Search Marketing "SLAYS" Seasonality in Travel?

This is the conclusion of an article in SearchEngineWatch.

Essentially, what they are saying is that since hoteliers are more savvy now with search marketing, they are able not only to fill up the rooms during low season - but also increase the rates as well. This leads to a "full" hotel year-round. That's sounds great but it ain't reality for most of the hotels...

Here are some tidbits:

"Based on user trends, these organizations manage their search marketing budget and online activities by quarters, monthly, and weekly initiatives. In search marketing, that data becomes even more of a science, breaking down user behavior into daily, even hourly trends when appropriate, in reaction to search ads."

This is the "Holy Grail" but it requires very savvy marketers with very good analytics systems and tight search marketing processes. The former is possible (especially in the mature US market), but the latter two are not so easy. Hotel companies tend to resist spending on infrastructure and systems. "All flash and no cash", as we say.

"So it shouldn't be any surprise that these types of organizations then turn around and start filling that unsold inventory as far in advance as possible, and shortening the gap that used to mean millions (lost) in potential revenue. At least by offering 'last minute' or off-season deals, they're gaining incremental sales in what would've resulted in a loss otherwise."

I just think that these "types of organization" are the exception and not the norm. We have not "SLAYED" seasonality - yet!

"As the occupancy rate shrinks, the gap between 'high season' rates and 'low season' rates gets increasingly smaller. As a result, high season rates continue to track upward with demand, and low season rates aren't as much of a good deal as they once were. That forces travelers to look for new and undiscovered destinations."

True, the off-season deals will not be as good anymore. But as they pointed out, this is destination specific, and not necessarily industry specific. It will also help the smaller hotels, lower star hotels, and the independent hotels in that market that are not as savvy. Additionally, pushing travelers to new and undiscovered destinations is a good thing for the whole industry.

"As search marketers, we're exploiting the trends of seasonality for additional traffic and conversions. The real kicker? As travel search marketers become more effective in paid search, social media, and related online marketing, the concept of seasonality is actually in danger of becoming less relevant."

I disagree with this. Seasonality is based on demand in the market. As they pointed out, if a destination gets expensive, people go elsewhere. The total travel demand is fixed, but where they go will determine seasonality within that destination.

Things like low cost carriers and more disposable income will increase the total travel demand as people want take more holidays and so on. This increase in travel will then affect seasonality but not a shift in travel pattern.

"On the other hand, the seasonality factor in travel may always be affected to a certain extent by the basics of supply and demand, as well as external forces including economic drivers, political unrest, and the unpredictable forces of Mother Nature."

Yeah.. like I just said above.

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Next week .... Posts from ITB - Berlin. Let's see what the Technology Hall has to offer.