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QI Digital Hotels 2013
 

QI Digital Hotels 2013

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    QI Digital Hotels 2013 QI Digital Hotels 2013 Presentation Transcript

    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com October 1, 2013 SCOTT GALLOWAY NYU Stern Hotels Economy, Midscale, Upper Midscale, Upscale © L2 2013 L2ThinkTank.com
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Hotels Rebound Fueled by steady increases in average daily room rates (ADR), the second quarter of 2013 marked the 13th consecutive quarter of growth in revenue per available room (RevPAR).1 The industry also tallied its highest second-quarter occupancy rate (65.9 percent) since 2007.2 Facing less pressure to sell rooms to Online Travel Agencies (OTAs), brands are reasserting control over inventory and pricing.3 Brand sites are the most popular online channel for bookings, and gaining share. By 2014 direct bookings via brand sites will account for 59 percent of online bookings, up from 55 percent in 2010.4 The New Normal October 1, 2013 U.S. Online Travel Booking Revenues for Hotel Brands 45% normal where enterprise site, mobile platforms, and digital marketing strategies shared between sister brands provide operational efficiency and consistent, if not differentiated, experiences. Despite strong macro indicators across the industry, hotel brands risk ceding market share to OTAs and other emerging distribution channels. 55% 41% 2010 59% 2014 Influence of Travel Review Sites on U.S. Leisure Travel Purchases Have Much Influence 2% Have Some Influence Have Little or No Influence 4% 18% 67% AGE Three-fifths of the brands in the Index earned a “Gifted” ranking, establishing a new Online Travel Agencies Supplier Websites AGE 21–34 35–54 31% 78% 18% AGE 55+ 82% Note: Leisure and unmanaged business travel bookings Source: PhoCusWright, “US Online Travel Overview Twelfth Edition” as cited by Travel Weekly, Nov 19, 2012 Mobile: Mobile share of digital travel bookings is expected to triple by 2017 to 30 percent.5 Tablet: In the past 16 months, bookings from tablet devices have increased 70 percent.8 Hotel brands are playing catch up. In 2012, OTAs captured 64 percent of mobile hotel In 2013, 46 million U.S. Internet users will book travel on a tablet, seven percent more bookings (versus ~45 percent of overall online bookings). Furthermore, mobile ad spending than on smartphones.9 However, no brand in the Index hosts a fully optimized touch in travel is up six-fold year-over-year, led by OTAs. New applications for last-minute bookings, commerce experience. DoubleTree by Hilton is the only Index brand with an application for example Hotel Tonight, are besting brands when it comes to direct mobile bookings. built specifically for the iPad.10 6 7 Only one in five brands in the Index (the La Quinta Inns & Suites and Wyndham Hotel Group portfolios) have optimized their mobile experience for same-day booking. 1. 2. 3. 4. 5. 6. 7. “STR reports Q2 2013 results,” Hotel News Now, July 24, 2013. Ibid. “U.S. Hotels,” Mintel Reports, November 2012. “US Online Travel Overview Twelfth Edition,” PhoCusWright as cited by Travel Weekly, November 19, 2012. “U.S. Digital Travel Sales: Mobile Drives Changes in a Mature Marketplace,” eMarketer, May 22, 2013. Ibid. “S.M.A.R.T Report: 2012 Year In Review,” Millennial Media, March 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 8. “Tablet-Based Bookings on the Rise. What Does this Mean for your Hotel?,” Tambourine Digital Travel Marketing Blog, June 24, 2013. 9. “U.S. Digital Travel Sales: Mobile Drives Changes in a Mature Marketplace,” eMarketer, May 22, 2013. 10. Starwood Hotels & Resorts Worldwide released an app for iPad optimized for iOS 7 September 2013, outside the scope of data collection for this study. 2
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Hotels U.S. Digital Travel Sales User Reviews: Review sites influence bookings for three-quarters of $ Billions (USD) travelers. Use of reviews over-indexes among younger consumers, and 11 31 percent of travelers ages 21 to 34 state that reviews have “very much influence” on their travel decisions.12 However, just 38 percent of hotel brands feature user reviews or ratings on their sites, sending consumers to OTAs and October 1, 2013 2011 2012 2013 2014 2015 2016 2017 $113.90 $126.30 $136.40 $145.20 $153.20 $160.90 $168.10 Mobile Travel Sales (2013–2017 CAGR: 259%) $3.40 $113.90 $13.60 $23.20 $32.20 $40.20 $48.80 Online as Percent of Total Leisure Travel Sales 59% 61% Digital Travel Sales (2013–2017 CAGR: 23%) incumbent review sites such as TripAdvisor. Fourty-four percent of travelers consume reviews on OTAs, versus just 32 percent who engage with reviews on brand sites.13 Data + Brand + Content: Hotels spend three-quarters of their digital dollars on direct response marketing (search, retargeting, email), a game of diminishing returns for most hotel brands who are competing with OTAs’ 63% 64% much deeper pockets and expertise. Priceline.com spent $1.27 billion 14 N/A N/A N/A Source: eMarketer, May 2013 and RBC Capital Markets, April 2013. on Internet advertising in 2012, tripling spend over the past three years.15 To compete, brands must combine proprietary customer data with brand advertising, site content investments, and loyalty initiatives to increase Reasons U.S. Travelers Do Not Book Through Their Mobile Devices yield on direct marketing and differentiate the direct booking experience. Digital IQ = Shareholder Value Our thesis is that the success of hotel brands is inextricably linked May 2012, Percent of Respondents The websites are hard to see/read/navigate on a movile device 36% to digital competence. This study attempts to quantify the digital performance of 48 U.S. hotel brands in the Economy, Midscale, Upper It takes too long to book on a movile device/the pages load too slowly 28% Midscale, and Upscale classes. Our aim is to provide a robust tool to diagnose digital strengths and weaknesses, and help managers achieve Too cumbersome 25% greater return on incremental investment. Similar to the medium we are assessing, our methodology is dynamic and we hope you reach out with Don’t trust the security on mobile devices comments that improve our approach and findings. You can reach me at scott@stern.nyu.edu. SCOTT GALLOWAY Professor of Marketing, NYU Stern Founder, L2 22% Needed to confirm with someone else before booking 19% The mobile version of the site did not allow me to book 15% Didn’t have credit card accessible 7% Other 11. 12. 13. 14. 15. “2012 Consumer Trends,” Travel Weekly, July 30, 2012. Ibid. “Consumer Travel Report Fifth Edition,” PhoCusWright, April 30, 2013. “The US Travel Industry 2013: Digital Ad Spending Forecast and Key Trends,” eMarketer, August 2013. Ibid. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 4% Note: n=502, mobile users who accessed the internet on their mobile device while planning travel, but didn’t book anything via mobile in the past year. Source: “The 2012 Traveler,” Google and Ipsos MediaCT, Aug 10, 2012. 3
    • EXCERPT from the Digital IQ Index®: Hotels Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com October 1, 2013 About the Ranking The Methodology 30% Site 30% Digital Marketing 25% Mobile Effectiveness of Brand Site 87.59% Site Technology Site Search and Navigation Reservations Property Pages and Destination Guides Customer Service Account Functionality and Loyalty Programs Ease of Booking and Cancellation Booking and Cancellation Confirmation Emails Search, Display, and Email Marketing Efforts Search (Google and Bing): Traffic, SEM, SEO, Web Authority Compatibility, Optimization, and Marketing on Smartphones, and Tablets Mobile Site: Compatibility, Functionality, Transaction Capability, Tablet Experience Brand Presence, Community Size, Content, and Engagement Facebook: Likes, Growth, Tabs & Applications, Responsiveness, Engagement Mobile Applications (both iPhone & iPad): Availability, Popularity, Functionality Twitter: Followers, Growth, Frequency Brand Translation 12.5% Aesthetics Messaging and Visuals (Provided by Vertic) Email: Frequency, Content, Innovation, Segmentation and Trigger Emails Advertising and Innovation: Display, Retargeting, Geolocal, Cross-Platform Initiatives Blog & Other User-Generated Content: Mentions, Sentiment 15% Social Media YouTube: Views, Number of Uploads, Subscriber Growth, Viral Videos, Search Visibility Emerging Social Media: Google+, Instagram, Pinterest TripAdvisor: Number of Reviews/Ratings, UGC Photos, Regional Rank, Optimization of Business Profile, Promotion of Offers and Bookings, Brand Responsiveness to Negative Reviews Digital IQ Classes Genius 140+ Gifted 110–139 Average 90–109 Challenged 70–89 Feeble < 70 Digital competence is a point of competitive differentiation. Creatively engineered messaging reaches travelers on a variety of devices and online environments. Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with brand image and larger marketing efforts. Digital presence is functional yet predictable. Efforts are often siloed across platforms. Limited or inconsistent adoption of mobile and social media platforms. Sites lack inspiration and utility. Investment does not match opportunity. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 4
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Hotels October 1, 2013 Digital IQ Ranking Upsacle Genius, Gifted RANK BRAND DIGITAL IQ RANK BRAND Genius 1 142 RANK 3 134 4 InterContinental Hotels Group 10 11 InterContinental Hotels Group 11 Marriott International 14 Hilton Worldwide 15 Hilton Worldwide © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 119 Choice Hotels International 127 Marriott International 121 La Quinta Worldwide 129 9 124 Wyndham Hotel Group 129 7 124 Starwood Hotels & Resorts Worldwide 132 7 124 Choice Hotels International 133 6 126 11 Hilton Worldwide 4 Economy DIGITAL IQ InterContinental Hotels Group 133 Midscale GENIUS Best Western Holiday Inn InterContinental Hotels Group 141 BRAND Gifted Best Western International 2 DIGITAL IQ Upper Midscale 15 119 Marriott International GIFTED Crowne Plaza Hotels & Resorts DoubleTree by Hilton Holiday Inn Express Courtyard by Marriott Hampton Inn Hilton Garden Inn Fairfield Inn & Suites by Marriott Hotel Indigo Comfort Inn aloft Days Inn La Quinta Inn & Suites Quality SpringHill Suites by Marriott Four Points by Sheraton Howard Johnson Ramada Worldwide Clarion Travelodge Comfort Suites Sleep Inn Wingate by Wyndham Super 8 Baymont Inn & Suites Rodeway Inn Knights Inn Microtel Inn & Suites by Wyndham AVERAGE Econo Lodge Radisson Hyatt Place Cambria Suites Red Roof Inn Country Inns & Suites by Carlson Motel 6 Ascend Hotel Collection AmericInn Park Inn by Radisson CHALLENGED Red Lion Hotels Americas Best Value Inn FEEBLE Jameson Inn Sonesta Collection Vagabond Inn America’s Best Inns & Suites Budget Host Country Hearth Inns & Suites Budgetel Inns & Suites 5
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Hotels October 1, 2013 Digital IQ Ranking Upsacle Gifted, Average RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND Upper Midscale 119 GENIUS Best Western Holiday Inn 22 Starwood Hotels & Resorts Worldwide 18 25 Wyndham Hotel Group 18 33 110 27 Wyndham Hotel Group 34 110 27 Choice Hotels International 100 Red Roof Inns 35 Wyndham Hotel Group 115 102 Choice Hotels International Choice Hotels International 117 104 Hyatt Hotels Corporation 111 27 Choice Hotels International 22 32 Wyndham Hotel Group 117 106 Carlson Rezidor Hotel Group 114 26 Wyndham Hotel Group 20 31 Wyndham Hotel Group 118 20 115 Wyndham Hotel Group 118 99 Carlson Rezidor Hotel Group 110 36 Wyndham Hotel Group 97 G6 Hospitality Average 22 115 Choice Hotels International Economy DIGITAL IQ Gifted 15 Midscale 30 108 Choice Hotels International © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 37 94 Choice Hotels International GIFTED Crowne Plaza Hotels & Resorts DoubleTree by Hilton Holiday Inn Express Courtyard by Marriott Hampton Inn Hilton Garden Inn Fairfield Inn & Suites by Marriott Hotel Indigo Comfort Inn aloft Days Inn La Quinta Inn & Suites Quality SpringHill Suites by Marriott Four Points by Sheraton Howard Johnson Ramada Worldwide Clarion Travelodge Comfort Suites Sleep Inn Wingate by Wyndham Super 8 Baymont Inn & Suites Rodeway Inn Knights Inn Microtel Inn & Suites by Wyndham AVERAGE Econo Lodge Radisson Hyatt Place Cambria Suites Red Roof Inn Country Inns & Suites by Carlson Motel 6 Ascend Hotel Collection AmericInn Park Inn by Radisson CHALLENGED Red Lion Hotels Americas Best Value Inn FEEBLE Jameson Inn Sonesta Collection Vagabond Inn America’s Best Inns & Suites Budget Host Country Hearth Inns & Suites Budgetel Inns & Suites 6
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Hotels October 1, 2013 Digital IQ Ranking Upsacle Average, Challenged, Feeble RANK BRAND DIGITAL IQ RANK BRAND Upper Midscale Midscale Economy DIGITAL IQ GENIUS Best Western Holiday Inn 38 93 45 Northcott Hospitality 39 46 America’s Best Franchising 91 46 Carlson Rezidor Hotel Group 44 Budget Host Challenged 40 85 47 Red Lion Hotels Corporation 41 43 America’s Best Franchising 81 Vantage Hospitality Group 48 42 America’s Best Franchising Feeble 42 56 America’s Best Franchising 42 56 Sonesta International Hotels Corporation 44 47 Vagabond Inn Corporation / America’s Best Franchising © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. GIFTED Crowne Plaza Hotels & Resorts DoubleTree by Hilton Holiday Inn Express Courtyard by Marriott Hampton Inn Hilton Garden Inn Fairfield Inn & Suites by Marriott Hotel Indigo Comfort Inn aloft Days Inn La Quinta Inn & Suites Quality SpringHill Suites by Marriott Four Points by Sheraton Howard Johnson Ramada Worldwide Clarion Travelodge Comfort Suites Sleep Inn Wingate by Wyndham Super 8 Baymont Inn & Suites Rodeway Inn Knights Inn Microtel Inn & Suites by Wyndham AVERAGE Econo Lodge Radisson Hyatt Place Cambria Suites Red Roof Inn Country Inns & Suites by Carlson Motel 6 Ascend Hotel Collection AmericInn Park Inn by Radisson CHALLENGED Red Lion Hotels Americas Best Value Inn FEEBLE Jameson Inn Sonesta Collection Vagabond Inn America’s Best Inns & Suites Budget Host Country Hearth Inns & Suites Budgetel Inns & Suites 7
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Hotels October 1, 2013 Key Findings Digital IQ Distribution 2013 U.S. Hotel Digital IQ Distribution Strong digital programming is the cost of entry in the Percent of Brands by Digital IQ and STR Class August 2013, n=48 hotel sector, where 35 percent of bookings are secured via brand sites.16 As a result, more than half of brands Economy, n=15 Midscale, n=11 Upper Midscale, n=9 Upscale, n=13 earn a Genius or Gifted designation. Furthermore, only 56% 19 percent of brands in the Index are characterized as Challenged or Feeble, versus 41 percent in our January 2013 Digital IQ Index ®: Luxury Hotels report17, where 21% there is a significantly wider disparity. Upper Midscale and Upscale hotels register substantially higher average Digital IQs than their budget-conscious counterparts. Sonesta 15% 4% 4% Collection is the only Upscale brand to fall in the Feeble class, primarily made up of Economy hotels. Genius Gifted Average Feeble Challenged 2013 Hotel Digital IQ Distribution 2013 Luxury Hotels Digital IQ Distribution Average Hotel Digital IQ by STR Class August 2013, n=48 Percent of Brands by Digital IQ Class August 2013, n=57 120 108 114 87 37% 21% 37% 4% 2% $ $$ $$ $ $$ $ $ Economy n=15 Midscale n=11 Upper Midscale n=9 GENIUS >140 GIFTED 110–139 AVERAGE 90–109 CHALLENGED 70–89 FEEBLE <70 Upscale n=13 16. “TripBarometer,” TripAdvisor and StrategyOne, March 2013. 17. “Digital IQ Index®: Hotels,” L2 Think Tank, January 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 8
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Hotels October 1, 2013 Key Findings Mobile U.S. Hotel Mobile App Adoption Rates Tablet Optimization August 2013, n=48 Tablets tally more bookings , page views per hotel site visit 18 19 and higher conversion rates than smartphones. However, 73% 20 73% 67% none of the Index brands features a tablet-specific site. Less than one-quarter employ any tablet-specific functionality, such as swiping technology for viewing photos, on their sites. Tabletspecific app development also lags; of brands with iPhone apps, less than half of these apps are also optimized for iPad. Additionally, 34 percent of mobile apps developed for Android smartphones and four percent of apps developed for the iPhone fail to work on tablet devices. 27% 27% 21% 23% 15% 6% iPhone Android iPad iPhone iPad iPhone Android Parent Company Brand Android None iPad U.S. Hotel Site Tablet Features August 2013, n=48 25% 15% IHG’s brand sites incorporate tablet-specific technology, instructing users to “tap” and “drag” to navigate virtual tours. Dropdown Menu Swipe in Photo Slideshow 13% iPad-Friendly Calendar 18. “The Rise of Mobile Adoption, Sentiment & Opportunity,” Expedia Media Solutions and comScore, Nov 14, 2012. 19. “Hotel Benchmarking Metrics,” Adobe Systems Inc., January 29, 2013. 20. “Tablets Now Account for More Web Traffic than Smartphones: Stats,” Econsultancy, David Moth, March 8, 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 9
    • EXCERPT from the Digital IQ Index®: Hotels Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com October 1, 2013 Key Findings Digital Marketing Brand Search Fifty-six percent of travelers enter the purchase funnel Mobile: Percentage of First Page U.S. Organic Real Estate Brand Term Searches August 2013, n=48 through search engines.21 On average, 31 percent of upstream traffic to Index brand sites comes from search Bing Google (paid and organic), second only to direct traffic. Every brand 62% claims the top spot in organic results on both Google and 56% Bing for brand search terms and dominates 56 percent and 62 percent, respectively, of organic first-page real estate. For the Travel segment, the average cost per click on Yahoo! Bing is 10 to 24 percent lower than on Google AdWords.22 However, brands control 82 percent of firstpage paid real estate on Google, versus just 34 percent on Bing, where brands face fiercer competition from OTAs 13% and competitors and are less likely to engage in defensive 8% search strategies. On Bing, OTAs control three times more 0% paid ad positions than on Google for brand terms. Comfort Index Brand OTA 1% Competitor Brand Inn was the only brand purchasing competitive ads on Google (against Budgetel Inns & Suites), while six percent of brands purchased against at least one competitor on Bing. U.S. hotel searches are projected to increase 24 percent overall in 2013, including a 68 percent uptick in searches from mobile devices.23 Twenty-nine percent of Index brand Percentage of U.S. Brands Purchasing Brand Term Ads August 2013, n=48 term searches are conducted from a mobile or tablet device. Brands in the Index command roughly 60 percent of the first five mobile organic results for brand terms. Budgetel Inns & Suites and Vagabond Inn were the only brands not to appear first in Google mobile organic search results. On average, brands controlled just 39 percent of paid real 65% 62% 73% Google Bing Google Mobile estate on Google Mobile for brand terms, compared to 45 percent by OTAs. Microtel Inn & Suites by Wyndham, Knights Inn, Ramada, and Baymont Inn & Suites all purchase competitive brand terms on mobile. 21. “The Hotel Traveler’s Road to Decision”, Google and Ipsos MediCT, July 2012. 22. “Yahoo! Bing PPC Performance Metrics,” AdGooroo, 2012. 23. “Tablets Grab Significant Share of Travel Traffic,” eMarketer, June 17, 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 10
    • EXCERPT from the Digital IQ Index®: Hotels Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com October 1, 2013 Key Findings Digital Marketing Email Average Emails Per Week Sent by U.S. Hotels Email accounts for 10 percent of hotel bookings and seven August 2013, n=46 percent of upstream traffic to brand sites.24 Nearly threequarters of Index brands offer a stand-alone email opt-in, 0.78 while 91 percent offer email through account sign-up. 1.25 1.28 1.03 Midscale n=11 Upper Midscale n=9 Upscale n=13 Accounts are more popular among hoteliers because of ties to loyalty programs. Brands in the Index averaged 1.06 emails per week, five Economy n=13 times higher than the hotels profiled in our January 2013 Digital IQ Index®: Luxury Hotels25 (0.23 emails per week). Best Western tops brands in email frequency, averaging 2.8 U.S. Hotel Email Optimization for Mobile emails per week. August 2013, n=42 Email is not immune from the growing popularity of 100% mobile technology. U.S. mobile Internet users spend most 100% 93% of their web time using email,26 and 68 percent of travel 71% consumers view email either exclusively on a mobile device 57% or using mobile and desktop devices interchangeably.27 Fifty-three percent of travel emails are opened on a mobile device, but the click-to-open rate is only nine percent.28 Observant of these trends, all the Index brands’ emails were viewable and rendered to proportion on mobile devices. Used by on-the-go travelers, brands’ emails commonly link to hotel locators and promote mobile properties. Viewable on Mobile Brands with loyalty programs like Hilton Worldwide keep in touch with members via regular status emails. 24. “Online Satisfaction and Experience in the Hospitality Industry,” iPerceptions and Hospitality Sales and Marketing Association International (HSMAI), September 13, 2012. 25. “Digital IQ: Hotels,” L2 Think Tank, January 2013. 26. “Experian Marketing Services Reveals 27 Percent of Time Spent Online is on Social Networking,” (Press Release), Experian Marketing Services, April 16 2013. 27. “Yesmail’s Email Marketing Compass: The Mobile Effect”, Yesmail Interactive, August 2013 28. Ibid. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. Renders to Mobile Proportion Links to Hotel Locator Links to Mobile Site Able to View Email in Browser Red Roof Inn was the only Index brand to send a “Happy Birthday” email. 11
    • EXCERPT from the Digital IQ Index®: Hotels Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Key Findings Social Media October 1, 2013 U.S. Hotel Brand Social Media Adoption Social Media August 2013, n=48 Brand & Property Thirty percent of travelers use social networks to seek out travel-related deals,29 and 76 percent of travelers use 4% 23% Facebook to conduct research while planning their trips.30 However, social media properties contribute just 0.3 percent Property Only Brand Only 13% 15% 67% 6% 35% No Presence 40% 69% 63% 77% of upstream traffic to hotel brand sites. 2% Lack of coordinated property efforts across the Upscale, 54% Upper Midscale, Midscale and Economy sectors reduces 44% the impact of social media. While every brand in the Index 15% maintains a presence on Facebook, it is inconsistent at 23% 21% the property level. Just over half of brands maintain a 15% 4% 13% centralized and property-specific presence on Twitter, however the platform registers the slowest growth and lowest engagement of any platform. While adoption on Instagram (particularly at the brand level) is limited, the 76%* 21%* platform tallies 20x higher engagement than any other social 40%* 6%* 7%* * Top Social Media Sites Used to Research and Plan Internet Users’ Last Trip1 media destination. Average Community Size, Weighted Growth and Engagement by Platform Across U.S. Index Hotel Brand Pages August 2013, n=48 3.0% 2.0% 1.0% Engagement 0.4% 0.3% 0.2% 0.1% 0.0% -0.1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Growth 29. “The Future of Social Media for the Travel Industry,” Luc Chomé, TourismLink, April 19, 2013. 30. “TripBarometer,” TripAdvisor and StrategyOne, March 2013 Size Growth Engagement © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 22,876 4.1% 0.013% 208,488 8.8% 0.121% 886 13.1% 2.165% 3,834 15.3% 0.029% 12
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com Digital IQ Index®: Hotels October 1, 2013 Table of Contents Click logo to return here. Click screen shots with this icon to view online! Click to jump to: 5 Methodology 6 Digital IQ Rankings 6 Genius 11 Key Findings 11 Digital IQ Distribution 12 Enterprise Effect Site 38 Flash of Genius 3 8 Aloft, Crowne Plaza Hotels & Resorts and Marriott International: Digitizing Check-In 3 9 InterContinental Hotel Group, Marriott International, and 7 Gifted 13 Site Functionality 8 Average 15 Pricing and Promotions 4 0 DoubleTree by Hilton: DTour 9 Challenged 16 Travel Planning Tools 4 1 Holiday Inn Express: “Stay Smart” 9 Feeble 17 Customer Service 4 2 La Quinta and Wyndham Worldwide: Mobile Standout 18 Booking 4 3 Interactive Travel-Planning Tools Digital Marketing 19 STR Top 25 Hotel Market Search 20 Google Carousel 21 Sponsored Search Results 22 Email Wyndham Worldwide: Translating Reviews into Customer Loyalty 4 4 Loyalty Programs 45 L2 Team 46 About L2 23 Brand Search Mobile 24 Mobile Adoption 26 Mobile Booking 27 Tablet Optimization Social Media 28 Social Media 30 Twitter 33 YouTube 34 Property All-Stars 35 TripAdvisor Booking 36 TripAdvisor User-Generated Content © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 13
    • EXCERPT from the Digital IQ Index®: Hotels Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com October 1, 2013 About L2 ? L2 is a think tank for digital innovation. Upcoming Events We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation. L U N C H : BR A Z I L , R U S S I A , M I D D L E E A S T R ESEAR C H Digital IQ Index®: The definitive benchmark for online competence, Digital IQ Index® reports score brands against peers on more than 600 quantitative and qualitative data points, diagnosing their digital strengths and weaknesses. L2 Collective®: Series of benchmarking reports designed to help member brands better understand resources, human capital, budgets, and priorities supporting digital strategies. EVENT S October 9, 2013 · New York City L U N C H : R ES EA R C H BR I E F I N G October 17, 2013 · San Francisco L U N C H : WATCHES & JEWELRY October 24, 2013 · New York City L U N C H : WATCHES & JEWELRY October 29, 2013 · Geneva L U N C H : BE A U TY Forums: Big-picture thinking and game-changing innovations meet education and entertainment. October 31, 2013 · New York City The largest gatherings of prestige executives in North America. L2 FORUM 300+ attendees November 6 & 7, 2013 · New York City Clinics: Executive education in a classroom setting with a balance of theory, tactics, and case studies. 120 –180 attendees Upcoming Research Working Lunches: Members-only lunches led by digital thought leaders and academics. D I G I TA L I Q I N D EX ® R E P O RT: Topic immersion in a relaxed environment that encourages open discussion. Middle East | Prestige 40–80 attendees CONSULT I NG Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. Advisory work includes Digital Roadmaps, Social Media Strategy, and Organizational Strategy engagements. Watches & Jewelry Beauty Fashion Sportswear MEMBER SHIP For membership info and inquiries: membership@L2ThinkTank.com © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 14
    • EXCERPT from the Digital IQ Index®: Hotels To access the full report, contact membership@L2ThinkTank.com A THINK TANK for DIGITAL INNOVATION 51 East 12th Street, 2nd Floor New York, NY 10003 L2ThinkTank.com info@L2ThinkTank.com © L 2 2013 L 2 ThinkTank.com Reproductions Prohibited This report is the property of L2 Think Tank. No copyrighted materials may be reproduced, redistributed, or transferred without prior consent from L2. L2 reports are available to L2 Members for internal business purposes.