TodayÕs rapidly-evolving technology and hyper-connected society have revolutionized the tourism industry. The ever-increasing use of smartphones to book travel can represent a blessing or a curse for hoteliers, depending on how they choose to tap into the tech-driven transformation of the industry.
Savvy hoteliers must use powerful, smart technology to survive and thrive in todayÕs competitive landscape, competitively capture last minute reservations, engage with their hotel guests and discover opportunities to provide better service, thereby increasing loyalty. A strong digital and mobile strategy is essential to providing the flexibility and responsiveness that guests increasingly expect in todayÕs travel market.
Mobile is not a niche channel anymore; itÕs used for every stage of the travel process from inspiration, research, and booking. Not having a mobile or digital strategy is no longer a viable option for hoteliers.
In response to these developments, the Expedia group, the worldÕs largest online travel company, created Expedia¨ PartnerCentral (EPC). The platform is available for ExpediaÕs Australian hotel partners. Moving forward, it will be increasingly crucial for hoteliers to use digital tools to ensure that they are staying up-to-the-minute with their guest engagement, inventory management, and outreach to potential guests.
Engaged guests can help boost bottom line
It will come as no surprise to Australian hoteliers that highly engaged guests are likely to boost the hotelÕs bottom line. For example, a US-based Gallup study indicated on average that engaged guests spend USD$588 per stay, versus USD$457 per stay per average guest and USD$403 per stay per disengaged guest. ThereÕs a demonstrable benefit to ensuring guests are engaged with the hotel from the moment they check in.
For example, ExpediaÕs PartnerCentral App supports guest engagement and helps capture insight through real-time feedback (RTF). How it works is simple; after guests have checked-in they receive three short questions from the hotel partner: ÒHow was your check in?Ó; ÒHow is your room?Ó and ÒAre you happy with the location?Ó Guests answer through a simple, intuitive interface, and hoteliers can read and respond instantly to their feedback; keeping their needs top-of-mind to the hotel. This simple but powerful form of contact allows hoteliers to instantly open a line of dialogue with the guest, and tools like EPC can therefore help hoteliers avoid a bad review before it gets posted online.
Moreover, hoteliers can use tools such as EPC to stay up-to-the-minute with reservations, arrivals and cancellations; all important points of contact. In managing these interactions via an app or digital platform Ð along with availability, rates, offers and property content Ð hoteliers can access and manage mountains of information at the touch of a button, leaving more time to focus on the true priority: the hotel guest.
In summary, keeping guests engaged is paramount to a hotelierÕs success, and using digital and mobile tools to connect with guests is a quick and simple way to boost potential revenue.
AustraliaÕs booming mobile demand growth
Both international and Australian travellers are embracing the Internet and mobile devices to shop and purchase travel products. As of the end of 2016, there were over 180 million cumulative app downloads for all of Expedia group brands and nearlyÊone inÊthree transactions were booked via mobile during 2016. To put in perspective the importance of mobile demand, app users on Expedia platforms repeat purchase more than two times more frequently than the average user. In Q4 of 2016, for example, over 45 per centÊof traffic to Expedia sites arrived via mobile devices.
Australia is no exception Ð in 2016, more than a quarter of all Expedia group demand were generated from mobile devices. The top mobile-booked destinations were Melbourne, Sydney, the Gold Coast, Brisbane and Perth. Some of AustraliaÕs largest and most valuable inbound markets dominated mobile bookings in 2016, led by the United States, United Kingdom, South Korea, and Japan; all markets to which hoteliers are keen to maximize their exposure.
Travellers are becoming increasingly more spontaneous in their booking habits, and mobile platforms allow potential guests to move quickly. The average booking window for Australian hotels was 25 days in 2016, while the mobile booking window was 18 days4. Over 45 per centÊof bookings were made within one week of the stay, and over 20 were made the same day4. Tools such as ExpediaÕs Sell Tonight feature allow hotels to review competitor prices and offer a new rate on their own excess rooms, to help drive distressed inventory that would otherwise go to waste. Sell Tonight can even be targeted to mobile to help last-minute, spontaneous shoppersÑoften searching on mobile devicesÑfind a hotel that fits their needs and budget.
Even hoteliers who doubt the power of mobile have to consider the total travel research and booking process, and note that bookings that eventuate through another channel may be partly due to a mobile strategy; Expedia has found that 48 per centÊof our customers who make a purchase on Expedia have accessed two or more different devices before that purchase. Essentially, all roads lead to mobile.
The road ahead in Australia is full of opportunities for hoteliers as ExpediaÕs digital tools help build guest loyalty, allowing them to get closer to their goals of revenue optimization and delighting their guests.
By Drew Bowering, Senior Director of Expedia, Market Management – Oceania
Drew Bowering leads Expedia Lodging Partner Services in Oceania, managing a team of account management and sales professionals throughout the region to establish and develop hotel partner relationships and help maximise their exposure to ExpediaÕs 200+ travel booking websites. Drew has worked for the Expedia group for more than eight years, holding a variety of senior roles across the business from the Global Partner Group to Market Management in the UK, USA, and Australia. Before joining Expedia in 2008, Drew completed a six-year stint at the TUI Group, the worldÕs leading integrated leisure and tourism provider. Drew holds a Bachelor of Science Degree in Mathematics from Loughborough University in the UK, where he grew up.ÊHe currently resides in Sydney, Australia where he is raising his young family.
