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Digital Trends DIGITAL TRENDS FOR THE HOTEL INDUSTRY JANUARY - JUNE 2017 NET AFFINITY Welcome to the second edition of our digital trends report, designed to be the essential companion for the savvy independent hotelier. Our in-house experts at Net Affinity are constantly collecting and analysing several sources of data in order to bring you the most relevant emerging trends, to help you get ahead of your competitors. In this edition we have lots of great insights on trends affecting our business as well as holding a magnifying glass up to political changes such as Brexit and how this is impacting hoteliers across Europe. As we continue to champion the book direct movement, we want this digital trends report to arm you with the information you need to get more bookings through your brand site and in turn reduce your cost of acquistion. GET IN TOUCH Website: www.netaffinity.com With our experience in hospitality and passion for achievement, Phone: +353 1 293 9906 our job is simple: we make yours easier. Email: [email protected] The Forum, Ballymoss Road, William Cotter Sandyford, Dublin 18, D18 VE83, Ireland Managing Director © NET AFFINITY TRENDS REPORT - 2 WE’VE ANALYZED NEARLY 13 MILLION WEB SESSIONS. HERE’S THE STORY FOR HOTELS’ DIGITAL PRESENCE TODAY. Our newly updated digital trends report focuses on current cornerstone items for hoteliers. We’ve analysed the data from nearly 13,000,000 hotel website sessions, including digital transactions, booking patterns and more, and compared what we are seeing with industry trends at large. The report focuses on what our most prevalent data is telling us right now. Some key items to focus on for the second half of 2017 include mobile website performance, looking at the impact of global events on local demand for travel, and finding the best ways to evaluate your digital marketing efforts. Each chapter gives a concise summary of the data, commentary on what it means for hotels, and clear actions points to help you get the most out of it. The data reviewed the following from 1st January – 30th June 2017: 12,800,000 hotel website sessions © NET AFFINITY TRENDS REPORT - 3 TABLE OF CONTENTS 01/05 Who’s Travelling? 05/26 Device Trends Discover who your guests are. Who’s searching for How are guests finding your hotel now? Mobile your hotel, and who is making the booking . traffic continues to grow, and bookings are beginnig to follow. 02/9 Brexit Effect 06/30 Design Trends How Brexit has impacted the hotel industry so Mobile-first design and fast loading times. How to far. What you can do to plan for further challenges optimise your site for mobile users. presented by the falling pound. 03/ 14 Booking Behaviour 07/36 The Hotel Traffic Landscape When are people booking, and how long for? What The marketing mix. Activity for increasing brand patterns have emerged around booking purchases and awareness and revenue, and how to track your arrival. successes. 04/21 Booking Insights Conversion rates for special offer pages. Why they’re important and which offers work best. © NET AFFINITY TRENDS REPORT - 4 1 WHO’S TRAVELLING? WHO ARE YOUR GUESTS? Who are your guests? While you should be looking at your own guests in careful segments on a property level, it’s helpful to take a look at the industry at large. This data can tell you who you should be trying to talk to on different devices. Let’s take a look at who visits, who books, and which devices they use: Who Visits Women made up the majority of visitors. The ratio of female to male users is more than 2:1, at 69% female and 31% male. This may reflect that more women are doing research, or that women simply prefer to visit more sites during their research. The young - but not too young - are the most enthusiastic travellers. 56% of visitors to hotel websites are 25-44, and the strongest demographic is 25-24 (28.8% of users). Who Books While more women book than men overall, this number is skewed by the higher number of women visiting sites. On the whole, men convert 1.5 times more often than women, although they contribute less revenue and transactions overall. As far as the age of your guests is concerned, the same pattern as above holds true for transactions and revenue as well. Those aged 25-44 make up about 55% of transactions and revenue. However, it’s worth noting that those aged 45-54 and those over 65 convert more often. This suggests that by the time your more mature guests reach the website, they are more ready to book. Younger ones, most dramatically those age 18-24, tend to shop around a bit more before committing to a booking. © NET AFFINITY TRENDS REPORT - 6 HOW DO YOUR GUESTS BEHAVE ON DIFFERENT DEVICES? People behave and book differently on different devices, as we’ll dive into more thoroughly in our Device Trends section. For now, here’s how mobile and tablet users stand out from the overall pool of your hotel website visitors: Mobile visitors are slightly younger: 10% of mobile visitors are between 18-24, and 63% of them are 25-44. Tablet users are slightly older: only 4% of them are 18-24, and over 40% of visitors who browsed on tablets were over 55, compared to mobile’s 11%. Those over 55 convert much less frequently on mobile, while those 25-34 book the most often. However, on tablet, the data shows that those 25-34 book much more frequently than any other demographic on any device. While tablet traffic is stagnant, this is a fact worth taking note of. Are more women or men browsing on smaller devices? Nearly three times more women browse on their mobile than men. On desktop and tablet, these numbers are closer together: only about twice as many women as men browse on the larger devices. In terms of revenue and transactions, while men still convert more often than women on mobile and tablet, the numbers are closer than they are overall. On mobile, men convert 1.25 times as often as women, as compared to 1.5 times more often across all devices. This could suggest that in general, women tend to spend more time online to research and plan trips, whilst men tend to go on these sites to make the purchase. Source: Google Analytics Demographic Data Data representative of: 12.8 million web sessions across all Net Affinity Clients. Age data is 67.87% of total users, gender data is 65.91% of total users. © NET AFFINITY TRENDS REPORT - 7 ACTION POINTS 1. Track your demographics carefully and look at individual markets. Our figures are averaged across hundreds of hotels and cover different markets, and yours might be quite different! 2. Gather geographical intelligence. Use Google Analytics and your booking engine statistics to your advan- tage. Begin by analysing the geographical breakdown of your bookings. Ensure you have other markets that you can focus on in low periods. Make this a part of your book direct messaging. Are you targeting guests in new markets? Use your own hotel’s data to create special offers specifically for your target markets. © NET AFFINITY TRENDS REPORT - 8 2 THE BREXIT EFFECT WILL BREXIT CHANGE WHO BOOKS? On March 29th, British Prime Minister Theresa May triggered Article 50 to start the process for the UK leaving the European Union. Then, less than a month later – on April 18th – the PM called for a snap general election, which fell out in a very different way than polls had predicted. We at Net Affinity have being watching developments closely, along with the rest of travel industry and, indeed, everyone else. Brexit will certainly affect tourism – but what specific impact will this have on the hotel landscape? Early signs from June 2016, when the initial vote for Brexit took place, showed few changes to demand in the market. However, with the recent change in dynamics in Westminster, has the outlook for hotels shifted? Here’s one change we can currently analyse with certainty: the drop in the pound versus the euro now makes EU countries a more expensive destination in the eyes of the United Kingdom and Northern Irish traveller. We’ve examined the situation across Europe in depth below. THE BREXIT EFFECT: WHAT WE KNOW In June 2017, the CSO (Central Statistics Office for Ireland) released figures stating that UK visitors to Ireland were down by 7% and overall visitors to Ireland were down by 1% for the first quarter of 2017, compared to the same time last year. This occurred as other local destinations and long-haul destinations were up. including North America (+ 13%) and Australia (+16%). However, it’s not all bad news, hoteliers in Ireland are reporting a strong start to 2017. Almost 3 in 4 Irish hotels show business levels are up compared to this time last year, according to the IHF. The 3.8% increase from January to July this year is coming from, US and continental markets. That trend is also reflected across mainland Europe, the two most popular tourism destinations, Spain and France, have each reported a rise in tourism figures for the first half of 2017. Spain confirmed a12 % increase according to The National Statistics Institute, who announced that 36.3 million tourists arrived between January and June. 8.6 million of which came from Britain, an increase of 9.1 percent over the same period last year. It is predicted that UK travellers will branch out to ‘cheap’ destinations where the weak pound will go further, such as Bulgaria, enabling developing countries to capitalise on this opportunity and grow tourism trade.
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