Improved ROAS for Top Hotel

Client: Hilton-Managed Local Hotels, Carlsbad, CA

Case overview

How Target Heart LLC Drove Record-Breaking ROAS for a Hilton-Managed Hotel in Carlsbad, CA

Objective: Increase direct bookings, maximize occupancy, improve revenue per available room (RevPAR), and reduce reliance on costly Online Travel Agency (OTA) commissions.

Industry

Hospitality

Background

Two premier Hilton-managed hotels in Carlsbad, California, sought to improve occupancy rates and drive direct bookings without relying on expensive OTA platforms. However, a significant challenge arose: Hilton’s corporate policies restricted the the client from independently bidding on branded keywords, making it more difficult to compete against third-party booking sites and competitors in Google search results.

Challenges

No Access to Branded Keywords:

Hilton’s corporate restrictions prevented direct bidding on the hotel’s brand name, limiting campaign targeting options.

High OTA Commission Costs:

The hotel relied heavily on OTAs, paying significant fees for each booking, reducing overall profitability.

Seasonal Demand Fluctuations:

Carlsbad’s hospitality market experiences fluctuations in demand, requiring a strategy to maximize occupancy year-round.

Competitive Local Market:

The area had numerous high-end accommodations competing for the same travel audience.

Solution

Target Heart LLC, formerly Target River DM Inc, developed and executed a strategic Google Call-Only Search campaign to drive high-intent travelers directly to the hotel’s house reservation line. This approach allowed for:

1. Google Call-Only Campaign Launch:

Designed and optimized Call-Only Ads targeting potential guests searching for accommodations in Carlsbad.
Focused on high-intent, non-branded keywords related to luxury stays, beachfront hotels, and direct booking benefits.

2. Maximizing Direct Bookings & Revenue:

Implemented audience targeting based on travel intent, location, and booking behaviors to attract high-converting visitors.
Highlighted incentives such as direct booking perks and exclusive offers not always available on OTAs.

3. Mitigating OTA Dependency:

Encouraged direct bookings by positioning the hotel as the preferred choice over third-party platforms.
Educated potential guests on the benefits of booking directly, such as room upgrades and access to unique packages.

4. Dynamic Budget Allocation for Seasonal Adjustments:

Used data-driven strategies to adjust bids and budgets based on demand patterns, ensuring year-round optimization.

The Results

20:1 Return on Ad Spend (ROAS)

The campaign achieved a record-breaking performance, delivering $20 in direct revenue for every $1 spent on ads. Previously, search campaigns struggled to achieve and sustain as much as a 10:1 ROAS.

Increased Occupancy & Room Rates:

Higher direct bookings led to improved room utilization, enabling the hotel to increase average nightly rates.

Reduced OTA Dependency:

The reliance on high-commission OTAs significantly decreased, improving overall profitability.

Overcoming Branded Keyword Restrictions:

Despite not being able to bid on branded keywords, the campaign’s success demonstrated the power of strategic non-branded search tactics. With the ability to bid on branded terms, ROAS could have been even higher.

Conclusion

Through a data-driven, Call-Only Search strategy, Target Heart helped this Hilton-managed hotel in Carlsbad achieve an unprecedented level of direct booking efficiency. By bypassing costly OTA commissions and leveraging high-intent search traffic, the hotel not only increased its profitability but also strengthened its direct relationship with customers.

For hospitality businesses looking to enhance their digital marketing efforts and maximize direct bookings, contact Target Heart today.