The Importance Of Digital Marketing In The Hotel Industry

1072 Words 5 Pages
Recently, the major sources of productivity and sustainable growth for many businesses are technological change and innovation (Sheikh, Shahzad, & Ishak, 2017; Arifin & Frmanzah, 2015). Most of the companies in the world now shifting their old marketing strategies to social media marketing (Bennett, 2014) which is one of the strategies for digital marketing. Digital marketing is a new way to market a product using digital technologies, mostly using the internet, marketing through smartphones, social media, and any other digital tool as long as it is connected to the internet can also be called as digital marketing. Marketers can do their job which is to promote their product or services toward the customer who connected to the internet. Therefore, …show more content…
In Indonesia hospitality industry widely known as hotel industry, this industry provides all of the things mentioned above. Most of the hotels in Indonesia now use online travel agents such as Traveloka.com, Booking.com, Agoda.com, and many more. It allows them to provide information such as room price and room images. Beside online travel agent, the hotel can also use the search engine optimization to make their website to be ranked number one overall when potential customers search the similar keyword with the hotel. Pan (2015) discovered a decrease in hotel click-through rate from top to bottom search engine positions, which means people only see top-ranked hotel rather than finding another hotel with same the facility and cheaper price. In line with the previous statement, Ghose et al. (2014) found that hotels with lower customer ratings received fewer clicks than higher-ranked competitors. Hotels in Indonesia, especially in Yogyakarta have a fierce competition among each other to fulfill their occupancy rate, where it has over 22,500 hotel rooms (Kartika, 2017) including non-star hotels and star hotels, and still growing up until now. Online travel agents is one of an online platform for hotels to execute their digital marketing strategy. For that reason, one thing a hotel …show more content…
Because together they can benefit each other, for example, the hotel can do a lot of promotion within the online travel agent application without having an additional cost but there is still a commission given by the hotel for every room purchased through the online travel agent. It will be an efficient way to reach potential customers without considering that they are local or foreign buyers. While, the time and cost of making business will remain the same (Awan & Zhang, 2013). A viewpoint of the partnership between these industries sometimes can be seen as a disadvantage to hotels because of online travel agents require them to pay commissions. Actually, with this partnership, the hotel will acquire more information about their competitors’ room rates and also a forecasted demand in a particular place. From that information alone the hotel can set a competitive price in the online travel agent application or website, so it will increase their occupancy rate in a night. The other benefit is the hotel can increased their visibility towards new customers, because they can easily use an online billboard that have been provided by online travel agent to promote their

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