Part II: Demystifying the Digital Marketplace

Just released!

We are excited to present Part II of the special report – Demystifying the Digital Marketplace: Spotlight on the Hospitality Industry, which takes a deep dive into the production data and associated costs of 25,000 hotels over the course of three years (2014-2016) and includes mapped performance patterns of each hotel segment.

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) 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.

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Thank You to Our Sponsors

We would like to thank our sponsors and industry partners for their role in this important piece of research - the American Hotel & Lodging Association, the Asian American Hotel Owners Association, the Hospitality Asset Managers Association, the HSMAI Foundation, the Hospitality Financial and Technology Professionals, and the IHG Owners Association.

It is our hope that this data will continue to help inform strategies and innovations that deliver the greatest profit and growth.

Our Industry Sponsors