KUDO Hotel Case Study
Increase in Direct Bookings
Decrease in Customer Acquisition Cost
Kudo Hotel is a 26-room boutique hotel and beach club, located directly on the white sands of the renowned Patong Beach. It offers modern accommodation and premium quality service for leisure travelers from markets including the US, Middle East, Russia and Europe.
Prior to Covid-19, business in Phuket was booming. The popularity of the island destination meant that many hotels were able to fill their rooms without the need for much marketing support. That all changed in 2020 of course and businesses in the tourism industry had to make significant adjustments in both how they operated and in their marketing strategies.
With demand lower than ever, Kudo Hotel needed to find a way to reduce their costs, while at the same time compete with the branded hotel chains in the area that had much higher awareness. Their dependency on OTAs (online travel agents) was resulting in an average commission of 20% on all indirect bookings and their newly developed website was driving little to no revenue for the property.
With a clear understanding of Kudo Hotel’s target audiences and the completion of a website audit, 444 Media put together comprehensive paid media and SEO strategies that would not only focus on driving much needed traffic to the Kudo website, but that would target high value users that were likely to convert. Paid media efforts included Google Ads, Facebook Ads and YouTube Video Ads, while SEO work included the implementation of technical SEO, the creation of a website blog, as well as backlink building targeted towards both branded and non-branded keywords.
The effect of 444 Media’s work was immediate and significant. One month after initial implementation, Kudo Hotel went from generating no revenue through their website to generating 29% of total revenue through their site. This monthly revenue continued to increase from there and had doubled by month six, with 50% of total hotel revenue coming through direct online bookings. More importantly, the bookings were being generated at a much lower cost than the OTAs. By the end of month six, the ratio of media spend to revenue generated through the Kudo website had reached 4.67%, compared to the 20% commissions being paid to online travel agents.