LATEROOMS.COM EXPERIENCES 60% RISE IN BOOKINGS

LateRooms.com has traditionally run a number of in-house algorithms for the majority of its paid search campaigns. Whilst this internal structure had been successful in helping to establish LateRooms.com as one of the UK's leading online accommodation specialists, LateRooms.com recognised that outsourcing the paid search element of the business could increase profitability and bookings, whilst freeing up internal resources to concentrate on other valuable marketing activities such as Search Engine Optimisation (SEO). By employing the skills and expertise of Efficient Frontier, the search engine marketing (SEM) specialist, LateRooms.com has seen a 60% increase in bookings across its UK and European campaigns.

LateRooms.com is one of the UK’s most popular accommodation websites, offering deals on over 22,000 properties worldwide. The company offers a huge variety of accommodation types ranging from budget bed and breakfasts, to self-catered apartments to luxurious five-star hotels. LateRooms.com prides itself on offering customers regular savings of up to 70% on room rates for a variety of independent and branded hotels.

Internal Limitations

Scaleable resources are the key

During the autumn of 2008, LateRooms.com decided to survey the market to see what benefits an SEM specialist could bring to the business. Following a detailed look at a variety of SEM providers, LateRooms.com selected Efficient Frontier to manage its Search campaigns over the three major search engines. Glyn Powditch, Head of Business Analysis at LateRooms.com explains, "Although we had received relative success with our internal algorithms, we were experiencing significant limitations which could only be addressed by an external SEM specialist. Whilst we had a talented team of mathematicians working in-house, we recognised that it would be impossible for us to employ the number of high quality experts required to apply complex mathematical theory to business problems on a day to day basis. Also, as the business expands into new territories we require scalable resources that can adequately manage the increased needs of the business - something which we simply cannot provide in-house."

Mathematicians vs. Marketers

Forward visability using accurate simulations

Powditch continues, "We looked at a number of SEM providers in the market, but felt that Efficient Frontier presented the strongest business proposal with the most logical and efficient mathematical practices. One of the key business drivers for selecting Efficient Frontier was their strong presence within the SEM market coupled with the fact that all their employees have a strong mathematical background and possess a genuine talent for achieving maximum uplift in online campaigns."

Efficient Frontier provides an SEM solution that is based on applied mathematics. Efficient Frontier pioneered the application of modern portfolio theory to SEM and today manages more than $900 million in annual search spend globally.

Success and Global Expansion

Excellent customer service

Following the success of the campaign, LateRooms.com has now signed up to a full-service contract with Efficient Frontier. Powditch adds, "The results that we have achieved from working with Efficient Frontier have been outstanding. In January 2009 we saw a 60% rise in bookings and a 128% increase in profit compared to January 2008; and all this was achieved with only a 33% increase in our paid search spend. At the outset of the campaign we were impressed with the uplifts Efficient Frontier had achieved in a simulation model, but these were very conservative compared to what has actually been achieved."

Powditch explains, "Having Efficient Frontier manage our paid search campaign has allowed us to focus more of our in-house resources on other online activities such as our SEO strategy and other pressing business matters. This has proved very successful because we were recently ranked number 1 for SEO of all online travel agents in an independent survey."

As LateRooms continues its global expansion, there are plans to extend the paid search campaign into popular European territories such as France, Germany and Spain as well as Eastern European territories such as Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia, Slovenia and Russia. As LateRooms' presence grows throughout Australia, the company is also looking to expand the campaign wider.

Powditch concludes, "The service that we have received from Efficient Frontier has been fantastic. I firmly believe this is mainly due to the quality of staff at Efficient Frontier and the fact that they understand the underlying requirements of our business. By utilising the Efficient Frontier technology we have achieved a powerful blend of highly accurate forecasting which has enabled us to maximise ROI from our Search campaigns. We have also received excellent customer service from Efficient Frontier and we look forward to a long lasting business partnership with them."