Cornell Hospitality Report Vol. 11, No. 9, April 2011 2011 Travel Industry Benchmarking: Marketing ROI, Opportunities, and Challenges in Online and Social Media Channels for Destination and Marketing Firms by Rohit Verma, Ph.D., and Ken McGill
2011 travel industry benchmarking
May 14, 2015
Marketing ROI, Opportunities, and Challenges in Online and Social Media Channels for Destination and Marketing Firms
Senior lodging and destination marketing executives often make vendor and marketing channel decisions without sufficient time to investigate the ROI of alternative strategies or emerging
media choices. An internet-based survey of 426 marketing executives, drawn from the TravelCom 2011 conference and Cornell Center for Hospitality Research database, with support from Vantage Strategy and iPerceptions, found a wide range of expenditures on online
marketing, as well as considerable diversity in organizational structures. Two-thirds of the sample comprised accommodation marketers, with the remainder being destination marketers or those responsible for other types of marketing. Nearly three-quarters of the respondents reported spending
less than $10,000 on mobile media in 2010, about two thirds spent less than $10,000 on all social media marketing. About 80 percent of the marketers said that they produced Twitter campaigns and social promotions in-house, but such functions as search engine optimization and pay-per-click advertising are largely outsourced. Accommodation firms are more likely to outsource all social media functions,
including pay-per-call, Twitter campaigns, and pay-per-click management. Destination marketers, on
the other hand, generally handle more functions in-house. Two-thirds of the entire sample said the
2010 e-commerce budgets had increased with respect to 2009. Sixty percent of accommodation
marketers anticipated a further increase in 2011, and 71 percent of the destination marketers said their
2011 budgets would increase.
Senior lodging and destination marketing executives often make vendor and marketing channel decisions without sufficient time to investigate the ROI of alternative strategies or emerging
media choices. An internet-based survey of 426 marketing executives, drawn from the TravelCom 2011 conference and Cornell Center for Hospitality Research database, with support from Vantage Strategy and iPerceptions, found a wide range of expenditures on online
marketing, as well as considerable diversity in organizational structures. Two-thirds of the sample comprised accommodation marketers, with the remainder being destination marketers or those responsible for other types of marketing. Nearly three-quarters of the respondents reported spending
less than $10,000 on mobile media in 2010, about two thirds spent less than $10,000 on all social media marketing. About 80 percent of the marketers said that they produced Twitter campaigns and social promotions in-house, but such functions as search engine optimization and pay-per-click advertising are largely outsourced. Accommodation firms are more likely to outsource all social media functions,
including pay-per-call, Twitter campaigns, and pay-per-click management. Destination marketers, on
the other hand, generally handle more functions in-house. Two-thirds of the entire sample said the
2010 e-commerce budgets had increased with respect to 2009. Sixty percent of accommodation
marketers anticipated a further increase in 2011, and 71 percent of the destination marketers said their
2011 budgets would increase.
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wwwchrcornelledu
Cornell Hospitality ReportVol 11 No 9 April 2011
2011 Travel Industry BenchmarkingMarketing ROI Opportunities and Challenges in Online and Social Media Channels for Destination and Marketing Firms
by Rohit Verma PhD and Ken McGill
Advisory Board
The Robert A and Jan M Beck Center at Cornell University
Cornell Hospitality Reports Vol 11 No 9 (April 2011)
copy 2011 Cornell University
Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University
Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications
Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853
Phone 607-255-9780Fax 607-254-2922wwwchrcornelledu
Back cover photo by permission of The Cornellian and Jeff Wang
Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS
Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc
Scott Berman Principal Real Estate Business Advisory Services Industry Leader Hospitality amp Leisure PricewaterhouseCoopers
Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces
Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer
Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis
Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America
HyattGregg Gilman Partner Co-Chair Employment Practices
Davis amp Gilbert LLP
Tim Gordon Senior Vice President Hotels pricelinecomSusan Helstab EVP Corporate Marketing
Four Seasons Hotels and ResortsJeffrey A Horwitz Chair Lodging + Gaming and Co-Head
Mergers + Acquisitions ProskauerKevin J Jacobs Senior Vice President Corporate Strategy amp
Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa
InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD
SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno CEO Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality
ServicesDavid Meltzer Senior Vice President Global Business
Development Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global
Operations Deployment and Program Management Marriott International Inc
Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America
Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager
Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox
Rothschild LLPSteve Russell Chief People Officer Senior VP Human
Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice
Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCAdam Weissenberg Vice Chairman and US Tourism
Hospitality amp Leisure Leader Deloitte amp Touche USA LLP
Thank you to our generous Corporate Members
FriendsAmerican Tescor LLC bull Argyle Executive Forum bull Berkshire Healthcare bull Center for Advanced Retail Technology bull Cody Kramer Imports bull Cruise Industry News bull DK Shifflet amp Associates bull ehoteliercom bull EyeforTravel bull 4Hotelierscom bull Gerencia de Hoteles amp Restaurantes bull Global Hospitality Resources bull Hospitality Financial and Technological Professionals bull hospitalityInsidecom bull hospitalitynetorg bull Hospitality Technology Magazine bull Hotel Asia Pacific bull Hotel China bull HotelExecutivecom bull Hotel Interactive bull Hotel Resource bull International CHRIE bull International Hotel Conference bull International Society of Hospitality Consultants bull iPerceptions bull JDA Software Group Inc bull JD Power and Associates bull The Lodging Conference bull Lodging Hospitality bull Lodging Magazine bull LRA Worldwide Inc bull Milestone Internet Marketing bull MindFolio bull Mindshare Technologies bull PhoCusWright Inc bull PKF Hospitality Research bull Resort and Recreation Magazine bull The Resort Trades bull RestaurantEdgecom bull Shibata Publishing Co bull Synovate bull The TravelCom Network bull Travel + Hospitality Group bull UniFocus bull USA Today bull WageWatch Inc bull The Wall Street Journal bull WIWIHCOM bull Wyndham Green
PartnersDavis amp Gilbert LLP Deloitte amp Touche USA LLPDenihan Hospitality GroupeCornell amp Executive EducationExpedia Inc Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings Inc HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMarriott International IncMarshrsquos Hospitality Practice MaritzpricelinecomPricewaterhouseCoopersProskauer Sabre Hospitality Solutions Schneider Electric Thayer Lodging Group Thompson HotelsTravelportWATG
Senior PartnersHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
4 TheCenterforHospitalityResearchbullCornellUniversity
ExECuTivE SuMMary
SeniorlodginganddestinationmarketingexecutivesoftenmakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternativestrategiesoremergingmedia choices An internet-based survey of 426 marketing executives drawn from theTravelCom 2011 conference and Cornell Center for Hospitality Research database with
support from Vantage Strategy and iPerceptions found a wide range of expenditures on onlinemarketing as well as considerable diversity in organizational structures Two-thirds of the samplecomprised accommodation marketers with the remainder being destination marketers or thoseresponsibleforothertypesofmarketingNearlythree-quartersoftherespondentsreportedspendinglessthan$10000onmobilemediain2010abouttwothirdsspentlessthan$10000onallsocialmediamarketingAbout80percentofthemarketerssaidthattheyproducedTwittercampaignsandsocialpromotionsin-housebutsuchfunctionsassearchengineoptimizationandpay-per-clickadvertisingarelargelyoutsourcedAccommodationfirmsaremorelikelytooutsourceallsocialmediafunctionsincludingpay-per-callTwittercampaignsandpay-per-clickmanagementDestinationmarketersontheotherhandgenerallyhandlemorefunctionsin-houseTwo-thirdsoftheentiresamplesaidthe2010 e-commerce budgets had increased with respect to 2009 Sixty percent of accommodationmarketersanticipatedafurtherincreasein2011and71percentofthedestinationmarketerssaidtheir2011budgetswouldincrease
2011TravelIndustryBenchmarkingMarketing ROI Opportunities and Challenges
in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 5
abouT ThE auThorS
rohit verma PhD is professor of operations management and executive director of the Center for Hospitality Research at the Cornell University School of Hotel Administration (rohitvermacornelledu) Among his research interests are product-and-service design and innovation customer choice modeling and quality process improvement of supplier selection strategies His work has appeared in such publications as MIT Sloan Management Review Journal of Operations Management and Cornell Hospitality Quarterly
Ken McGill is EVP of Research for Vantage Strategy (kenmcgillvantagestrategycom) He directs Vantagersquos Travel amp Tourism Research division where he delivers
insight and intelligence to DMOs and Travel amp Tourism suppliers Prior to Vantage he was Executive Vice President for IHS Global Insight and head of its Travel amp Tourism
Practice McGill directed both existing client relationships and spearheaded new development efforts particularly in the functional areas of market research economic impact assessment and resource planning In his 30 years
in economic and strategic consulting McGill has developed an expertise in research and planning methods that has been successfully applied to business problems in a variety of corporate and government settings He
is particularly known for his work in combining primary market research with traditional economic and industry analysis A particular focus of McGillrsquos work has been in tourism economic impact assessment Moreover McGillrsquos expertise has often been
called upon to estimate the economic impact of specific destinations attractions convention facilities resorthotel developments events and tourism policy decisions
The authors gratefully acknowledge the support of the TravelCom Conference and Vantage Strategy in conducting this study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornEll hoSpiTaliTy rEporT
As part of the planning for TravelCom 2011 conference organizers consulted theTravelComadvisoryboardmemberstoidentifytheirmostpressingissuesThesechiefmarketing officers and marketing executives identified the acceleration of onlinemarketingforcesasacommonconcernTheexecutivesfeelthattheyarebeingcalled
ontomakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternative strategies or emerging media choices as well as benchmarking what others are doingUncomfortablewithad hocdecisionmaking theexecutives requesteda study thatwouldestablishbenchmarksfororganizationalpracticesanddecisionmaking
2011TravelIndustryBenchmarking
Marketing ROI Opportunities and Challenges in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 7
ThisstudyistheresultofthatexpressedneedWiththesupportofVantageStrategyandiPerceptionswedevelopedaquestionnairethatwouldallowustoassessthestateofelectronicmarketingmdashestablishingbenchmarksandprovideacomparisonpointforresourcesdevotedtoelectronicmarketing
Wedividedthesurveyquestionsintothreeoverarchingthemes
(1) Informationthatplacesafirmintoacompetitiveset(2) Howdollarsarespentintheonlinemarketingspace(3) HowresourcesareallocatedWecategorizedtheresponsestothesurveyquestionsto
assessdifferentaspectsofonlinemarketinginitiativesinthefollowingareas
bull Budgetandresourceallocationbull Marketingandpromotionbull Internationalstrategydevelopmentbull Commerceandconversionbull Loyaltyandreputationbull Analysisandresearchbull ChallengesandfutureopportunitiesWeconductedthesurveyonlineduringJanuaryand
February2011RespondentswerepartoftheCHRandTrav-
elComdatabasesoftravelindustrymarketingexecutivesAtotalof426industryrespondentscompletedthesurveyandtheywereassuredthatnoprivateoridentifyinginfor-mationwouldbesharedThepurposeofthestudywasonlytocreateapublicbenchmarkandallowprivatecompari-sonsoftheparticipantsrsquofirmswiththosebenchmarks
ExecutiveProfileSixty-eightpercentoftherespondentsworkedinaccom-modationfirms20percentweredestinationmarketersandtherestworkedinavarietyoftravel-relatedfirms(seeExhibit1)
TherespondentsreportedanoticeabledifferenceinaverageannualbudgetsformarketingandecommerceAt$1354milliontheaveragebudgetreportedbymarketersforaccommodationfirmswastentimestheaveragefordestinationmarketerswhoreportedanaverageof$136thousanddollarsBothgroupsreportedthattheelectronicmarketingportionofthosebudgetswasincreasingyeartoyear
Thetwotypesoforganizationalsoreporteddifferentstructuresfordeployingmembersoftheonlinemarket-ingservicesteamandtheecommerceteam(seeExhibit2)
87
291
48
Destination Accomodation Other
Destination Marketing Executives
annual budget for marketing and e-commerce averaged
$136000 in 2010 two-thirds reported that this was an
increase over 2009 seven of ten anticipated an
increase in 2011
accommodation Marketing Executives
annual budget for marketing and e-commerce averaged $1354000 in 2010 two-thirds reported that this was an increase over 2009 six of ten anticipated an increase in 2011
other Travel-related Firms
Exhibit 1
Sample composition
8 TheCenterforHospitalityResearchbullCornellUniversity
ecommerceteamspartoftherevenuemanagementdepart-mentandanother17percentwereinthesalesdepartment
Lookingspecificallyatthepeoplewhodeterminestrat-egyforonlinepricinganddistributionweagainseethatthemarketingdepartmentisforemostfordestinationmarket-ingfirmsbutthatisnottrueofaccommodationfirms(seeExhibit3)
Welloverhalfoftheaccommodationfirms(54)puttheirpricingstrategistsintherevenuemanagementdepart-mentwithanother18percentinsalesJust10percentoftheaccommodationfirmshadtheirpricingstrategyfunction
Three-quartersofthedestinationmarketingorganizationshousedtheironlinemarketingteaminthemarketingde-partmentbutthatwastrueofjust41percentoftheaccom-modationmarketersInstead17percentoftheonlineteamwashousedintheaccommodationfirmsrsquosalesdepartmentandanother9percentintheecommercedepartment
AsimilarrelationshipoccurredfortheecommerceteamJustoverhalfofthedestinationmarketingfirmsputtheecommerceteaminthemarketingdepartmentwhilethatwastrueinonlyone-thirdoftheaccommodationfirmsInstead40percentoftheaccommodationfirmsmadetheir
87
291
48
Destination Accomodation Other
Exhibit 2
online marketing services and e-commerce team placement
online Marketing Services
Marketing department 75
Sales department 4
eCommerce department 2
operations department 6
eCommerce
Marketing department 51
Sales department 6
Web services department 11
operations department 12
online Marketing Services
Marketing department 41
Sales department 17
eCommerce department 9
operations department 5
eCommerce
Marketing department 33
revenue management department 40
Sales department 27
Web services department 5
operations department 3
87
291
48
Destination Accomodation Other
Exhibit 3
online pricing strategy and distribution team placement
online pricing Strategy Team
Marketing department 25
Sales department 4
revenue management department 12
operations department 12
Distribution Strategy
Marketing department 53
online pricing Strategy Team
Marketing department 10
Sales department 18
revenue management department 54
operations department 5
Distribution Strategy
Marketing department 14
AccommodAtion FirmsdEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
Marketing and promotio
n
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
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Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
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Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
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Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
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Cornell Center for Hospitality Research
Indexwwwchrcornelledu
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Complete program information and applications available online
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Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Advisory Board
The Robert A and Jan M Beck Center at Cornell University
Cornell Hospitality Reports Vol 11 No 9 (April 2011)
copy 2011 Cornell University
Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University
Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications
Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853
Phone 607-255-9780Fax 607-254-2922wwwchrcornelledu
Back cover photo by permission of The Cornellian and Jeff Wang
Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS
Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc
Scott Berman Principal Real Estate Business Advisory Services Industry Leader Hospitality amp Leisure PricewaterhouseCoopers
Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces
Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer
Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis
Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America
HyattGregg Gilman Partner Co-Chair Employment Practices
Davis amp Gilbert LLP
Tim Gordon Senior Vice President Hotels pricelinecomSusan Helstab EVP Corporate Marketing
Four Seasons Hotels and ResortsJeffrey A Horwitz Chair Lodging + Gaming and Co-Head
Mergers + Acquisitions ProskauerKevin J Jacobs Senior Vice President Corporate Strategy amp
Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa
InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD
SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno CEO Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality
ServicesDavid Meltzer Senior Vice President Global Business
Development Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global
Operations Deployment and Program Management Marriott International Inc
Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America
Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager
Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox
Rothschild LLPSteve Russell Chief People Officer Senior VP Human
Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice
Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCAdam Weissenberg Vice Chairman and US Tourism
Hospitality amp Leisure Leader Deloitte amp Touche USA LLP
Thank you to our generous Corporate Members
FriendsAmerican Tescor LLC bull Argyle Executive Forum bull Berkshire Healthcare bull Center for Advanced Retail Technology bull Cody Kramer Imports bull Cruise Industry News bull DK Shifflet amp Associates bull ehoteliercom bull EyeforTravel bull 4Hotelierscom bull Gerencia de Hoteles amp Restaurantes bull Global Hospitality Resources bull Hospitality Financial and Technological Professionals bull hospitalityInsidecom bull hospitalitynetorg bull Hospitality Technology Magazine bull Hotel Asia Pacific bull Hotel China bull HotelExecutivecom bull Hotel Interactive bull Hotel Resource bull International CHRIE bull International Hotel Conference bull International Society of Hospitality Consultants bull iPerceptions bull JDA Software Group Inc bull JD Power and Associates bull The Lodging Conference bull Lodging Hospitality bull Lodging Magazine bull LRA Worldwide Inc bull Milestone Internet Marketing bull MindFolio bull Mindshare Technologies bull PhoCusWright Inc bull PKF Hospitality Research bull Resort and Recreation Magazine bull The Resort Trades bull RestaurantEdgecom bull Shibata Publishing Co bull Synovate bull The TravelCom Network bull Travel + Hospitality Group bull UniFocus bull USA Today bull WageWatch Inc bull The Wall Street Journal bull WIWIHCOM bull Wyndham Green
PartnersDavis amp Gilbert LLP Deloitte amp Touche USA LLPDenihan Hospitality GroupeCornell amp Executive EducationExpedia Inc Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings Inc HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMarriott International IncMarshrsquos Hospitality Practice MaritzpricelinecomPricewaterhouseCoopersProskauer Sabre Hospitality Solutions Schneider Electric Thayer Lodging Group Thompson HotelsTravelportWATG
Senior PartnersHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global
4 TheCenterforHospitalityResearchbullCornellUniversity
ExECuTivE SuMMary
SeniorlodginganddestinationmarketingexecutivesoftenmakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternativestrategiesoremergingmedia choices An internet-based survey of 426 marketing executives drawn from theTravelCom 2011 conference and Cornell Center for Hospitality Research database with
support from Vantage Strategy and iPerceptions found a wide range of expenditures on onlinemarketing as well as considerable diversity in organizational structures Two-thirds of the samplecomprised accommodation marketers with the remainder being destination marketers or thoseresponsibleforothertypesofmarketingNearlythree-quartersoftherespondentsreportedspendinglessthan$10000onmobilemediain2010abouttwothirdsspentlessthan$10000onallsocialmediamarketingAbout80percentofthemarketerssaidthattheyproducedTwittercampaignsandsocialpromotionsin-housebutsuchfunctionsassearchengineoptimizationandpay-per-clickadvertisingarelargelyoutsourcedAccommodationfirmsaremorelikelytooutsourceallsocialmediafunctionsincludingpay-per-callTwittercampaignsandpay-per-clickmanagementDestinationmarketersontheotherhandgenerallyhandlemorefunctionsin-houseTwo-thirdsoftheentiresamplesaidthe2010 e-commerce budgets had increased with respect to 2009 Sixty percent of accommodationmarketersanticipatedafurtherincreasein2011and71percentofthedestinationmarketerssaidtheir2011budgetswouldincrease
2011TravelIndustryBenchmarkingMarketing ROI Opportunities and Challenges
in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 5
abouT ThE auThorS
rohit verma PhD is professor of operations management and executive director of the Center for Hospitality Research at the Cornell University School of Hotel Administration (rohitvermacornelledu) Among his research interests are product-and-service design and innovation customer choice modeling and quality process improvement of supplier selection strategies His work has appeared in such publications as MIT Sloan Management Review Journal of Operations Management and Cornell Hospitality Quarterly
Ken McGill is EVP of Research for Vantage Strategy (kenmcgillvantagestrategycom) He directs Vantagersquos Travel amp Tourism Research division where he delivers
insight and intelligence to DMOs and Travel amp Tourism suppliers Prior to Vantage he was Executive Vice President for IHS Global Insight and head of its Travel amp Tourism
Practice McGill directed both existing client relationships and spearheaded new development efforts particularly in the functional areas of market research economic impact assessment and resource planning In his 30 years
in economic and strategic consulting McGill has developed an expertise in research and planning methods that has been successfully applied to business problems in a variety of corporate and government settings He
is particularly known for his work in combining primary market research with traditional economic and industry analysis A particular focus of McGillrsquos work has been in tourism economic impact assessment Moreover McGillrsquos expertise has often been
called upon to estimate the economic impact of specific destinations attractions convention facilities resorthotel developments events and tourism policy decisions
The authors gratefully acknowledge the support of the TravelCom Conference and Vantage Strategy in conducting this study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornEll hoSpiTaliTy rEporT
As part of the planning for TravelCom 2011 conference organizers consulted theTravelComadvisoryboardmemberstoidentifytheirmostpressingissuesThesechiefmarketing officers and marketing executives identified the acceleration of onlinemarketingforcesasacommonconcernTheexecutivesfeelthattheyarebeingcalled
ontomakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternative strategies or emerging media choices as well as benchmarking what others are doingUncomfortablewithad hocdecisionmaking theexecutives requesteda study thatwouldestablishbenchmarksfororganizationalpracticesanddecisionmaking
2011TravelIndustryBenchmarking
Marketing ROI Opportunities and Challenges in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 7
ThisstudyistheresultofthatexpressedneedWiththesupportofVantageStrategyandiPerceptionswedevelopedaquestionnairethatwouldallowustoassessthestateofelectronicmarketingmdashestablishingbenchmarksandprovideacomparisonpointforresourcesdevotedtoelectronicmarketing
Wedividedthesurveyquestionsintothreeoverarchingthemes
(1) Informationthatplacesafirmintoacompetitiveset(2) Howdollarsarespentintheonlinemarketingspace(3) HowresourcesareallocatedWecategorizedtheresponsestothesurveyquestionsto
assessdifferentaspectsofonlinemarketinginitiativesinthefollowingareas
bull Budgetandresourceallocationbull Marketingandpromotionbull Internationalstrategydevelopmentbull Commerceandconversionbull Loyaltyandreputationbull Analysisandresearchbull ChallengesandfutureopportunitiesWeconductedthesurveyonlineduringJanuaryand
February2011RespondentswerepartoftheCHRandTrav-
elComdatabasesoftravelindustrymarketingexecutivesAtotalof426industryrespondentscompletedthesurveyandtheywereassuredthatnoprivateoridentifyinginfor-mationwouldbesharedThepurposeofthestudywasonlytocreateapublicbenchmarkandallowprivatecompari-sonsoftheparticipantsrsquofirmswiththosebenchmarks
ExecutiveProfileSixty-eightpercentoftherespondentsworkedinaccom-modationfirms20percentweredestinationmarketersandtherestworkedinavarietyoftravel-relatedfirms(seeExhibit1)
TherespondentsreportedanoticeabledifferenceinaverageannualbudgetsformarketingandecommerceAt$1354milliontheaveragebudgetreportedbymarketersforaccommodationfirmswastentimestheaveragefordestinationmarketerswhoreportedanaverageof$136thousanddollarsBothgroupsreportedthattheelectronicmarketingportionofthosebudgetswasincreasingyeartoyear
Thetwotypesoforganizationalsoreporteddifferentstructuresfordeployingmembersoftheonlinemarket-ingservicesteamandtheecommerceteam(seeExhibit2)
87
291
48
Destination Accomodation Other
Destination Marketing Executives
annual budget for marketing and e-commerce averaged
$136000 in 2010 two-thirds reported that this was an
increase over 2009 seven of ten anticipated an
increase in 2011
accommodation Marketing Executives
annual budget for marketing and e-commerce averaged $1354000 in 2010 two-thirds reported that this was an increase over 2009 six of ten anticipated an increase in 2011
other Travel-related Firms
Exhibit 1
Sample composition
8 TheCenterforHospitalityResearchbullCornellUniversity
ecommerceteamspartoftherevenuemanagementdepart-mentandanother17percentwereinthesalesdepartment
Lookingspecificallyatthepeoplewhodeterminestrat-egyforonlinepricinganddistributionweagainseethatthemarketingdepartmentisforemostfordestinationmarket-ingfirmsbutthatisnottrueofaccommodationfirms(seeExhibit3)
Welloverhalfoftheaccommodationfirms(54)puttheirpricingstrategistsintherevenuemanagementdepart-mentwithanother18percentinsalesJust10percentoftheaccommodationfirmshadtheirpricingstrategyfunction
Three-quartersofthedestinationmarketingorganizationshousedtheironlinemarketingteaminthemarketingde-partmentbutthatwastrueofjust41percentoftheaccom-modationmarketersInstead17percentoftheonlineteamwashousedintheaccommodationfirmsrsquosalesdepartmentandanother9percentintheecommercedepartment
AsimilarrelationshipoccurredfortheecommerceteamJustoverhalfofthedestinationmarketingfirmsputtheecommerceteaminthemarketingdepartmentwhilethatwastrueinonlyone-thirdoftheaccommodationfirmsInstead40percentoftheaccommodationfirmsmadetheir
87
291
48
Destination Accomodation Other
Exhibit 2
online marketing services and e-commerce team placement
online Marketing Services
Marketing department 75
Sales department 4
eCommerce department 2
operations department 6
eCommerce
Marketing department 51
Sales department 6
Web services department 11
operations department 12
online Marketing Services
Marketing department 41
Sales department 17
eCommerce department 9
operations department 5
eCommerce
Marketing department 33
revenue management department 40
Sales department 27
Web services department 5
operations department 3
87
291
48
Destination Accomodation Other
Exhibit 3
online pricing strategy and distribution team placement
online pricing Strategy Team
Marketing department 25
Sales department 4
revenue management department 12
operations department 12
Distribution Strategy
Marketing department 53
online pricing Strategy Team
Marketing department 10
Sales department 18
revenue management department 54
operations department 5
Distribution Strategy
Marketing department 14
AccommodAtion FirmsdEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
Marketing and promotio
n
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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AdvancingBusiness
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bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
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The Executive Path Hospitality Leadership Through Learning
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Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
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4 TheCenterforHospitalityResearchbullCornellUniversity
ExECuTivE SuMMary
SeniorlodginganddestinationmarketingexecutivesoftenmakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternativestrategiesoremergingmedia choices An internet-based survey of 426 marketing executives drawn from theTravelCom 2011 conference and Cornell Center for Hospitality Research database with
support from Vantage Strategy and iPerceptions found a wide range of expenditures on onlinemarketing as well as considerable diversity in organizational structures Two-thirds of the samplecomprised accommodation marketers with the remainder being destination marketers or thoseresponsibleforothertypesofmarketingNearlythree-quartersoftherespondentsreportedspendinglessthan$10000onmobilemediain2010abouttwothirdsspentlessthan$10000onallsocialmediamarketingAbout80percentofthemarketerssaidthattheyproducedTwittercampaignsandsocialpromotionsin-housebutsuchfunctionsassearchengineoptimizationandpay-per-clickadvertisingarelargelyoutsourcedAccommodationfirmsaremorelikelytooutsourceallsocialmediafunctionsincludingpay-per-callTwittercampaignsandpay-per-clickmanagementDestinationmarketersontheotherhandgenerallyhandlemorefunctionsin-houseTwo-thirdsoftheentiresamplesaidthe2010 e-commerce budgets had increased with respect to 2009 Sixty percent of accommodationmarketersanticipatedafurtherincreasein2011and71percentofthedestinationmarketerssaidtheir2011budgetswouldincrease
2011TravelIndustryBenchmarkingMarketing ROI Opportunities and Challenges
in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 5
abouT ThE auThorS
rohit verma PhD is professor of operations management and executive director of the Center for Hospitality Research at the Cornell University School of Hotel Administration (rohitvermacornelledu) Among his research interests are product-and-service design and innovation customer choice modeling and quality process improvement of supplier selection strategies His work has appeared in such publications as MIT Sloan Management Review Journal of Operations Management and Cornell Hospitality Quarterly
Ken McGill is EVP of Research for Vantage Strategy (kenmcgillvantagestrategycom) He directs Vantagersquos Travel amp Tourism Research division where he delivers
insight and intelligence to DMOs and Travel amp Tourism suppliers Prior to Vantage he was Executive Vice President for IHS Global Insight and head of its Travel amp Tourism
Practice McGill directed both existing client relationships and spearheaded new development efforts particularly in the functional areas of market research economic impact assessment and resource planning In his 30 years
in economic and strategic consulting McGill has developed an expertise in research and planning methods that has been successfully applied to business problems in a variety of corporate and government settings He
is particularly known for his work in combining primary market research with traditional economic and industry analysis A particular focus of McGillrsquos work has been in tourism economic impact assessment Moreover McGillrsquos expertise has often been
called upon to estimate the economic impact of specific destinations attractions convention facilities resorthotel developments events and tourism policy decisions
The authors gratefully acknowledge the support of the TravelCom Conference and Vantage Strategy in conducting this study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornEll hoSpiTaliTy rEporT
As part of the planning for TravelCom 2011 conference organizers consulted theTravelComadvisoryboardmemberstoidentifytheirmostpressingissuesThesechiefmarketing officers and marketing executives identified the acceleration of onlinemarketingforcesasacommonconcernTheexecutivesfeelthattheyarebeingcalled
ontomakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternative strategies or emerging media choices as well as benchmarking what others are doingUncomfortablewithad hocdecisionmaking theexecutives requesteda study thatwouldestablishbenchmarksfororganizationalpracticesanddecisionmaking
2011TravelIndustryBenchmarking
Marketing ROI Opportunities and Challenges in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 7
ThisstudyistheresultofthatexpressedneedWiththesupportofVantageStrategyandiPerceptionswedevelopedaquestionnairethatwouldallowustoassessthestateofelectronicmarketingmdashestablishingbenchmarksandprovideacomparisonpointforresourcesdevotedtoelectronicmarketing
Wedividedthesurveyquestionsintothreeoverarchingthemes
(1) Informationthatplacesafirmintoacompetitiveset(2) Howdollarsarespentintheonlinemarketingspace(3) HowresourcesareallocatedWecategorizedtheresponsestothesurveyquestionsto
assessdifferentaspectsofonlinemarketinginitiativesinthefollowingareas
bull Budgetandresourceallocationbull Marketingandpromotionbull Internationalstrategydevelopmentbull Commerceandconversionbull Loyaltyandreputationbull Analysisandresearchbull ChallengesandfutureopportunitiesWeconductedthesurveyonlineduringJanuaryand
February2011RespondentswerepartoftheCHRandTrav-
elComdatabasesoftravelindustrymarketingexecutivesAtotalof426industryrespondentscompletedthesurveyandtheywereassuredthatnoprivateoridentifyinginfor-mationwouldbesharedThepurposeofthestudywasonlytocreateapublicbenchmarkandallowprivatecompari-sonsoftheparticipantsrsquofirmswiththosebenchmarks
ExecutiveProfileSixty-eightpercentoftherespondentsworkedinaccom-modationfirms20percentweredestinationmarketersandtherestworkedinavarietyoftravel-relatedfirms(seeExhibit1)
TherespondentsreportedanoticeabledifferenceinaverageannualbudgetsformarketingandecommerceAt$1354milliontheaveragebudgetreportedbymarketersforaccommodationfirmswastentimestheaveragefordestinationmarketerswhoreportedanaverageof$136thousanddollarsBothgroupsreportedthattheelectronicmarketingportionofthosebudgetswasincreasingyeartoyear
Thetwotypesoforganizationalsoreporteddifferentstructuresfordeployingmembersoftheonlinemarket-ingservicesteamandtheecommerceteam(seeExhibit2)
87
291
48
Destination Accomodation Other
Destination Marketing Executives
annual budget for marketing and e-commerce averaged
$136000 in 2010 two-thirds reported that this was an
increase over 2009 seven of ten anticipated an
increase in 2011
accommodation Marketing Executives
annual budget for marketing and e-commerce averaged $1354000 in 2010 two-thirds reported that this was an increase over 2009 six of ten anticipated an increase in 2011
other Travel-related Firms
Exhibit 1
Sample composition
8 TheCenterforHospitalityResearchbullCornellUniversity
ecommerceteamspartoftherevenuemanagementdepart-mentandanother17percentwereinthesalesdepartment
Lookingspecificallyatthepeoplewhodeterminestrat-egyforonlinepricinganddistributionweagainseethatthemarketingdepartmentisforemostfordestinationmarket-ingfirmsbutthatisnottrueofaccommodationfirms(seeExhibit3)
Welloverhalfoftheaccommodationfirms(54)puttheirpricingstrategistsintherevenuemanagementdepart-mentwithanother18percentinsalesJust10percentoftheaccommodationfirmshadtheirpricingstrategyfunction
Three-quartersofthedestinationmarketingorganizationshousedtheironlinemarketingteaminthemarketingde-partmentbutthatwastrueofjust41percentoftheaccom-modationmarketersInstead17percentoftheonlineteamwashousedintheaccommodationfirmsrsquosalesdepartmentandanother9percentintheecommercedepartment
AsimilarrelationshipoccurredfortheecommerceteamJustoverhalfofthedestinationmarketingfirmsputtheecommerceteaminthemarketingdepartmentwhilethatwastrueinonlyone-thirdoftheaccommodationfirmsInstead40percentoftheaccommodationfirmsmadetheir
87
291
48
Destination Accomodation Other
Exhibit 2
online marketing services and e-commerce team placement
online Marketing Services
Marketing department 75
Sales department 4
eCommerce department 2
operations department 6
eCommerce
Marketing department 51
Sales department 6
Web services department 11
operations department 12
online Marketing Services
Marketing department 41
Sales department 17
eCommerce department 9
operations department 5
eCommerce
Marketing department 33
revenue management department 40
Sales department 27
Web services department 5
operations department 3
87
291
48
Destination Accomodation Other
Exhibit 3
online pricing strategy and distribution team placement
online pricing Strategy Team
Marketing department 25
Sales department 4
revenue management department 12
operations department 12
Distribution Strategy
Marketing department 53
online pricing Strategy Team
Marketing department 10
Sales department 18
revenue management department 54
operations department 5
Distribution Strategy
Marketing department 14
AccommodAtion FirmsdEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
Marketing and promotio
n
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
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Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
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2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
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Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
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Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
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Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
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Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
4 TheCenterforHospitalityResearchbullCornellUniversity
ExECuTivE SuMMary
SeniorlodginganddestinationmarketingexecutivesoftenmakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternativestrategiesoremergingmedia choices An internet-based survey of 426 marketing executives drawn from theTravelCom 2011 conference and Cornell Center for Hospitality Research database with
support from Vantage Strategy and iPerceptions found a wide range of expenditures on onlinemarketing as well as considerable diversity in organizational structures Two-thirds of the samplecomprised accommodation marketers with the remainder being destination marketers or thoseresponsibleforothertypesofmarketingNearlythree-quartersoftherespondentsreportedspendinglessthan$10000onmobilemediain2010abouttwothirdsspentlessthan$10000onallsocialmediamarketingAbout80percentofthemarketerssaidthattheyproducedTwittercampaignsandsocialpromotionsin-housebutsuchfunctionsassearchengineoptimizationandpay-per-clickadvertisingarelargelyoutsourcedAccommodationfirmsaremorelikelytooutsourceallsocialmediafunctionsincludingpay-per-callTwittercampaignsandpay-per-clickmanagementDestinationmarketersontheotherhandgenerallyhandlemorefunctionsin-houseTwo-thirdsoftheentiresamplesaidthe2010 e-commerce budgets had increased with respect to 2009 Sixty percent of accommodationmarketersanticipatedafurtherincreasein2011and71percentofthedestinationmarketerssaidtheir2011budgetswouldincrease
2011TravelIndustryBenchmarkingMarketing ROI Opportunities and Challenges
in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 5
abouT ThE auThorS
rohit verma PhD is professor of operations management and executive director of the Center for Hospitality Research at the Cornell University School of Hotel Administration (rohitvermacornelledu) Among his research interests are product-and-service design and innovation customer choice modeling and quality process improvement of supplier selection strategies His work has appeared in such publications as MIT Sloan Management Review Journal of Operations Management and Cornell Hospitality Quarterly
Ken McGill is EVP of Research for Vantage Strategy (kenmcgillvantagestrategycom) He directs Vantagersquos Travel amp Tourism Research division where he delivers
insight and intelligence to DMOs and Travel amp Tourism suppliers Prior to Vantage he was Executive Vice President for IHS Global Insight and head of its Travel amp Tourism
Practice McGill directed both existing client relationships and spearheaded new development efforts particularly in the functional areas of market research economic impact assessment and resource planning In his 30 years
in economic and strategic consulting McGill has developed an expertise in research and planning methods that has been successfully applied to business problems in a variety of corporate and government settings He
is particularly known for his work in combining primary market research with traditional economic and industry analysis A particular focus of McGillrsquos work has been in tourism economic impact assessment Moreover McGillrsquos expertise has often been
called upon to estimate the economic impact of specific destinations attractions convention facilities resorthotel developments events and tourism policy decisions
The authors gratefully acknowledge the support of the TravelCom Conference and Vantage Strategy in conducting this study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornEll hoSpiTaliTy rEporT
As part of the planning for TravelCom 2011 conference organizers consulted theTravelComadvisoryboardmemberstoidentifytheirmostpressingissuesThesechiefmarketing officers and marketing executives identified the acceleration of onlinemarketingforcesasacommonconcernTheexecutivesfeelthattheyarebeingcalled
ontomakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternative strategies or emerging media choices as well as benchmarking what others are doingUncomfortablewithad hocdecisionmaking theexecutives requesteda study thatwouldestablishbenchmarksfororganizationalpracticesanddecisionmaking
2011TravelIndustryBenchmarking
Marketing ROI Opportunities and Challenges in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 7
ThisstudyistheresultofthatexpressedneedWiththesupportofVantageStrategyandiPerceptionswedevelopedaquestionnairethatwouldallowustoassessthestateofelectronicmarketingmdashestablishingbenchmarksandprovideacomparisonpointforresourcesdevotedtoelectronicmarketing
Wedividedthesurveyquestionsintothreeoverarchingthemes
(1) Informationthatplacesafirmintoacompetitiveset(2) Howdollarsarespentintheonlinemarketingspace(3) HowresourcesareallocatedWecategorizedtheresponsestothesurveyquestionsto
assessdifferentaspectsofonlinemarketinginitiativesinthefollowingareas
bull Budgetandresourceallocationbull Marketingandpromotionbull Internationalstrategydevelopmentbull Commerceandconversionbull Loyaltyandreputationbull Analysisandresearchbull ChallengesandfutureopportunitiesWeconductedthesurveyonlineduringJanuaryand
February2011RespondentswerepartoftheCHRandTrav-
elComdatabasesoftravelindustrymarketingexecutivesAtotalof426industryrespondentscompletedthesurveyandtheywereassuredthatnoprivateoridentifyinginfor-mationwouldbesharedThepurposeofthestudywasonlytocreateapublicbenchmarkandallowprivatecompari-sonsoftheparticipantsrsquofirmswiththosebenchmarks
ExecutiveProfileSixty-eightpercentoftherespondentsworkedinaccom-modationfirms20percentweredestinationmarketersandtherestworkedinavarietyoftravel-relatedfirms(seeExhibit1)
TherespondentsreportedanoticeabledifferenceinaverageannualbudgetsformarketingandecommerceAt$1354milliontheaveragebudgetreportedbymarketersforaccommodationfirmswastentimestheaveragefordestinationmarketerswhoreportedanaverageof$136thousanddollarsBothgroupsreportedthattheelectronicmarketingportionofthosebudgetswasincreasingyeartoyear
Thetwotypesoforganizationalsoreporteddifferentstructuresfordeployingmembersoftheonlinemarket-ingservicesteamandtheecommerceteam(seeExhibit2)
87
291
48
Destination Accomodation Other
Destination Marketing Executives
annual budget for marketing and e-commerce averaged
$136000 in 2010 two-thirds reported that this was an
increase over 2009 seven of ten anticipated an
increase in 2011
accommodation Marketing Executives
annual budget for marketing and e-commerce averaged $1354000 in 2010 two-thirds reported that this was an increase over 2009 six of ten anticipated an increase in 2011
other Travel-related Firms
Exhibit 1
Sample composition
8 TheCenterforHospitalityResearchbullCornellUniversity
ecommerceteamspartoftherevenuemanagementdepart-mentandanother17percentwereinthesalesdepartment
Lookingspecificallyatthepeoplewhodeterminestrat-egyforonlinepricinganddistributionweagainseethatthemarketingdepartmentisforemostfordestinationmarket-ingfirmsbutthatisnottrueofaccommodationfirms(seeExhibit3)
Welloverhalfoftheaccommodationfirms(54)puttheirpricingstrategistsintherevenuemanagementdepart-mentwithanother18percentinsalesJust10percentoftheaccommodationfirmshadtheirpricingstrategyfunction
Three-quartersofthedestinationmarketingorganizationshousedtheironlinemarketingteaminthemarketingde-partmentbutthatwastrueofjust41percentoftheaccom-modationmarketersInstead17percentoftheonlineteamwashousedintheaccommodationfirmsrsquosalesdepartmentandanother9percentintheecommercedepartment
AsimilarrelationshipoccurredfortheecommerceteamJustoverhalfofthedestinationmarketingfirmsputtheecommerceteaminthemarketingdepartmentwhilethatwastrueinonlyone-thirdoftheaccommodationfirmsInstead40percentoftheaccommodationfirmsmadetheir
87
291
48
Destination Accomodation Other
Exhibit 2
online marketing services and e-commerce team placement
online Marketing Services
Marketing department 75
Sales department 4
eCommerce department 2
operations department 6
eCommerce
Marketing department 51
Sales department 6
Web services department 11
operations department 12
online Marketing Services
Marketing department 41
Sales department 17
eCommerce department 9
operations department 5
eCommerce
Marketing department 33
revenue management department 40
Sales department 27
Web services department 5
operations department 3
87
291
48
Destination Accomodation Other
Exhibit 3
online pricing strategy and distribution team placement
online pricing Strategy Team
Marketing department 25
Sales department 4
revenue management department 12
operations department 12
Distribution Strategy
Marketing department 53
online pricing Strategy Team
Marketing department 10
Sales department 18
revenue management department 54
operations department 5
Distribution Strategy
Marketing department 14
AccommodAtion FirmsdEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
Marketing and promotio
n
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 5
abouT ThE auThorS
rohit verma PhD is professor of operations management and executive director of the Center for Hospitality Research at the Cornell University School of Hotel Administration (rohitvermacornelledu) Among his research interests are product-and-service design and innovation customer choice modeling and quality process improvement of supplier selection strategies His work has appeared in such publications as MIT Sloan Management Review Journal of Operations Management and Cornell Hospitality Quarterly
Ken McGill is EVP of Research for Vantage Strategy (kenmcgillvantagestrategycom) He directs Vantagersquos Travel amp Tourism Research division where he delivers
insight and intelligence to DMOs and Travel amp Tourism suppliers Prior to Vantage he was Executive Vice President for IHS Global Insight and head of its Travel amp Tourism
Practice McGill directed both existing client relationships and spearheaded new development efforts particularly in the functional areas of market research economic impact assessment and resource planning In his 30 years
in economic and strategic consulting McGill has developed an expertise in research and planning methods that has been successfully applied to business problems in a variety of corporate and government settings He
is particularly known for his work in combining primary market research with traditional economic and industry analysis A particular focus of McGillrsquos work has been in tourism economic impact assessment Moreover McGillrsquos expertise has often been
called upon to estimate the economic impact of specific destinations attractions convention facilities resorthotel developments events and tourism policy decisions
The authors gratefully acknowledge the support of the TravelCom Conference and Vantage Strategy in conducting this study
6 TheCenterforHospitalityResearchbullCornellUniversity
CornEll hoSpiTaliTy rEporT
As part of the planning for TravelCom 2011 conference organizers consulted theTravelComadvisoryboardmemberstoidentifytheirmostpressingissuesThesechiefmarketing officers and marketing executives identified the acceleration of onlinemarketingforcesasacommonconcernTheexecutivesfeelthattheyarebeingcalled
ontomakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternative strategies or emerging media choices as well as benchmarking what others are doingUncomfortablewithad hocdecisionmaking theexecutives requesteda study thatwouldestablishbenchmarksfororganizationalpracticesanddecisionmaking
2011TravelIndustryBenchmarking
Marketing ROI Opportunities and Challenges in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 7
ThisstudyistheresultofthatexpressedneedWiththesupportofVantageStrategyandiPerceptionswedevelopedaquestionnairethatwouldallowustoassessthestateofelectronicmarketingmdashestablishingbenchmarksandprovideacomparisonpointforresourcesdevotedtoelectronicmarketing
Wedividedthesurveyquestionsintothreeoverarchingthemes
(1) Informationthatplacesafirmintoacompetitiveset(2) Howdollarsarespentintheonlinemarketingspace(3) HowresourcesareallocatedWecategorizedtheresponsestothesurveyquestionsto
assessdifferentaspectsofonlinemarketinginitiativesinthefollowingareas
bull Budgetandresourceallocationbull Marketingandpromotionbull Internationalstrategydevelopmentbull Commerceandconversionbull Loyaltyandreputationbull Analysisandresearchbull ChallengesandfutureopportunitiesWeconductedthesurveyonlineduringJanuaryand
February2011RespondentswerepartoftheCHRandTrav-
elComdatabasesoftravelindustrymarketingexecutivesAtotalof426industryrespondentscompletedthesurveyandtheywereassuredthatnoprivateoridentifyinginfor-mationwouldbesharedThepurposeofthestudywasonlytocreateapublicbenchmarkandallowprivatecompari-sonsoftheparticipantsrsquofirmswiththosebenchmarks
ExecutiveProfileSixty-eightpercentoftherespondentsworkedinaccom-modationfirms20percentweredestinationmarketersandtherestworkedinavarietyoftravel-relatedfirms(seeExhibit1)
TherespondentsreportedanoticeabledifferenceinaverageannualbudgetsformarketingandecommerceAt$1354milliontheaveragebudgetreportedbymarketersforaccommodationfirmswastentimestheaveragefordestinationmarketerswhoreportedanaverageof$136thousanddollarsBothgroupsreportedthattheelectronicmarketingportionofthosebudgetswasincreasingyeartoyear
Thetwotypesoforganizationalsoreporteddifferentstructuresfordeployingmembersoftheonlinemarket-ingservicesteamandtheecommerceteam(seeExhibit2)
87
291
48
Destination Accomodation Other
Destination Marketing Executives
annual budget for marketing and e-commerce averaged
$136000 in 2010 two-thirds reported that this was an
increase over 2009 seven of ten anticipated an
increase in 2011
accommodation Marketing Executives
annual budget for marketing and e-commerce averaged $1354000 in 2010 two-thirds reported that this was an increase over 2009 six of ten anticipated an increase in 2011
other Travel-related Firms
Exhibit 1
Sample composition
8 TheCenterforHospitalityResearchbullCornellUniversity
ecommerceteamspartoftherevenuemanagementdepart-mentandanother17percentwereinthesalesdepartment
Lookingspecificallyatthepeoplewhodeterminestrat-egyforonlinepricinganddistributionweagainseethatthemarketingdepartmentisforemostfordestinationmarket-ingfirmsbutthatisnottrueofaccommodationfirms(seeExhibit3)
Welloverhalfoftheaccommodationfirms(54)puttheirpricingstrategistsintherevenuemanagementdepart-mentwithanother18percentinsalesJust10percentoftheaccommodationfirmshadtheirpricingstrategyfunction
Three-quartersofthedestinationmarketingorganizationshousedtheironlinemarketingteaminthemarketingde-partmentbutthatwastrueofjust41percentoftheaccom-modationmarketersInstead17percentoftheonlineteamwashousedintheaccommodationfirmsrsquosalesdepartmentandanother9percentintheecommercedepartment
AsimilarrelationshipoccurredfortheecommerceteamJustoverhalfofthedestinationmarketingfirmsputtheecommerceteaminthemarketingdepartmentwhilethatwastrueinonlyone-thirdoftheaccommodationfirmsInstead40percentoftheaccommodationfirmsmadetheir
87
291
48
Destination Accomodation Other
Exhibit 2
online marketing services and e-commerce team placement
online Marketing Services
Marketing department 75
Sales department 4
eCommerce department 2
operations department 6
eCommerce
Marketing department 51
Sales department 6
Web services department 11
operations department 12
online Marketing Services
Marketing department 41
Sales department 17
eCommerce department 9
operations department 5
eCommerce
Marketing department 33
revenue management department 40
Sales department 27
Web services department 5
operations department 3
87
291
48
Destination Accomodation Other
Exhibit 3
online pricing strategy and distribution team placement
online pricing Strategy Team
Marketing department 25
Sales department 4
revenue management department 12
operations department 12
Distribution Strategy
Marketing department 53
online pricing Strategy Team
Marketing department 10
Sales department 18
revenue management department 54
operations department 5
Distribution Strategy
Marketing department 14
AccommodAtion FirmsdEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
Marketing and promotio
n
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
6 TheCenterforHospitalityResearchbullCornellUniversity
CornEll hoSpiTaliTy rEporT
As part of the planning for TravelCom 2011 conference organizers consulted theTravelComadvisoryboardmemberstoidentifytheirmostpressingissuesThesechiefmarketing officers and marketing executives identified the acceleration of onlinemarketingforcesasacommonconcernTheexecutivesfeelthattheyarebeingcalled
ontomakevendorandmarketingchanneldecisionswithoutsufficienttimetoinvestigatetheROIofalternative strategies or emerging media choices as well as benchmarking what others are doingUncomfortablewithad hocdecisionmaking theexecutives requesteda study thatwouldestablishbenchmarksfororganizationalpracticesanddecisionmaking
2011TravelIndustryBenchmarking
Marketing ROI Opportunities and Challenges in Online and Social Media Channels for Destination and Marketing Firms
byRohitVermaandKenMcGill
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 7
ThisstudyistheresultofthatexpressedneedWiththesupportofVantageStrategyandiPerceptionswedevelopedaquestionnairethatwouldallowustoassessthestateofelectronicmarketingmdashestablishingbenchmarksandprovideacomparisonpointforresourcesdevotedtoelectronicmarketing
Wedividedthesurveyquestionsintothreeoverarchingthemes
(1) Informationthatplacesafirmintoacompetitiveset(2) Howdollarsarespentintheonlinemarketingspace(3) HowresourcesareallocatedWecategorizedtheresponsestothesurveyquestionsto
assessdifferentaspectsofonlinemarketinginitiativesinthefollowingareas
bull Budgetandresourceallocationbull Marketingandpromotionbull Internationalstrategydevelopmentbull Commerceandconversionbull Loyaltyandreputationbull Analysisandresearchbull ChallengesandfutureopportunitiesWeconductedthesurveyonlineduringJanuaryand
February2011RespondentswerepartoftheCHRandTrav-
elComdatabasesoftravelindustrymarketingexecutivesAtotalof426industryrespondentscompletedthesurveyandtheywereassuredthatnoprivateoridentifyinginfor-mationwouldbesharedThepurposeofthestudywasonlytocreateapublicbenchmarkandallowprivatecompari-sonsoftheparticipantsrsquofirmswiththosebenchmarks
ExecutiveProfileSixty-eightpercentoftherespondentsworkedinaccom-modationfirms20percentweredestinationmarketersandtherestworkedinavarietyoftravel-relatedfirms(seeExhibit1)
TherespondentsreportedanoticeabledifferenceinaverageannualbudgetsformarketingandecommerceAt$1354milliontheaveragebudgetreportedbymarketersforaccommodationfirmswastentimestheaveragefordestinationmarketerswhoreportedanaverageof$136thousanddollarsBothgroupsreportedthattheelectronicmarketingportionofthosebudgetswasincreasingyeartoyear
Thetwotypesoforganizationalsoreporteddifferentstructuresfordeployingmembersoftheonlinemarket-ingservicesteamandtheecommerceteam(seeExhibit2)
87
291
48
Destination Accomodation Other
Destination Marketing Executives
annual budget for marketing and e-commerce averaged
$136000 in 2010 two-thirds reported that this was an
increase over 2009 seven of ten anticipated an
increase in 2011
accommodation Marketing Executives
annual budget for marketing and e-commerce averaged $1354000 in 2010 two-thirds reported that this was an increase over 2009 six of ten anticipated an increase in 2011
other Travel-related Firms
Exhibit 1
Sample composition
8 TheCenterforHospitalityResearchbullCornellUniversity
ecommerceteamspartoftherevenuemanagementdepart-mentandanother17percentwereinthesalesdepartment
Lookingspecificallyatthepeoplewhodeterminestrat-egyforonlinepricinganddistributionweagainseethatthemarketingdepartmentisforemostfordestinationmarket-ingfirmsbutthatisnottrueofaccommodationfirms(seeExhibit3)
Welloverhalfoftheaccommodationfirms(54)puttheirpricingstrategistsintherevenuemanagementdepart-mentwithanother18percentinsalesJust10percentoftheaccommodationfirmshadtheirpricingstrategyfunction
Three-quartersofthedestinationmarketingorganizationshousedtheironlinemarketingteaminthemarketingde-partmentbutthatwastrueofjust41percentoftheaccom-modationmarketersInstead17percentoftheonlineteamwashousedintheaccommodationfirmsrsquosalesdepartmentandanother9percentintheecommercedepartment
AsimilarrelationshipoccurredfortheecommerceteamJustoverhalfofthedestinationmarketingfirmsputtheecommerceteaminthemarketingdepartmentwhilethatwastrueinonlyone-thirdoftheaccommodationfirmsInstead40percentoftheaccommodationfirmsmadetheir
87
291
48
Destination Accomodation Other
Exhibit 2
online marketing services and e-commerce team placement
online Marketing Services
Marketing department 75
Sales department 4
eCommerce department 2
operations department 6
eCommerce
Marketing department 51
Sales department 6
Web services department 11
operations department 12
online Marketing Services
Marketing department 41
Sales department 17
eCommerce department 9
operations department 5
eCommerce
Marketing department 33
revenue management department 40
Sales department 27
Web services department 5
operations department 3
87
291
48
Destination Accomodation Other
Exhibit 3
online pricing strategy and distribution team placement
online pricing Strategy Team
Marketing department 25
Sales department 4
revenue management department 12
operations department 12
Distribution Strategy
Marketing department 53
online pricing Strategy Team
Marketing department 10
Sales department 18
revenue management department 54
operations department 5
Distribution Strategy
Marketing department 14
AccommodAtion FirmsdEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
Marketing and promotio
n
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
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Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
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2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
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Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 7
ThisstudyistheresultofthatexpressedneedWiththesupportofVantageStrategyandiPerceptionswedevelopedaquestionnairethatwouldallowustoassessthestateofelectronicmarketingmdashestablishingbenchmarksandprovideacomparisonpointforresourcesdevotedtoelectronicmarketing
Wedividedthesurveyquestionsintothreeoverarchingthemes
(1) Informationthatplacesafirmintoacompetitiveset(2) Howdollarsarespentintheonlinemarketingspace(3) HowresourcesareallocatedWecategorizedtheresponsestothesurveyquestionsto
assessdifferentaspectsofonlinemarketinginitiativesinthefollowingareas
bull Budgetandresourceallocationbull Marketingandpromotionbull Internationalstrategydevelopmentbull Commerceandconversionbull Loyaltyandreputationbull Analysisandresearchbull ChallengesandfutureopportunitiesWeconductedthesurveyonlineduringJanuaryand
February2011RespondentswerepartoftheCHRandTrav-
elComdatabasesoftravelindustrymarketingexecutivesAtotalof426industryrespondentscompletedthesurveyandtheywereassuredthatnoprivateoridentifyinginfor-mationwouldbesharedThepurposeofthestudywasonlytocreateapublicbenchmarkandallowprivatecompari-sonsoftheparticipantsrsquofirmswiththosebenchmarks
ExecutiveProfileSixty-eightpercentoftherespondentsworkedinaccom-modationfirms20percentweredestinationmarketersandtherestworkedinavarietyoftravel-relatedfirms(seeExhibit1)
TherespondentsreportedanoticeabledifferenceinaverageannualbudgetsformarketingandecommerceAt$1354milliontheaveragebudgetreportedbymarketersforaccommodationfirmswastentimestheaveragefordestinationmarketerswhoreportedanaverageof$136thousanddollarsBothgroupsreportedthattheelectronicmarketingportionofthosebudgetswasincreasingyeartoyear
Thetwotypesoforganizationalsoreporteddifferentstructuresfordeployingmembersoftheonlinemarket-ingservicesteamandtheecommerceteam(seeExhibit2)
87
291
48
Destination Accomodation Other
Destination Marketing Executives
annual budget for marketing and e-commerce averaged
$136000 in 2010 two-thirds reported that this was an
increase over 2009 seven of ten anticipated an
increase in 2011
accommodation Marketing Executives
annual budget for marketing and e-commerce averaged $1354000 in 2010 two-thirds reported that this was an increase over 2009 six of ten anticipated an increase in 2011
other Travel-related Firms
Exhibit 1
Sample composition
8 TheCenterforHospitalityResearchbullCornellUniversity
ecommerceteamspartoftherevenuemanagementdepart-mentandanother17percentwereinthesalesdepartment
Lookingspecificallyatthepeoplewhodeterminestrat-egyforonlinepricinganddistributionweagainseethatthemarketingdepartmentisforemostfordestinationmarket-ingfirmsbutthatisnottrueofaccommodationfirms(seeExhibit3)
Welloverhalfoftheaccommodationfirms(54)puttheirpricingstrategistsintherevenuemanagementdepart-mentwithanother18percentinsalesJust10percentoftheaccommodationfirmshadtheirpricingstrategyfunction
Three-quartersofthedestinationmarketingorganizationshousedtheironlinemarketingteaminthemarketingde-partmentbutthatwastrueofjust41percentoftheaccom-modationmarketersInstead17percentoftheonlineteamwashousedintheaccommodationfirmsrsquosalesdepartmentandanother9percentintheecommercedepartment
AsimilarrelationshipoccurredfortheecommerceteamJustoverhalfofthedestinationmarketingfirmsputtheecommerceteaminthemarketingdepartmentwhilethatwastrueinonlyone-thirdoftheaccommodationfirmsInstead40percentoftheaccommodationfirmsmadetheir
87
291
48
Destination Accomodation Other
Exhibit 2
online marketing services and e-commerce team placement
online Marketing Services
Marketing department 75
Sales department 4
eCommerce department 2
operations department 6
eCommerce
Marketing department 51
Sales department 6
Web services department 11
operations department 12
online Marketing Services
Marketing department 41
Sales department 17
eCommerce department 9
operations department 5
eCommerce
Marketing department 33
revenue management department 40
Sales department 27
Web services department 5
operations department 3
87
291
48
Destination Accomodation Other
Exhibit 3
online pricing strategy and distribution team placement
online pricing Strategy Team
Marketing department 25
Sales department 4
revenue management department 12
operations department 12
Distribution Strategy
Marketing department 53
online pricing Strategy Team
Marketing department 10
Sales department 18
revenue management department 54
operations department 5
Distribution Strategy
Marketing department 14
AccommodAtion FirmsdEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
Marketing and promotio
n
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
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2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
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Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
8 TheCenterforHospitalityResearchbullCornellUniversity
ecommerceteamspartoftherevenuemanagementdepart-mentandanother17percentwereinthesalesdepartment
Lookingspecificallyatthepeoplewhodeterminestrat-egyforonlinepricinganddistributionweagainseethatthemarketingdepartmentisforemostfordestinationmarket-ingfirmsbutthatisnottrueofaccommodationfirms(seeExhibit3)
Welloverhalfoftheaccommodationfirms(54)puttheirpricingstrategistsintherevenuemanagementdepart-mentwithanother18percentinsalesJust10percentoftheaccommodationfirmshadtheirpricingstrategyfunction
Three-quartersofthedestinationmarketingorganizationshousedtheironlinemarketingteaminthemarketingde-partmentbutthatwastrueofjust41percentoftheaccom-modationmarketersInstead17percentoftheonlineteamwashousedintheaccommodationfirmsrsquosalesdepartmentandanother9percentintheecommercedepartment
AsimilarrelationshipoccurredfortheecommerceteamJustoverhalfofthedestinationmarketingfirmsputtheecommerceteaminthemarketingdepartmentwhilethatwastrueinonlyone-thirdoftheaccommodationfirmsInstead40percentoftheaccommodationfirmsmadetheir
87
291
48
Destination Accomodation Other
Exhibit 2
online marketing services and e-commerce team placement
online Marketing Services
Marketing department 75
Sales department 4
eCommerce department 2
operations department 6
eCommerce
Marketing department 51
Sales department 6
Web services department 11
operations department 12
online Marketing Services
Marketing department 41
Sales department 17
eCommerce department 9
operations department 5
eCommerce
Marketing department 33
revenue management department 40
Sales department 27
Web services department 5
operations department 3
87
291
48
Destination Accomodation Other
Exhibit 3
online pricing strategy and distribution team placement
online pricing Strategy Team
Marketing department 25
Sales department 4
revenue management department 12
operations department 12
Distribution Strategy
Marketing department 53
online pricing Strategy Team
Marketing department 10
Sales department 18
revenue management department 54
operations department 5
Distribution Strategy
Marketing department 14
AccommodAtion FirmsdEstinAtion Firms
AccommodAtion FirmsdEstinAtion Firms
Marketing and promotio
n
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 9
0
10
20
30
40
50
60
Destination Accommodation0
10
20
30
40
50
60
Destination Accomodation
inmarketingForthedestinationmarketers25percentoffirmsputpricingstrategyinmarketingandjust12percentintherevenuemanagementdepartmentFordistributionstrategywelloverhalfofthedestinationfirmshouseddistri-butionstrategyintheirmarketingdepartmentbutthatwastrueofonly14percentofaccommodationfirms
Intermsofbudgetallocationsmarketingandpromo-tionwasbyfarthelargestsingleonlinemarketingandecommercecategoryforbothdestinationandaccommoda-tionfirms(seeExhibit4)Thoseexpenditureswerefollowedinorderbycommerceandconversionloyaltyandreputa-
tionandanalyticsandresearchTherespondentsreportedsimilarpercentageallocationsofstafftime(Exhibit5)Fortheentiresampletheaveragenumberofstaffmembersinvolvedinonlinemarketingandecommercewas325
Therangeofbudgetedonlineadvertisingexpendi-tureswasremarkablewithsomefirmsreportingbudgetsoflessthan$10000andothersover$1million(Exhibit6)Thebudgetsskewedtowardthelowerendoftherangehoweverastheaverageonlineadvertisingbudgetforac-commodationfirmswasapproximately$60000whilefordestinationmarketerstheaveragewasabout$80000In
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
Exhibit 4
online marketing and e-commerce budget allocation
Exhibit 5
percentage allocation of staff time (average of 325 staff)
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Marketing and promotio
n
Commerce and co
nversion
loyalty
and reputatio
n
analytics a
nd research
pe
rc
en
ta
ge
0 10 20 30 40
Less than $10000
$10000 - $24999
$25000 - $49999
$50000 - $99999
$100000 - $249000
$250000 - $499999
$499999 - $1000000
Over $1000000
Accomodation Destination
Exhibit 6
online advertising budget for 2010
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average $asymp80000
average $asymp60000
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
10 TheCenterforHospitalityResearchbullCornellUniversity
termsofthepercentageofthemarketingbudgetonlinemediaplacementalsovariedwidely(Exhibit7)
Althoughtheaverageonlinebudgetallocationsrepre-sentedanaverageof40percentofdestinationfirmsrsquomarket-ingbudgetsevenofthe87destinationfirmsand20ofthe216accommodationmarketersreportedonlinebudgetallocationsoflessthan10percentofthemarketingexpendi-turesTwo-thirdsofthefirmsreportedthattheyspendless
than$10000onsocialmediaandthree-quartersspendlessthan$10000onmobilemedia
Thebreakdownofpurchasingchannelsforadvertisinginonlinemediaissimilarfordestinationandaccommodationfirms(seeExhibit8)WhilesubstantialpercentagesoffirmshandlepurchasesinternallymanyalsousemultipleagenciesArelativelysmallpercentageusejustoneagencyforonlinemediabuysLookingmorespecificallyathowthesefirms
0 5 10 15 20 25
Less then 10
11 to 24
25 to 34
35 to 44
35 to 44
55 to 64
65 to 74
75 to 84
85 to 94
More then 95
Accomodation Destination
Exhibit 7
percentage budget for online media placement
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
average ~40
average ~45
More than 95
85 to 94
75 to 84
65 to 74
55 to 64
45 to 54
35 to 44
25 to 34
11 to 24
less than 10
Exhibit 8
Source of online media and advertisement purchasing
one agency
multiple agency
handled internally
not sure
one agency
21
Multiple agency
39
handled internally
35
not sure
5
one agency
multiple agency
handled internally
not sure
one agency
27
Multiple agency
28
handled internally
40
not sure
5
Destination Firms
accommodation Firms
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 11
20 30 40 50 60 70 80 90 100
Twitter CampaignsSocial Influence
Video DistributionPress Release Distribution
BrandingLink Building
SMSText MessagingAd Exchanges
Pay Per CallSearch Engines
Pay Per Click ManagementAccommodation Destination
00 200 400 600 800 1000
Pay Per Click ManagementLink Building
Search EnginesVideo Distribution
Social InfluenceSMSText Messaging
Ad PlacementAffiliate Marketing
Twitter CampaignsBranding
Pay Per Call
ACCOMODATION DESTINATION
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
otherperspectiveaccommodationfirmsarefarmorelikelythandestinationfirmstoretainspecializedfirmsforonlinemarketingcampaigns(seeExhibit10)
Thedifferenceinapproachesshowsupmostnotice-ablyinpay-per-callbrandingTwittercampaignsandaffiliatemarketingprogramsDestinationfirmsreportedoutsourcingthesefunctionsonly25percentofthetimewhileaccommodationfirmsfrequentlyoutsourcenotonly
handlethemanyaspectsofonlinemarketingweseethatsuchmattersasTwittercampaignsandsocialinfluencearelargelyhandledinhouse(seeExhibit9)
Indeeddestinationmarketingfirmsareingen-eralmorelikelytohandleallonlinemarketingfunctionsin-houseOntheotherhandpay-per-clickmanagementsearchenginemanagementandpay-per-callcampaignsarequitefrequentlyoutsourcedTakingthisissuefromthe
Exhibit 9
Solutions for online marketing percentage in-house
Exhibit 10
Solutions for online marketing percentage outsourced to specialized firms
accommodation Firms Destination Firms
0102030405060
Destination Accomodation
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
12 TheCenterforHospitalityResearchbullCornellUniversity
Open Source
28
Enterprise18
Custom38Other
8
None8
Open Source
29
Enterprise17
Custom34
Other12
None8
Exhibit 12
Content-management system
accommodation FirmsDestination Firms
thosefunctionsbutalsoadplacementandsocialinfluencecampaigns
Themarketersweremuchmoreinclinedtohandlesocialmediasitesandcorporatewebsitesontheirownthantheyweremobileappsandthemobilewebsitewhichweremosttypicallyoutsourced(seeExhibit11)
AgaindestinationmarketerswereslightlymorelikelythanaccommodationmarketerstohandlemostofthesefunctionsontheirownThebreakdownofsourcesforthecontentmanagementsystemwassimilarforbothdestinationmarketersandaccommodationfirmsjustunder30percentwereopensourcenoteven20percentwereenterprisesys-temsandoverone-thirdwerecustomwritten(seeExhibit
0 20 40 60 80 100
Corporate Website
Mobile Website
Mobile Apps
Social Sites
Site Hosting
Accomodation Destination
Exhibit 11
implementation solutions percentage in-house
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
open source
enterprise
custom
none
other
open source
enterprise
custom
none
other
open source 29
Enterprise 17
Custom 34
other12
none8
other8
none8 open
source 28
Enterprise 18
Custom 38
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 13
12)Formostfirmsthedevelopmentcycleonthesesystemstypicallyoccupiedtwoorthreeyears(seeExhibit13)
Thetwotypesofcompaniestookrelativelysimilarap-proachestosocialmediapoliciesandfunctionalitywithoneexceptionDestinationfirmswereoverwhelminglymorelikelytoselladvertisingspaceontheirsitesthantheaccom-modationfirmswereAsaresultthedestinationfirmsweresomewhatmorelikelytomaintainanadvertisingmanage-mentsystem
Ontheotherhandtheaccommodationfirmsweremorelikelytoprovideonlinepurchasingcapabilities(see
accommodation FirmsDestination Firms
Exhibit 13
average development cycle
Exhibit14)Responsibilityformanagingsocialmediaresidedoverwhelminglyinthemarketingandsalesdepart-ment(58ofrespondents)withasmallpercentageinpub-licrelations(15)ecommerce(12)orasmatteringotherdepartments(15)AskedwhichsocialmediaweremosteffectivethemarketersratedFacebookatthetopfollowedbyTwitterYouTubeandLinkedIn(Exhibit15nextpage)
Accommodationfirmswerefarmorelikelythandesti-nationmarketerstoreportthattheymaintainblogsFifty-onepercentoftheaccommodationfirmsreportedbloggingcomparedtojust31percentofdestinationfirmsTheperson
0 25 50 75 100
have social media strategy
provide online purchasing capabilities
have internal staff for social mediareputation mgt
sell advertising space
provide eCommerce functionality
use an Ad mgt system
Accommodation Destination
use an advertising management system
provide e-commerce functionality
selll advertising space
have internal staff for social media or reputation management
provide online purchase capability
have a social media strategy
Exhibit 14
percentage of accommodation and destination firms that
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two years
Every year
Every three years
Every four+ years
Not sure
Every two
years 34
Every year 23
Every three years 30
not sure
7Every four +
years6
Every two
years 21
Every year 10
Every three years 30
not sure 15
Every four +years15
accommodation FirmsDestination Firms
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
14 TheCenterforHospitalityResearchbullCornellUniversity
0
20
40
60
80
100Fa
cebo
okTw
itter
YouT
ube
Linke
dIn
Flick
rM
ySpa
ceFo
ursq
uare
Gow
alla
Bebo
Ning Hi5
Ork
utHy
ves
Xang
a
Destination Accommodation
responsibleformanagingtheblogwasalmostnevertheCEOorpresidentInsteadbloggingfellprimarilytothedirectorofmarketingthesocialmediaorpublicrelationsstafforinsomecasesexternalpartners
FrustrationsAsshowninExhibit16themarketerscitedbudgetandresourcelimitationsastheirnumber-oneissueOtherissuesweretheabsenceofastrategicplanlimitedmarketknowl-
Exhibit 15
percentage of accommodation and destination firms providing a rating of ldquovery effectiverdquo for social media sites
accommodation Firms
Destination Firms
0102030405060
Destination Accomodation
0102030405060
Destination Accomodation
0 10 20 30 40 50 60 70
Budget Limitations
Resource Limitations
No Strategic Plan
Limited Market Knowledge
Implementation Speed
Technology Limitations
Sign-Off Progress
Unreliable Vendors
Exhibit 16
Factors cited as frustrations in online marketing by accommodation and destination marketers (percentages)
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
CornellHospitalityReportbullApril2011bullwwwchrcornelledu 15
Acknowledgingthepossibilityofhurlingmoneyintotheblackvoidoftheinternetitseemslikelythatthecompa-niesthathavecarefullycommittedresourceswillenjoytherewardsofavibrantelectronicdistributionstrategy
ConclusionOvertimeweanticipatethatbothdestinationandaccom-modationmarketingfirmswillfocusspecificallyonwhereintheirorganizationtheonlinemarketingservicesandstrategyfunctionwillbehousedPartofthatdecisionisafunctionofcorporatecultureofcoursebutitmaybethatecommercewillevolvetobecomeadisciplineofitsownasrevenuemanagementhasdoneinthepastfewyears
ThekeyfactoristoensurethatelectronicmarketingandsalesstrategiesarecongruentwiththeorganizationrsquosoverallmarketingapproachesWhileonlinesalesandcom-mercecanonlygrowastimegoesonthefactremainsthatasubstantialportionofthetravelbusinessisstillsoldviatraditionaldistributionchannels
Perhapsthekeytestforaccommodationanddestina-tionbusinessesismanagingthetransitionfromtraditionalchannelstoelectronicchannelsespeciallysincetherersquosnoguaranteeofagradualchangefromonetoanotherThehistoryofthegrowthanddevelopmentofsocialmediahasbeenoneofdiscontinuityandtherersquosnoreasontothinkthatwersquoveseenanendtonewandunexpectedcommunicationchannelsn
edgeandissueswithimplementationspeedandtechnologylimitationsAfewmentionedunreliablevendors
DiscussionThissurveyshowsanindustrystillintransitionwithregardtoonlinemarketingandelectroniccommerceBasedontheirbudgetexpendituresitrsquosclearthatsomefirmshavejumpedwholeheartedlyintoonlinecommercewhileothersarestilltestingthewaterswithrelativelysmallexpenditures
Onenoteontherangeofexpenditureshoweverwedidnotnormalizethebudgetsonaper-roombasissoitmaybethatacompanythatreportedarelativelysmallbudgetex-penditureinabsolutedollarshasactuallycommittedalargepercentageoffundsinrelationtoitscompanysize
Thatsaidweweresurprisedtofindsuchtinybud-getallocationsforonlinemediaAsubstantialnumberofaccommodationfirmsreportedunder$50000inannualexpendituresandarelativelylargepercentageofdestinationfirmshadallocatedunder$25000Inthiscontextitrsquosworthunderscoringthefactthatrespondentscitedbudgetandre-sourcelimitationsastheirchieffrustrationTechnologyandvendorsarenotstandinginthewayofonlinemarkeitngini-tiativesandstrategiesApparentlymoneyisdoingsoWhileitistruethatmuchcanbeaccomplishedontheinternetforldquofreerdquoitrsquosclearthatseveralfirmshavedeterminedthatitmakessensetocommitresourcestodevelopacomprehen-siveelectronicstrategyinsteadofaldquobootstraprdquoapproach
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
Cornell Hospitality Quarterlyhttpcqxsagepubcom
2011 ReportsVol11No8SearchOTAsandOnlineBookingAnExpandedAnalysisoftheBillboardEffectbyChrisAndersonPhD
Vol11No7OnlineMobileandTextFoodOrderingintheUSRestaurantIndustrybySherylEKimesPhDandPhilippFLaqueacute
Vol11No6HotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesbyAlexSusskindPhDandRohitVermaPhD
Vol11No5TheImpactofTerrorismandEconomicShocksonUSHotelsbyCathyAEnzRenaacutetaKosovaacuteandMarkLomannoVol11No4ImplementingHumanResourceInnovationsThreeSuccessStoriesfromtheServiceIndustrybyJustinSunandKateWalshPhD
Vol11No3Compendium2011
Vol11No2PositioningaPlaceDevelopingaCompellingDestinationBrandbyRobertJKwortnikPhDandEthanHawkesMBA
Vol11No1TheImpactofHealthInsuranceonEmployeeJobAnxietyWithdrawalBehaviorsandTaskPerformancebySeanWayPhDBillCarrollPhDAlexSusskindPhDandJoeCYLeng
2011 Hospitality ToolsVol2No1MegaTips2TwentyTestedTechniquesforIncreasingYourTipsbyMichaelLynn
2011 ProceedingsVol3No4BraveNewWorldOnlineHotelDistributionbyGlennWithiam
Vol3No3SocialMediaandtheHospitalityIndustryHoldingtheTigerbytheTailbyGlennWithiam
Vol3No2TheChallengeofHotelandRestaurantSustainabilityFindingProfitinldquoBeingGreenrdquobyGlennWithiam
Vol3No1CautiousOptimismCHRSExaminesHospitalityIndustryTrendsbyGlennWithiam
2010 ReportsVol10No18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisionsbyLauraMcCarthyDebraStockandRohitVermaPhD
Vol10No17PublicorPrivateTheHospitalityInvestmentDecisionbyQingzhongMaPhDandAthenaWeiZhangPhD
Vol10No16BestPracticesinSearchEngineMarketingandOptimizationTheCaseoftheStJamesHotelbyGregBodenlcosVictorBogertDanGordonCarterHearneandChrisKAndersonPhD
Vol10No15TheImpactofPrix Fixe MenuPriceFormatsonGuestsrsquoDealPerceptionbyShuoWangandMichaelLynnPhD
Vol10No14TheFutureofHotelRevenueManagementbySherylKimesPhD
Vol10No13MakingtheMostofPricelinersquosName-Your-Own-PriceChannelbyChrisAndersonPhDandShijieRadiumYan
Vol10No12CasesinInnovativePracticesinHospitalityandRelatedServicesSet4byCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No11WhorsquosNextAnAnalysisofLodgingIndustryAcquisitionsbyQingzhongMaPhDandPengLiuPhD
Vol10No10CasesinInnovativePracticesinHospitalityandRelatedServicesSet3CayugaSustainableHospitalityChicampBasicJetBlueAirlinesJumeirahEssexHouseTheRitz-CarltonHotelCompanyRuntrizTheSeaportHotelThayerLodgingTripTelevisionandXsenseExperientialDesignConsultingbyCathyAEnzPhDRohitVermaPhDKateWalshPhDSherylEKimesPhDandJudyASiguawDBA
Vol10No9BuildingCustomerLoyaltyTenPrinciplesforDesigninganEffectiveCustomerRewardProgrambyMichaelMcCallPhDClayVoorheesPhDandRogerCalantonePhD
Vol10No8DevelopingMeasuresforEnvironmentalSustainabilityinHotelsAnExploratoryStudybyJieJZhangNitinJoglekarPhDandRohitVermaPhD
Vol10No7SuccessfulTacticsforSurvivinganEconomicDownturnResultsofanInternationalStudybySherylEKimesPhD
Vol10No6IntegratingSelf-serviceKiosksinaCustomer-serviceSystembyTsz-Wai(Iris)LuiPhDandGabrielePiccoliPhD
Vol10No5StrategicPricinginEuropeanHotels2006ndash2009byCathyAEnzPhDLindaCaninaPhDandMarkLomanno
Cornell Center for Hospitality Research
Indexwwwchrcornelledu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
The Executive Path Hospitality Leadership Through Learning
Complete program information and applications available online
wwwhotelschoolcornelleduexecedPhone + 1 607 255 4919 Email exec_ed_hotelcornelledu
Professionals from around the world are invited to attend 3-day 10-day or online courses at the worldrsquos leading institute for hospitality management education in
Visit our website to apply
Explore develop and apply ideas with global hospitality leaders and
expert Cornell professors
Success
AdvancingBusiness
andPersonal
bull Strategic Leadershipbull Financebull Foodservicebull Human Resources
bull Marketingbull Operationsbull Real Estate
wwwchrcornell edu
wwwchrcornell edu
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