|
[January 28, 2004]
gCommerce Unveils New Internet-based Hotel Marketing Management Program
Officials of gCommerce, an innovative, new Internet marketing management company, today announced that it has successfully launched its Web-based hotel marketing and distribution management services company. The newly created firm provides a full menu of electronic marketing services to hotels ranging in size from 50-room boutique properties to 200-room, full-service luxury hotels.
"The Internet is probably the most intimidating and least understood of all the marketing tools available to a hotel," said Scott van Hartesvelt, director of commerce. "It also is one of the most valuable when used to its fullest extent. Unfortunately, the typical hotel realizes only about 25 percent of the potential revenue that the Internet can provide."
He noted that the typical hotel today generates an estimated 15 percent of revenues through on-line channels, compared to an average of 38 percent of revenues gCommerce has generated for its client hotels. "The secret to success in Internet hotel marketing is to constantly review and respond to changing market conditions. We focus on everything from building shoulder-season business to increasing revenue for the next day."
Among the tools that gCommerce uses are online brand development, yield and distribution management, preferred placements on key Web sites, search engine marketing, Web site design management, email marketing, negotiating contracts with on-line booking services, highly targeted "guerilla" marketing campaigns, IT infrastructure and CRM. "Successful Internet marketing is like preparing a complex recipe," van Hartesvelt said. "It has many different ingredients that must be stirred and integrated, often with split-second timing. Because of the broad cross-section of skills required to successfully conduct hotel Internet marketing and distribution, it is not cost-effective for a hotel to staff to do the work internally."
The gCommerce staff averages more than 18 years of hotel experience and 10 years of technology expertise. "We combined seasoned hoteliers who have had extensive operational experience with technology experts who understand all the nuances of the Web."
Van Hartesvelt said that gCommerce generates higher returns for its clients because the company fully understands hotel operations and integrates itself into the overall hotel management team. "Technology is only a small piece of the Internet marketing and distribution puzzle," he said. "You also have to be 'fluent' in contract negotiation, ad placement and yield management, and know how to build strategic relationships and market creative promotions to drive new business."
The firm rigorously tracks all revenue that its programs create for the hotel. "We have the mechanisms in place not only to determine every specific project's cost-effectiveness but also to monitor gCommerce's cost-effectiveness," he said. "We are particularly proud of the high return on investment we have achieved for each of our clients. Our marketing program costs plus fees are generally about 10 percent of gross revenue, similar to a travel agent commission rate."
"While gCommerce is responsible for both the day-to-day maintenance and long-term strategic view of a hotel's Internet presence, we believe it is vitally important to maintain superior tracking and record-keeping, which we share on a weekly basis with hotel management," he added. "By keeping the hotel abreast of what goes on at the Web site as it happens, we literally are able to make split-second adjustments to our strategies to take advantage of new opportunities to drive revenue as they arise."
Van Hartesvelt noted that, in one case, gCommerce was able to increase occupancy by 48 percent in the first three months of taking on a new assignment. "Occupancy was down 2 percent year-to-date when we were called in. Now, six months later, we account for more than $1.2 million in sales at that hotel on an annualized basis."
[ Back To TMCnet.com's Homepage ]
|
INDUSTRIES
Activate Email 
