Why do Hotels Resist Lead Generating Tools?
For years, the service industry has lagged behind in the hard core sales tactics of product marketers. However, the time has arrived when the next generation of sales people are entering into the services industry. As a result, leads, true leads, are becoming even more valuable. Why are we so resistant to using direct marketing tactics in an industry that prides itself on direct service relationships?
I have spoken to several hotel General Manager’s (and, of course, I was one for the last 15 years) about this very idea. The issue is that it is a novel idea to them and change doesn’t come quickly in the hospitality industry. Questions that I would ask you:
- What is the lifetime value of a new client?
- What is the conversion ratio of a new lead?
- Can you differentiate between a hot and cold lead?
- If a lead cost you $30 isn’t that less than a reservation on a third-party site?
- Would you pay for a lead if you knew that person was traveling to your destination?
The crazy thing is that is the Priceline.com, Hotels.com, Expedia.com, etc. are lead generators. Priceline, more than the others because someone goes online and puts in their destination and basically the hotel says, I will pay Priceline this much money for the reservation. Isn’t that lead generation?
I am going to look into this some more and we will make a case study for Lead Generation in the Hotel Industry.