Do you think staying a hotel is on the decline? Believe that AirBnb and similar vacation rental companies are the new king of accommodations and hospitality?
Well, maybe not just yet.
Michelle Mangan, a digital marketing strategist for Killarney Hotels in Ireland, put together this infographic to illustrate how hotel revenue trends have actually increased in the past few years, after a significant decline in the years after 2008. That, of course, is when the overwhelming worldwide economic crash occurred, so it’s no surprise that hospitality suffered as a result.
Hotels still rule
But now, even with the rise in popularity with vacation rentals and shared accommodations, hotels have made a comeback from their low point in 2009. In that year, total revenue was $395 billion. The projected number for this year is expected to come in at $550 million, a 28% increase. Of course, the rate of rentals that travelers use will also increase, but the demise of traditional hotels seems to be premature. In fact there may some backlash toward the whole sharing economy trend in this area.
Occupancy and hotel rates around the globe
Overall, all regions of the world will see an increase in how many people stay in hotels, and that is only expected to keep rising this year. While Europe and the Asia/Pacific region have the highest occupancy rates, just about all of the four designated areas hover around 63-68%. On the average, Middle East and Africa charge the highest for rates.
Millennials and more expensive American hotels
If you travel to and around the United States, you’ve probably noticed something disquieting with hotels, especially if you’re paying for the room. Rates are continuing to rise, as are the inclusion of incidental costs like resort fees. Another trend to notice is millennials, who will become the largest traveling cohort in the coming year and will replace baby boomers.
Mobile travel marketing keeps growing
Over 75% of travelers simply need their smartphones, and roughly 33% report that they will use them more when they’re on the road than when they’re home. Targeted personalization continues to be a factor, especially with millennial clients, when making a decision about travel. Finally, hotels would greatly benefit to offer apps for check-in and other information.
General hotel trends for 2016
The buzzwords here are “dynamic rate marketing,” where online search and booking determine real time pricing and room availability. This becomes even more crucial as more than 50% of reservations are now online. Sources here include Google AdWords and Business Listing, email marketing, retargeting, and others. The recommendation? Managers should increase their hotels’ digital marketing budgets to go after travelers.
The other trend to watch for the year is social engagement. More than half of the world’s travelers decide on a purchase after reading positive online recommendations, usually found on social media sites. Hotels would greatly benefit from an increased social presence to capture a greater market share.
What do you see as the leading hotel marketing trends for 2016? Share your thoughts below!