How should Local Lodging owners advertise?

December 4, 2017

The UNWTO estimates tourists will take 1.8 billion trips by 2030, up from 1.2 billion in 2016.

This number creates a lot of opportunities for tourism-related activities. Quite a significant amount of people decide to rent out their houses in specific periods to earn some extra money. They face many challenges, one of the most significant is seasonality as in any tourism business.

For this kind of business typically a full house is better than an empty house, even when you are renting it for a short period of time or for a lower price. Of course, there are some expenses such as cleaning, TV, wifi, water, and electricity which are common to almost every Local Lodging.

How can a proprietor advertise before the low season in order to have the house full? What are the best countries to advertise on? Which are the countries where having an ad costs less and has the best return ratio?

Reviewing Nanigan’s study about Facebook advertising we are able to identify European countries where the Cost per Click is lower than others. For example, Belgium where the CPC is around $0,78 and Switzerland where it is $0,96.

Countries where the Cost Per Click is low, provide good opportunities regarding advertising and ad placement. Low CPC allows you to target a wider audience using the same budget you would spend in a country with high CPC.

The problem is that for some of the countries where the CPC is lower the inhabitants don’t travel as much.

Inhabitants of countries such as China and the U.S. spend more than 100 billion U.S. dollars per year traveling and visiting foreign countries.

Using the Portuguese example, the largest number of tourists come from the United Kingdom, Germany, France, and other European countries which also have high tourism expenditure. For someone from Portugal, new in the digital advertising world, it may bring a considerably higher return advertising for European countries rather than for China or the U.S.

Using the example of Germany and the United Kingdom:

This is only a small piece of data which may help you form your strategic choices in ad placement when creating your campaign.

As you can see, understanding online advertising is not easy. The example presented above is just the tip of the iceberg. For instance, you must afterward multiply the CPC by the expected click to conversion rate, to start making a more informed decision.

Local Lodging proprietaries are one of the main groups wants to serve. We understand this kind of business and the challenges it faces, so ultimately that’s why we offer a simple solution for everyone to be able to create an ad with 3 clicks. The ads will be suited to your goal and will target the right groups to help your business, without you having to work out the math.

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