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Why hotels should shutter ad campaigns

July 07, 2008 | Hospitality Industry

Hotels are feverishly upgrading these days. But while they’re trying to make their properties more modern and appealing for today’s travelers, they seem to have forgotten to upgrade their ad campaigns.

Do travelers even pay attention to hotel ads any more, writes MSNBC’s Amy Bradley-Hole? Hotel advertising is becoming obsolete and unnecessary, and here are a few reasons why:

Rates rule. It’s easy for consumers to compare hotel rates these days. No more calling around to dozens of hotels at their destination. With a few clicks, prospective guests can see a list of hotels, their location, their ratings and their rates on one Web site. People want to find that balance of a good hotel at a great price. In a slumping economy, no amount of persuasive advertising is going to make tight travelers spend more money than they want to.

Business travelers are told where to stay. Companies have always made “bulk” contracts with hotels — the more rooms a company books a year, the cheaper the rate. But hotels are coercing businesses to sign more long-term contracts in exchange for deeper discounts, since hotels want guaranteed dollars during these uncertain times. Also, companies are trying to tighten costs as much as possible, so they’re really limiting the choices their travelers can make. Where a business traveler once could choose between three, sometimes four hotels at his destination, he now may be forced to stay at one property.

Get the full story at MSNBC

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