Post by zeesun on Mar 9, 2024 3:32:39 GMT -5
AI appears to be a prodigious driver of change in countless sectors and travel is among those most involved at the moment. . Confirmation comes from the latest study released by D-Edge Hospitality Solutions , which attests to how advertising campaigns powered by artificial intelligence , especially when managed together with manual campaigns, have increased the share of direct revenues for hotels thanks to the greater possibility of drive direct bookings. Let's find out what this application of AI entails and possible future developments, starting from the PhocusWire article . Assumptions and confirmations The conclusions of the study conducted by D-Edge, aimed at calculating the real costs of direct distribution, should incentivize smaller, independent hotel groups to pursue a greater number of direct bookings, according to Jean-Dominique Brivet, chief digital agency officer of the agency. “The first step is to understand that doing everything with OTAs and not working on direct distribution is not a good long-term thing ,” he said. Obviously, as you well know, obtaining bookings from an OTA is easy, however it takes away a significant amount of control (and revenue), so investing in direct distribution is decidedly more profitable.
This is also demonstrated by Oman Telegram Number Data the study released last month by h2c , according to which record direct online bookings are pushing hotel innovation by making guest data more accessible, as we told you in a recent article . Siteminder 's annual booking trends report , released in January, found that direct bookings maintained the momentum built during the pandemic. “Travellers have become more likely to book through a property's website over the past four years in search of personalized offers ,” the report attests. “ Hoteliers who effectively generate traffic to the website and ensure it is easily bookable are rewarded with a deeper connection with their guests.” Reduced cost of ad-based bookings D-Edge's study is based on an analysis of 1,221 independent hotels and hotel groups in Europe and Asia. It focuses on a set of clients using D-Edge's technology solutions and digital marketing services between 2019 and 2023. The analysis found that hotels earned 36% of their revenue from direct online bookings when they implemented digital marketing campaigns, such as keyword buying and a metasearch presence. This has proven to be a major advantage over hotels that have not adopted a digital advertising strategy.
As part of the study, D-Edge conducted a series of tests to identify optimal uses of AI. Giving full control to AI increased bookings, but increased costs even more . The best strategy proved to be the combination of the AI algorithm with manual keyword insertion. The report concluded that the cost of advertising-based bookings is falling , in part due to falling costs per click, the global increase in average hotel room rates and the effect of Google's free links. Google's primacy Google, as is often the case, stood out in the study, accounting for 61% of revenue generated through hotel advertising campaigns. And Google's Performance Max tool uses machine learning to improve conversions across its network, including Search, Display, YouTube, Discover, Gmail and Maps, according to the report. In a recent blog post announcing the end of commission-based products for hotel ads, Michael Trauttmansdorff, director of product management for travel ads at Google, praised the benefits of AI-driven tools. “ An AI-anchored bidding strategy will make it easier to market at the speed of consumers ,” Trauttmansdorff said. “ And it will bring us closer to meeting people's expectations and multiplying results.
This is also demonstrated by Oman Telegram Number Data the study released last month by h2c , according to which record direct online bookings are pushing hotel innovation by making guest data more accessible, as we told you in a recent article . Siteminder 's annual booking trends report , released in January, found that direct bookings maintained the momentum built during the pandemic. “Travellers have become more likely to book through a property's website over the past four years in search of personalized offers ,” the report attests. “ Hoteliers who effectively generate traffic to the website and ensure it is easily bookable are rewarded with a deeper connection with their guests.” Reduced cost of ad-based bookings D-Edge's study is based on an analysis of 1,221 independent hotels and hotel groups in Europe and Asia. It focuses on a set of clients using D-Edge's technology solutions and digital marketing services between 2019 and 2023. The analysis found that hotels earned 36% of their revenue from direct online bookings when they implemented digital marketing campaigns, such as keyword buying and a metasearch presence. This has proven to be a major advantage over hotels that have not adopted a digital advertising strategy.
As part of the study, D-Edge conducted a series of tests to identify optimal uses of AI. Giving full control to AI increased bookings, but increased costs even more . The best strategy proved to be the combination of the AI algorithm with manual keyword insertion. The report concluded that the cost of advertising-based bookings is falling , in part due to falling costs per click, the global increase in average hotel room rates and the effect of Google's free links. Google's primacy Google, as is often the case, stood out in the study, accounting for 61% of revenue generated through hotel advertising campaigns. And Google's Performance Max tool uses machine learning to improve conversions across its network, including Search, Display, YouTube, Discover, Gmail and Maps, according to the report. In a recent blog post announcing the end of commission-based products for hotel ads, Michael Trauttmansdorff, director of product management for travel ads at Google, praised the benefits of AI-driven tools. “ An AI-anchored bidding strategy will make it easier to market at the speed of consumers ,” Trauttmansdorff said. “ And it will bring us closer to meeting people's expectations and multiplying results.