How to Create a Profitable Affiliate Network for Travel & Tourism: A Guide for Hotels and Resorts

In the travel and tourism industry, you know firsthand how important it is to provide a memorable guest experience. At the same time, you have to manage the myriad of operational details that keep your property running smoothly. You also have to find time to attract new guests.

One way to reduce or eliminate that responsibility is to build a profitable affiliate network. By having a network of affiliates to promote your hospitality business, you can focus on everything else that matters, like satisfying guests.

Create a Profitable Affiliate Network for Travel & Tourism
Define Your Goals & KPIs

With every new venture, including an affiliate program, you want to go in with a goal and a way to measure how well you’ve achieved that goal. For example, you might want to increase direct bookings. You might also feel that you rely too much on third-party booking sites like Hotels.com.

Define Your Goals & KPIs for Profitable Affiliate Network
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And you want to drive more direct reservations through your website.

direct reservations through your website
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Or perhaps you want to increase brand awareness by enhancing the visibility of your hotel or resort in the market. Whatever your goal or priority, write it down and figure out how to measure your progress.

Different key performance indicators (KPIs) to pay attention to include:

  • Conversion rate: Percentage of affiliate referrals that result in bookings
  • Average booking value: Average revenue generated per booking from affiliate referrals.
  • Cost per acquisition (CPA): Average cost of acquiring new customers through affiliates.

Let’s say that your goal is to acquire new guests. You would use CPA to determine the ROI of your affiliate marketing program. This will help you compare affiliate marketing costs to other promotional strategies.

So, how do you keep track of all this data? 

When developing an attractive affiliate program for your hotel, you should also pay special attention to the hotel administration system you are using. 

You need this system to integrate easily with your affiliate program, as this will allow you to:

  • Efficiently track bookings generated through affiliate links
  • Send automatic updates on rates and room availability to affiliates
  • Automate the payment of commissions based on reservations
Develop Attractive Commission Structures

Now, it’s time to figure out how you will pay your affiliates. Of course, you want your commissions to be as attractive as possible to attract top affiliates.

You can offer percentage-based commissions, where affiliates receive a percentage of the booking value (e.g., 5-10%) when a new customer books through their link. Or, you can offer a fixed rate, which is a set amount per booking (e.g., $50 per booking). 

When choosing your commission structure, think about your budget and the number of affiliates you plan to have in your network. To stand out from other hotels, consider offering performance bonuses. These are extra commissions for affiliates who reach certain sales thresholds.

Diversify Your Content Formats

Set up your affiliates for success with compelling resources. Provide them with content like banners and display ads, social media graphics, and email templates.  Create high-quality videos with auto subtitles that showcase your hotel/resort, including virtual tours, guest testimonials, and promotional videos. 

Videos with subtitles are more accessible to visitors from other countries and those with hearing impairments and more likely to be watched through to the end. 

Many travelers prefer to watch a short video instead of reading extensive details. In fact, nearly 51% of leisure travelers say that hotel videos help them choose a hotel and book online. 

So, creating quality movies gives potential guests a clear picture of the experience you have to offer.

Clear picture of the experience you have to offer for Profitable Affiliate Network
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And within your different content formats, highlight the fact that you offer unique packages that enhance guest experiences. For example, suppose you were at a hotel in Normandy. 

In that case, you might partner with tour agencies to offer WWII historical tours, providing guests with an immersive and educational experience that adds significant value to their stay. 

This attracts history enthusiasts and differentiates your hotel from competitors, ultimately driving higher occupancy rates and increased revenue. As a result, you can create broader and more compelling affiliate offerings.

Beaches of Normandy Tours take guests on a journey through well-known World War II sites around Europe.

create broader and more compelling affiliate offerings
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Engage With Influencers and Bloggers

Expand your reach by working with well-known content creators. Nearly 70% of consumers trust influencers, friends, and family over information that comes directly from brands. Look for potential affiliates on social media, YouTube, and travel blogging sites.

Make sure what they post aligns with your offerings. For example, if your hotel caters to luxury travelers, find influencers who share luxury travel content.

Also, don’t just look at their follower count. Just because an influencer has over 100,000 thousand followers doesn’t mean they get high engagement levels on their posts or videos. 

Look for influencers with lots of likes, comments, and shares. And don’t overlook micro-influencers. These are the creators who have built authentic relationships with their audience, which means they’re more likely to trust their recommendations.

Once you’ve made a list of influencers, start reaching out to them. Use a personalized message highlighting why you think they fit your brand well. Mention specific posts or content they’ve created that you admire. 

Collaborate on Content Creation

Invite influencers and other affiliates to stay at your hotel or resort for free in exchange for creating content. During these sponsored stays, ask them to show different aspects of your property, such as rooms, amenities, dining options, and unique experiences.

Collaborate on Content Creation for Profitable Affiliate Network
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Have them include an affiliate link so their followers can book a room at your hotel. Or you can encourage them to share user-generated content (UGC) from their followers to increase authenticity and reach.

If they’re blogging, have them write blog posts about their stay, including images of your hotel/resort. These blogs could be detailed reviews, travel guides, travel management booking or destination highlights. 

Each post can include an affiliate for readers who want to experience the magic of your hotel/resort. To further drive conversions, you can provide affiliates with unique codes to help customers save on booking prices or limited-time offers that encourage immediate action from readers.

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Conclusion

Affiliate marketing is a promising strategy for hotels and resorts. It can help you build brand awareness, increase direct bookings, and drive higher revenue.

But the catch is getting started and building a profitable affiliate network. Hopefully, the strategies we provided in this guide will help you get a head start on creating a network of affiliates who are just as passionate about magical travel experiences as you are.

Comments

One response to “How to Create a Profitable Affiliate Network for Travel & Tourism: A Guide for Hotels and Resorts”

  1. slope 3 Avatar

    How I can start?

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