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HOSPITALITY TRENDS REPORT
2016
Hoteliers worldwide are fed up. Hospitality brands are reporting bullying practices from the OTAs that include dictating what must be featured on a hotel’s website, how a property can communicate with their guests, and even publishing misleading rates on their websites. A growing movement in the travel world, spurred by these unsavory practices, is encouraging travelers to eschew the shiny discounts featured on booking sites and…gasp…book directly. As it turns out, booking directly was the best way to book all along.
Hotels Find Ways Around Rate Parity
Digital advertising is up 16% in both 2014 & 2015
Projected to hit $69B in 2016 v $66B in 2015
Ad blockers will force advertisers to learn to please consumers again instead of annoying them
DIGITAL ADVERTISING TO OVERTAKE TVWhen was the last time you sat through the commercials during your favorite television show? Exactly. As consumers devour more and more media online, that means they are consuming less and less television. Smart advertisers have already made the move online, but brilliant advertisers are finding creative ways to delight customers withadvertising rather than bombarding them with half-baked trash.
growth in digital video ad spend35% YoY
In the era of instant gratification, witty copy and compelling imagery aren’t enough to appeal to the ADD most consumers seem to have developed. They want information, but not just information - it must be funny, entertaining, or make them feel something. Oh, and it must come in video form. That’s not asking too much is it?
Digital Video Is On The Rise
Growing Spend on Display AdvertisingIn 2016, digital display ad spending will eclipse search ad spending in the US for the first time. Combined,the categories of video, sponsorships, rich media and banners will account for the largest share of digital ad spending. Display spend is expected to hit $32 billion this year.
#Social Is Increasingly DominantAs earned media grows in value, a social media strategy and an influencer outreach plan are a must for marketers who want to boost their brands. In 2015, we saw the rise of live streaming on social with platforms like Periscope coming to the forefront, Facebook hitting the 1 billion mark for users in one day and even Google making changes to its search results to reflect the importance of social posts. Social, once thought of as the internet’s annoying little sister, is all grown up, and everyone has noticed.
One out of every 6 minutes spent on the internet is spent on Facebook
If you haven’t heard of Airbnb then allow me to assist you with removing that rock you have been living under. Hotels are feeling backed into a corner with the meteoric rise in popularity of alternative lodging options. Millennials love experiencing the culture of where they are visiting and often times that means living like a local. The influence of Airbnb is forcing hotels to reconsider their bread and butter. Many hotels will start focusing on recreating lobbies and common spaces as communal spots for socializing, including local elements and uniquetouches to reflect the surrounding city.
Alternative Accommodation Overtaking Hotel Stays
Cultural Diversity
LivingLocal
MillennialsLove
Big Data & The Marketing Ecosystem
No two customers will take the same path to conversion. By using data, marketers can start understanding how different buyer personas are taking different paths to purchase: what is motivating them, what appeals to them, and ultimately what makes them decide to buy
Testing will become increasingly more important when it comes to making data driven marketing decisions
Now, advertising technology can narrow in on specific variables like content and relevant keywords that make the difference between no traffic and heavy traffic to your site
What if every time that you traveled, the hotel concierge greeted you by name and provided you with a list of restaurants in the area that they knew you would love? Most hoteliers get into the business because of special touches like those. They aren’t just hotel owners and employees, but “experience craftsmen” who recognize that a hotel stay is never just a hotel stay, but an escape. Hotels that are already embracing personalization on property and online see an increase in guest loyalty and return bookings. Basically, travelers get a tailored experience and hotels get an increase in revenue. Sounds like a win for all parties.
Personalization
Hello
MOBILE CONTINUESAS FASTEST GROWING SEGMENT
The channel already accounts for 35% of digital spend
In the past year, conversion rates have grown 88% on mobile travel sites
Reaching shoppers during micro-moments is essential
“Consumers are doing research in the many connected moments on mobile and desktop throughout their day. We’re thinking a lot about how we should be evolving our products to keep pace with this change.” - Oliver Heckman (Google)
In 2015, we watched consumers become even more reliant on their mobile devices to tell them where to go, how to get there, and what to do once they are there (it’s a wonder we still have brains at all!) Not only are shoppers browsing on their devices, but they are increasingly making purchases here too - a fact that marketers would be remiss to ignore.
The pervasiveness of technology, especially in regards to the Internet of Things, might seem a bit dystopian to those who value privacy, but it is opening doors in the realm of personalization. Some day in the not too distant future, travelers will be able to breeze through security and arrive at their seats on the plane where a drink they ordered earlier awaits them. Upon arrival at their hotel, they will be able to check in using mobile technology and go straight to their rooms where all of the technology in their rooms will already be adjusted to their preferences.
- Photo courtesy of Teage Design Consultancy
The Internet of Things
