AFFILIATE MARKETING 101
Consumers are looking to get back on the road again. Pent-up travel demand is alive and well, and hotels and resorts must take a hard look at their marketing and communications strategies to ensure they are maximizing potential.
WHY AFFILIATE MARKETING MATTERS FOR HOTELS AND RESORTS
As hotels and resorts reexamine their reopening strategies, affiliate marketing should be at the top of their lists. While earned media relations, digital marketing, and social media are the pillars of a plan, affiliate marketing is a proven supplement to drive site traffic, reservations, and revenue. However, most properties don’t know where to start, and others aren’t quite sure how to build-out efforts to generate more coverage and sales. While many e-commerce businesses leverage affiliate marketing, most hotels and resorts either don’t have a program or know how to use it. By not engaging an affiliate program, hotels and resorts are simply missing out on the opportunity to put more heads in beds.
Still not convinced? Here’s what you need to know:
What is affiliate marketing?
Why is it important?
Are brands using it?
How do you get started?
WHAT IS AFFILIATE MARKETING?
Affiliate marketing is a type of performance-based marketing in which a business rewards affiliates (and their partners—influencers and media) for transactions and sales. This system allows affiliates/partners to promote a brand’s products or services and earn a commission from the sales, actions, or clicks they generate. It typically involves four main players: the brand, the affiliate network, affiliates (influencers/publishers/partners), and the customer.
WHY IS IT IMPORTANT?
Most brands view affiliate marketing as a tactic strictly for influencers and/or bloggers. However, the target audiences go far beyond that to include members of the platform, travel agents, media outlets, and more who can all use affiliate links to generate revenue.
In many ways, your affiliates are your new sales force. They are on the frontlines pushing your brand to their audiences. The best aspect is that there are real-time metrics behind their work. Our team can see who’s driving referral traffic, conversions, and beyond.
ARE BRANDS USING IT?
According to recent studies, 81% of brands rely on affiliate links because they involve very little investment. Brands are using it because it WORKS. Even amidst COVID-19, clicks and orders across top global affiliate networkscontinue on an upward trajectory. The trending rise of clicks and orders showcases that despite retail reopening in many countries, there is a healthy consumer appetite for online shopping that shows no signs of abating.
COVID Weekly Tracking Data - Clicks & Orders
Clicks and orders across Rakuten’s global network continue on an upwards trajectory. The trending rise of clicks and orders showcases that despite retail reopening in many countries, there is a healthy consumer appetite for online shopping (source).
HOW MUCH DOES IT COST?
This form of marketing is a relatively low-risk opportunity for businesses to achieve sales goals. Commission models can be set up so that a property only pays affiliates who generate sales, with those payments being handled after a sale occurs. It’s important to carefully evaluate each program to identify the best fit.
WHERE DOES A HOTEL OR RESORT START?
Often, hotels and resorts know they need an affiliate program, but they have no idea where to start. The key to any strong affiliate marketing strategy is to determine the cost model, affiliate network partner, and the monetization platforms you want to use. Sounds simple, right?
Affiliate marketing is complex and requires ongoing maintenance and strategy. Our team steps in to works with hotels and resorts to expedite the process by managing the program, educating on flexible commission rates, and much more.
It takes a few months to fully integrate and onboard an affiliate program onto a hotel’s site. Therefore, you need to work quickly to identify the right partner. From there, our team walks you through management, payments, and other topics to streamline the affiliate marketing process.
From there, Zapwater finds ways to amplify your program through:
Targeted pitching
Affiliate-focused influencer and media trips and partnerships
E-marketing programs
AFFILIATE MARKETING CASE STUDY
To learn more about how Zapwater has harnessed the power of affiliate marketing for our travel brands, please visit the Fairmont Mayakoba case study on our website. For more than five years, our team has worked with the property to manage influencer marketing, media relations, events, and strategic partnerships. Additionally, we continue to advise the property on affiliate marketing, including implementing several high-profile projects with LikeToKnow.it and rewardStyle publishers.
INTERESTED IN LEARNING MORE?
Interested in hearing more about how Zapwater can help your business maximize the power of affiliate marketing? We’d love to tell you more about how our brands have seen double digit year-over-year growth in affiliate revenue thanks to our programs.
Images via Coco Bassey of Millennielle and Cella Jane Blog