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Wednesday, 25 November 2009 17:42 UAE time

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‘E-volution’ or extinction?

by Katie Harvey on Sunday, 22 February 2009

The internet is not new. E-mail, e-ticketing, e-commerce and online bookings - once almost the stuff of science fiction - are now generally so routine as to be near unnoticed in most developed countries.

And although most of the Middle East is admirably well-developed in terms of infrastructure and traditional commerce, it is under-endowed ‘e-wise' and positively puny in the e-applications to the hotel world.

We all know - we all should know - that the online travel market is growing rapidly. Travel industry research company PhoCusWright (www.phocuswright.com) predicts online hotel bookings worth some US$40 billion in 2009.

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This is a big number, but is still just 31% of the total forecast hotel revenue for the year. Looked at another way, it means there's another US$89 billion out there that will be booked the old-fashioned way.

These figures alone relate to direct online bookings, but what about all the marketing opportunities the web offers to showcase properties and whet consumer appetites?

Marketing budgets are being slashed. Pressure to maintain market share is increasing. The hotel customer is evolving. Any two of these factors should be enough to make a marketing department take action. All three at the same time and only the most internet-savvy will thrive.

It's often the simplest questions that are the most uncomfortable to answer. Here's one: is your hotel ready for the digital age?

I asked myself this question and the realisation of my limited e-marketing knowledge was indeed uncomfortable. Actually, it was rather frightening. Truth be known, you probably feel the same way, too.

There tends to be a tug-of-war between IT and sales and marketing as to who is responsible for managing this technical world of e-commerce and e-marketing. Actually, it's less a tug-of-war and more a competition to see who is the most willing to offload responsibility onto the other.

Logistically and logically, what is really needed at the hotel is an e-commerce Manager.

Although some hotels in the city have already created this position, it is not yet common. For many communications and marketing communications managers, it's a steep learning curve.

Websites such as www.hotelemarketer.com are eloquent guides for e-marketing novices and the ideal starting block for understanding the possibilities the online world possesses.

Look at your own company website; its accessibility, selling power and user friendliness are the first step of any e-marketer's journey. But once your online shop window is ready for the eyes of the world, how do you ensure that potential customers are visiting your website? This is where Search Engine Optimisation, or simply SEO, comes into play.

SEO is the process of increasing your ranking in search engines such as Google and Yahoo in order to be a desirable choice for online surfers. Experts in this field exist - find one.

Additionally, online advertising, email signatures, HTML campaigns and third-party travel websites, portals and blogs can all drive traffic to the homepage, increase awareness and hopefully result in increased bookings.

Companies through which hotels can communicate with existing, nicely categorised databases of people are also popular avenues. The likes of AMEinfo, DubaiNightPlanner and Time Out online tell us - once the hotel has paid for the privilege, naturally - what and where we will be eating and staying and doing on the weekend.

The advantage of using third-party vehicles is the campaign report that follows that allows marketing managers to observe the trends of consumers and what grabbed their interest.

It seems that although venturing into the realm of e-marketing means different tools, good service, relationship management and quality will still shine through. They always do.

The key is not to fall behind in the race to go online, but also not to compromise the message the hotel wants to deliver. It may well be that 31% of bookings this year will come from online engines, but to disregard the 69% which arrive through other channels is reckless.

E-marketing should complement and echo all the other marketing activities happening within the property.

With a tricky year ahead we can look to the West to predict online trends and try to emulate them with IT and marketing managers working hand in hand.

Evolution may begin with an "e", but then again so does extinction.

Katie Harvey is the communications and brand manager at Mövenpick Hotel Bur Dubai.

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