Major market changes
Posted: Wed Aug 10, 2016 9:27 am
Rather than contribute to the thread about market changes post Brexit, I thought to start a new one because several things seem to be on the move. The Pro-EU anti-EU stuff can be dull and ideological- we have to get on with business.
Over the last few weeks, demand has risen. We estimate by about 10%. Agents appear to be doing better than go-it-alone owners, partly we suspect, because people switching from foreign holidays are more used to booking through agents. The reduction in the value of Sterling has helped a little reducing the attraction of abroad and prompting more foreign visitors. The latter are not a key to our business although I have heard that London's tourism is going pretty well out of this.
Internet bullies, such as AirBnB who seem to think it possible to advertise rivals into extinction, are not having their way. This is due to increasing search skills; the wish for a focused selection in the area to be visited; vulnerability to brand smearing; and, perhaps, a growing tendency for smaller agencies to survive offering high quality for guests and owner service. Meanwhile, some moderate and lower quality cottages are migrating to the mega brands.
It is a complicated scene. Listing sites appear to be in the doldrums and the great days when single cottage operators saw significant benefits from organic search results are long gone.
Meanwhile, Facebook appears to be causing Google discomfort as the National and international booking agencies find it of growing use. Because it cannot focus as effectively as Google, smaller regional agencies and go-it-alone owners cannot benefit the same way as big operators. However, we have seen the cost per click significantly reduce on Google Adwords over the last two years indicating that either larger operators have trimmed their budgets or they have found somewhere else to advertise.
But if Facebook finds a way to emulate the focus and edge Google still has for advertisers, it could face the same fate it dished out to Yahoo in the late '90s when it developed its algorithms and sent Yahoo into a long decline to the extinction of its independence a few weeks ago.
Aside from Facebook competition, Google may also be suffering from maturing cyberspace branding reducing the need to advertise on the internet. Combined with an increasing search ability and an increasing market share of younger people, the great days for Google Adwords could be coming to an end.
Over the years, we used to get calls from Google. In 2010 - 2012, they were to assist and help us use Google, with no overt selling angle. Then, things went quite. Recently, we have received calls which are equally helpful but sound more urgent. It is clear these helpful people are focused on getting us to spend more. The old deal was implicit: helpful Google will show you how you can spend more and make more. Now, it is helpful Google.. but spend more anyway.
The last call rushed us into increasing by 10% click bids on a location basis of the entire UK... I commented that we would try this for a time; sure enough, spend went up 10% but total time spent on our site did not rise in proportion. The style was urgent and slightly bullying... in a 'so helpful' way. Google is under pressure.
Many people now see 'abroad' as dangerous. This is driving people to stay in the UK. Enquiries for consultancy from Holiday Lets For Sale have increased with a couple coming through in the last week or so from major AST landlords toying with the idea of quite large scale holiday letting. I would not have advised them to do this since the appalling weather of 2012 and the 2013 Christmas N/Y floods.
But times have changed.
Over the last few weeks, demand has risen. We estimate by about 10%. Agents appear to be doing better than go-it-alone owners, partly we suspect, because people switching from foreign holidays are more used to booking through agents. The reduction in the value of Sterling has helped a little reducing the attraction of abroad and prompting more foreign visitors. The latter are not a key to our business although I have heard that London's tourism is going pretty well out of this.
Internet bullies, such as AirBnB who seem to think it possible to advertise rivals into extinction, are not having their way. This is due to increasing search skills; the wish for a focused selection in the area to be visited; vulnerability to brand smearing; and, perhaps, a growing tendency for smaller agencies to survive offering high quality for guests and owner service. Meanwhile, some moderate and lower quality cottages are migrating to the mega brands.
It is a complicated scene. Listing sites appear to be in the doldrums and the great days when single cottage operators saw significant benefits from organic search results are long gone.
Meanwhile, Facebook appears to be causing Google discomfort as the National and international booking agencies find it of growing use. Because it cannot focus as effectively as Google, smaller regional agencies and go-it-alone owners cannot benefit the same way as big operators. However, we have seen the cost per click significantly reduce on Google Adwords over the last two years indicating that either larger operators have trimmed their budgets or they have found somewhere else to advertise.
But if Facebook finds a way to emulate the focus and edge Google still has for advertisers, it could face the same fate it dished out to Yahoo in the late '90s when it developed its algorithms and sent Yahoo into a long decline to the extinction of its independence a few weeks ago.
Aside from Facebook competition, Google may also be suffering from maturing cyberspace branding reducing the need to advertise on the internet. Combined with an increasing search ability and an increasing market share of younger people, the great days for Google Adwords could be coming to an end.
Over the years, we used to get calls from Google. In 2010 - 2012, they were to assist and help us use Google, with no overt selling angle. Then, things went quite. Recently, we have received calls which are equally helpful but sound more urgent. It is clear these helpful people are focused on getting us to spend more. The old deal was implicit: helpful Google will show you how you can spend more and make more. Now, it is helpful Google.. but spend more anyway.
The last call rushed us into increasing by 10% click bids on a location basis of the entire UK... I commented that we would try this for a time; sure enough, spend went up 10% but total time spent on our site did not rise in proportion. The style was urgent and slightly bullying... in a 'so helpful' way. Google is under pressure.
Many people now see 'abroad' as dangerous. This is driving people to stay in the UK. Enquiries for consultancy from Holiday Lets For Sale have increased with a couple coming through in the last week or so from major AST landlords toying with the idea of quite large scale holiday letting. I would not have advised them to do this since the appalling weather of 2012 and the 2013 Christmas N/Y floods.
But times have changed.
