Mobile Marketing the New Frontier
Content
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Mobile Marketing: The New Frontier
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Dear Colleagues: The HSMAI Travel Internet Marketing Special Interest Group is pleased to present this report, the second in its free series, as part of its mission to increase members’ awareness and understanding of emerging issues, opportunities and trends; and, TIG Global is proud to sponsor the report as part of its commitment to helping travel professionals drive revenue and profit online by making smart, strategic marketing decisions. “By 2012, the number of devices accessing the Internet will double to more than 3 billion, half of which will be mobile devices,” according to International Data Group. To meet the informational and transactional needs of these mobile device users, it’s not as easy as just giving them existing web site content. Published by the HSMAI Foundation, this report, “Mobile Marketing: The New Frontier,” is a timely resource for hospitality marketers who are developing their strategies for combining the mobile Internet, mobile social networking, GPS location and mapping to reach current and potential customers. For both business and leisure customers the intent is to enhance your CRM efforts and boost sales across your property. Are you ready for 2012? If you’re not, this white paper will help you get prepared by providing insights into the technical variances in and capabilities of mobile browsers and technologies; the content and location-based services desired by mobile users on both the business and leisure travel sides; and, successful forays into mobile marketing by hospitality industry organizations and by other industries…And what you can learn from them. We wish you the very best of success. Trevor Stuart-Hill President, Revenue Matters Co-Chair, HSMAI Travel Internet Marketing Advisory Board Christine Beuchert Director of Ecommerce, Marcus Hotels & Resorts Co-Chair, HSMAI Travel Internet Marketing Advisory Board Frederic W. Malek, CEO and Trip Schneck, President TIG Global 301.841.4700
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Table of Contents
5 6 7 8 8 9 10 A special report from the HSMAI Travel Internet Marketing Special Interest Group 10 12 12 13 Membership Application The Power of Mobile Travel & Hospitality Getting Started Creating a Mobile Web Site Building an Opt-in Database Text Message Marketing Location Based Marketing Conclusion Useful Links & Resources Websites, Articles & References Contributors
Mobile Marketing: The New Frontier
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16 Hospitality Sales & Marketing Association International 16 16 HSMAI Foundation TIG Global
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Join HSMAI to become a part of the Travel Internet Marketing Special Interest Group
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Mobile marketing has arrived. When it comes to informing, updating, reminding, promoting and selling to new and existing customers, mobile marketing is the most targeted, immediate and relevant medium.
The numbers speak volumes. According to eMarketer, in 2008 the mobile market generated $648 million in ad sales and by 2013, it is expected to soar to $3.3 billion in the U.S. and $24 billion worldwide. Thirty-two percent of Americans report using their handhelds to read e-mail, search for products and browse Web sites, and mobile search in the U.S. is anticipated to nearly double from 28.8 million users in 2008 to 56 million users by 2011 (Pew Internet & American Life Project and eMarketer). When you consider the number of global Internet users is at around 1.6 billion (Internet World Stats), and the world population is nearly 6.8 billion, the potential of this new frontier is staggering. Mobile is fast becoming a go-to tactic savvy marketers are including in the overall communications mix to create brand awareness, convert prospects, enhance customer relationships, generate viral marketing and drive the bottom line. While it shouldn’t be approached as a standalone activity or just another channel, mobile can be a vital platform in a brand’s integrated marketing mix that allows personal interactions that are location and context sensitive. It is an emerging medium that offers a high degree of audience targeting through a myriad of mobile options, from the mass market channels of voice, text (SMS) and mobile Web sites, to the likes of multimedia messaging (MMS), e-mail, Bluetooth, and applications – a consideration if you really want to push your brand within the mobile platform. And when you add the prospects of using position-based campaigns and GPS/location based services, the games really begin.
The Power of Mobile
Why the mobile phenomenon? The mobile phone has become the indispensible “never leave home without it” item. It is instantly accessible and turned on nearly all the time. It is immediate, interactive and location based, and allows interaction that is highly personalized and convenient. From making calls and exchanging text messages to sending photos, surfing the Internet and checking e-mail, it has revolutionized the way consumers behave and perform daily activities. Pioneering the breakthrough in mobile usability is the increasing adoption of smartphones as lifestyle tools, sparked in part by the iPhone explosion, which has been a major catalyst for the increase in touch screen handsets. According to a study released in November by The Kelsey Group, 18.9% of mobile consumers in the U.S. are now carrying smartphones, with 42.9% planning to pick one up in the next two years. And PhoCusWright adds that two out of three frequent business travelers expect to have new smartphones within the next 12 month and 54% will purchase them themselves. Aside from the devices getting so much smarter, and a significant drop in data rate plans making mobile data so much more affordable, all the new user interfaces and third party applications are making it easier to access and navigate rich content. The iPhone Apps Store, Google’s Android Market, Blackberry’s App World, Nokia’s Ovi store and Palm’s Software Store have tens of thousands of applications available among them. PhoCusWright reports that nearly half (48%) of phone owners report shopping for apps more than once a week, and 49% report using apps on their phone for more than 30 minutes a day. With the rapid explosion of mobile phones and thousands of useful, entertaining and engaging consumer-focused applications, the mobile market is only just starting to surge. And with the iPhone 3.0, customers can purchase goods and services on-demand in a way never
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
before possible. With all that comes the opportunity to get even closer to customers. Consumers are in complete control of their mobile experience. When they choose to be engaged, they’re more likely to want to buy. They are demanding information faster and on a continuous flow, and any lag in response can jeopardize loyalty and defection to one who is quick to respond. As mobile goes mainstream, to truly harness the power of mobile marketing means providing relevant information in the right place at the right time, and at the customer’s desire and convenience. That means the ability to target consumers 24/7 with anytime, anywhere marketing, regardless of location. Get that right and it opens up limitless opportunities for brands to be relevant to device carrying consumers.
cas E study :
MGM Grand
The MGM Grand was looking to gain new customers and maintain relations with existing ones. Especially interested in boosting its hotel and entertainment businesses, the “destination hotel” used the mobileStorm platform to send out SMS marketing messages regarding customers’ hotel stays and their attendance at shows. mobileStorm was also used to add digital messaging to their promotional campaigns and help the brand collect data about current and potential new patrons. To court those audiences, the resort sends pre-arrival emails to guests 10 days before their scheduled stays, confirming guests’ reservations and offering a $25 entertainment credit to customers who sign up for the Mobile Concierge service, which sends SMS about special offers and discounts during their stay. Customers sign up for the service by filling out a form sent in the email, and can check off boxes of things that interest them, such as “spa” or “nightlife.” MGM Grand then sends special promotions only to customers meeting certain criteria, making their digital messaging campaigns deeply targeted. In one campaign, MGM Grand promoted its nightclubs with billboard trucks that drove up and down the Vegas Strip. The billboard promised people they could get on the clubs’ VIP lists by sending a text message to a special short code: The keyword DUB, their full names and the number of guests they wanted to bring. This allowed MGM Grand to track who came to their events, what clubs they attended and how many guests they brought. It also helped the resort create new subscriber records, so that MGM Grand could continue to market to these customers. Visit http://www.mobilestorm.com/email-marketing-case-studies/casestudy-mgm-grand.php for full details.
Travel & Hospitality
With the increasing number of travelers using their mobile devices, there are outstanding opportunities for the travel industry predicated on the real time ability to connect and interact with consumers at any time or place. The portable media landscape of mobile offers a powerful medium to deliver content to inform, influence and transact. The opportunities are unlimited, from empowering mobile travelers to improving travel efficiency and building ancillary revenues. Mobile offers the traveling consumer the ability to research products and services, make instant reservations, change bookings and check-in/ check-out on the go. Through push marketing, it provides rich opportunities to get consumers to respond to offers, engage in signups and buy on the spot. You can communicate information or alerts, send coupons, offer distressed inventory, make timely offers and last minute deals, up sell and cross sell ancillary products and services. Airlines are leading the way by upgrading their mobile Web experience from being mainly information driven to providing the ability to book and purchase flights, join the standby list and upgrade seating. Hospitality brands are diving in to the space with SMS call to action campaigns for promotions on discounts for rooms, dining, amenities, etc. and creative concepts like a mobile concierge for groups. On the operations side, booking confirmations can be cost effectively and conveniently sent by text message, there’s the ability for paperless ticketing and creative means to improve customer feedback. For example, Hilton Hotels launched a mobile service for its properties in the UK and Germany with full booking capabilities as a benefit to its loyalty club members. Hyatt inked a deal
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
with Microsoft to have hotel ads on Verizon Wireless phones to generate new members for its frequent guest program as well as allowing booking and check in with their mobile phones. And Amadeus launched a new series of mobile solutions aimed at corporate travel managers and business travelers that offer location- and itinerary-based information to those on the go, while also enabling travel managers to track their personnel abroad for heightened security. As more competitors move into the space, mobile is becoming a key differentiator. In the continual quest to generate loyalty by delivering supreme levels of customer service and create product differentiation, travel marketers are looking to the channel to engage with customers at all stages of the consumer buying cycle. The innovative use of mobile technology offers the ability to differentiate a company in a highly competitive market. Keeping up with customers on the go with messages on the move gives you the opportunity for a unique one-on-one relationship with your target customer.
Getting Started
To enter the world of mobile, the first consideration is to know your customer – their needs, wants, interests and desires. Who is engaging your brand, and who are your prospects? Where do they reside (geographically and virtually) and what channels do they want to be reached on? By knowing your audience, you can better satisfy their needs and establish a longterm engagement strategy. From there, determine the value proposition of your products and services, and identify how to communicate that through the various means of mobile. You will also want to identify what you are looking to accomplish. Is it simply generating interest and laying the groundwork for future relationships? Is it building your permission based list so you can strategically market at some point in the future? Is it brand building and generating loyalists? Or is it launching a campaign and driving immediate short term business? Whether it’s through simple text alerts or highly sophisticated two-way programs that go beyond standard text message updates, mobile marketing is a real time, interactive way to extend your brand and drive business. Whatever the mission, it’s important to keep in mind that the strategies associated with developing interactive services should consider the long term durability verses one time usage of your product(s). Take full advantage of the opportunity to cultivate meaningful and long term relationships through any mobile interaction by converting it to more “traditional” communications. Once you’ve communicated with a guest on property during their stay, how do you keep the relationship and add value to it once their gone? Mobile coupons may be effective while on vacation, but that level of contact is not needed after they arrive home. In moving forward, it’s recommended that you get to know the technology available to incorporate that into your strategy, such as acknowledging the technical variances in, and capabilities of mobile browsers and technologies. Be aware of copycat services that clutter the existing products offered in the market, and learn about new ‘push’ technologies being introduced for application interaction that is non-obtrusive. Once your intent is determined and you have a basic understanding of mobile, it’s time to create a business strategy, get tactical and creative, delve into the technology and put into place some type of measurement and analytics.
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Creating a Mobile Web Site
Mobile users are just that, mobile. They don’t have time to spend navigating and deciphering, so you need to have a mobile version of your site and create a user experience that is optimized for the mobile Web – one that is simple, quick, friendly and easy to browse. Make sure contact
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
information is easy to find and keep it slim and trim with relevant information. For optimum performance, different Web sites should be designed for each of the major mobile device platforms including the iPhone, Windows Mobile, and Palm OS platforms. And be sure to keep the experience mobile. That means that all links and mobile ads click through to an optimized mobile Web site. In designing your mobile strategy, you want to set up a uniquely identified mobile site so users know the experience is optimized for them. Among the choices are: »» »» adding an “m” to your domain, like m.yoursite.com; adding “mobile” to the domain, such as yoursitemobile.com or www. mobile.yoursite.com; adding a “folder” to your domain, such as www.yoursite.com/mobile; and, using a dotmobi domain (.mobi), like yourbrand.mobi, which may be more useful for those using older mobile devices.
cas E study :
TAO Nightclub Las Vegas
The Las Vegas nightclub, TAO, turned to Club Texting to promote their weekly parties and big DJ nights, as well as build a list of their customers’ information once inside the club. Within the first week, TAO placed call-to-action signs within their venue bathrooms, behind the bars and on their plasma screens. In addition to in-venue ads, TAO used their Web site, email and print fliers to promote the message: “Text the word TAO to Number 25827 (CLUBS) From Your Mobile Phone to Receive Exclusive Invites to Events at TAO.” Within three weeks of starting their Club Texting campaign, TAO amassed a 2,000 person subscriber list. Messages for an event were sent to those subscribers, which generated 220 attendees for an 11% return and $6,170 in revenue. TAO’s subscriber list has grown to over 6,000 members and the Club Texting system is used to promote upcoming events one to three times per week – a strategy that has consistently outperformed any other marketing efforts implemented in the past. They have also integrated their “call to action” across a variety of media, including their MySpace presence. Visit http://www.clubtexting.com/ case-studies/tao-mobile-marketing.html for full details.
»»
Building an Opt-in Database
Mobile marketing is all about opt-in marketing. The key is to get consumers to say “yes” to hearing from you and then enthusiastically take part in the mobile marketing. To begin any conversation or send a text message, you need permission. Since you can’t purchase a mobile phone list, all subscribers must go through an opt-in procedure. To start the process and build a permission-based SMS audience, reach out to existing customers through every touch point and ask if you can be in contact with them on their mobile device. Promote your mobile services by leveraging all your existing marketing channels and capture mobile numbers through information queries and bookings. On the customer profile page of your Web site, add a line for mobile numbers and provide a choice of different opt-in options. By using mobile banner ads you can also drive consumers to your WAP (Wireless Applicatiopn Protocol) site and encourage them to opt in to your SMS database. Once people have joined, you can let the interaction and value proposition begin, be it news and alerts, deals and promotions, coupons, contests, exclusive offers, upcoming events, new developments or product information. All text message communication should include a link to your mobile site to drive users there. Have a special offers section on the mobile site where visitors can get discounts, in addition to a click-to-call feature that automatically connects consumers to a live person. Be sure to indicate that rates may apply, and provide clear instructions on how to opt out if desired (i.e. text STOP to a short code). Once you seek permission and get it, you want to keep it. As in any CRM strategy, be
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Mobile Marketing: The New Frontier
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sure to deliver what they ask for. At the end of the day, content has to be relevant, useful and valuable. The end game is to engage with the consumer and build a long-term relationship.
cas E study :
Gunstock Mountain Resort
As the closest major ski area to Boston, Gunstock Mountain Resort looked to implement a promotional text message strategy to promote on-mountain specials, increasing the resort’s incremental revenue. Loyal Gunstock customers were asked to text “JitterGram 1091” to short code, “878787” to receive up to four on-mountain deals daily, such as lunch and happy hour specials, discounted tickets, apparel, etc. Signs were displayed with instructions for subscribing in the lodges, ski shops and around the ski lifts. Gunstock also notified their staff; even the bus drivers were telling customers about the “Text to Save” club. One of the most successful JitterGrams was the “Show the phone at a ticket window for 2 ski tickets for the price of 1, tomorrow only” promotion. With a 19% redemption rate, Gunstock generated incremental revenue of almost $1000 through a single JitterGram. Visit http://www.mmaglobal.com/studies/mobile-marketing-casestudy-gunstock-mountain-resort-jittergram for full details.
Text Message Marketing
Text message (SMS) marketing is the foundation of mobile marketing. In fact, SMS is expected to generate $177 billion in global services revenues by 2013, according to ABI Research, New York, and it will account for 83 percent of all mobile messaging revenues through 2013. It’s an application most mobile users are familiar and comfortable with, and the opportunities are endless. One way to build a mobile database and acquire new customers is to offer “text and win” sweepstakes, promotions or coupons and include an opt-in SMS message after the entry. You can ask users to text a keyword (also known as a mobile alias) to a short code, and those wanting to participate in your mobile marketing will officially be part of your database, or “mob.” The customer then gets a return text message which qualifies them for the offer and they can become an opt-in member for future mobile marketing. That keyword can be promoted in any number of ways, generally with an offer that gives consumers a reason to want to join. To create interactivity between print advertisements and mobile, an ad in a travel magazine can offer consumers a free night or complimentary service by texting your keyword (and joining your mob). When the consumer joins, they’re given a promotion code to use when making the booking. On an ongoing basis you can provide additional offers, information and news of interest. One of the greatest features of broadcast text messaging is the ability to create time sensitive offers to fill need periods. A restaurant can send a message with an offer to guests and locals before the lunch or dinner hour if business is slow. A hotel can fill weekend space with a last minute offer. To increase internal capture during a guests’ stay, get them to opt in to receive offers on check-in if they’re not already enlisted. For example, if the spa has afternoon cancellations, you can text to guests on property with a reduced rate on a service. And as a final text to culminate the stay, the last message can be a thank you with a Web link offering a discount to book a return trip.
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Location Based Marketing
Brands are discovering the benefits of mobile as a location-enabling tool. One of the most exciting opportunities in mobile marketing is the use of Location Based Services (LBS), predicated on the concept that exact location is the basis for delivering the right message to the right person at the right place and time. Couple that with a detailed profile on a customer – their likes, interests and personal data – and you can target that individual through text offers or mobile
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
couponing based on their preferences at the point of interaction. With the cas E study : enhanced use of proximity based interaction you can engage customers by sending offers and discounts via mobile when they are within walking or driving distance. W Hotels The myriad of location-based opportunities can dramatically enhance Looking to revolutionize their guest services, the consumer experience and interaction with the brand. By accessing W Hotels looked to Upoc’s mobile community the mobile Web or using downloaded applications, consumers can turn technology to create W To Go™, the first to their phone to locate the nearest accommodations, restaurants, shops, Mobile SMS application specifically designed attractions and points of interest on the spot. Instead of powering up a for the hospitality industry. Using Upoc’s laptop at the airport, stranded passengers looking for the next flight can mobile technology allows guests to receive enter their destination and get every airline’s flight and gate informaimportant notifications about their stay, even tion for the entire day, as well as call the airline or connect to its Web when they are off the hotel premises. Whether site. For the traveler on the go, the phone can be an invaluable and room-bound or on the go, guests receive alerts condensed source of information, from mobile guide books and maps to from the concierge service for anything from a restaurants and reviews, GPS-driven walking tours and audio guides on package arrival and dry cleaning delivery to demand, powered either by mobile Web search or downloaded applicareservations for restaurants, spa appointments tions. The plethora of mobile-enhanced sites and available applications and other activities and services. Visit http:// are massive (the iPhone alone offers more than 30,000 applications, with www.upocnetworks.com/case-studies.html for travel a dominant category offering everything from product branded full details. Web sites for destinations, hotel companies and airlines to guide books, reviews, currency converters, voice translations, maps and so much more). For hospitality marketers, the medium offers the ability to locate guests prior to arrival and send a text message to start the check in process. Having knowledge of one’s profile and interests enables you to customize their stay by pushing activities and services of interest, such as information on local events, restaurant menus and specials, spa options, attractions and more. For destination marketing organizations and convention and visitors bureaus, mobile can provide the means to deliver full destination guides with location based features and services. To extend the power of mobile even further, you can really get creative by using locationbased solutions to market a destination or product by creating GPS-enabled tours that are downloadable to any number of mobile devices such as navigation systems, smartphones, PDAs and MP3 players. An excellent resource for this type of tour is www.geovative.com/. Beyond the ‘basics’ are applications such as radio-frequency identification (RFID) technology that enables a guest room door to unlock as you approach, lets you purchase products from vending machines, and have your hotel room ‘come alive’ with lights and temperatures automatically turned to the desired setting. Through RFID tags, consumers can opt-in at a kiosk or point of sale to join a mobile rewards program and receive coupons and special offers. Another cool application is IFind, an innovative means of comparison shopping whereby the mobile device reads a bar code, prices it and can identify other stores and Web sites that carry www.hsmaifoundation.org the same item along with the cost. Regardless how large or small the mobile initiative, accountability and measuring the effectiveness of mobile campaigns and activities are paramount. The mobile environment offers a variety of measurement capabilities and analytics that can report participation and demographics of your mobile database in general and in response to a particular campaign. The key is to www.tigglobal.com prepare to capture the right kind of data, and use it once you have it to measure your results.
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Conclusion
What is clear is that it is becoming increasingly important for hospitality and travel marketers to be deliberate about their forays into the mobile arena. A mobile marketing plan can help you navigate through the hype to carefully research and implement mobile marketing efforts that are integrated with the elements of your existing marketing plans. Mobile marketing strategies, working with your online efforts like paid search marketing, local search marketing, and email marketing, can help you leverage and see synergistic returns in awareness, interaction, and revenue. Many would agree that mobile is indeed the new frontier. As the technology, devices and applications become more affordable and accessible, those who embrace some degree of mobile marketing will be well positioned to reap the benefits of this burgeoning and potentially lucrative market. Whether you test the waters by establishing a mobile Web site, start building your ‘mob’ by initiating simple text-based offers and promotions, or mount a widespread, multitiered campaign, the smart marketer will let the engagement begin.
Useful Links & Resources
HSMAI Travel Internet Marketing Special Interest Group www.travelinternetmarketing.org This subgroup of the HSMAI membership connect travel marketers in a way that leverages interactive customer engagement as a marketing medium while increasing the awareness of emerging issues, opportunities and trends. The TIG Global Blog is the premier source for online marketing strategy and scoop. Written by marketing gurus and designed for hotel and travel professionals, this educational resource is constantly updated with e-marketing tips, case studies, breaking industry news, “Ask the Expert” columns, new research, and much more. As the research and educational arm of the Hospitality Sales and Marketing Association International, HSMAI Foundation expands and enhances the educational opportunities available to hospitality sales and marketing executives and increases the amount of in-depth research conducted on behalf of this fast-paced, increasingly demanding profession.
TIG Global
http://blog.tigglobal.com/
HSMAI Foundation
http://www.hsmaifoundation.org
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Websites, Articles & References
Code of Conduct for Mobile Marketing http://www.mmaglobal.com/policies/code-ofconduct Privacy principles intended to guide companies within the mobile ecosystem so that they can effectively, and responsibly, leverage the mobile channel for marketing purposes. eConnect is a one-stop portal to global information and resources on hospitality sales and marketing topics. Provided by the HSMAI Foundation through its Corporate Membership program, many of eConnect’s resources are available exclusively to HSMAI members. A source for market research and trend analysis on Internet, e-business, online marketing, media and emerging technologies. Reporting on new trends such as blogs, social networking, podcasting, mobile marketing and many others that affect the business landscape. Compiled by mobiThinking.com, this extensive listing includes links to News and views, Blogs, Mobile search engines, Mobile directories, Guidelines, white papers and case studies, Research, analysis and statistics, Must-attend events, Forums and user groups, Associations and institutions, and Books Industry news and business information in online travel, Internet marketing and the hospitality industry, available as an online magazine, daily email newsletter or RSS newsfeed. The products and services search engine dedicated to sales and marketing professionals in hospitality, travel, and tourism.
eConnect: Research & Resources from the HSMAI Foundation
http://www.hsmaieconnect.org
eMarketer Daily Newsletter
https://www.emarketer.com/Newsletter.aspx
Helpful Links
http://mobithinking.com/mobile-marketingtools/helpful-links#Guides
HotelMarketing.com
http://www.HotelMarketing.com
HSMAI Marketplace
www.hsmaimarketplace.com
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Websites, Articles & References cont.
Marketing Experiments www.marketingexperiments.com/ Free case studies, how-to articles and reports covering e-mail marketing, search marketing and online marketing for various industries including travel & hospitality. An electronic publication covering mobile marketing, media and commerce. A global association that strives to stimulate the growth of mobile marketing and its associated technology. Reviews mobile technologies, explores travelers’ attitudes toward mobile functionality, and quantifies the growth and business value of mobile as a communications and booking channel. mobiThinking.com is the marketing arm of dotMobi, the ICANN-appointed global registry for the .mobi top-level domain name. Other resources include Best Practices, Mobile Marketing Tools, and Case Studies.
Mobile Marketer Daily Mobile Marketing Association PhoCusWright’s Mobile: The Next Platform for Travel
www.mobilemarketer.com/ www.mmaglobal.com
www.phocuswright.com/research_ publications_buy_a_report/585
Ten Mistakes in Mobile Marketing. The dotMobi Mobile Developer’s Guide
http://mobithinking.com/best-practices/10mistakes-mobile-marketing
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Contributors
Loren Gray was the Advisory Board lead for this white paper. He
is Director of E-commerce for Ocean Properties Ltd. in Delray Beach, Florida. Follow Loren on Twitter @lorengray.
The HSMAI Travel Internet Marketing Advisory Board members are:
»» »» »» »» »» »» »» »» »» »» »» »» »» »» »» Co-Chair: Christine Beuchert, Director of e-Commerce, Marcus Hotels Co-Chair: Trevor Stuart-Hill, President, Revenue Matters John Fuhr, Vice President of Marketing, Anaheim/Orange County CVB Isaac Gerstenzang, Corporate Director of E-Commerce, Destination Hotels & Resorts Loren Gray, Director of E-commerce, Ocean Properties, Ltd. Katherine Huske, Internet Consultant, The Broadmoor Kerry Kennedy, Director of E-Commerce, Omni Hotels Oral Muir, Senior Director, Global Ecommerce Channels, Marriott International Kurt Paulson, Head of Travel, West, Google Inc. Jessica Rivera, Regional Director, Revenue Management, Interstate Hotels & Resorts Aaron Stenhoff, Director, Marketing and E-Commerce, Red Roof Inns Tiffany Tchida, Manager, Consumer Websites, Best Western International Victoria Treyger, Vice President, Marketing, Travelocity Peter Winkler, Senior Manager, E-marketing, Preferred Hotel Group James Zito, Corporate Director E-Commerce, Morgans Hotel Group, Corporate
Taryn Schneider, president of Taryn Schneider Communications, has more than 28 years of hospitality, travel and tourism experience as a writer, editor and marketing communications specialist. She has worked on behalf of a select group of clients requiring highly specialized communications services, promotions, writing, publishing, and special events. She began her career as a writer and editor for Travel Agent Magazine, and spent the next decade working in a diverse range of travel publishing, television producing, and journalistic endeavors. Her articles have appeared in both travel consumer and trade publications. Her email address is [email protected].
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Hospitality Sales & Marketing Association International
HSMAI is the hospitality industry source for knowledge, community, and recognition for leaders committed to professional development, sales growth, revenue optimization, marketing, and branding. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry, and bringing together customers and members at annual events, including HSMAI’s Affordable Meetings®. New and upcoming resources and events include: »» HSMAI Marketing Review (August issue) – www.hsmai.org/ Resources/review.cfm »» HSMAI University Webinars – Ongoing & Archived – www.hsmaiuniversity.org »» Digital Strategy Workshop – December 7, 2009, Las Vegas – www.travelinternetmarketing.org
TIG Global
As the leader in online marketing for the travel industry, TIG Global (www.tigglobal.com) remains steadfast in its mission to assist hotels and destinations in exceeding their online marketing goals. During this time of decreased travel demand, we realize the unique opportunity that exists for our clients to gain market share. TIG Global has developed a proven set of strategies to successfully leverage the marketing efforts of hotels and destinations worldwide, delivering unrivaled incremental revenue and visitors online. Serving an extensive portfolio of clients worldwide, TIG Global combines its e-business expertise and industry knowledge to maximize client exposure in the online channel. TIG Global works closely with each client to create a custom marketing strategy and provide ongoing support and consultation. Our extensive service offering provides the benefits that include: »» Award-winning, multi-language Website Design streamlines the conversion process and clearly communicates with visitors. Search engine optimization prominently places clients at the top of the search engines for direct visibility. Paid search marketing captures and delivers traffic to landing pages for increased conversion. Strategic linking and online advertising delivers pre-qualified leads from our established network of over 2,000 media partners. E-mail marketing strengthens customer loyalty and establishes relationships with interested travelers. Custom social media programs, ranging from Facebook,Twitter and Flickr promotions to blogs and travel review monitoring, push your brand to the forefront and establish direct communication with customers.
HSMAI Foundation
As the research and educational arm of the Hospitality Sales and Marketing Association International, HSMAI Foundation’s mission is to expand and enhance the educational opportunities available to hospitality sales and marketing executives and to increase the amount of in-depth research conducted on behalf of the profession. Today, and in the years ahead, the HSMAI Foundation plans to accelerate its research and publishing activities to contribute even more to the continuing education of those engaged in this fast-paced, increasingly demanding profession. For more information, contact the HSMAI Foundation: 1760 Old Meadow Road, Suite 500, McLean, VA 22102; (703) 506-3280; www.hsmaifoundation.org.
»» »» »»
»» »»
Should you have any questions about the information in this report, or comments about how TIG Global can assist your company in gaining market share, please feel free to contact us at [email protected] or 301.841.4700. We also invite you to visit our blog for additional eMarketing tips and advice from our marketing experts – blog.tigglobal.com.
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Mobile Marketing: The New Frontier
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Dear Colleagues: The HSMAI Travel Internet Marketing Special Interest Group is pleased to present this report, the second in its free series, as part of its mission to increase members’ awareness and understanding of emerging issues, opportunities and trends; and, TIG Global is proud to sponsor the report as part of its commitment to helping travel professionals drive revenue and profit online by making smart, strategic marketing decisions. “By 2012, the number of devices accessing the Internet will double to more than 3 billion, half of which will be mobile devices,” according to International Data Group. To meet the informational and transactional needs of these mobile device users, it’s not as easy as just giving them existing web site content. Published by the HSMAI Foundation, this report, “Mobile Marketing: The New Frontier,” is a timely resource for hospitality marketers who are developing their strategies for combining the mobile Internet, mobile social networking, GPS location and mapping to reach current and potential customers. For both business and leisure customers the intent is to enhance your CRM efforts and boost sales across your property. Are you ready for 2012? If you’re not, this white paper will help you get prepared by providing insights into the technical variances in and capabilities of mobile browsers and technologies; the content and location-based services desired by mobile users on both the business and leisure travel sides; and, successful forays into mobile marketing by hospitality industry organizations and by other industries…And what you can learn from them. We wish you the very best of success. Trevor Stuart-Hill President, Revenue Matters Co-Chair, HSMAI Travel Internet Marketing Advisory Board Christine Beuchert Director of Ecommerce, Marcus Hotels & Resorts Co-Chair, HSMAI Travel Internet Marketing Advisory Board Frederic W. Malek, CEO and Trip Schneck, President TIG Global 301.841.4700
www.hsmaifoundation.org
www.tigglobal.com
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Table of Contents
5 6 7 8 8 9 10 A special report from the HSMAI Travel Internet Marketing Special Interest Group 10 12 12 13 Membership Application The Power of Mobile Travel & Hospitality Getting Started Creating a Mobile Web Site Building an Opt-in Database Text Message Marketing Location Based Marketing Conclusion Useful Links & Resources Websites, Articles & References Contributors
Mobile Marketing: The New Frontier
15
16 Hospitality Sales & Marketing Association International 16 16 HSMAI Foundation TIG Global
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Join HSMAI to become a part of the Travel Internet Marketing Special Interest Group
Information & Instructions
The on-line membership application is available at www.hsmai.org. To apply off-line, complete & return this form. Membership in HSMAI gives you access to the resources, knowledge and networks you need to make a critical connection with your customers. Examples of some of the benefits you will receive as an HSMAI member include: »» »» »» »» »» Local chapter membership HSMAI Marketing Review subscription Web site resources in “members only” section Membership in up to five Special Interest Groups. Sign up on www.hsmai.org under “ Update your Record.” FOR FACULTY ONLY: Faculty members receive a 50% discount off the member price of most HSMAI publications and conference registration fees, including webinars.
For additional information, please contact HSMAI Headquarters: 1760 Old Meadow Road, Suite 500, McLean, VA 22102 Phone: 703-506-3280 Fax: 703-506-3266
Member Information
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Hospitality Sales and Marketing Association International
Membership Application
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Industry Classifications
AD AI AS AT CA CB CC CL Advertising Airlines Associations Area Attraction Casino CVB/Tourism Convention/Conference Centers Cruise Line or Passenger Ship H2 Hotel & Conference Centers, all other mgrs H3 Hotel, Corporate, Regional, National Sales HH Recruiters/Head Hunters HM Hotel Management Company MP Meeting Planner/Event Mgr PR Press PU Publishing RE Restaurant/Dinner Theater/ Catering RS Hotel Representative Firms R1 Revenue Manager at an individual property R2 Revenue Manager at a corporate/ national/regional office R3 Revenue Manager at a management company SM Other Sales & Marketing Individuals SP TP Service Providers Transportation
CM Public Relations Agency H1 Hotel & Conference Centers – DOM & DOS
TT Tour/Travel Agent/Destination Offices
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Mobile marketing has arrived. When it comes to informing, updating, reminding, promoting and selling to new and existing customers, mobile marketing is the most targeted, immediate and relevant medium.
The numbers speak volumes. According to eMarketer, in 2008 the mobile market generated $648 million in ad sales and by 2013, it is expected to soar to $3.3 billion in the U.S. and $24 billion worldwide. Thirty-two percent of Americans report using their handhelds to read e-mail, search for products and browse Web sites, and mobile search in the U.S. is anticipated to nearly double from 28.8 million users in 2008 to 56 million users by 2011 (Pew Internet & American Life Project and eMarketer). When you consider the number of global Internet users is at around 1.6 billion (Internet World Stats), and the world population is nearly 6.8 billion, the potential of this new frontier is staggering. Mobile is fast becoming a go-to tactic savvy marketers are including in the overall communications mix to create brand awareness, convert prospects, enhance customer relationships, generate viral marketing and drive the bottom line. While it shouldn’t be approached as a standalone activity or just another channel, mobile can be a vital platform in a brand’s integrated marketing mix that allows personal interactions that are location and context sensitive. It is an emerging medium that offers a high degree of audience targeting through a myriad of mobile options, from the mass market channels of voice, text (SMS) and mobile Web sites, to the likes of multimedia messaging (MMS), e-mail, Bluetooth, and applications – a consideration if you really want to push your brand within the mobile platform. And when you add the prospects of using position-based campaigns and GPS/location based services, the games really begin.
The Power of Mobile
Why the mobile phenomenon? The mobile phone has become the indispensible “never leave home without it” item. It is instantly accessible and turned on nearly all the time. It is immediate, interactive and location based, and allows interaction that is highly personalized and convenient. From making calls and exchanging text messages to sending photos, surfing the Internet and checking e-mail, it has revolutionized the way consumers behave and perform daily activities. Pioneering the breakthrough in mobile usability is the increasing adoption of smartphones as lifestyle tools, sparked in part by the iPhone explosion, which has been a major catalyst for the increase in touch screen handsets. According to a study released in November by The Kelsey Group, 18.9% of mobile consumers in the U.S. are now carrying smartphones, with 42.9% planning to pick one up in the next two years. And PhoCusWright adds that two out of three frequent business travelers expect to have new smartphones within the next 12 month and 54% will purchase them themselves. Aside from the devices getting so much smarter, and a significant drop in data rate plans making mobile data so much more affordable, all the new user interfaces and third party applications are making it easier to access and navigate rich content. The iPhone Apps Store, Google’s Android Market, Blackberry’s App World, Nokia’s Ovi store and Palm’s Software Store have tens of thousands of applications available among them. PhoCusWright reports that nearly half (48%) of phone owners report shopping for apps more than once a week, and 49% report using apps on their phone for more than 30 minutes a day. With the rapid explosion of mobile phones and thousands of useful, entertaining and engaging consumer-focused applications, the mobile market is only just starting to surge. And with the iPhone 3.0, customers can purchase goods and services on-demand in a way never
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
before possible. With all that comes the opportunity to get even closer to customers. Consumers are in complete control of their mobile experience. When they choose to be engaged, they’re more likely to want to buy. They are demanding information faster and on a continuous flow, and any lag in response can jeopardize loyalty and defection to one who is quick to respond. As mobile goes mainstream, to truly harness the power of mobile marketing means providing relevant information in the right place at the right time, and at the customer’s desire and convenience. That means the ability to target consumers 24/7 with anytime, anywhere marketing, regardless of location. Get that right and it opens up limitless opportunities for brands to be relevant to device carrying consumers.
cas E study :
MGM Grand
The MGM Grand was looking to gain new customers and maintain relations with existing ones. Especially interested in boosting its hotel and entertainment businesses, the “destination hotel” used the mobileStorm platform to send out SMS marketing messages regarding customers’ hotel stays and their attendance at shows. mobileStorm was also used to add digital messaging to their promotional campaigns and help the brand collect data about current and potential new patrons. To court those audiences, the resort sends pre-arrival emails to guests 10 days before their scheduled stays, confirming guests’ reservations and offering a $25 entertainment credit to customers who sign up for the Mobile Concierge service, which sends SMS about special offers and discounts during their stay. Customers sign up for the service by filling out a form sent in the email, and can check off boxes of things that interest them, such as “spa” or “nightlife.” MGM Grand then sends special promotions only to customers meeting certain criteria, making their digital messaging campaigns deeply targeted. In one campaign, MGM Grand promoted its nightclubs with billboard trucks that drove up and down the Vegas Strip. The billboard promised people they could get on the clubs’ VIP lists by sending a text message to a special short code: The keyword DUB, their full names and the number of guests they wanted to bring. This allowed MGM Grand to track who came to their events, what clubs they attended and how many guests they brought. It also helped the resort create new subscriber records, so that MGM Grand could continue to market to these customers. Visit http://www.mobilestorm.com/email-marketing-case-studies/casestudy-mgm-grand.php for full details.
Travel & Hospitality
With the increasing number of travelers using their mobile devices, there are outstanding opportunities for the travel industry predicated on the real time ability to connect and interact with consumers at any time or place. The portable media landscape of mobile offers a powerful medium to deliver content to inform, influence and transact. The opportunities are unlimited, from empowering mobile travelers to improving travel efficiency and building ancillary revenues. Mobile offers the traveling consumer the ability to research products and services, make instant reservations, change bookings and check-in/ check-out on the go. Through push marketing, it provides rich opportunities to get consumers to respond to offers, engage in signups and buy on the spot. You can communicate information or alerts, send coupons, offer distressed inventory, make timely offers and last minute deals, up sell and cross sell ancillary products and services. Airlines are leading the way by upgrading their mobile Web experience from being mainly information driven to providing the ability to book and purchase flights, join the standby list and upgrade seating. Hospitality brands are diving in to the space with SMS call to action campaigns for promotions on discounts for rooms, dining, amenities, etc. and creative concepts like a mobile concierge for groups. On the operations side, booking confirmations can be cost effectively and conveniently sent by text message, there’s the ability for paperless ticketing and creative means to improve customer feedback. For example, Hilton Hotels launched a mobile service for its properties in the UK and Germany with full booking capabilities as a benefit to its loyalty club members. Hyatt inked a deal
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
with Microsoft to have hotel ads on Verizon Wireless phones to generate new members for its frequent guest program as well as allowing booking and check in with their mobile phones. And Amadeus launched a new series of mobile solutions aimed at corporate travel managers and business travelers that offer location- and itinerary-based information to those on the go, while also enabling travel managers to track their personnel abroad for heightened security. As more competitors move into the space, mobile is becoming a key differentiator. In the continual quest to generate loyalty by delivering supreme levels of customer service and create product differentiation, travel marketers are looking to the channel to engage with customers at all stages of the consumer buying cycle. The innovative use of mobile technology offers the ability to differentiate a company in a highly competitive market. Keeping up with customers on the go with messages on the move gives you the opportunity for a unique one-on-one relationship with your target customer.
Getting Started
To enter the world of mobile, the first consideration is to know your customer – their needs, wants, interests and desires. Who is engaging your brand, and who are your prospects? Where do they reside (geographically and virtually) and what channels do they want to be reached on? By knowing your audience, you can better satisfy their needs and establish a longterm engagement strategy. From there, determine the value proposition of your products and services, and identify how to communicate that through the various means of mobile. You will also want to identify what you are looking to accomplish. Is it simply generating interest and laying the groundwork for future relationships? Is it building your permission based list so you can strategically market at some point in the future? Is it brand building and generating loyalists? Or is it launching a campaign and driving immediate short term business? Whether it’s through simple text alerts or highly sophisticated two-way programs that go beyond standard text message updates, mobile marketing is a real time, interactive way to extend your brand and drive business. Whatever the mission, it’s important to keep in mind that the strategies associated with developing interactive services should consider the long term durability verses one time usage of your product(s). Take full advantage of the opportunity to cultivate meaningful and long term relationships through any mobile interaction by converting it to more “traditional” communications. Once you’ve communicated with a guest on property during their stay, how do you keep the relationship and add value to it once their gone? Mobile coupons may be effective while on vacation, but that level of contact is not needed after they arrive home. In moving forward, it’s recommended that you get to know the technology available to incorporate that into your strategy, such as acknowledging the technical variances in, and capabilities of mobile browsers and technologies. Be aware of copycat services that clutter the existing products offered in the market, and learn about new ‘push’ technologies being introduced for application interaction that is non-obtrusive. Once your intent is determined and you have a basic understanding of mobile, it’s time to create a business strategy, get tactical and creative, delve into the technology and put into place some type of measurement and analytics.
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Creating a Mobile Web Site
Mobile users are just that, mobile. They don’t have time to spend navigating and deciphering, so you need to have a mobile version of your site and create a user experience that is optimized for the mobile Web – one that is simple, quick, friendly and easy to browse. Make sure contact
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
information is easy to find and keep it slim and trim with relevant information. For optimum performance, different Web sites should be designed for each of the major mobile device platforms including the iPhone, Windows Mobile, and Palm OS platforms. And be sure to keep the experience mobile. That means that all links and mobile ads click through to an optimized mobile Web site. In designing your mobile strategy, you want to set up a uniquely identified mobile site so users know the experience is optimized for them. Among the choices are: »» »» adding an “m” to your domain, like m.yoursite.com; adding “mobile” to the domain, such as yoursitemobile.com or www. mobile.yoursite.com; adding a “folder” to your domain, such as www.yoursite.com/mobile; and, using a dotmobi domain (.mobi), like yourbrand.mobi, which may be more useful for those using older mobile devices.
cas E study :
TAO Nightclub Las Vegas
The Las Vegas nightclub, TAO, turned to Club Texting to promote their weekly parties and big DJ nights, as well as build a list of their customers’ information once inside the club. Within the first week, TAO placed call-to-action signs within their venue bathrooms, behind the bars and on their plasma screens. In addition to in-venue ads, TAO used their Web site, email and print fliers to promote the message: “Text the word TAO to Number 25827 (CLUBS) From Your Mobile Phone to Receive Exclusive Invites to Events at TAO.” Within three weeks of starting their Club Texting campaign, TAO amassed a 2,000 person subscriber list. Messages for an event were sent to those subscribers, which generated 220 attendees for an 11% return and $6,170 in revenue. TAO’s subscriber list has grown to over 6,000 members and the Club Texting system is used to promote upcoming events one to three times per week – a strategy that has consistently outperformed any other marketing efforts implemented in the past. They have also integrated their “call to action” across a variety of media, including their MySpace presence. Visit http://www.clubtexting.com/ case-studies/tao-mobile-marketing.html for full details.
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Building an Opt-in Database
Mobile marketing is all about opt-in marketing. The key is to get consumers to say “yes” to hearing from you and then enthusiastically take part in the mobile marketing. To begin any conversation or send a text message, you need permission. Since you can’t purchase a mobile phone list, all subscribers must go through an opt-in procedure. To start the process and build a permission-based SMS audience, reach out to existing customers through every touch point and ask if you can be in contact with them on their mobile device. Promote your mobile services by leveraging all your existing marketing channels and capture mobile numbers through information queries and bookings. On the customer profile page of your Web site, add a line for mobile numbers and provide a choice of different opt-in options. By using mobile banner ads you can also drive consumers to your WAP (Wireless Applicatiopn Protocol) site and encourage them to opt in to your SMS database. Once people have joined, you can let the interaction and value proposition begin, be it news and alerts, deals and promotions, coupons, contests, exclusive offers, upcoming events, new developments or product information. All text message communication should include a link to your mobile site to drive users there. Have a special offers section on the mobile site where visitors can get discounts, in addition to a click-to-call feature that automatically connects consumers to a live person. Be sure to indicate that rates may apply, and provide clear instructions on how to opt out if desired (i.e. text STOP to a short code). Once you seek permission and get it, you want to keep it. As in any CRM strategy, be
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
sure to deliver what they ask for. At the end of the day, content has to be relevant, useful and valuable. The end game is to engage with the consumer and build a long-term relationship.
cas E study :
Gunstock Mountain Resort
As the closest major ski area to Boston, Gunstock Mountain Resort looked to implement a promotional text message strategy to promote on-mountain specials, increasing the resort’s incremental revenue. Loyal Gunstock customers were asked to text “JitterGram 1091” to short code, “878787” to receive up to four on-mountain deals daily, such as lunch and happy hour specials, discounted tickets, apparel, etc. Signs were displayed with instructions for subscribing in the lodges, ski shops and around the ski lifts. Gunstock also notified their staff; even the bus drivers were telling customers about the “Text to Save” club. One of the most successful JitterGrams was the “Show the phone at a ticket window for 2 ski tickets for the price of 1, tomorrow only” promotion. With a 19% redemption rate, Gunstock generated incremental revenue of almost $1000 through a single JitterGram. Visit http://www.mmaglobal.com/studies/mobile-marketing-casestudy-gunstock-mountain-resort-jittergram for full details.
Text Message Marketing
Text message (SMS) marketing is the foundation of mobile marketing. In fact, SMS is expected to generate $177 billion in global services revenues by 2013, according to ABI Research, New York, and it will account for 83 percent of all mobile messaging revenues through 2013. It’s an application most mobile users are familiar and comfortable with, and the opportunities are endless. One way to build a mobile database and acquire new customers is to offer “text and win” sweepstakes, promotions or coupons and include an opt-in SMS message after the entry. You can ask users to text a keyword (also known as a mobile alias) to a short code, and those wanting to participate in your mobile marketing will officially be part of your database, or “mob.” The customer then gets a return text message which qualifies them for the offer and they can become an opt-in member for future mobile marketing. That keyword can be promoted in any number of ways, generally with an offer that gives consumers a reason to want to join. To create interactivity between print advertisements and mobile, an ad in a travel magazine can offer consumers a free night or complimentary service by texting your keyword (and joining your mob). When the consumer joins, they’re given a promotion code to use when making the booking. On an ongoing basis you can provide additional offers, information and news of interest. One of the greatest features of broadcast text messaging is the ability to create time sensitive offers to fill need periods. A restaurant can send a message with an offer to guests and locals before the lunch or dinner hour if business is slow. A hotel can fill weekend space with a last minute offer. To increase internal capture during a guests’ stay, get them to opt in to receive offers on check-in if they’re not already enlisted. For example, if the spa has afternoon cancellations, you can text to guests on property with a reduced rate on a service. And as a final text to culminate the stay, the last message can be a thank you with a Web link offering a discount to book a return trip.
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Location Based Marketing
Brands are discovering the benefits of mobile as a location-enabling tool. One of the most exciting opportunities in mobile marketing is the use of Location Based Services (LBS), predicated on the concept that exact location is the basis for delivering the right message to the right person at the right place and time. Couple that with a detailed profile on a customer – their likes, interests and personal data – and you can target that individual through text offers or mobile
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
couponing based on their preferences at the point of interaction. With the cas E study : enhanced use of proximity based interaction you can engage customers by sending offers and discounts via mobile when they are within walking or driving distance. W Hotels The myriad of location-based opportunities can dramatically enhance Looking to revolutionize their guest services, the consumer experience and interaction with the brand. By accessing W Hotels looked to Upoc’s mobile community the mobile Web or using downloaded applications, consumers can turn technology to create W To Go™, the first to their phone to locate the nearest accommodations, restaurants, shops, Mobile SMS application specifically designed attractions and points of interest on the spot. Instead of powering up a for the hospitality industry. Using Upoc’s laptop at the airport, stranded passengers looking for the next flight can mobile technology allows guests to receive enter their destination and get every airline’s flight and gate informaimportant notifications about their stay, even tion for the entire day, as well as call the airline or connect to its Web when they are off the hotel premises. Whether site. For the traveler on the go, the phone can be an invaluable and room-bound or on the go, guests receive alerts condensed source of information, from mobile guide books and maps to from the concierge service for anything from a restaurants and reviews, GPS-driven walking tours and audio guides on package arrival and dry cleaning delivery to demand, powered either by mobile Web search or downloaded applicareservations for restaurants, spa appointments tions. The plethora of mobile-enhanced sites and available applications and other activities and services. Visit http:// are massive (the iPhone alone offers more than 30,000 applications, with www.upocnetworks.com/case-studies.html for travel a dominant category offering everything from product branded full details. Web sites for destinations, hotel companies and airlines to guide books, reviews, currency converters, voice translations, maps and so much more). For hospitality marketers, the medium offers the ability to locate guests prior to arrival and send a text message to start the check in process. Having knowledge of one’s profile and interests enables you to customize their stay by pushing activities and services of interest, such as information on local events, restaurant menus and specials, spa options, attractions and more. For destination marketing organizations and convention and visitors bureaus, mobile can provide the means to deliver full destination guides with location based features and services. To extend the power of mobile even further, you can really get creative by using locationbased solutions to market a destination or product by creating GPS-enabled tours that are downloadable to any number of mobile devices such as navigation systems, smartphones, PDAs and MP3 players. An excellent resource for this type of tour is www.geovative.com/. Beyond the ‘basics’ are applications such as radio-frequency identification (RFID) technology that enables a guest room door to unlock as you approach, lets you purchase products from vending machines, and have your hotel room ‘come alive’ with lights and temperatures automatically turned to the desired setting. Through RFID tags, consumers can opt-in at a kiosk or point of sale to join a mobile rewards program and receive coupons and special offers. Another cool application is IFind, an innovative means of comparison shopping whereby the mobile device reads a bar code, prices it and can identify other stores and Web sites that carry www.hsmaifoundation.org the same item along with the cost. Regardless how large or small the mobile initiative, accountability and measuring the effectiveness of mobile campaigns and activities are paramount. The mobile environment offers a variety of measurement capabilities and analytics that can report participation and demographics of your mobile database in general and in response to a particular campaign. The key is to www.tigglobal.com prepare to capture the right kind of data, and use it once you have it to measure your results.
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Conclusion
What is clear is that it is becoming increasingly important for hospitality and travel marketers to be deliberate about their forays into the mobile arena. A mobile marketing plan can help you navigate through the hype to carefully research and implement mobile marketing efforts that are integrated with the elements of your existing marketing plans. Mobile marketing strategies, working with your online efforts like paid search marketing, local search marketing, and email marketing, can help you leverage and see synergistic returns in awareness, interaction, and revenue. Many would agree that mobile is indeed the new frontier. As the technology, devices and applications become more affordable and accessible, those who embrace some degree of mobile marketing will be well positioned to reap the benefits of this burgeoning and potentially lucrative market. Whether you test the waters by establishing a mobile Web site, start building your ‘mob’ by initiating simple text-based offers and promotions, or mount a widespread, multitiered campaign, the smart marketer will let the engagement begin.
Useful Links & Resources
HSMAI Travel Internet Marketing Special Interest Group www.travelinternetmarketing.org This subgroup of the HSMAI membership connect travel marketers in a way that leverages interactive customer engagement as a marketing medium while increasing the awareness of emerging issues, opportunities and trends. The TIG Global Blog is the premier source for online marketing strategy and scoop. Written by marketing gurus and designed for hotel and travel professionals, this educational resource is constantly updated with e-marketing tips, case studies, breaking industry news, “Ask the Expert” columns, new research, and much more. As the research and educational arm of the Hospitality Sales and Marketing Association International, HSMAI Foundation expands and enhances the educational opportunities available to hospitality sales and marketing executives and increases the amount of in-depth research conducted on behalf of this fast-paced, increasingly demanding profession.
TIG Global
http://blog.tigglobal.com/
HSMAI Foundation
http://www.hsmaifoundation.org
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Websites, Articles & References
Code of Conduct for Mobile Marketing http://www.mmaglobal.com/policies/code-ofconduct Privacy principles intended to guide companies within the mobile ecosystem so that they can effectively, and responsibly, leverage the mobile channel for marketing purposes. eConnect is a one-stop portal to global information and resources on hospitality sales and marketing topics. Provided by the HSMAI Foundation through its Corporate Membership program, many of eConnect’s resources are available exclusively to HSMAI members. A source for market research and trend analysis on Internet, e-business, online marketing, media and emerging technologies. Reporting on new trends such as blogs, social networking, podcasting, mobile marketing and many others that affect the business landscape. Compiled by mobiThinking.com, this extensive listing includes links to News and views, Blogs, Mobile search engines, Mobile directories, Guidelines, white papers and case studies, Research, analysis and statistics, Must-attend events, Forums and user groups, Associations and institutions, and Books Industry news and business information in online travel, Internet marketing and the hospitality industry, available as an online magazine, daily email newsletter or RSS newsfeed. The products and services search engine dedicated to sales and marketing professionals in hospitality, travel, and tourism.
eConnect: Research & Resources from the HSMAI Foundation
http://www.hsmaieconnect.org
eMarketer Daily Newsletter
https://www.emarketer.com/Newsletter.aspx
Helpful Links
http://mobithinking.com/mobile-marketingtools/helpful-links#Guides
HotelMarketing.com
http://www.HotelMarketing.com
HSMAI Marketplace
www.hsmaimarketplace.com
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Websites, Articles & References cont.
Marketing Experiments www.marketingexperiments.com/ Free case studies, how-to articles and reports covering e-mail marketing, search marketing and online marketing for various industries including travel & hospitality. An electronic publication covering mobile marketing, media and commerce. A global association that strives to stimulate the growth of mobile marketing and its associated technology. Reviews mobile technologies, explores travelers’ attitudes toward mobile functionality, and quantifies the growth and business value of mobile as a communications and booking channel. mobiThinking.com is the marketing arm of dotMobi, the ICANN-appointed global registry for the .mobi top-level domain name. Other resources include Best Practices, Mobile Marketing Tools, and Case Studies.
Mobile Marketer Daily Mobile Marketing Association PhoCusWright’s Mobile: The Next Platform for Travel
www.mobilemarketer.com/ www.mmaglobal.com
www.phocuswright.com/research_ publications_buy_a_report/585
Ten Mistakes in Mobile Marketing. The dotMobi Mobile Developer’s Guide
http://mobithinking.com/best-practices/10mistakes-mobile-marketing
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Mobile Marketing: The New Frontier
A special report from the HSMAI Travel Internet Marketing Special Interest Group
Contributors
Loren Gray was the Advisory Board lead for this white paper. He
is Director of E-commerce for Ocean Properties Ltd. in Delray Beach, Florida. Follow Loren on Twitter @lorengray.
The HSMAI Travel Internet Marketing Advisory Board members are:
»» »» »» »» »» »» »» »» »» »» »» »» »» »» »» Co-Chair: Christine Beuchert, Director of e-Commerce, Marcus Hotels Co-Chair: Trevor Stuart-Hill, President, Revenue Matters John Fuhr, Vice President of Marketing, Anaheim/Orange County CVB Isaac Gerstenzang, Corporate Director of E-Commerce, Destination Hotels & Resorts Loren Gray, Director of E-commerce, Ocean Properties, Ltd. Katherine Huske, Internet Consultant, The Broadmoor Kerry Kennedy, Director of E-Commerce, Omni Hotels Oral Muir, Senior Director, Global Ecommerce Channels, Marriott International Kurt Paulson, Head of Travel, West, Google Inc. Jessica Rivera, Regional Director, Revenue Management, Interstate Hotels & Resorts Aaron Stenhoff, Director, Marketing and E-Commerce, Red Roof Inns Tiffany Tchida, Manager, Consumer Websites, Best Western International Victoria Treyger, Vice President, Marketing, Travelocity Peter Winkler, Senior Manager, E-marketing, Preferred Hotel Group James Zito, Corporate Director E-Commerce, Morgans Hotel Group, Corporate
Taryn Schneider, president of Taryn Schneider Communications, has more than 28 years of hospitality, travel and tourism experience as a writer, editor and marketing communications specialist. She has worked on behalf of a select group of clients requiring highly specialized communications services, promotions, writing, publishing, and special events. She began her career as a writer and editor for Travel Agent Magazine, and spent the next decade working in a diverse range of travel publishing, television producing, and journalistic endeavors. Her articles have appeared in both travel consumer and trade publications. Her email address is [email protected].
www.hsmaifoundation.org
www.tigglobal.com
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Hospitality Sales & Marketing Association International
HSMAI is the hospitality industry source for knowledge, community, and recognition for leaders committed to professional development, sales growth, revenue optimization, marketing, and branding. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry, and bringing together customers and members at annual events, including HSMAI’s Affordable Meetings®. New and upcoming resources and events include: »» HSMAI Marketing Review (August issue) – www.hsmai.org/ Resources/review.cfm »» HSMAI University Webinars – Ongoing & Archived – www.hsmaiuniversity.org »» Digital Strategy Workshop – December 7, 2009, Las Vegas – www.travelinternetmarketing.org
TIG Global
As the leader in online marketing for the travel industry, TIG Global (www.tigglobal.com) remains steadfast in its mission to assist hotels and destinations in exceeding their online marketing goals. During this time of decreased travel demand, we realize the unique opportunity that exists for our clients to gain market share. TIG Global has developed a proven set of strategies to successfully leverage the marketing efforts of hotels and destinations worldwide, delivering unrivaled incremental revenue and visitors online. Serving an extensive portfolio of clients worldwide, TIG Global combines its e-business expertise and industry knowledge to maximize client exposure in the online channel. TIG Global works closely with each client to create a custom marketing strategy and provide ongoing support and consultation. Our extensive service offering provides the benefits that include: »» Award-winning, multi-language Website Design streamlines the conversion process and clearly communicates with visitors. Search engine optimization prominently places clients at the top of the search engines for direct visibility. Paid search marketing captures and delivers traffic to landing pages for increased conversion. Strategic linking and online advertising delivers pre-qualified leads from our established network of over 2,000 media partners. E-mail marketing strengthens customer loyalty and establishes relationships with interested travelers. Custom social media programs, ranging from Facebook,Twitter and Flickr promotions to blogs and travel review monitoring, push your brand to the forefront and establish direct communication with customers.
HSMAI Foundation
As the research and educational arm of the Hospitality Sales and Marketing Association International, HSMAI Foundation’s mission is to expand and enhance the educational opportunities available to hospitality sales and marketing executives and to increase the amount of in-depth research conducted on behalf of the profession. Today, and in the years ahead, the HSMAI Foundation plans to accelerate its research and publishing activities to contribute even more to the continuing education of those engaged in this fast-paced, increasingly demanding profession. For more information, contact the HSMAI Foundation: 1760 Old Meadow Road, Suite 500, McLean, VA 22102; (703) 506-3280; www.hsmaifoundation.org.
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Should you have any questions about the information in this report, or comments about how TIG Global can assist your company in gaining market share, please feel free to contact us at [email protected] or 301.841.4700. We also invite you to visit our blog for additional eMarketing tips and advice from our marketing experts – blog.tigglobal.com.
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