A joint study by STR and Google focusing on two major hotel markets shows search engine volumes correlate with increased hotel demand. Higher Google search volumes are strongly correlated with higher hotel demand levels, according to an analysis from STR and Google.Ê
For the purpose of their regression analysis, STR and Google selected New York City and London as case study markets due to proportionate market size and other comparable hotel performance indicators. Search patterns and hotel performance trends were studied for each market in 2015 and 2016. Ê
ÒOur study showed a statistically significant relationship between Google search data and the number of room nights actually sold in the two markets,Ó said Robert Bauer, STR Senior Analyst. ÒGlobal markets vary greatly as it relates to seasonality, consumer travel behavior and economic factors, but it is reasonable to project a similar correlation for other established markets in the hotel industry. This is important for hoteliers in assessing interest in a particular destination and measuring how booking patterns evolve around that interest.ÓÊ
In year-over-year comparisons, Google searches for accommodation in New York City grew 3 per centÊin 2015 then jumped 7.3 per centÊin 2016. Hotel demand (room nights sold) increased 2.8 per centÊin 2015 and 5.8 per centÊin 2016. Google search volume for accommodations in New York increased following the November 2016 election with high interest levels from both domestic and international travellers.
Accommodation searches in London rose 2.1 per centÊin 2015 but only 0.8 per centÊin 2016. Hotel demand in the UK capital increased 1.7 per centÊin both 2015 and 2016. November and December of 2016 were particularly strong months for accommodation searches and demand in London, which is attributable to the fall in the value of the British pound.
To view the complete STR and Google analysis, please click here.Ê
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.
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