditureinabsolutedollarshasactuallycommittedalarge
percentageoundsinrelationtoitscompanysize.
Tatsaid,weweresurprisedtondsuchtinybud-
getallocationsoronlinemedia.Asubstantialnumbero
accommodationrmsreportedunder$50,000inannual
expenditures,andarelativelylargepercentageodestination
rmshadallocatedunder$25,000.Inthiscontext,itsworth
underscoringtheactthatrespondentscitedbudgetandre-sourcelimitationsastheirchierustration.echnologyand
vendorsarenotstandinginthewayoonlinemarkeitngini-
tiativesandstrategies.Apparently,moneyisdoingso.While
itistruethatmuchcanbeaccomplishedontheinternet
orree,itsclearthatseveralrmshavedeterminedthatit
makessensetocommitresourcestodevelopacomprehen-
siveelectronicstrategy,insteadoabootstrapapproach.
8/3/2019 Travel Industry Bench Marking
16/18
Cornell Hospitality Quarterlyhttp://cqx.sagepub.com/
2011 ReportsVol11No8Search,OAs,andOnlineBooking:AnExpandedAnalysisothe
BillboardEect,byChrisAndersonPh.D.
Vol.11No.7Online,Mobile,andextFoodOrderingintheU.S.RestaurantIndustry,bySherylE.Kimes,Ph.D.,andPhilippF.Laqu
Vol.11No.6HotelGuestsReactionstoGuestRoomSustainabilityInitiatives,byAlexSusskind,Ph.D.andRohitVerma,Ph.D.
Vol.11,No.5TeImpactoerrorismandEconomicShocksonU.S.Hotels,by
CathyA.Enz,RentaKosov,andMarkLomannoVol.11No.4ImplementingHumanResourceInnovations:TreeSuccessStoriesromtheServiceIndustry,byJustinSunandKateWalsh,Ph.D.
Vol.11No.3Compendium2011
Vol.11No.2PositioningaPlace:DevelopingaCompellingDestinationBrand,byRobertJ.Kwortnik,Ph.D.,andEthanHawkes,M.B.A.
Vol.11No.1TeImpactoHealthInsuranceonEmployeeJobAnxiety,WithdrawalBehaviors,andaskPerormance,bySeanWay,Ph.D.,BillCarroll,Ph.D.,AlexSusskind,Ph.D.,andJoeC.Y.Leng
2011 Hospitality ToolsVol.2No.1Megaips2:wentyestedechniquesorIncreasingYourips,byMichaelLynn
2011 ProceedingsVol.3,No.4BraveNewWorld:OnlineHotelDistribution,byGlennWithiam
Vol.3,No.3SocialMediaandtheHospitalityIndustry:Holdingtheigerby
theail,byGlennWithiam
Vol.3No.2TeChallengeoHotelandRestaurantSustainability:FindingProtinBeingGreen,byGlennWithiam
Vol.3No.1CautiousOptimism:CHRSExaminesHospitalityIndustryrends,byGlennWithiam
2010 ReportsVol.10No.18HowravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisions,byLauraMcCarthy,DebraStock,andRohitVerma,
Ph.D.
Vol.10No.17PublicorPrivate?TeHospitalityInvestmentDecision,byQingzhongMa,Ph.D.andAthenaWeiZhang,Ph.D.
Vol.10No.16BestPracticesinSearchEngineMarketingandOptimization:TeCaseotheSt.JamesHotel,byGregBodenlcos,VictorBogert,DanGordon,CarterHearne,andChrisK.Anderson,Ph.D.
Vol.10No.15TeImpacto Prix FixeMenuPriceFormatsonGuestsDealPerception,byShuoWangandMichaelLynn,Ph.D.
Vol.10No.14TeFutureoHotelRevenueManagement,bySherylKimes,Ph.D.
Vol.10No.13MakingtheMostoPricelinesName-Your-Own-PriceChannel,byChrisAnderson,Ph.D.,andShijieRadiumYan
Vol.10,No.12CasesinInnovativePracticesinHospitalityandRelatedServices,Set4,byCathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A
Vol.10,No.11WhosNext?AnAnalysis
oLodgingIndustryAcquisitions,byQingzhongMa,Ph.D.,andPengLiu,Ph.D.
Vol.10,No.10CasesinInnovativePracticesinHospitalityandRelatedServices,Set3:CayugaSustainableHospitality,Chic&Basic,JetBlueAirlinesJumeirahEssexHouse,TeRitz-CarltonHotelCompany,Runtriz,TeSeaportHotel,TayerLodging,ripelevision,andXsenseExperientialDesignConsulting,byCathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A.
Vol.10,No.9BuildingCustomerLoyalty:enPrinciplesorDesigninganEectiveCustomerRewardProgram,byMichaelMcCall,Ph.D.,ClayVoorhees,Ph.D.,andRogerCalantone,Ph.D.
Vol.10,No.8DevelopingMeasuresorEnvironmentalSustainabilityinHotels:AnExploratoryStudy,byJieJ.Zhang,NitinJoglekar,Ph.D.,andRohitVerma,Ph.D.
Vol.10,No.7Successulacticsor
SurvivinganEconomicDownturn:ResultsoanInternationalStudy,bySherylE.Kimes,Ph.D.
Vol.10,No.6IntegratingSel-serviceKiosksinaCustomer-serviceSystem,bysz-Wai(Iris)Lui,Ph.D.,andGabrielePiccoli,Ph.D.
Vol.10,No.5StrategicPricinginEuropeanHotels,20062009,byCathyA.Enz,Ph.D.,LindaCanina,Ph.D.,andMarkLomanno
Cornell Center or Hospitality Research
Indexwww.chr.cornell.edu
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rnell.edu/research/chr/pubs/reports/abstract-15499.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15499.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15521.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15521.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15521.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://cqx.sagepub.com/8/3/2019 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