NB: This is a guest article by Martin Soler, marketing director of World Independent Hotels Promotion (WIHP).
Moment of Truth is a concept proposed by Procter and Gamble to describe a step on the purchase cycle by a customer.
The idea works by examining how the customer discovers a product and what helps him decide if the product is right for him.
This short info-graphic explains the source of hotel bookings, the stimulus.
The data here is based on an actual survey of guests to find out how they heard about the hotel. In other words what stimulated them to go and search to that hotel rather than another one.
A few points of note:
Friends and Family
It’s the biggest source of new guests, the internet hasn’t changed that if anything it has probably enhanced it.
OTAs
As a hotel marketing company we believe strongly that hotel’s need to sell direct through their website.
However here is proof that selling through OTAs is healthy for direct selling as well as selling through the OTAs. Distribution is about being everywhere. [NB: Our CEO Vincent Ramelli talked about this here]
Tripadvisor
While many will tell you that Tripadvisor is a very important step in the Zero Moment of Truth (the next step in the booking cycle), Tripadvisor and other review sites generate new guests. [NB: Additional study on TripAdvisor here]
Search Engine Optimization for individual hotels
SEO is used by some on the Stimulus point of the booking cycle. We believe that for individual hotels this is a misuse of SEO.
An individual hotel getting themselves positioned on keywords such as HOTEL IN NEW YORK isn’t going to help guests make a good choice.
What people are looking for when they search such a broad term is a choice. This is where OTAs will always have a better SERP ranking since they can give a better answer to the user.
Stimulus is the most expensive form of advertising since one it is the broadest target zone.
The three levels of pay-per-click advertising for hotels:
The moments of truth defined for hotels
1. Discovery/stimulus
Guest finds out about the hotel and gets interested.
2. Zero Moment of truth
Guest goes online to research the hotel and “do his homework”.
3. First Moment of truth
Guest finds the hotel website and finds out if this product is for him.
4. Second Moment of truth
Guest arrives and discovers the product and is either happy or disappointed, which then cycles to Stimulus (or lack thereof) for his friends and family.
NB: This is a guest article by Martin Soler, marketing director of World Independent Hotels Promotion (WIHP).