IgnitionOne, a global marketing technology and services leader with a focus on the travel and hospitality sector, today announced the release of its Q2 2019 Hospitality Industry Report. The report’s most notable finding revealed that revenue lost to cart abandonment reached an estimated $3.2B – a 33% increase since Q4 2018. Of the increase, luxury hotels saw the highest abandonment rates with economy and mid-scale hotels coming in 4.5-5% lower than the average across all hotel tiers.
“The IgnitionOne Customer Intelligence Platform has been crucial in granting us the insight we need to understand our prospective customers in real time,“ said Jeff Thomas, Director of Distribution & eCommerce at G6 Hospitality LLC. “The quarterly Hospitality Report provides our properties with a holistic overview of the industry overall and where we stand against our competitors.”
“Within our quarterly reports, we aim to identify marketplace gaps or areas of opportunity for the hospitality industry as a whole,” said Eric Bamberger, SVP Hospitality at IgnitionOne. “Clearly cart abandonment is becoming an increasingly prevalent issue, particularly for the luxury hotel sector. This is why investing in a personalized approach to customer-centric campaigns is so crucial to growing direct bookings. Premium media costs are on the rise and marketers are increasing spend to boost website traffic, but then don’t succeed at encouraging conversion. Leveraging technology to help them identify and focus on those customers who are more likely to convert increases revenue and drives bookings away from OTAs and competitors.”
Since the inaugural report in Q4 2018, the IgnitionOne Hospitality Report has examined data from 15.6M bookings and tracked just over $4.7B in total revenue. While the volume of bookings was relatively consistent between Q1 and Q2, revenue tracked was down 5%. The report establishes key industry benchmarks including cart abandonment rates, booking values and daily rates, site activity, and travel breakdown by business and leisure for all tiers: Luxury, Upscale, Midscale, Economy and Extended Stay.
In addition to revenue opportunities, the report found varying booking trends in three major cities across the U.S.
- New York City – There was a decrease in bookings for April and May relative to the nine-month average since October 2018. May 20 to June 2 was the lowest volume booking period of the year.
- Las Vegas – In June, the volume of bookings at Las Vegas hotels was more than 10% higher than the average over the last nine months, perhaps correlated to average booking values being 10% lower.
- Chicago – There was increased booking volume and booking values throughout June due to a roster of popular music festivals, like Lollapalooza, in July and August.
Additional highlights from the report include:
- Users who book at extended stay, economy or midscale hotels are spending more time on the site before completing bookings in Q2.
- Luxury hotels saw a 15% increase in average latency compared to Q1 and a 20% increase in lead time compared to Q4.
- A new section highlights how hotel marketers can leverage insights in this report into their digital marketing strategy – and includes an exclusive offer with IgnitionOne.
The IgnitionOne Hospitality Industry Report is based on first-party data gathered from more than 25,000 hotel properties across more than 65 hotel brands. The report looks at global trends in booking value, site activity, cart abandonment rates, and travel breakdown. The data is aggregated to show trends over time as well as by hotel tier.
IgnitionOne’s leading Customer Intelligence Platform enables marketers to find, value and engage their best customers in order to maximize digital marketing results. IgnitionOne’s technology provides real-time, actionable insights for smarter marketing decisions and omnichannel engagement. IgnitionOne is one of the largest independent marketing technology companies in the world, currently scoring over 600 million users monthly in 75 countries and powering more than $60 billion in revenue each year for leading brands including Samsung, General Motors, Dollar General, Lenovo, Wyndham, and Lumber Liquidators.