The document outlines the key trends in hotel digital marketing from 2015 to 2016, with a primary focus on consumer centricity, personalization, convenience, and the rise of social influences in travel decisions. It discusses how competitors in the travel industry are adapting to meet consumer demands through loyalty programs, mobile strategies, and enhanced customer experiences, while also highlighting the growing impact of sharing economy platforms like Airbnb. Ultimately, the report suggests that companies must understand and respond to the evolving preferences of travelers to remain competitive.

1. HOTEL DIGITAL MARKETING TRENDS
June 2016
In Association with

2. What’s New in Digital Travel?

3. WHAT’S NEW IN DIGITAL TRAVEL?
BRAND CENTRICITY CONSUMER CENTRICITY
The biggest trend in the hotel, accommodation and travel
industry for 2015 - 2016 is
Consumer Centricity

4. Consumer Centricity:
Traveler’s Journey

5. Understanding the Path to Purchase and the triggers affecting each stage
CONSUMER CENTRICITY: TRAVELER’S JOURNEY
Reviews,
Social
Media
Content,
Ads, Search
and Social
Reviews
Content
Reviews, Cross
Services,
Concierge Aps
and Social
Reviews
Staying
Websites,
OTAs,
Reviews
TRAVELER‘S
JOURNEY

6. To offer value to consumers, travel industry competitors must understand what is driving
consumers:
WHAT ARE THE MAIN CONSUMER TRENDS?
They are looking
for the best offer
that would
maximize the value
they are getting for
their money
They are looking
for the most
convenient,instant
experience, straight from
their mobile, seamlessly
moving between channels
They rely on their
social network and
friends – as a result,
we are witnessing a
booming “sharing
economy”
The travel
consumers
are increasingly
searching for a
tailored, personal
experience
PERSONAL
CONVENIANT
SOCIAL
VALUE FOR
MONEY

7. Competitors are increasingly responding to consumer needs via the following strategies:
WHAT ARE THE MAIN COMPETITOR STRATEGIES?
Competitors
respond with
loyalty programs
Cross-services
that enhance the
customer experience
Focus on mobile
strategy: pre-stay,
on-stay, post-stay
apps and concierge
services
Focus on location
based & connected offers
Competitors seek a
share of the Sharing
Economy with new
models
Emphasizing
reviews to support
the consumer
decision process
Using big data for
personalization –
“Just for You”
Social Log-in
Special offers
per segment –
including
content,
commerce,
experience
PERSONAL
CONVENIANT
SOCIAL
VALUE FOR
MONEY

8. Circle: Main consumer trends | Arrows: Respective strategies
TREND MAP - ROUNDUP
Loyalty
Entertainment
Luxury
Mobile +
omni-channel
Instant
Concierge
New Price
Cross-services
Paradigms
Self Service
IoT & Wearables
Reviews
Sharing Economy
Referrals
Segmentation
Customization
Personalization
Big Data
Content
PERSONAL
CONVENIANT
SOCIAL
VALUE FOR
MONEY

9. The Path to Purchase

10. WHEN DO THEY BOOK?
Source: Fuel Travel Research (2900 respondents, USA)

11. WHERE DO THEY START THEIR RESEARCH?
Source: Fuel Travel Research (2900 respondents, USA)

12. HOW MANY SITES DO THEY LOOK AT?
Source: Fuel Travel Research (2900 respondents, USA)

13. WHAT PLATFORM DO THEY USE?
Source: Fuel Travel Research (2900 respondents, USA)

14. Integration along the Path to
Purchase

15. The Consumer-Centric approach drove many competitors to offer “end-to-end
experiences”, realizing that the consumers don’t want “a hotel”, “a flight” or
“tickets”: they want a great experience.
The most prominent instruments we have noticed for creating such
experience are:
Content - ideas, inspiration, reviews which pertain to the entire trip (including
dining, tickets and even social acquaintances)
Mobile – self service, concierge apps, digital wallet etc.
INTEGRATION ALONG THE PATH TO PURCHASE

16. Trend #1: Personalization

17. Personalization = better conversion. The more relevant the content / offer to the
consumer, the more he/she are likely to make a purchase.
Today, Personalization is enabled by mobile, but it also stems from the rise in “big
data” and the ability to analyze the data, reaching “micro segments”.
Industry competitors are also targeting consumer segments, and this is
increasingly based on data analysis.
TREND #1: PERSONALIZATION

18. Enabling Technology: Big data
TripAdvisor’s 'Just For You' personalization feature
PERSONALIZATION | SPECIAL OFFERS

19. PERSONALIZATION | CONTENT
Community Research
On the Trip
TripAdvisor uses personalized content to drive traffic to its site
Content Drives Audience
Audience
Drives Leads
Community
Drives Content

20. PERSONALIZATION | CONTENT
IHG addresses business travelers with dedicated blog of travel tips

21. “Luxury” Airbnb – “One Fine Stay” (UK):
Adaptation of the Airbnb model, targeting a specific client segment.
PERSONALIZATION | SEGMENTATION

22. Utrip uses an artificial intelligence platform to help travelers plan personalized itineraries
PERSONALIZATION | CONTENT

23. According to Traveler’s preferences, Utrip deliver personalized day-by-day itineraries with
sorted combinations of hotels, sites, activities and restaurants
PERSONALIZATION | CONTENT

24. Trend #2: Convenience

25. The need for extra convenience is a mega-trend concerning any industry
This stems from lack of time on the one hand – and the consumers’ growing
reliance on technology to make their life easier
Common strategies include:
Omni-Channel – “All in one place”
Mobile – “Wherever / Whenever”
Cross-services – “One Stop Shop”
Instant offers – concierge apps and services, immediate &
location-based offers (sometimes based on Internet of
Things/ beacons
INTEGRATION ALONG THE PATH TO PURCHASE

26. TripAdvisor acquired Viator – a global leader in online tours and attractions
bookings.
CONVENIENCE | CROSS-SERVICES

27. Booking Now shows the best nearby properties with immediate
availability in a single page, personalized experience.
Available for mobile and Apple watch.
CONVENIENCE | CROSS-SERVICES

28. Priceline.com and other OTAs now enable mobile wallet payment
CONVENIENCE | CROSS-SERVICES
Pay with
Google
Wallet

29. The Intercontinental (IHG) mobile app caters to the travelers’ different
needs across their journey
CONVENIENCE | CROSS-SERVICES

30. CONVENIENCE | SERVICE INNOVATION
iBeacon technology
Beacons placed in the lobbies and restaurants of the IHG hotels recognize IHG REWARDS CLUB
members using the IHG APP in close proximity. They then send information to the guest’s
smartphone, including personalized notifications and offers relevant to their stay. The pilot is
being implemented in a selection of hotels in China.

31. CONVENIENCE | SERVICE INNOVATION
Hilton Hotels app lets guests make actions as: Room selection, Check-in,
special requests etc. (before and during their stay).
“93% of guests saying they’ve felt satisfied or extremely satisfied with the
experience.”

32. CONVENIENCE | SERVICE INNOVATION
Marriot hotels mobile app is adjusted to variety of devices including Smart
watch

33. CONVENIENCE | OMNI-CHANNEL
Airbnb offers tools on mobile & Apple Watch for travelers – as well as for
hosts. Similarly, HomeAway offers innovative tools for hosts, recognizing
that apartment sharing success depends on the quality and variety of
rentals.

34. CONVENIENCE | INSTANT MESSAGING
Instant messaging platforms used by hotels: Hyatt hotels contact their
guests by using WeChat. KLM airlines contact consumers with
WhatsApp.

35. CONVENIENCE | INSTANT MESSAGING
La Quinta Hotels offers to their clients fast internet upgrade and “Ready
For You” service – Guests get instant message (SMS/Email) when their
room is ready.

36. CONVENIENCE | INSTANT MESSAGING
Emoji Room Service - Aloft Hotels launched TiGi service (Text it. Get it).
Guests can simply text an emoji of what they want to the hotel’s front desk and
within minutes, the delivery is made.
"Our guests can now talk to us like they talk to each other“
- Paige Francis, vice president of global marketing for
Starwood Hotels

37. CONVENIENCE | SOCIAL CUSTOMER SERVICE
Hyatt and Hilton hotels chains have set up dedicated Twitter accounts which
provides a 24/7 concierge services in any matter for their guests.

38. Trend #3: Social

39. The rise in social networks has created a new sharing economy, where people
are interested in, and in buying from, other people whom they
don’t necessarily know.
Consumer trust other consumers’ opinions, more than they trust brands.
Competitors increasingly turn to incorporate social media in their tactics,
whether by managing platforms or by incorporating the reviews into the site
(so that the consumer will not look elsewhere).
TREND #3: SOCIAL

40. Hotel reviews are tremendously important when it comes to choosing a hotel.
According to TrustYou, Travelers are 3.9 times more likely to choose a hotel
with higher review scores when the prices are the same
When hotel prices are increased for hotels with better review scores,
travelers are more likely to book the hotel with the higher score even when it
costs more.
76% of travelers were willing to pay more for a hotel with higher review
scores, when asked explicitly.
SOCIAL | REVIEWS

41. SOCIAL | REVIEWS
95%
is spent reading a hotel’s
reviews prior to booking.
are read, on average
by leisure travelers.
7 Reviews 30 Min
of travelers read
reviews prior to
booking a hotel.
Source: Consumer Research Identifies How To Present Travel Review Content For Optimal Bookings // TrustYou
Review Data Has A Significant Impact On Travelers’ Booking Decisions

42. Hotels today embrace customer reviews, recognizing their importance to the
customers, and thus enabling the customer to complete its journey without
leaving the site.
SOCIAL | EMBRACING REVIEWS
Marriott displays “Marriott Verified Reviews”

43. Planely connect you with other travelers who are on the same flight, or at the
same departure or arrival airports as you.
SOCIAL | NETWORKING

44. INTEGRATION ALONG THE PATH TO PURCHASE
In order to achieve loyalty, a company must go back to the parameters
that drive consumer decisions – and offer an added value for at least
some of them:
Better value for money – additional night for free, free upgrades etc.
Personal, outstanding service – self service, concierge, personalized perks,
customized offers etc.
Convenience throughout the travel lifecycle – order, check-in via app,
ordering via mobile, etc.

45. VFM | NEW PRICE PARADIGM
HotelTonight, an app launched in 2011, today has 11 million users in almost 30
countries. The app helps cover for hotel vacancies – while saving consumers
money.

46. In the “opaque“ model, certain elements of the service, including the
identity of the travel service provider, are not disclosed to the consumer
prior to making a reservation.
Priceline.com is a leader in the „opaque“ travel reservation
VFM | “OPAQUE” PRICING

47. Expedia makes opaque accommodation room reservations available on its
principal website under the name „Expedia Unpublished Rates“
VFM | “OPAQUE” PRICING

48. VFM | NEW LOYALTY PROGRAMS
Starwood has integrated Apple‘s Passbook
Pre-stay: photos, hotel address, confirmation number
Upon arrival: notification upon check-in with the room number Upon
departure: survey.

49. Guests booking with IHG in one of more than 50 key destinations across
the globe will be able to use Stay.com to research and plan their travel, and
create personalised travel guides to share with friends.
VFM | USEFUL CONTENT

50. Best Price Guarantees are
common on OTA and Meta-
Search engines; but they are
now also penetrating the direct
sales channel (by hotels).
VFM | BEST PRICE GUARANTEE

51. Orbitz: Refer a friend -
When friends join,
they‘ll get a $25 promo
code for their first hotel
stay.
You‘ll get $25 in
Orbucks once they
complete their first
hotel stay of $50 or
more.
VFM | REFERRALS & LOYALTY

52. VFM | LOYALTY
Starwood Hotels offers companies the SPG (Starwood Preferred Guest) program – can
enjoy discounted rates, room upgrades, late check out and more.

53. OTA’s VS Hotels

54. The relationship between the OTAs and hotel operators has been the subject of wide
debate in the industry.
OTAs have aggressively focused on hotels to provide a higher share of their revenues
as the commission from selling flights has declined, and they have tried to attract
consumers by reducing the cost of booking as much as possible.
However, industry regulation (including self-regulation) has leveled the playground
for hotels, and they are now free to offer best price guarantees via their websites.
In addition, hotels are imitating OTAs and are offering more cross-services, such
as car rentals and airline tickets.
OTAS VS. HOTELS
Source: Schieber Research, Deloitte, Google Trends

55. In Sep. 2015, Google announced some changes to how it markets and
distributes hotel inventory, making it easier for hotels to list their properties
directly on its site — and to collect leads seamlessly on mobile devices —
while skipping middlemen like online travel agencies (OTAs) and other
metasearch sites.
OTAS VS. HOTELS
http://www.google.com/ads/hotels/getstarted/index.html

56. Airbnb – Sharing Economy

57. Founded in 2008, Airbnb connects "hosts" with
guests through an online platform – Airbnb.com.
Though about two thirds of the listings are for an
entire home, guests have multiple options, ranging
from living room couches to shared and private
rooms to even castles, tree houses, and igloos.
Since Airbnb's creation in 2008, it has hosted over
40 million guests across 34,000+ cities spanning
over 190 countries.
Currently, there are more than 2 million listings
worldwide (75% increase 2014 – 2015) with
about 25% of them in the U.S.
Source: nasdaq.com
AIRBNB | SHARING ECONOMY

58. AIRBNB | SHARING ECONOMY
Airbnb had changed the
accommodation industry, and
is a symbol of the “sharing
economy”– peer to peer
accommodation.
The company reports 353X
growth in summer travel, in 5
years.

59. AIRBNB: SUCESS BY THE NUMBERS
1,200,000
1,100,000
722,575 715,000 715,000
600,000
500,000 480,000
348,117
156,875
Rooms/ Listings in 2015
Source: Skift 2015 (based on company filings for all except Airbnb which is self-reported)

60. AIRBNB: SUCESS BY THE NUMBERS
Source: Skift 2015 (based on company filings for all except Airbnb which is self-reported)
27.68
24
21.1
14.05
12.6
10.09 9.87
8.14
3.24 2.95
Market Cap / Valuation 2015 USD Billion

61. AIRBNB | FOCUS ON COMMUNITY
Airbnb has a community where their users can connect with other hosts, share stories,
ask for advice, and get updates. Moreover, they offer loyalty Program which includes an
incentive for members to book a holiday through the website or to host.

62. Hotel chains are beginning to recognize to the potential threat of the sharing economy, and
particularly Airbnb, especially ever since Airbnb had announced that it will try to attract more
business travelers – the bread and butter of many chains.
Main strategies used by hotel chains:
HOTELS RESPOND TO AIRBNB THREAT
Provide a Better
Experience
•Utilizing the same
competitive tactics
designed to compete
with OTAs
•For example, focusing
on the entire
experience;
incorporating loyal
programs; digital
check ins; concierge
services; etc.
•Offer budget stays –
with hotel amenities.
Leverage the platform
•Apartment rental
platforms provide
another source to
drive visits to the
hotel’s website.
•Hotels may choose to
target specific
segments such as
families through this
platform.
Differentiation
•Hotels might actually
want to leverage
that feeling of ex-
territory instead of
considering it as a
disadvantage.
•In addition, with
vacation rentals,
hotels should
emphasize the
amenities, trust and
security that they
offer the guests.
M&A
•Hotels and OTAs
have turned to deals
in order to win a
share of the vacation
rental market – such
as Expedia’s
acquisition of
HomeAway or
Hyatt’s investment in
OneFine Stay.

63. Hospitality companies are targeting the entire trip, aiming to accommodate the
various needs of the traveler. Through this, companies can offer a better experience
and more convenience, and they can also find new growth.
One of the key technologies for companies in this regard is the smartphone: Hilton, for
example, considers the smartphone as the consumers’ “remote control” for the entire
travel experience.
In this field, OTAs have taken the upper hand, since they have planned the trip (rather
than the accommodation alone) from the start. However, major hotel chains have
already stated that they are concentrating on the traveler’s entire trip as well.
Airbnb has said in an interview to Fast Company in 2014, "Our business isn't the
house - our business is the entire trip.” Indeed, the company is well positioned to
leverage its community to offer additional peer-to-peer services.
EVERYONE’S GOAL: “ENTIRE TRIP”

64. CURRENT COMPETITORS’ FOCUS AREAS
Business
Travelers
Families
Individuals
Airbnb
Home
Away
Hotel
Chains
Boutique
Hotels
Kid &
Co.
Millennials Older Travelers
Millennials Older Travelers
OneFineStay

65. What hotels will look like in the
near future…

66. THE HOTEL OF THE FUTURE
https://www.youtube.com/watch?v=qjWQ1sDhc-8&feature=youtu.be

67. Conclusion

68.  Identify any key area where you are able to provide added
value to the traveler across the path to purchase, whether by
personalizing, providing the best instant service, offering
better value for money, saving time or providing a stress-free
experience to consumers, or connecting them to other
consumers.
 Then, decide which tools or devices will enable you to
respond to these needs across the traveler’s path to
purchase.
 Keep up with industry trends and create a relevant action
plan in order to provide valuable 'up to date‘ services to your
clients.
CONCLUSION

69. Thank You!
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