Posts tagged as:

business listing

Trip Advisor continues to flog business listings with poor ROI

by Todd Lucier on October 20, 2010

Act Fast, TripAdvisor offer for business listings (which has never been offered at a regular undiscounted rate!) is now 20% off.  If you remember when the service; which allows accommodations providers to list their phone number and provide a direct link to their Web property first launched, the service was offered at 50% off.  The big threat was that after January the cost would skyrocket.  One year later, that offer looks like it was only a 37.5% discount!

Is it legal to offer a 50% discount that, well, isn’t?

Too Expensive

TripAdvisor knows it is outrageously expensive to advertise on business listings.  That’s why they have never asked anyone to pay full price.  Instead of removing the cash grab altogether as they do for restaurants and attractions, TripAdvisor  now offers hoteliers the option of making monthly payments for their listing!  Sounds like death by a thousand little cuts to me.

ROI – Is a Business Listing worth the cost?

When I first started marketing I used the cost of a new customer as a way to determine the relative value of my investment.

Using Trip Advisor’s math, I only need to earn six new clients directly from TripAdvisor to profit from the arrangement.

Sorry, a customer acquisition cost of $200 doesn’t allow much room for profit.

. . . and of course that’s if things go as well as Tripadvisor promises…..

Trip Advisor ROI promise still a poor rate of return

What does TripAdvisor have to do to profit from the arrangement?

Income: $1200 (in the example sent me)

Expenses incurred:

  • invoicing and accounting for the income generated.
  • flipping the switch that turns on contact info like TripAdvisor already does for restaurants and attractions at NO COST.

Why do restaurants get a free ride with TripAdvisor?

Looks like a great deal for TripAdvisor, but for the accommodation sector in tourism, this cash grab is more than annoying.  It would be great if TripAdvisor could share some beaming hotelier success stories from business listings.

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Trip Advisor makes a cash grab with enhanced Business Listings, can small business afford not to invest?

by Todd Lucier on November 17, 2009

TripAdvisor is leveraging the power of its network of travelers… some 25 Million Monthly users in order to pull cash from the wallets of business listing members. New enhanced business listings will include links to your Website, email address and phone number.

What’s the cost of Trip Advisor Enhanced Business Listings?

The cash grab, including the 50% off special LOW RATE for hotels with less than 10 rooms is a whopping $300. Larger hotels will be paying THOUSANDS of dollars. If your hotel has over 100 rooms get ready to shell out over $3000 (if you get in early!), that’s $6000 if you wait until after january, 2010.

For most smaller tour operators, bed and breakfasts, inns and hotels posting a link to your Web site and email and including your phone number in your TripAdvisor listing is a decision that will weigh heavily.

Can operators afford not to have the full listing of what has become the Yellow Pages of the Internet for bed and breakfasts, hotels and inns especially?

For those who track their inquiries and sales with religious ferver, the amount may easily be offset by new revenue from direct bookings. If you’ve never tracked business from TripAdvisor, it might be best to take a pass on this offer.

Trip Advisor Business Listings Cash Grab

Best to Wait it out?

My advise is that tourism businesses need to wait a while to see if the value will be realized. TripAdvisor is sure to be gauging the response of operators to the pricing of this “value-added” service?? to its business members. If we all ignore the emails being sent out, perhaps TripAdvisor will be a little more small business friendly in the pricing of these enhanced listings. It’s worth hoping for isn’t it?

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