Mobile Marketing: Hotel Bookings Show ROI Despite Recession - Advertising Age - Digital

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Mobile Hotel Bookings Show ROI in Recession

A Look at an Emerging Channel Marketers Aren't Cutting

NEW YORK (AdAge.com) -- Hotel operator Marriott reported an earnings loss for the fourth quarter last week, but there's one small encouraging sign: the chain's mobile bookings.

Marriott Mobile generated $2 million in gross revenue between its August 2008 launch and the end of the year. But revenue from mobile bookings in January was headed upward fairly quickly, the hotel chain told Ad Age.

Meanwhile, Omni Hotels' mobile site has grown 85% in the past six months, and Hilton's mobile channel has generated a 22% return on investment for the brand. Those kinds of numbers are bright spots in a tough time for hoteliers -- and they show that even in recession, companies are willing to invest in and experiment with new media when the ROI is clear.

While some hotel operators have dipped their toes into mobile advertising, none has aggressively promoted its mobile site. But customers are finding the sites anyway, as often-early-adopting business travelers buy rooms wirelessly when travel plans change because of flight delays or bad weather.

One of the biggest drivers: convenience

A third of U.S. travelers have used their mobile phones to access the internet, although only 15% of travelers showed interest in purchasing travel using their handsets, according to a PhoCusWright survey based on about 800 responses. On the upside, 48% of travelers who earn more than $200,000 a year said they were open to getting travel offers, vs. 32% of those who earn less. Twenty percent of the highest-earning group said they were interested in mobile bookings, likely because they're early adopters.

"Convenience will be one of the biggest drivers," said Kyra Hicks, who directs Marriott's online-sales programs.

Omni Hotels' mobile site has also been working ...

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