Demystifying the Digital Marketplace
The first two installments of the three part series are now available which were produced by Kalibri Labs in collaboration with the AH&LA Consumer Innovation Forum and many industry sponsors.
While there are many takeaways – and we urge you to explore the details within the full report – we’re particularly excited to share one in particular: Hotels in every segment across the country listened to customers’ demands for more personalized, one-to-one experiences and responded in kind. Over the past several years, a number of companies have launched innovative campaigns to promote enhanced offerings to loyalty members, including exclusive member-only rates and added amenities. And this report shows that effort is paying off. Bookings through direct channels continue to deliver the highest profit margins and brand loyalty has increased in every segment and is now at an all-time high.
Of course, the challenges presented by this shifting landscape – and third party commission costs in particular – are as real as ever, and there are countless more opportunities (which we will explore in Part III - coming soon) hotels can pursue in order to diversify business mix and own even more of the digital conversation and, by extension, revenue capture. But the results of these recent efforts tell a promising story: There is no challenge this industry cannot overcome when we own the conversation with our customers.