Should hotels use advertising agencies?


Short answer: no

In most cases, hotels should not use advertising agencies but manage their campaigns in-house, or have an expert team working closely with the management. 

 Read on to discover why it is a bad idea, as well to discover how hotel advertising can be done right in-house.

During our consulting practice we have been working with hotels, hotel companies of all kind. From groups of five luxury resorts in top destinations to small independent hotels in hidden parts of the world, we have helped numerous companies to get their e-commerce and digital marketing activities optimal and profitable. 

Why is it not a good idea?

There are several valid reasons why hotels should manage digital advertising on their own. Most importantly agencies take large premiums which has a negative effect on ROI, especially in case of relatively small budgets hotels allocate on online advertising - but there are several other reasons that make agencies a less optimal choice. 

Agencies allocate more efforts to large budget clients

Successful and established digital marketing agencies often deal with large clients with enormous budgets, so naturally they will allocate more time on managing their campaigns. In many cases, campaigns of small budget clients are set up once and that's all - no further optimization or attention is paid from that point.

Lack of optimization efforts

Digital marketing campaigns of hotels are often simple compared to e-commerce stores or companies with extensive product lines. Because of this,  campaigns of hotels poorly set up, rely on basic keyword selection and targeted to poorly defined audiences which will result in low ROI and poor quality traffic. 

These are the main reasons why going with agencies is often a poor decision. 

How can hotels manage to advertise in-house efficiently?

There are many hotels managing digital advertising efficiently with relatively small budgets and efforts. 

Their success depends on five factors, which are:

  1. Realistic understanding of the unique values of  their property
  2. Well designed and well-written ads that communicate their values 
  3. Deep understanding of their target audience
  4. High relevancy in targeting
  5. Good landing page experience

Knowing your values and identifying groups of people who will happy to pay for such values if half success. Setting up campaigns to target those audiences with relevant advertising is the other part - so if these two are done right then hotels can manage successful online advertising at relatively low costs. Well set up campaigns are can be optimized effortlessly compared to poor campaigns where frequent changes are required.

  • Google AdWords is easy to manage
  • Facebook Ads is also easy to manage
  • There are countless affordable remarketing and audience segmentation tools that can be part of advanced setups, but in most cases, it is not necessary

It sounds much better than paying for an agency, isn't it? 

Here at dCommerce, we are happy to support hotels in setting up excellent digital marketing campaigns. With our expertise in advertising management and marketing intelligence technology, we can easily help to identify the right audiences, set up relevant campaigns and leave it in the hands of the hotel marketing team.