Not Sending Email? Here’s Why Your Hotel ROI is Suffering

Whether you’ve been led to believe it’s an outdated form of communication, ineffective, or that it’s just too costly, many hoteliers tend to dramatically undervalue the role of email marketing, not realising how it affects their hotel ROI. With the rapid boom of social media, it’s easy to think that email marketing is dead. Many hoteliers have also accepted that modern-day travelers, especially millennials, prefer to communicate with brands via other methods. However, the facts tell quite a different story and in reality, email marketing is actually more relevant than ever before.

Why email marketing matters for hotels

Email continues to be one of the most effective and cost-efficient marketing strategies available to hoteliers. According to eMarketer, email marketing results in an average ROI of 122% – that’s more than four times higher than any other marketing initiative. A polling of professional marketers conducted by Econsultancy found that respondents only allocated 16% of their marketing budget to email marketing, but it contributed to 23% of sales.

The power of email marketing lies in the opportunity to transform existing data into real revenue. The data stored in your PMS can be used to create and deliver personalized campaigns based on guest preferences, travel habits, spending behavior, and more. A campaign that is designed for a specific guest is more likely to be opened and clicked because it is relevant to them, driving more direct bookings and incremental revenue.

Hotel email marketing also offers measurable, real-time results. Understanding and learning from your campaign performance gives you the chance to quickly identify room for improvement. With email marketing, you can easily test promotions, pricing, and content with your target audiences and utilize revenue attribution to see where your efforts are paying off.

What return/impact you could be getting

If a hefty return on investment (ROI) is what you’re seeking (and who isn’t it?), then email marketing is definitely the strategy for you. More than 55% of Revinate Marketing customers see at least a 10x ROI. Our mission at Revinate is to provide hoteliers from around the globe – representing independent hotels to large groups – with the tools and support needed to excel in email marketing.

Email is easy to do when you have the right resources, like our Email Marketing Strategy Guide. Download it now to access top hospitality email marketing strategies and best practices.

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Segmentation for Hotels

Now consider an email you received that was so specific and targeted that you had to open it. Maybe it was a discount for a product you were just looking at, or it was addressed specifically to you in a unique way. An analysis of Revinate customer data shows that proper segmentation drives a 20% higher open rate and a 70% higher click-through rate. Additionally, if you’re promoting upsells or room upgrades, you can see a 73% higher revenue per recipient.

To build targeted audiences, hoteliers need to leverage guest data from the PMS. Most generic email solutions can’t integrate with the locked-down environment of hotel software, so it’s imperative to have a proper hotel email partner like Revinate.

Connecting your PMS system with an email marketing platform allows the creation of hyper-segmented audiences for email marketing. This also empowers your marketing team to use existing data for better marketing.

Learn more about how you can segment your database and much more by downloading our Email Marketing Strategy Guide today.

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