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2013 Digital IQ Index: Hotels
 

2013 Digital IQ Index: Hotels

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Our third-annual Digital IQ Index®: Hotels report benchmarks the digital competence of 57 Hotel brands on more than 675 data points across four dimensions: Site, Digital Marketing, Social Media, and ...

Our third-annual Digital IQ Index®: Hotels report benchmarks the digital competence of 57 Hotel brands on more than 675 data points across four dimensions: Site, Digital Marketing, Social Media, and Mobile.

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    2013 Digital IQ Index: Hotels 2013 Digital IQ Index: Hotels Presentation Transcript

    • Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om HotelsJanuary 31, 2013SCOTT GALLOWAYNYU SternIn partnership with: © L2 2013 L2ThinkTank.com© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 1
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om Year-Over-Year Growth in Digital IQ and 52-Week Percent Change in Stock Price20 & 92 Hotel Companies with Published Data, n=10 60% 52 Week Change in Stock Price 50% 40% r=0.447 30% Nearly 20 years since the advent of the Netscape browser, 20% 10% 92 percent of U.S. travelers book hotel reservations online.1 0% Several factors have converged to make digital key to a brand’s -10% -40% -30% 20% 10% 0% 10% 20% 30% 40% success or failure: Growth in Digital IQ Percent Rank • Sixty-six percent of travellers indicate they will spend more Upgrade months, but no brand in the Index hosts a fully optimized time online researching travel purchases in 20122 (up from Eleven brands in the Index launched sites in the past year touch commerce and browsing experience. And, while 74 59 percent in 2011). In an industry flooded with choice, deft including icons Hilton, Mandarin Oriental, and Sofitel. percent of affluent travelers suggest that they are more likely search engine marketing, loyalty initiatives, and site content Eighty-one percent of hotel brands now boast a mobile- to book after watching video,8 just 25 percent of the brands investments are the sharpest tools to cut through the clutter. optimized site, up from 66 percent in 2012. Eighty-one feature video on their property pages. percent feature at least one iOS application, many of which • Direct bookings via brand websites are three to five times Digital IQ = Shareholder Value are designed to enhance the guest experience during their more profitable than bookings secured through OTAs and/ Brands that have embraced digital innovation—and their stay. All but two brands are present on Pinterest and 82 or travel agents.3 Rooms booked through a hotel brand site shareholders—are reaping rewards. Our data reveals a percent are present on Instagram—social media’s latest also register a higher average price. positive relationship between year-over-year growth in Digital objects of affection. Content destinations, ranging from the Four Seasons’ Weddings and Taste features to Fairmont’s IQ (across multi-brand companies) and change in stock • Sixty-three percent of travelers consult online reviews before “Everyone’s an Original,” transform sites from booking price, supporting our thesis that digital competence is linked booking, including 73 percent of consumers between the engines to travel portals. to shareholder value in the hotel sector. ages of 18 and 34.4 Transactional data from Travelocity indicates a one point bump in review scores (on a five point Our third annual study quantifies the digital competence scale) which translates to an 11.2 percent price premium.5 Vacancy of 57 global hotel brands. Our aim is to provide a tool for There is considerable untapped opportunity. Despite the identifying areas of strength and weakness, helping brands • Fifty-seven percent of business travelers access travel importance of online reviews, just 28 percent of brands in achieve greater return on digital investments. Like the information from a mobile device, up from 25 percent in the Index include user reviews or link to third-party review medium we are assessing, our approach is dynamic. Please 2009.6 A third of mobile searchers reserve within 24 hours, sites such as TripAdvisor, which is now worth ($6.7 billion) reach out with comments to improve our methodology and resulting in high margin bookings.7 more than the majority of firms in the Index. Tablet searches findings. You can reach me at scott@stern.nyu.edu. for hotel brands are up 180 percent in the past 12 1. Travel Booking—U.S., Mintel, December 2012. 5. Cornell Hospitality Report, November 2012. 2. The Traveler’s Road to Decision, Google and Ipsos MediaCT. July 2012. 6. The Traveler’s Road to Decision, Google and Ipsos MediaCT. July 2012. Scott Galloway 3. Distribution Channel Analysis: a Guide for Hotels,” Green, Cindy Estis & Lomanno, Mark, 2012. 7. Tnooz. Professor of Marketing, NYU Stern 4. Travel Booking U.S., Mintel, December 2012. 8. The Traveler’s Road to Decision, Google and Ipsos MediaCT. July 2012. Founder, L2© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 2
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om ABOUT THE RANKING The Methodology 40% 30% 20% 10% Site Digital Marketing Mobile Social Media Effectiveness of Brand Site 75% Search, Display, and Email Marketing Efforts Compatibility, Optimization, and Brand Presence, Community Size, Site Technology and Tablet Experience Search: Marketing on Smartphones, and Tablets Content, and Engagement Site Search and Navigation Traffic, SEM, SEO, Web Authority
 Mobile Site: Facebook: Reservations Compatibility, Functionality, Transaction Likes, Growth, Tabs & Applications, Advertising and Innovation: Property Pages and Destination Guides Capability Responsiveness, Interaction Rate Display, Retargeting, Cross-Platform Initiatives Customer Service iOS Applications (both iPhone & iPad): Twitter: Account Functionality and Loyalty Programs Blog & Other User-Generated Content: Availability, Popularity, Functionality Followers, Growth, Frequency, Mentions, Sentiment Brand Translation 25% Online Voice
 Android: Aesthetics Email: Availability, Popularity, Functionality YouTube: Messaging and Visuals Frequency, Content, Innovation, Segmentation Search Visibility, Views, Number (Provided by SapientNitro) and Trigger Emails Innovation: of Uploads, Subscriber Growth, Geolocal, Recent Brand Initiatives Viral Videos TripAdvisor: Site and Social Media Integration, Brand Responsiveness, Number of Reviews Emerging Social Media: Instagram, Google+, Pinterest, Tumblr Digital IQ ClassesGenius  140+ Gifted  110–139 Average  90–109 Challenged  70–89 Feeble  < 70Digital competence is a point of Brands are experimenting and innovating Digital presence is functional Limited or inconsistent adoption of Investment does notcompetitive differentiation for these brands. across site, mobile, and social platforms. yet predictable. Efforts are mobile and social media platforms. match opportunity.Creatively engineered messaging reaches Digital presence is consistent with brand often siloed across platforms. Sites lack inspiration and utility.travelers on a variety of devices and in image and larger marketing efforts.many online environments.© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 3
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om GENIUS W Hotels GIFTED InterContinental Westin DIGITAL IQ RANKING Four Seasons The Luxury Collection Sheraton St. Regis Hilton Fairmont The Ritz-CarltonRANK BRAND DIGITAL IQ Rank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ Mandarin Oriental Sofitel Gifted Waldorf-Astoria Hotel Indigo Marriott 2 136 9 122 Renaissance MGM Resorts Swissôtel InterContinental Hotels Group Fairmont Raffles Hotels International Le Méridien1 142 Omni Hyatt Shangri-La 2 136 10 118 AVERAGE Conrad JW Marriott Starwood Hotels & Resorts Worldwide Marriott International Loews Radisson Orient-Express Starwood Hotels & Resorts Worldwide Radisson Blu Small Luxury Hotels 4 134 11 117 of the World Wyndham Kimpton Four Seasons Hotels Mandarin Oriental Hotel Group Park Hyatt Jumeirah Dream CHALLENGED Morgans Hotel Group 4 134 11 117 Viceroy Joie de Vivre The Peninsula Starwood Hotels & Resorts Worldwide Accor Kempinski The Leading Hotels of the World Pullman Taj 6 133 13 115 Millennium Preferred Tryp by Wyndham Starwood Hotels & Resorts Worldwide Hilton Worldwide One&Only The Langham Rosewood Dorchester Collection MGallery 7 130 14 114 Warwick International Hotels Pan Pacific Concorde Starwood Hotels & Resorts Worldwide InterContinental Hotels Group Relais & Châteaux Oberoi FEEBLE Raffles Banyan Tree 8 127 14 114 Hilton Worldwide Marriott International© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 4
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om GENIUS W Hotels GIFTED InterContinental Westin DIGITAL IQ RANKING Four Seasons The Luxury Collection Sheraton St. Regis Hilton Fairmont The Ritz-CarltonRank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ Mandarin Oriental Sofitel Average Waldorf-Astoria Hotel Indigo Marriott 14 114 23 109 30 98 Renaissance MGM Resorts Swissôtel Marriott International Hilton Worldwide Wyndham Hotel Group Le Méridien Omni Hyatt Shangri-La 17 112 24 105 31 96 AVERAGE Conrad JW Marriott MGM Resorts International Marriott International Kimpton Hotel & Restaurant Group Loews Radisson Orient-Express Radisson Blu Small Luxury Hotels 17 112 24 105 31 96 of the World Wyndham Kimpton Fairmont Raffles Hotels International Hyatt Corporation Park Hyatt Loews Hotels Jumeirah Dream CHALLENGED Morgans Hotel Group 19 111 26 104 33 95 Viceroy Joie de Vivre The Peninsula Starwood Hotels & Resorts Worldwide Carlson Rezidor Hotel Group Jumeirah International Kempinski The Leading Hotels of the World Pullman Taj 19 111 27 101 34 92 Millennium Preferred Tryp by Wyndham Omni Hotels & Resorts Orient-Express Hotels Wyndham Hotel Group One&Only The Langham Rosewood Challenged Dorchester Collection MGallery 21 110 28 100 35 88 Warwick International Hotels Pan Pacific Concorde Hyatt Corporation Carlson Rezidor Hotel Group Morgans Hotel Group Relais & Châteaux Oberoi FEEBLE Raffles Banyan Tree 21 110 29 99 35 88 Shangri-La International Hotel Management Small Luxury Hotels of the World Viceroy Hotel Group© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 5
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om GENIUS W Hotels GIFTED InterContinental Westin DIGITAL IQ RANKING Four Seasons The Luxury Collection Sheraton St. Regis Hilton Fairmont The Ritz-CarltonRank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ Mandarin Oriental Sofitel Waldorf-Astoria Hotel Indigo 37 87 43 82 51 76 Marriott Renaissance MGM Resorts Swissôtel Joie de Vivre Hospitality Preferred Hotel Group Warwick International Hotels and Resorts Le Méridien Omni Hyatt Shangri-La 37 87 43 82 52 75 AVERAGE Conrad JW Marriott Pan Pacific Hotels Group Loews The Hongkong and Shanghai Hotels Wyndham Hotel Group Radisson Orient-Express Radisson Blu Small Luxury Hotels of the World 39 85 46 80 53 74 Wyndham Kimpton Park Hyatt Kempinski Kerzner International Resorts Concorde Hotels & Resorts Jumeirah Dream CHALLENGED Morgans Hotel Group 39 85 46 80 53 74 Viceroy Joie de Vivre The Peninsula The Leading Hotels of the World Langham Hotels International Relais & Châteaux Kempinski The Leading Hotels of the World Pullman Taj 41 84 48 79 55 71 Millennium Preferred Tryp by Wyndham Accor Rosewood Hotels and Resorts The Oberoi Group One&Only The Langham Feeble Rosewood Dorchester Collection MGallery 41 84 49 77 56 69 Warwick International Hotels Pan Pacific Concorde The Indian Hotels Company Dorchester Collection Fairmont Raffles Hotels International Relais & Châteaux Oberoi FEEBLE Raffles Banyan Tree 43 82 49 77 57 65 Millennium & Copthorne Hotels Accor Banyan Tree Holdings© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 6
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om Average Digital IQ Key Findings By Region (HQ) January 2013 Regional Leaders PhoCusWright and PricewaterhouseCoopers reported 106 that in 2010 59 percent of U.S. travel revenues originated North online, versus 43 percent in Europe and 21 percent in America Europe the Asia-Pacific. Hotel brands headquartered in North 9 America boast significantly higher digital IQ’s than global n=35 94 n=12 counterparts. Regardless of HQ locale, the lion’s share of growth will come from emerging economies. Brands are beginning to customize site experiences, regardless of where properties are located. Two thirds of brands offer a Chinese version of the site and more than half offer German, French and 88 Middle East 86 Asia Spanish versions. Pacific & Africa n=8 n=2 Percentage of Brands with a Site Available in the Following Languages January 2013 Travel Accomodation Market Size by Region Deutsch 64% Market Size (2011, USD billion) Growth (2011-2016 CAGR) Chinese 55% German 212.4 1.0% español français 53% 53% 日本語 48% Western Japanese North America Europe Spanish French Asia Pacificportuguês Italiano 한국어 русязык ‫رى ِعب َةرَ ع/ ي ِرَ علا‬ с и к й َ‫َ /ُ يِب‬ 153.7 Middle East & Africa 180.6 29% 28% Portugese 16% 14% ‫ب‬ 9% Italian Korean Russian Arabic 3.8% 4.9% 25.4 5.1% 9. “Web Is Bright Spot in Europe Travel Market,” Karin von Abrams, eMarketer, January 14, Source: Euromonitor 2010.© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 7
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om Key Findings Customer Service The Booking Engine Percent of Brand Sites with the Following Features Nearly two-thirds of travelers are booking hotels online, with December 2012 43 percent of business travelers and 39 percent of leisure travelers booking directly from a lodging website.10 While 88 percent of travelers comparison shop and 63 percent consult travel reviews before booking, more sophisticated site features such as 360 degree tours, product-page video, and hotel staff tips are just starting to emerge. Use of on-site user ratings and reviews is 28 percent versus 17 percent in 2012. Fewer than one in four brands provide live chat functionality. 28% 23% 19% 16% Ratings and Reviews Live Chat Callback Contact Concierge When Omni Hotels implemented live chat features in 2010, it registered a dramatic lift in conversion rates (from 3 percent for site visitors who did not use the feature to 18 percent for those that did), and an 8 percent increase in AOV.11 On average, visitors spend 27 percent more time and register 39 percent more page views on hotel sites with live chat. Property Functionality Percent of Brand Property Pages with the Following Features Forty-two percent of leisure travelers indicate that virtual tours December 2012 or pictures are important features when selecting a hotel,12 however just 28 percent of hoteliers offer detailed photographs of their accommodations, and only 28 percent offer virtual tours or 360 degree views. “Curated, personalized content is resonating more with luxury hotel guests. Videos, local tips provided by experts, exclusive amenities, booking 39% 28% 28% 25% 21% Restaurant Reservations Detailed Room View 360 Degree Room Videos Book Hotel Amenities rewards—all play an important role in providing a View or Virtual Tour (Spa, Golf, etc.) unique guest experience.” bill kanarick worldwide cmo, SapientNitro 10. “The Hotel Traveler’s Road to Decision,” Google Ipsos OTX MediaCT, July 2012. 11. http://www.liveperson.com/sites/default/files/pdfs/Omni_CaseStudy.pdf 12. “The Hotel Traveler’s Road to Decision,” Google Ipsos OTX MediaCT, July 2012.© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 8
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om Key Findings Search continued Organic Search Real Estate Seventy-four percent of brands purchase against their Average Percent of Brand-Owned own brand keywords. The competition for paid real estate Real Estate by Industry between brands and OTAs is fierce. Brands command 49 percent of real estate for brand terms, OTAs are not far behind garnering a third of the search results. 46% 38% 36% 30% 27% 25% 25% Hotels Specialty Beauty Sportswear Fashion Spirits Watches & Retail Jewelry Percent Organic Real Estate of First Page Percent Paid Real Estate of First Page Brand Search Results Brand Search Results December 2012 December 2012 8% 4% Competitors TripAdvisor 3% 7% Competitor 15% TripAdvisor OTA 46% 8% 49% Other Brand Brand 29% 32% Other OTA© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 9
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om Mobile Adoption Percent of Brands on the Following Mobile Platforms Key Findings 2011 vs. 2012 vs. 2013 2011 2012 2013 Mobile 81% 81% 65% 68% 66% 46% Eighty-one percent of the brands in this year’s Index offer 54% 63% 10% a mobile site experience, a year-over-year increase of 15 percent. Across the app ecosystem, increases in mobile platform adoption are substantial, with each operating system seeing double-digit growth. Both Android and BlackBerry— with a waning, but travel-savvy user base—saw increases of above 18 percent in app adoption. Eight of 10 smartphone iPhone App Mobile Website Android App 60% 40% users and nine of 10 tablet users who have booked travel on 44% 22% their devices reported they would do so again.13 12% 20% Hotel brands’ mobile sites and apps typically have different, complementary foci. Brand sites focus on the m-commerce (bookings) experience, while many apps provide functionality to enhance the in-stay experience. Forty percent of iOS apps feature city guides, 18 percent provide concierge services, and 15 percent allow users to order room service directly iPad App Blackberry App from the app. Hotel brands are investing heavily in mobile search, iOS Mobile App Functionality 43% with the average brand owning 57 percent of its organic Percent of Apps 40% results for brand search. Starwood saw its monthly mobile December 2012 bookings increase 20 percent after running click-to-call 33% ads for its brands. 14 26% “Once again, accessible mobile platforms 20% 18% are the dominating factor in reaching 15% 14% consumers. Connecting your consumer to 12% 12% 10% your hotel needs to be immediate, constant, and compatible across media channels.” bill kanarick s s t s t worldwide cmo, SapientNitro on ide ten tor y Up rge rvi ce tio n pin g ew Ou rvati Gu on ec ign cie Se lec ee evi in/ se y aC Dir il S on Se ek tR ck Re Cit ed i rty a C o m ge us es Ch e pe Em Ro ua Ho Gu hM ng 13. “The Rise of Mobile Adoption, Sentiment and Opportunity,” comScore, November 2012. Ric Pro La 14. “Advertising Relearned for Mobile,” Claire Cain Miller, New York Times, October 28, 2012.© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 10
    • Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om Watch the TABLE OF CONTENTS Hotels Video Click to Play Click to Jump To: 4 Methodology 30 The New Kid 31 YouTube 5 Digital IQ Rankings 33 Mobile 5 Genius 34 Property All Stars 6 Gifted 7 Average 35 Flash of Genius 8 Challenged 35 Shangri-La, W Hotels, and Four Seasons: UGC Contests 9 Feeble 36 Fairmont, One & Only Resorts: Digital “I Do” 37 Hilton Hotels & Resorts: Vacation Rx 10 Key Findings 38 Hotel Indigo, Relais & Chateau: Destination Guides 10 Digital IQ Distribution 39 Conrad: Swipe for Service 11 Enterprise Effect 40 Renaissance: Digital Rebirth 13 Regional Leaders 41 Sofitel: Pick a Pastry 14 Biggest Winners & Losers 42 Lowes, Millennium, Only&Only, SLH: Crucial Communication 15 The Booking Engine 43 Shangri-La: Incentivizing App Adoption 16 Loyalty 44 Four Seasons: The Many Faces of Luxury 17 Touch 19 Search 45 L2 Team 21 Email: Baby Steps 46 About L2 22 The World’s #1 Travel Destination 23 Social Media Penetration 25 Global Management 26 F-Booking? 27 Size vs. Engagement 29 Instagram > 1k Words© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 11
    • Excerpt from the 2013 Digital IQ Index ® : Hotels To access the full report, contact membership@L2ThinkTank.om A Think Tank for DIGITAL INNOVATION51 East 12th Street, 2nd FloorNew York, NY 10003 © L 2 2013 L 2 ThinkTank.com Reproductions ProhibitedL2ThinkTank.com This report is the property of L2 Think Tank. No copyrighted materials may be reproduced, redistributed, or transferredinfo@L2ThinkTank.com without prior consent from L2. L2 reports are available to L2 Members for internal business purposes. 12