1. G REEN E XAM
Knowledge Expertise
SEO •SEM •IQ Digital •Direct Booking •SoLoMo •Case study
Dionisio Andreia
24/01/2012
2. 24/01/2012
Green Exam
Knowledge Expertise
- EXCERCIE 1 -
OTA: It‘s a travel agency is a
Expedia private retailer or public service that provides
tourism related services to the public on behalf
of suppliers such as airlines, cars rentals, cruise
lines, hotels, railways, and package tours. In addition
to dealing with ordinary tourists most travel agencies
have a separate departement devoted to making
travel arrangements for business travelers and some
travel agencies specialize in commercial and business
travel only. There are also travel agencies that serve
as general sales agents for foreign travel companies,
allowing them to have offices in countries other than
where their head quarters are located.
Most consumers are aware of the benefits that
online travel agencies, OTAs, provide in assisting
them in making their travel arrangements.
The values of OTA is : empower consumers in
researching travel destinations ; provide increased
inventory and choices, transparency and comparison
shopping between flights, hotels, other amenities;
offer lower prices and travel specials; provide
consumer reviews and other intel on destinations
and hotels; and give consumers the ability to Blink booking
quickly and easily make travel arrangements.
Examples: Expedia, Voyages-sncf, Travel city,
Orbitz, lastminutes, Priceline, Webjet, etc.
Last Moment Booking Apps : Consumer use a
mobile device to book a hotel room within 24 hours,
and the various reasons for doing so. Many last-
minute holiday bookings are made late at night. The
most commonly cited reason (selected by 50% of
these respondents) was necessity; they had
consumed one or two drinks too many and elected to
spend the night in a hotel.
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With shifting consumer expectations due to the
proliferation of last-minute booking apps, hotels
Hotel to nihgt
must consider the implications of offering rooms
via the last-minute mobile channel. The promise
of reducing empty rooms via last-minute bookings
is nothing new – last minute travel has always
been big in Europe, where the close proximity of
dozens of relatively inexpensive destinations
encouraged many consumers to care less about
advance planning in favor of a lower priced
getaway.
The consumer will book hotels last-minute when
the deals are there for hotels they want, and
when the inventory tightens up, they will shift
back to advance bookings to lock in the hotel they
want. And for the price conscious consumer, there
will be dozens of tools across channels to help them secure the best price for
their travel dollar.
Example : Last-minute, Blink Booking, Hotel to night, Expedia.
SEO : It‘s the process of affecting the visibility of a website or a web
page in a search engine's "natural" or un-paid ("organic") search results. In
general, the earlier (or higher ranked on the search results page), and more
frequently a site appears in the search results list, the more visitors it will
receive from the search engine's users. SEO may target different kinds of
search, including image search, local search, video search, academic search,
news search and industry-specific vertical search engines.
As an Internet marketing strategy, SEO considers how search engines work,
what people search for, the actual search terms or keywords typed into search
engines and which search engines are preferred by their targeted audience.
Optimizing a website may involve editing its content, HTML and
associated coding to both increase its relevance to specific keywords
and to remove barriers to the indexing activities of search engines. Promoting
a site to increase the number of backlinks, or inbound links, is another SEO
tactic.
All major search engines such as Google, Yahoo and Bing have such results,
where web pages and other content such as videos or local listings are shown
and ranked based on what the search engine considers most relevant to users.
Payment isn‘t involved, as it is with paid search ads.
SEM : It is the process of gaining traffic from or visibility on search engines.
The phrase is also sometimes shortened to ―search marketing.‖
SEM is the wider discipline that incorporates SEO. SEM includes both paid
search results (Using tools like Google Adwords or Microsoft adCenter) and
organic search results (SEO). SEM uses paid advertising
with AdWords or Bing Ads, pay per click (particularly beneficial for local
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providers as it enables potential consumers to contact a company directly with
one click), article submissions, advertising and making sure SEO has been
done. A keyword analysis is performed for both SEO and SEM, but not
necessarily at the same time. SEM and SEO both need to be monitored and
updated frequently to reflect evolving best practices. SEM is an umbrella term
that covers two broad areas: Gaining traffic through free SEO efforts and
Gaining traffic through paid search advertising.
In some contexts, the term SEM is used exclusively to mean pay per click
advertising, particularly in the commercial advertising and marketing
communities which have a vested interest in this narrow definition. Such
usage excludes the wider search marketing community that is engaged in
other forms of SEM such as search engine optimization and search
retargeting.
Another part of SEM is social media marketing (SMM). SMM is a type of
marketing that involves exploiting social media to influence consumers that
one company‘s products and/or services are valuable. Some of the latest
theoretical advances include search engine marketing management (SEMM).
SEMM relates to activities including SEO but focuses on return on investment
(ROI) management instead of relevant traffic building (as is the case of
mainstream SEO). SEMM also integrates organic SEO, trying to achieve top
ranking without using paid means of achieving top in search engines, and pay
per click SEO. For example some of the attention is placed on the web page
layout design and how content and information is displayed to the website
visitor.
Interactive Campaigns: Many companies decide of outside the box and
creating innovative campaigns that engage fans and actually work. These
companies harnessed the power of social media and took it out into the real
world, with brilliant results.
Example : Friskies Plus Playhouse is
a playground for rescue cats created
by Facebook fans, which is filmed and
streamed onto Facebook. Fans of the
Friskies Facebook page can control
the cats‘ toys in real time and see the
cats‘ reactions. It‘s a cute idea that
requires participation and
engagement while maintaining the
brand‘s presence at all times.
KLM have done some pretty cool
social media campaigns over the past
few years, and this one is a great
example of how big brands can relate to consumers on a human level by meeting
them in person and giving them a small gift! KLM found passengers who had
made it clear online that they were flying KLM- cue a quick brainstorm over what
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gift would suit this person based on their social media profiles, and a dash to find
them in the airport before they boarded their flights. Hyundai created an
engaging large scale iPhone Controlled Racing Game in Times Square, which, as
the video shows, garnered a lot of attention from passers-by. The draw was a
racing car game, projected on the huge screen, wirelessly controlled via iPhone. It
looked like a whole lot of fun and was a well timed event, happening in early
December, when many people would have been out doing their Christmas
shopping.
Orange, the mobile network provider did something pretty innovative by getting
attendees at the Roxy Pro 2011 surf event to sign up with their Facebook account,
and that data then transferred onto a bracelet that contained RFID technology.
This meant that people could check in their location, tag and take photos which
would upload to their profiles. By doing this they were also in with a chance to
win daily prizes. It‘s a great example of how a company can make an event better
shared and publicised by enabling easier Facebook engagement.
- WHAT TYPES OF BOOKING IS ROOM KEY ?
It‘s an Hotel Booking application.
Founded by a group of leading hotel
companies, Room Key‘s mission is
simple: offer travelers direct access to a
broad network of hotels around the
globe, provide accurate and
comprehensive information, make it
easy for travelers to discover what‘s
right for them. Room Key‘s experienced
hospitality management team has
partnered with great hotel brands to
provide this one-of-a-kind search and
booking experience.
The motivation for hotel companies is
to drive bookings to a less-expensive direct channel rather than costlier OTAs like
Expedia, Travelocity and Priceline. Brand.com bookings also give consumers the
chance to earn loyalty points and allow hotels to handle guests and any customer-
service issues from the moment they book.
A recent report from TravelClick showed brand.com bookings grew 6.1% last
quarter (to 25% of all transient booked rooms), while OTAs accounted for 12%.
Preliminary data from a distribution channel analysis by STR and the AH&LA
last year found the OTA portion to be at 10% in 2010. Though, Adam Saks, the
managing director of Tourism Economics, extrapolated from the study that OTA
bookings cost the hotel industry $2.5 billion.
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Like with many third-party distributors, Room Key charges hotels commissions
for the reservations the site delivers. The fees are negotiable based on various
factors, including the size of the hotels or chain.
Most of the partners have an opt-out arrangement for their owners, who are
automatically enrolled in Room Key. Best Western, with its unique membership
model, is the opposite with an opt-in approach. Room Key is just another
storefront, another distribution channel.
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- EXCERCIE 2 -
Digital IQ is an assessment of how well companies understand the value of
technology and weave it into the fabric of their organization. Growing your Digital
IQ entails more than merely adopting the latest tools or having a large IT
budget—it is about integrating technology into the way a company plans,
innovates, measures results, interacts with customers, and ultimately creates
value.
Despite the greatest economic crisis since the Depression, retailers saw revenues
from e-commerce increase in 2009, signaling a shift from bricks to clicks. By 2014
U.S. online retail sales are forecasted to increase to $250 billion and the web
influences 46 percent of offline purchases. In a new study, NYU Stern Professor of
Marketing Scott Galloway and a team of experts from L2, a think tank for digital
innovation, evaluated and ranked 82 prestige specialty retail brands‘ Digital IQ.
The study measures site and e-commerce strength, digital marketing and mobile
capabilities, social media savvy and search engine marketing and optimization.
The results reveal a relationship between a firm‘s Digital IQ and its year-on-year
revenue growth, suggesting digital competence may be a forward-looking indicator
for sales.
Four Seasons, Hilton and Marriott Top L2′s Second annual Digital IQ Index:
Hotels. This study reveals that differentiated content on site and mobile bookings
drive traffic and high margin revenue. The research demonstrates a clear
relationship between hotel brands‘ Digital IQ and shareholder value.
The Digital IQ incluse :
Web (2.0) and social media adoption is anemic given their power to drive
traffic and sales. Less than half incorporate video on their sites, only 32
percent offer ratings and reviews, and only 23 percent offer online chat, all
shown to boost sales and conversion;
Social media acumen is the strongest predictor of high Digital IQ. While
most brands maintain a presence on Facebook, YouTube and Twitter, the
size of communities and robustness of social media programs varies
greatly; The 17 percent of retailers that incorporate the Facebook ―like‖
button on their site demonstrate 80 percent higher average traffic growth.
Incorporation of the ―like‖ button has grown 75 percent month-on-month;
Mobile marketing : Only 25 percent of brands maintain mobile sites and
35 percent have Smartphone applications. Only six brands have tablet-
specific applications;
Flash sale brands including Gilt Groupe, Rue La La and Haute Look
demonstrate the highest category three month traffic growth (38 percent);
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- EXCERCIE 3 -
Customer Discover Path
Most startups lack a process for discovering their markets, locating their first
customers, validating their assumptions, and growing their business. A few
successful ones do all these things. The difference is that the ones that succeed
invent a Customer Development model. This post describes such a model.
The Customer Development Model
Customer Development is designed to solve the problems of the Product
Development model I described in the four previous posts. Its strength is its rigor
and flexibility. The Customer Development model delineates all the customer-
related activities in the early stage of a company into their own processes and
groups them into four easy-to-understand steps: Customer Discovery, Customer
Validation, Customer Creation, and Company Building. These steps mesh
seamlessly and support a startup‘s ongoing product development activities. Each
step results in specific deliverables.
The Customer Development model is not a replacement for the Product
Development model, but rather a companion to it. As its name should
communicate, the Customer Development model focuses on developing customers
for the product or service your startup is building.
THE CUSTOMER DEVELOPMENT MODEL
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Four Steps
While startups are inherently chaotic (and will never be run from a spreadsheet or
checklist inside your building,) the Four Steps of Customer Development are
designed to help entrepreneurs leverage the chaos and turn it into actionable
data;
Customer Discovery focuses on testing hypotheses and understanding
customer problems and needs – in front of customers – by the founders
Customer Validation is where you develop a sales model that can be
replicated and scaled
Customer Creation is creating and driving end user demand to scale sales
Company Building transitions the organization from one designed for
learning and discovery to a well-oiled machine engineered for execution.
Market Type
Integral to the Customer Development model is the notion that Market Type
choices affect the way the company will deploy its sales, marketing and financial
resources. Market Type changes how you evaluate customer needs, customer
adoption rate, how the customer understands his needs and how you should
position the product to the customer, etc. As a result different market types
modify what you do in in each step of Customer Development.
Customer Development is Iterative
Learning and discovery versus linear execution is a major difference between this
model and the traditional product development model. While the product
development model is linear in one direction, the customer development model is a
circular track with recursive arrows.The circles and arrows highlight the fact that
each step in Customer Development is iterative. That‘s a polite way of saying,
―Unlike product development, finding the right customers and market is
unpredictable, and we will screw it up several times before we get it right.‖ (Only
in business school case studies does progress with customers happen in a nice
linear fashion.) The nature of finding a market and customers guarantees that
you will get it wrong several times.
The Customer Development model assumes that it will take several iterations of
each of the four steps until you get it right. It‘s worth pondering this point for a
moment because this philosophy of ―It‘s OK to screw it up if you plan to learn from
it‖ is the heart of the methodology.
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The Facts Reside Outside Your Building
Customer Development starts by testing your hypotheses outside the building.
Not in planning meetings, not in writing multiple pages of nicely formatted
Marketing Requirements Documents, but by getting laughed at, ignored, thrown
out and educated by potential customers as you listen to their needs and test the
fundamental hypotheses of your business.
Failure Is an Option
Notice that the circle labeled Customer Validation in the diagram has an
additional iterative loop going back to Customer Discovery. As you‘ll see later,
Customer Validation is a key checkpoint in understanding whether you have a
product that customers want to buy and a road map of how to sell it. If you can‘t
find enough paying customers in the Customer Validation step, the model returns
you to Customer Discovery to rediscover what you failed to hear or understand the
first time through the loop.
Customer Development is Low Burn by Design
The Customer Development process keeps a startup at a low cash burn rate until
the company has validated its business model by finding paying customers. In the
first two steps of Customer Development, even an infinite amount of cash is
useless because it can only obscure whether you have found a market. (Having
raised lots of money tempts you to give products away, steeply discount to buy
early business, etc., all while saying ―we‘ll make it up later.‖ It rarely happens
that way.) Since the Customer Development model assumes that most startups
cycle through these first two steps at least twice, it allows a well-managed
company to carefully estimate and frugally husband its cash. The company doesn‘t
build its non-product development teams (sales, marketing, business
development) until it has proof in hand (a tested sales road map and valid
purchase orders) that it has a business worth building. Once that proof is
obtained, the company can go through the last two steps of Customer Creation
and Company Building to capitalize on the opportunity it has found and validated.
Customer Development is For Winners and Warriors
The interesting thing about the Customer Development model is that the process
represents the best practices of winning startups. Describe this model to
entrepreneurs who have taken their companies all the way to a large profitable
business, and you‘ll get heads nodding in recognition. It‘s just that until now, no
one has ever explicitly mapped their journey to success.
Even more surprising, while the Customer Development model may sound like a
new idea for entrepreneurs, it shares many features with a U.S. war fighting
strategy known as the ―OODA Loop‖ articulated by John Boyd and adopted by the
U.S. armed forces in both Gulf Wars – and by others.
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Customer Engagement for the Morgan Hotel Group :
The Customers have different egagement points :
booking : through booking App, OTA, website, etc.
Discovery : official website, Hotel and Group information, Tripadvisor
comments, blog, forum, etc.
Inspiration : Social Media, word of mouth, search (google, SEO), design of
website, etc.
Thus, the approach of the customer who wants to book a room will be: it will first
compare the hotel with the competition and learn (forum, blog, social media, etc..),
It will then go to the website the hotel will analyze it and look at the calendar, the
event in the hotel and around the hotel, and once made are opinions on the hotel
reserve. For booking, good SEO is necessary not to lose a customer. As the picture
shows, the Morgan Hotel Group is well referenced. The customer can quickly find
the website and book directly.
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Excercie 4 -
SOLOM O
What does SoLoMo mean?
In recent years an increasing shift in media habits can be observed. The massive
proliferation of smartphones has opened up new fields of marketing and greats
enormous potentials. Within these developments a new trend - called ―SoLoMo‖- is
arising. Although there is no consistent definition to this trend, SoLoMo
represents a movement that meets the needs of users and integrates their daily
offline life into the online world. It is a combination of social applications and
creating local content on mobile devices. The three basic pillars of SoLoMo ‗Social‘,
‗Local‘ and ‗Mobile‘ offer a modern perspective of how to interact with customers.
It means to offer users an added value by supporting his needs and wants to
interact and recommend with his community wherever he is at the moment. Social
- in the sense of an online community. Similar to existing social networks like for
example Facebook, the recipients can interact and produce their own content,
which they share with other customers wherever and whenever he is on his
mobile phone. The new aspect and perspective for companies is the local
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component. To offer the customer an added value when he is close to a shop helps
to apply for a new target group and bound them to a brand: walk-in customers
So, SoLoMo emerged as a result of the growing popularity of smartphones, and
provides greater local precision to search engine results via geo-location
technology. The GPS technology integrated into these devices provides more
accurate geo results than the "IP mapping" approach necessary for home or office
PCs.
Also, big search engines are recognizing that there is a large - and virtually
untapped - market in local search. That's because there are a lot more "mom and
pop" operations out there than firms with a national or international scope. When
search engines started incorporating more and more local results in search engine
results, they proved the size of the local market on the Internet.
Finally, in order for search results to have accurate local results, they need
accurate information about local businesses. Good local search results just aren't
possible unless what "local" actually means is made clear. This has proved to be
problematic for browser-based search requests. But as an increasing number of
searches are being driven by apps, this problem has disappeared simply because
most apps have a larger arsenal of tools that allow them to determine exactly
where the user is.
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Requirements
The technological development in the mobile sector is one basic requirement for
the rise of SoLoMo. Applications as Near Field Communication (NFC), Quick
Response Codes (QR-Codes) and Global Positioning System (GPS) are only
keywords and an abstract of new possibilities. Particularly important for
―SoLoMo‖ marketing are Local Based Services (LBS) that allow companies to
contact their local clients directly. This helps to reduce the amount of waste
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coverage in marketing. As well measurements are relieved as SoLoMo campaigns
can directly be tracked and measured.
Objectives
SoLoMo marketing regulates the five main objectives. It offers a new possibility
of customer acquisition: to bound walk-in customers. Despite that companies can
easily increase their customer retention with price comparisons, company
information, recommendations, word of mouth and a direct communication with
their customers. Through check-in functions more benefits can be given to the
client, that creates an added value for the use of the application. The benefits
can occur as couponing or discounts which also helps to strengthen the image of a
modern, communicative company. Through applications short and
importantinformation of products or the company itself are easily shared with the
customer. In the center of all SoLoMo activities lies finallysales as the last
objective of SoLoMo.
Strategies
Strategies of ―SoLoMo‖ focus on the interaction with the customer,
to integrate them in activities and to create thereby an online and offline
experience. Information and notification can be given about products or features
to let customers learn and educate about the company and to create traffic in
stores. SoLoMo applications should help to build a relationship between company
and customer with a continuous contact and a rising community of people who like
to talk about the company and its products. Thiscommunity is one basic pillar of
SoLoMo. Therefore it is important to identify local influencers and to gain them
for oneself creatingaccess by being available whenever they prefer. In summary, it
is essential to equip each channel and each application communicative, so that it
can result in a direct dialogue between companies and customers and transaction.
From the set of strategies different tactics derived and displays in a large variety.
Examples from experiences are the campaign ―Getaway Stockholm‖ by MINI, and
as well the campaigns of Bing together with Jay-Z.
Conclusion and Perspective
Recent developments demonstrate that ―SoLoMo‖ marketing measures have
a huge potential in a new field of interaction with your customer. SoLoMo will
become even more important because of the smartphone and internet access
development. It can be conclude that SoLoMo will not be a temporarily movement
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– it will be a serious communication channel for companies. Therefore companies
should not miss to build a relationship through SoLoMo with their customers now.
This can only work if the client‘s needsare at the center. ―Commercial exploitation
of SoLoMo potential will therefore only succeed if a clear benefit is offered to the
user.‖ The walk-in customers can be attracted and bounded to your store. Beside
that SoLoMo offers simple methods of campaign measurements in comparison to
traditional marketing measures.
The possibility to proclaim your opinion all the time demands the allover standing
question if SoLoMo leads to ‗grassroots-Marketing‘ in the future. Everyone has the
possibility to share, communicate, interact, recommend and criticize. It offers a
wide range of possibilities and as well disadvantages for companies with several
affordable objectives.
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- EXCERCIE 5 -
What is predictive Marketing ?
Predictive analytics encompasses a variety of techniques from statistics,
modelling, machine learning, and data mining that analyze current and historical
facts to make predictions about future events.
In business, predictive models exploit patterns found in historical and
transactional data to identify risks and opportunities. Models capture
relationships among many factors to allow assessment of risk or potential
associated with a particular set of conditions, guiding decision making for
candidate transactions.
What the difference is between ―predictive analytics‖ and ―predictive marketing‖?
While predictive analytics can be applied to a wide range of fields and industries
(e.g. supply chain, security intelligence, real estate, professional sports, sales and
CRM, mar-ket-ing, insur-ance, etc.), pre-dic-tive marketing represents the direct
application of predictive analytics to the needs and chal-lenges of the marketer.
As the leader in predictive marketing, Adobe seeks to empower digital marketers
with the ability to make intelligent, forward looking decisions through
automation, visualization and user experience innovations coupled with powerful
predictive models.
Needs of Predictive Marketing:
Identify the customers and prospects who are most likely to buy your
product
Attract new customers cost effectively
Better target an audience through market segmentation
Customize messaging to individual customers and prospects to increase
response
Retain a higher percentage of customers
Accurately track and analyze the results of marketing programs, so you
can measure ROI
Successfully introduce new products
Rapidly optimize your marketing programs
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The Benefits of Predictive Marketing
Predictive marketing provides value to everyone from analysts to technology
experts to web content managers in all industries. For the advertiser trying to
identify which variables are most predictive of increased CTR (click through rate),
predictive marketing provides a solution. However, publishers can leverage pre-
dictive marketing to forecast advertising inventory for future periods. The follow-
ing table represents some examples of the types of challenges solved by predictive
marketing for different types of digital marketers:
The Aberdeen Group recently published an article entitled Predictive Analytics
for Sales and Marketing: Seeing Around Corners that outlines the significant
benefits that come to those organizations that apply data mining and statistical
modeling to optimize marketing efforts. Predictive marketing drives as much as
2X lift from marketing campaigns, 76% higher click-through rate, and 73% higher
sales lift.
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Predictive marketing represents the next phase of analytics and optimization for
digital marketers. We have completed our pregame warm up and we are now
ready to enter the big leagues. Over the coming weeks I will take time to dive
deeper into specific applications of predictive marketing and how digital mar-
keters can leverage predictive marketing in their decision processes and
workflows.
What is Google Hotel Finder, how is it related to hotel direct
bookings?
Google Hotel Finder has been around
for a while, but this week Google has
started displaying Google Hotel results
aggressively in SERPs (search engine
result pages). Google Hotel Finder is
designed to be a one-stop-shop for
accommodation planning. It is designed
to display relevant information from
many hotels that fit your search criteria,
and then give you reservation options.
Similar to how Google scans other
websites to find information to display,
Google Hotel Finder gathers hotel
information from a variety of places.
How Google Hotel Finder Works :
Google Hotel Finder is Google‘s attempt to dominate another search niche.
Anything that can be searched, should be searched from Google, or so goes their
thinking. Thus, they developed Hotel Finder to be a dashboard from which to shop
for accommodations. Couple it with Google Flights , and you have a fully-fledged
trip planner. Google makes money by selling promoted hotel placements to hotels
and OTAs. Google acts as a middleman between the guest and an OTA, or the
hotel, adding yet another layer to the customer acquisition funnel.
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Hotel Price Ads
OTAs bid for prominent placement in Hotel Finder using an exclusive service
called Google Hotel Price Ads, which is similar to Google Adwords. Hotel Price
Ads is not available to the public. Instead, Google develops direct relationships
with OTAs, large hotel chains, and prominent CRSs, giving them access to Hotel
Price Ads so they can re-sell the service to
independent hotels. This means that
independent hotels can‘t sell their rooms
directly from Google Hotel Finder unless
they purchase advertising services from
organizations that have access to Hotel
Price Ads.
Hotel Website Links
If the hotel has a website added to Google
Local, then Hotel Finder may provide a
link to the website, allowing guests to book
directly from the hotel website. However,
the link is hidden under a ‗more‘ drop-down
button. It has no pricing information and is
at the bottom of the list, discouraging
clicks. In order for an independent hotel to
take over the red booking button and sell rooms directly, the hotel must hire a
service to run Hotel Price Ads on their behalf, and win a bidding war between the
competing OTAs.
Why Should You ?
Google incorporated Hotel Finder listings into standard search queries. Google
‗seattle hotels‘ and you find a Hotel Finder search box at the top of the list. This is
valuable real estate in the SERP Google could be using to place more AdWords
ads, but instead they‘re promoting Hotel Finder, demonstrating their dedication to
this ‗experiment‘. If people adopt Hotel Finder, then having a prominent listing
with many reviews will be important to stand out among the crowd for local
queries. The following OTAs and GDSs can be used to help you get the hotel
rooms and rates listed on Hotel Finde
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