Hotels that pay TripAdvisor a Business Listing get their direct contact information added to their standard TripAdvisor listing and can display “special offers” for TA users. Hotels pay several hundred or thousands of dollars each year for this service, depending on the size of the hotel. In the UK Business Listings currently cost anything from £225 for properties with less than 5 rooms to £6,500 for large hotels with 500 rooms.
TripAdvisor commissioned Forrester Research Inc., a research company based in Cambridge Massachussets, to analyse the return on investment (ROI) to hotels of this form of advertising on the TripAdvisor website. In conducting its study, Forrester looked at hotels that belong to the Sabre Hospitality Solutions network, a marketing company for the hotel industry that has actively promoted the use of TripAdvisor business listings among its clientele.
According to Forrester Research, Sabre hotel clients are receiving an average of only $6 dollars in incremental bookings for every dollar spent on TripAdvisor busines listing subscription fees.
Putting a brave face on these disappointing results, Amanda Webb, director of online advertising and media for Sabre Hospitality Solutions said “We are encouraging our clients to renew their TripAdvisor Business Listings subscriptions, as many of our participating hotels have seen excellent results. The hotels we represent that utilize RezTrack(R) to measure results averaged six dollars in incremental bookings for every dollar spent on Business Listings, and some hotels are even seeing $20 for every dollar spent” .
Unsaid is the fact that many other clients must be getting a lot less than six dollars for every dollar spent.
“Sabre Hospitality has done a great job identifying new online marketing opportunities for its clients, including TripAdvisor Business Listings, which has generated remarkable results, as the Forrester study reveals,” said Christine Petersen, president TripAdvisor for Business. “We look forward to a strong and ongoing relationship with Sabre and its clients.”