Get real about the costs of social media activity

Have a look at this article –

http://blog.revinate.com/2011/11/the-changing-face-of-revenue-management.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+revinate+%28The+Revinate+Blog%29

Note this statement – “Because the goal of revenue management is to maximize revenue many hoteliers are actively working on their social media strategy knowing that if they can engage and capture guests on their own Facebook page or through Twitter and have them book directly, the acquisition cost is lower than through an OTA.”

I couldn’t resist posting a comment as you’ll see, not because, as you all probably know by now, i have a love-hate relationship with OTA’s, but because, as in just about every article I read about B2B and commercial use of social media, there is utterly and absolutely no understanding of the cost (and worse still the risks) of social media activity, its usually either ignored, or assumed to be free (with no downsides usually reported either).

The quote above again takes no account of the cost of the social media activity.

This is a major issue I have with social media, this idea that many think its free (often because its done in house) and its anything but. We really need to compare apples with apples here. One thing about the OTA costs is its absolutely transparent, and all the OTA marketing effort is included in the commission %

I suspect by attributing a ‘real’ (and reasonable) cost to social media activirty, the reverse of that statement is probably true. Furthermore if you employ the services of a so called ‘social media expert’ (an expression I have a major problem with), this will only serve to exacerbate the situation.

 

 

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