Why Custom Branded Merchandise Delivers Better ROI Than Traditional Hotel Advertising
- Florida Custom Merch
- Jun 29
- 5 min read
In today’s competitive hospitality landscape, hotels are constantly looking for smarter ways to stand out, attract new guests, and build lasting loyalty. The usual suspects in hotel advertising—Google Ads, online travel agencies (OTAs), social media ads, billboards, and influencer campaigns—all play a role. But there’s one often-overlooked tool that consistently delivers outstanding long-term brand value at a fraction of the cost per impression: custom branded merchandise.
From the beach towel a guest brings home, to the reusable water bottle they carry to the gym, promotional products quietly do something that digital ads can't: they stick around. They get seen. They get used. And they work.
So, why should hotels invest in branded merchandise as part of their marketing mix? Let’s break it down.
The Problem with Traditional Hotel Advertising
Most hotel marketers rely heavily on short-term advertising. Google Ads might drive clicks, social media ads may create buzz, and OTAs certainly bring in bookings. But all of these platforms have major drawbacks:
They’re expensive. A single click on a Google ad in the travel category can cost $4–$10 or more. OTA commissions eat up 15–25% of every booking. And even modest billboard campaigns can run $1,000–$10,000/month.
They’re temporary. Once the ad spend stops, so does the exposure. Even the best-performing Instagram ad disappears from feeds in 24–48 hours.
They don’t build relationships. Most advertising is transactional. You might win a click or a booking, but you don’t win the guest’s loyalty or lasting attention.
Now contrast that with branded merchandise.
Branded Merchandise: The Overlooked Powerhouse
Branded merchandise, also known as promotional products or swag, refers to physical items—usually imprinted with your hotel’s name, logo, or slogan—given to guests, event attendees, or staff. Think:
Tote bags
Water bottles
Branded hats or towels
In-room mugs or coasters
Travel kits, pens, keychains
S’mores kits for family resorts
Notebooks and pens for conferences
These items are far more than just freebies. When used strategically, they become ongoing marketing tools that cost very little per impression but generate strong emotional and visual impact.
Let’s Talk ROI: Cost per Impression
Branded merchandise offers exceptionally low cost per impression (CPI). According to industry data:
Promotional products can cost as little as $0.005 to $0.50 per impression.
Google Ads often run $0.50 to $2.00 per impression.
Social media ads average $0.10 to $0.50 per impression.
Billboards may cost $3–$8 per 1,000 impressions, or $0.003–$0.008, but are not targeted and can’t be interacted with.
OTAs don’t technically charge per impression, but commissions make their effective CPI extremely high.
And unlike digital or print ads, promotional items don’t disappear. They stay in cars, bags, kitchens, and offices. That one-time investment continues paying off for months or even years.
The Indirect ROI Advantage: Brand Loyalty and Recall
While branded merchandise doesn’t always deliver immediate, trackable conversions like a Google ad, its indirect ROI is often more powerful. Here’s why:
It builds emotional connection. Giving a guest a quality, useful item feels more like a gift than a sales tactic. It fosters goodwill and strengthens the guest experience.
It keeps your brand top of mind. A water bottle used daily or a travel mug that makes it to the office provides subtle but powerful reminders of your brand—without interruption.
It’s shareable. Unique or fun items (especially “Instagrammable” ones) encourage social sharing, expanding your brand’s reach organically.
It drives word of mouth. A friend asks, “Where’d you get that bag?” and your brand enters a new conversation.
Why It Works So Well for Hotels
Hotels are uniquely positioned to use branded merchandise creatively and effectively. Why? Because guests already associate the experience with comfort, style, and takeaways. Here are some of the ways hotels can weave merch into their operation for maximum impact:
1. Welcome Gifts at Check-In
Offer custom tote bags, sunscreen, pens, or keychains as part of a welcome kit for premium guests or long-stay travelers. It sets a positive tone from the start.
2. In-Room Amenities
Place branded mugs, coasters, slippers, or bathrobes in rooms. Guests use them during their stay—and often want to take them home. Bonus: you can offer them for sale at the front desk or gift shop.
3. Pool, Spa & Beach Distribution
Give guests branded water bottles, towels, or flip-flops at the pool or spa. These items get used in public, creating local visibility, especially in resort towns.
4. Weddings & Conferences
Provide notebooks, pens, and keepsakes in welcome bags for event guests. Branded candles or s’mores kits add a personal touch. Dual-brand the items with your hotel logo and the event name to boost retention.
5. Check-Out Thank-Yous
Hand out small thank-you gifts like mints, travel pillows, or snack kits with a friendly note. This simple gesture creates a lasting final impression.
6. Gift Shop Upsells
Offer high-quality branded apparel, hats, and drinkware in your gift shop. Guests who loved their stay will want to bring a piece of it home—and they’ll keep marketing your hotel wherever they go.
Tips for a Successful Branded Merch Strategy
To get the most ROI from custom merchandise, your hotel should:
✅ Choose items with utility. Water bottles, mugs, bags, and pens get more use than novelty items.
✅ Focus on quality. Poorly made items reflect poorly on your brand. Choose items people will actually want to keep.
✅ Distribute smartly. Don’t just leave them sitting at the front desk. Match items to experiences—like spa towels at the spa, or mugs in the room.
✅ Tie in your branding. Include your logo, a hashtag, website URL, or even a QR code that links to a return guest offer.
✅ Encourage sharing. Create fun packaging and signage that invites guests to post about the item on social media using your branded hashtag.
What Hotels Are Saying
Hotels that have embraced branded merch report better guest engagement, stronger word of mouth, and even improved reviews.
“We handed out branded towels at the pool and guests started using them everywhere. We’ve even had guests tag us in photos from other countries with their towel!”— Resort Manager, Florida
“We gave out custom mugs at a winter wedding hosted at our lodge. The bride said her guests still talk about them—and some came back for a visit!”— Boutique Hotel Owner, Colorado
Final Thoughts: A Lasting Impression for Less
At the end of the day, people remember how they feel, not just what they see online. Branded merchandise delivers a tactile, emotional connection that most other marketing simply can’t.
If you want to:
Reduce your reliance on expensive ad platforms
Boost brand loyalty organically
Get long-term brand visibility at a fraction of the cost
And surprise and delight your guests…
…then custom branded merchandise deserves a place in your marketing plan.
It’s not just swag. It’s strategy.
Would you like help choosing merchandise ideas that match your hotel’s audience or events? We’re happy to help! Reach out for samples, creative concepts, or a free quote.
With so many options available, choosing the right branded promotional item can be overwhelming. Since 2016, we, at Florida Custom Merch, have helped numerous businesses achieve success through the use of custom branded promotional merchandise. Hiring an expert can help you select the perfect item, save time and money, and, most importantly, maximize your results.
Thank you for reading! We hope you found this article helpful!
Most Popular Types of Custom Merch
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