Choice Hotels

Choice Hotels International partnered with MMGY Global to increase the effectiveness of their regional marketing initiatives.

MMGY’s main objective was to efficiently increase room bookings via non-branded keyphrases while maintaining sync with the evolving participating property database of 2,700+hotels. This assignment now covers 13 U.S. co-op regions for 11 Choice individual hotel brands.

Insights

MMGY began by meeting with each of the Co-op leaders for all 13 regions and reviewing their past plans. We worked with the Choice website development team to enable us to track conversion and revenue generated from our digital campaigns based on tags implemented on the reservation confirmation page of the ChoiceHotels.com website.

Action

While meeting with the regional leaders we discussed challenges, successes, seasonality, niche targets and key feeder markets for their region. Based on this input, MMGY crafted individual digital marketing plans specifically tailored to drive revenue via the Co-op landing pages to benefit the hotels in the region. On a weekly and monthly basis MMGY reviewed performance of the individual sites on all 13 of the regional plans to evaluate the Return-On-Ad-Spend (ROAS) and optimize the placements.

Sites were added and deleted from the plans based on actual performance data and ongoing testing of new digital marketing partners. As the program continues to evolve we have extended it to include targeting Canadian travelers as well as combining some of the regions into “Super Regions” to broaden the reach – in addition to the more targeted local, state and regional plans.

Regional banner ads have been developed using the national brand promotions or programs that do not include rate discounting – based on Choice’s revenue management and rate parity strategy.

 

Results

At the end of 2010, Choice compared the monthly results for the MMGY online marketing program with the 2009 results. For 2009, prior to MMGY overseeing the program, the total trackable revenue attributed to the program was $18 million. In 2010 the revenue figure increased 96% to $36 million. For 2011 the year-over-year revenue increased to $65 million, which represented growth of 79%. In 2012 the program revenue has jumped to over $130 million in hotel revenue, which represents 100% year-over-year growth. The direct Return-On-Ad-Spend for the regional digital marketing plans in 2012 averaged over 1,000%(up from 770% in 2011).

       
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