High Paid Search Budgets Under Scrutiny

31 October, 2008 by Martin Kelly

Online accommodation powerhouse HotelClub, with annual gross bookings of more than $500m, has dramatically cut its marketing reliance on paid search. Managing Director Chloe Lim told Travel Today: “The paid search stream provides the least amount of revenue for us. In the early part of 2002 it represented 50%. It’s very dangerous for a company to rely solely on paid search.”

Other companies are also finding the cost of paid search – marketing through the likes of Google – uneconomic. Some big travel operators are paying Google more than $2m a year. Rising costs mean the focus is shifting to Search Engine Optimisation to gain high organic rankings or other traffic generating methods such as affiliate marketing.

Last month car hire site Oodles cut its $40,000 monthly Google spend by 40% and is now focussing more on affiliate marketing. Managing Director Steve Sherlock told Travel Today: “We have a 30% conversion rate from visits direct to our site and only 7.5% though Google. Google visitors are also not repeat users.” Sherlock said Google advertising had been generating 50% of traffic. Travel Trends.biz: November 1, 2008

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Events

'REAL TIME - Sydney, March 30'

When: March 30, 2012
Where: Amora Hotel Jamison
Program: Real Time
Bookings: $499 + gst Early Bird

BOOK now to get the Early Bird rate for the No Vacancy accommodation industry conference in Sydney.

Real Time is the theme of No Vacancy 2012, reflecting the fact that we live in a world where everything happens now, or not at all.

In no business is this more obvious than tourism. Booking lead times are now measured in hours not days or weeks.

To succeed requires a new way of doing business, a fresh mentality and a fair amount of nerve.

The program is packed with the information you'll need to thrive in today's just-in-time world with a focus on distribution, marketing, innovation, consumers and technology.

Speakers confirmed so far include the following, and there are a few more on the way...

Rachel Argaman, CEO, Toga Hospitality
Dave Audley, Heading of Consulting, Experian Hitwise
Quentin Briard, GM Australia & NZ, Club Med
Daniel Bridges, Head of Travel, Trade Me (NZ)
Julio Bruno, Global Vice President Sales, TripAdvisor
James Cassidy, HomeAway.com.au
Robbie Cooke, CEO, Wotif.com
Will Deague, CEO, Art Series Hotels
Dean Dransfield, Director, Dransfield Hotels and Resorts
Bob East, CEO, Mantra Resorts
Leah Lipman, Area Director Reveneue Management Australasia, IHG
Simon McGrath, CEO, Accor Australia
Bryon Merzeo, Analyst, STR Global
Bernard O’Keefe, Group Online Marketing Manager, Hamilton Island
Todd Parker, Founder, Parker Travel Collection
Nikolai Pitchforth, Head of Online Travel, Google
Brett Pointon, Founder, Oaks Hotels and Resorts
Anton Stanish, GM, The Stayz Group
Janet Wilson, Managing Director, Nationwide Hospitality

It'll be a great day. As usual, the focus will be on distribution, marketing, sales, innovation and technology for both hoteliers and Online Travel Agents.

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Returning September 17, 2012

The date has been set for TRAVELtech 2012 - Monday, September 17.

Meanwhile, thanks to everyone who attended TRAVELtech: Best of Enemies in Sydney recently.

It was a fantastic event, lots of fun with a touch of controversy.

Please check out the photographs or use this link to see great 360 degree panorama shots of the conference from Panedia.

TRAVELtech is Australia's original web travel, marketing and distribution event, featuring a compelling program, great speakers and fantastic networking.

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