Web A Key Tool For Hotels

<B> Web A Key Tool For Hotels</B>

By Barbara Cook

<I>Washington</I> - Establishing a well-thought-out advertising and distribution strategy is an essential component of successfully harnessing the potential of the Web, a panel of hotel experts advised.

Speaking at the New Frontiers in Travel Distribution conference here, Doug Rice, president of Stratus Management Group, stated that one of the most critical issues facing hotel marketing executives is that distribution channels are in transition and "hundreds" of new Internet-based sites are available to them.

Hoteliers "can't ignore the fact that the Internet isn't just a distribution mechanism," he said, pointing out that a substantial number of Web site hits are from lookers, not bookers. "The question is, should you be looking at Web sites, in part, as advertising?" he asked.

Jim Zito, marketing information manager for Manhattan East Suite Hotels, a chain of 10 properties, related his experience in selecting Web sites for his company's participation. The two primary guidelines Zito said he used were to choose "appropriate online opportunities," recognizing that "you can't be everywhere" and to keep his inventory control centralized.

Zito said he used several selection criteria to make a final choice of his company's Internet exposure, such as opting for travel-related sites and destination city guides, and seeking sites that attract and support his company's marketing efforts and target audience.

Although discount booking sites are available, Zito questioned whether hotels would want to participate in them and lose customers who realize they could get a cheaper rate via the Internet discount service than from the hotel directly. Features to look for in Web sites include online booking capabilities, links to the company's own Web site, e-mail database and free listing, Zito recommended.

Howard Nusbaum, executive director of the Ohio Hotel Association, described his organization's experience in setting up its own Internet booking site for member hotels. "My members were overwhelmed" by the growing importance of electronic commerce, Nusbaum said. "The dilemma was how to get there and what is the cost?"

The association launched its site in July 1998 with 18 hotels, which has since grown to 200. The organization elected to link to numerous demand-generators, such as the Ohio tourism site, and has partnered with other destination marketers to increase visibility.

The consumer criteria the association used to select a vendor centered on a display that was easy for the consumer to use, searchable by location, bookable as opposed to information-gathering only and offered low-cost delivery.

Hotels effectively can participate in both brand-centered Web sites and destination-based sites, according to John Burns, president of Hospitality Technology Consulting. Being listed on convention and visitor's bureau and chamber of commerce Web sites provides exposure while the hotel's own branded Web site permits extended emphasis on its particular facilities, he said.

Burns added that while Internet booking costs "are far from free, they may still be cheaper than that of other channels."

Impediments to booking on Web sites are eroding, Burns said, noting that there is little evidence of overbooking due to hackers, plus the reluctance of consumers to use credit cards online seems to be disappearing. Some small hotels already receive 50 percent of their bookings from Web sites, Burns said, and the ability of the Internet to produce business for hotels will continue to grow.