It never ceases to amaze me how online services continue to require hefty membership fees.  The internet is the most efficient information distribution tool ever invented.  In today’s lean economic environment, bed and breakfasts are seeking value in their marketing and advertising budgets.  With the wide array of services available to inn managers for free, why do we continue to pay year after year those annual membership fees for services.  This is the perfect time to re-evaluate our spending on those annual memberships that we sometimes blindly pay year after year.

One example I can highlight is a recent advertising email sent by PAII, the Professional Association of Innkeepers International.  The email is targeted at bed and breakfast innkeepers like you, and professes how the PAII is advocating on your behalf.  Specifically addressing problems the PAII sees with TripAdvisor, they indicate how some of the operations and policies of the Tripadvisor site have flaws that can cause significant financial hardship to your business.  They say that this the message innkeepers all across the country have been letting PAII know loud and clear. They ask what the individual innkeeper can do to address this most critical area?  After citing that PAII’s President & CEO has been tirelessly meeting and negotiating with the management team of TripAdvisor advocating for you, the rest of the email basically amounts to an advertising pitch to sell memberships in their organization at a reduced rate (for 6 months as opposed to a full annual membership).

Let me be clear that the PAII is a reputable organization which adds value to bed and breakfasts and inns in the U.S.  However, know that membership in one or more of these types of organizations can cost between $100 and $300 EACH per year.  When you start looking at how these memberships hit your bottom line, what you need to focus on are services “support services” that bring in business, not “support groups”.  Also, beware of organizations that claim to be international, but boast a membership of predominantly North American companies.

So, as the new year approaches, look for some new opportunities to build your online footprint with some truly global services.  Pay special attention to services that do not charge a membership fee.  There are many such valuable services easily available.  And, think about eliminating some of the more expensive annual memberships that are not really critical to the operation of your business.

Collective Marketing is a new concept gaining a lot of attention these days in the online marketing and SEO (Search Engine Optimization) world.  And, it’s a term that is very relevant to marketing your bed and breakfast inn or small hotel on the internet.

So what is Collective Marketing?  The concept is that the more relevant websites and online services that your bed and breakfast or hotel is listed with, the more exposure and brand recognition you gain.  This is true even if some of the individual sites or service yield no direct return.  This is actually not a new concept per se.  It is the theory of synergies in marketing, the idea that 1 + 1 equals more than 2 when it comes to advertising your small business.

As a consultant in the online marketing world for hotels, I have frequently heard lodgings question why they should keep a listing with services that don’t return any reservations, or that don’t have an immediately apparent direct benefit.  The answer is quite simple.  As long as a website offers free advertising, links, articles, or other mention of your hotel business, then it definitely makes sense to maintain the relationship.  Even if you don’t see any direct revenue stream from the website in question, know that the exposure your property’s name receives on the internet will multiply. 

How many times have I searched for a lodging on the internet only to find no more than one page listed.  If you have the benefit of having your hotel’s name listed on multiple pages on different websites on the internet, consider yourself lucky.  This name recognition ultimately has an influence on search engine rankings, and translates into brand recognition.  When prospective guests search for your bed and breakfast on the internet and your name appears in several or more listings, there is a perceived reputation gain.

So remember, next time you consider removing your hotel from an advertising listing simply because of ROI concerns, think again.  If you have a free listing on a web service like an online booking service, don’t give it up.  Beyond the collective marketing advantage, online travel services are growing rapidly.  In these lean economic times, you too can ride the growth that they experience.

How secure are online bookings these days?  Everyone knows how online booking works.  A small deposit is collected from the traveler at the time of booking.  Our advice is that the optimal deposit amount to collect for a booking on your own website is 35%.  Why 35%?  Research shows that one-third of the booking amount is the best deposit level to secure bookings, ensure that bookings are not fraudulent, and ensure you do not have a loss if the guest changes their plans.  Since one-third is 33.3%, and is an awkward amount to collect, our advice is that 35% is the most efficient amount.  If you prefer a range, then our recommendation is 35% - 75%.

Before we get into the details about collecting deposits, let’s talk about some basics.  First of all, don’t use services that require you to manually confirm bookings, contact your guests directly, and obtain deposit monies yourself.  These services are still in the 20th Century.  There are still quite a few of this type of reservation service that claims “instant booking”, but cannot deliver.  Beyond this, if your online booking method involves a Paypal interface, know that this method still does not work for guests in many regions around the world.  Also, for bed and breakfasts in North America or Europe, using a service like this is like putting a sign on your front porch saying “We’re Un-Professional Amateurs!”  This is not exactly the reputation you want to develop for your website.

You certainly need a professional third party service that is able to collect more than just Visa and Mastercard.  You need a service that is able to collect at least 4 major global card types.  If you feature online booking on your own website, know that almost all major booking services are able to collect 5-10% deposit for your bookings.  But is this enough?  No.  You should be collecting from 30% to 75% deposit for every booking taken on your own website.  There are 2 reasons for this.  One, guests who have found your website, and are interested in booking with you, are serious about staying with you.  They know that if they’re paying on your website, they’re going to have some personal interaction with you, and their reputation is on the line.  Fraud transactions on a hotel’s own website are infrequent.  Second, since you know the guest is serious, you want to collect a reasonably high deposit to secure their booking, and eliminate any possibility of problems in the event of a cancellation or no-show.  BedBreakfastTraveler.com (Instant World Booking) recommends collecting either 35% or 50% as the optimal deposit for most bed & breakfasts and small hotels.

Instant World Booking is one of the only services that enables you to collect more than 10% deposit at time of booking.  In fact, they can enable collection of up to 100% of your bookings at reservation time, effectively enabling you to collect credit cards right online from your own website.  Instant World Booking takes this service one step further, offering full no-show and cancellation protection.  With this service, you are guaranteed to receive your deposits, even in the event that a guest cancels late or does not show up.

Check out more of our controversial topics and advice at our blog.  We’ll lead you to the most effective and low-cost solutions for marketing your property.