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An iPerceptions & HSMAI Special Report
Online Satisfaction and Experience in the
           Hospitality Industry

                               Q3 2012

      Additional reports available at the iPerceptions Resource Center
                http://www.iperceptions.com/resource-center/




       3575 Boulevard St-Laurent, Suite 310, Montréal, Québec, H2X 2T7
                     T. 877.796.3600 F. 866.484.2600
              info@iperceptions.com | www.iperceptions.com




         1760 Old Meadow Road, Suite 500, McLean, Virginia 22012
                    T. 703.506.3280 F. 703.506.3266
                    info@hsmai.org | www.hsmai.org
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

Table of Contents


Table of Contents ................................................................................................................................................................ 2
About the Report ................................................................................................................................................................. 2
Executive Summary ............................................................................................................................................................. 2
Overall Satisfaction .............................................................................................................................................................. 2
Task Completion.................................................................................................................................................................. 2
Type of Traveler ................................................................................................................................................................... 2
Hotel Category – Overall Satisfaction and Task Completion............................................................................................. 2
Type of Traveler by Hotel Category .................................................................................................................................... 2
Loyalty Program Membership by Type of Traveler ............................................................................................................ 2
Visit Frequency by Type of Traveler .................................................................................................................................... 2
Purpose of Visit .................................................................................................................................................................... 2
Purpose of Visit by Type of Traveler.................................................................................................................................... 2
Task Completion by Purpose of Visit by Type of Traveler .................................................................................................. 2
Task Completion Barriers for Bookers* .............................................................................................................................. 2
Path to Site ........................................................................................................................................................................... 2
Path to Site by Visit Frequency ............................................................................................................................................ 2
iPerceptions Perceptual Framework ................................................................................................................................... 2
Attribute Questions.............................................................................................................................................................. 2
Attribute Ratings .................................................................................................................................................................. 2
Attribute Ratings by Loyalty Program Membership ........................................................................................................... 2
Key Drivers of Online Satisfaction for Bookers*.................................................................................................................. 2
About iPerceptions and HSMAI .......................................................................................................................................... 2




                                                                                          2
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012


About the Report

The following report is based on immediate post-experience feedback from 257 iPerceptions webValidator and 4Q
Suite surveys deployed on hospitality websites around the world. The data represents aggregated information
obtained from over 82,000 visitors between July 1 and Sept 30, 2012.


Executive Summary

Setting the Stage
The third quarter of 2012 represents the height of the summer travel season. As such, one can expect an increase
in the share of leisure travelers looking to plan their holidays. While the number of successful bookings is always an
important key performance indicator for most brands at any time of year, this metric is of paramount significance
during the high leisure travel season. And since price is one of the most important decision points when booking a
leisure trip, brands often compete and become very creative when trying to offer the best deal. Whether offering
free nights, discounts on rooms or services or additional membership benefits, hospitality providers will need to
continuously develop creative solutions in order to keep their brand at the top of the traveler’s consideration set.



Increase in Leisure Travelers
Two-thirds of hospitality and tourism website visitors were of a Leisure context in Q3 2012. While this share is similar
to that reported last quarter, it marks a significant increase over the same quarter last year. That being said, the
share of Business travelers has decreased in consequence. Leisure travelers frequented all hotel tiers, but were
most likely to stay at Midscale or Economy brands due to their price point and value offering. Business travelers, on
the other hand, preferred Extended Stay or Luxury hotels, mainly because their hotel choice is often dictated by
corporate policy, or because they are less affected by price concerns since the cost does not impact them
personally.



Loyalty Program Membership
Most hospitality and tourism website visitors were members of a loyalty program in Q3 2012, unchanged since Q2.
However, a year on year decrease is noted as result of lower membership among Business travelers. This could be
due to less frequent marketing activity surrounding membership program promotion, or it could be that travelers
have reached the saturation point in terms of how many programs they feel they can join. Membership among
Leisure travelers, on the other hand, has increased since last year. Understandably, membership remained higher
among the Business segment, as this segment tends to travel more often and is more likely to join such programs
in order to earn rewards.




                                                          3
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012


Frequency of Visit & Path to Site
The bulk of hospitality and tourism websites were comprised of repeat visitors in Q3 2012. Since Business travelers
were more frequent travelers than their Leisure counterparts, repeat website visits were more common in this
group. Importantly, however, is that first time visitors within the Business cohort increased significantly since last
quarter as well as versus the same period last year.


Interestingly, despite a strong prevalence of repeat visitors, most travelers accessed hospitality and tourism sites via
search engine – first time and repeat visitors alike. About one in four typed in the brand URL to reach the website,
an incidence that has increased among first time visitors not only since last quarter but last year as well, suggesting
that promotional efforts may have helped with brand awareness and recall. The fact that bookmarking tracked as a
distant third in terms of path to site suggests either that brand loyalty has not been optimized, or that typing in the
URL served as a proxy for bookmarking since recalling the URL is a form of brand identification. Interestingly, the
share of visitors accessing hospitality and tourism websites via email link has increased significantly since last year,
indicating that marketing efforts employed by brands has been working to drive visitors to their websites.


Overall Experience
Overall Satisfaction has remained steady at 73.0 for Q3 2012. Content Relevancy is the key strength for hospitality
and tourism websites, indicating that the information and visual content (Relevancy, Breadth) were in line with
visitors’ expectations. As well, visitors found these websites easy to navigate (Ease of use, Discovery). On the other
hand, the perception of receiving the best rates through the brand website (Bottom line) remained the lowest
ranked Attribute, suggesting that visitors felt that they could get better value by shopping around.

Regression analysis indicates that four Attributes had a significant impact on the outcome of a hospitality and
tourism website visitor’s experience. Navigation elements of Discovery (the ability to find what the visitor was
looking for) and site Ease of Use both surfaced as Attributes that were scored on the higher side and exerted a
strong level of influence on overall experience. As such, these elements should be maintained, meaning that
websites should continue to provide an easy and intuitive navigation process. Site Responsiveness – which involves
interactive elements associated with the booking process such as calendar functionality, room selection, personal
information input, etc., were not only the lowest rated Key Driver of the visitor’s experience, but the most influential. As
result, the overall Convenience of using a specific website for travel needs – although not as influential – also emerged as
a key element of the online experience. Therefore, when it comes to prioritizing website enhancements, streamlining and
optimizing the booking process should be the area on which to focus on in order to promote successful booking.




                                                            4
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012
Purpose of Visit & Task Completion
The main reason for visiting a hospitality and tourism website in Q3 2012 was to book, particularly among Business
travelers. About one in five travelers were interested in finding hotel information, or comparing rates, which was
more common among the Leisure segment.

Overall task completion improved significantly versus last quarter and last year. Leisure travelers were primarily
responsible for this gain, likely due, at least in part, to a stronger presence of repeat visitors, thus facilitating task
completion due to stronger familiarity with the website in question, etc. However, Business travelers remained
more successful than Leisure at completing their tasks, due to the higher share of repeat visitors in this group.

Viewing/cancelling a reservation continued to yield the highest rate of task completion, likely since this task is fairly
easy to do. Finding hotel information posted the lowest rate of task completion, mainly because visitors faced
challenges in locating the sufficient level of detail about the hotel or price for which they were looking. This further
reinforces the need to ensure that websites respond to visitors’ needs by providing an optimal search and booking
process – thus focusing on the Responsive attribute as cited above.

Over 7 in 10 Bookers were able to complete their reservation in Q3 2012 – a significant improvement over the
previous quarter and year. Nonetheless, almost 30% were unable to complete their booking, mainly because they
could not find the room or hotel information they needed, the room or hotel was not available during the travel
dates required, or that Bookers encountered technical or usability issues while trying to make their reservation. And
while sometimes this resulted in the Booker calling the hotel directly to complete their transaction, it also led to
abandonment, such that they left the website in order to consider other brands.



The Road Ahead

There is no question that the hospitality space is becoming exponentially more competitive. For travelers, this is a
double edged sword because while the growth in the number of players in the space means that they have more
options to consider, it also can be quite overwhelming. As the Priority Grid suggests, travelers value website
Convenience, and want to complete their tasks quickly and efficiently. For brands, therefore, the opportunity is how
to facilitate the traveler’s decision making process by providing an intuitive website with content that is clearly laid
out, and a smooth, hassle free booking process. Voice of Customer data provides an excellent basis for which
brands can identify what the pain points are for their customers, but understanding how they should be addressed
and repaired can be complex. Usability audits serve as an excellent compliment to Voice of Customer research as a
means of helping outline these objectives, and together, can provide the roadmap on guiding site improvement
strategy and optimizing overall online brand health.




                                                           5
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012


Overall Satisfaction


Q3 2012                                          73.0

Q2 2012                                          73.0

Q3 2011                                          73.0

          50      55    60       65         70           75    80




Task Completion


Q3 2012                                    72.0%

Q2 2012                                 71.0%

Q3 2011                                 71.0%

          50%    55%   60%      65%        70%          75%   80%




                                       6
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

Type of Traveler


  Leisure Travelers                                                                67%


Business Travelers                      23%


             Other           11%


                      0%        10%     20%       30%     40%         50%        60%       70%    80%


                                Percent Share                       Overall Satisfaction                 Task Completion

                      Q3 2012      Q2 2012      Q3 2011   Q3 2012        Q2 2012       Q3 2011   Q3 2012      Q2 2012     Q3 2011

Leisure Traveler       67%            66%        63%          74            73             74      72%         71%         69%
Business
                       23%            24%        27%          73            72             73      76%         77%         78%
Traveler
Other                  11%            11%        10%          73            72             73      68%         68%         68%




Hotel Category – Overall Satisfaction and Task Completion
                                       Overall Satisfaction                                      Task Completion

                           Q3 2012            Q2 2012         Q3 2011              Q3 2012          Q2 2012             Q3 2011
Luxury                       73                 72                  74                 72%            70%                72%
Midscale                     75                 75                  74                 73%            74%                71%
Economy                      72                 73                  72                 69%            69%                71%
Extended Stay                75                 75                  74                 75%            76%                73%




                                                                7
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

Type of Traveler by Hotel Category

                                Luxury                         Midscale                         Economy                     Extended Stay
                  Q3          Q2         Q3        Q3       Q2            Q3        Q3        Q2          Q3        Q3       Q2        Q3
                 2012        2012       2011      2012     2012          2011      2012      2012        2011      2012     2012      2011
Leisure
                 59%         59%        57%       69%         68%        69%       71%       70%         74%       55%      52%       47%
Travelers
Business
                 32%         31%        34%       `19%        20%         19%      12%       10%         12%       33%      36%       36%
Travelers
Other             10%        10%        9%         12%        12%         12%      18%       20%         14%       12%      12%        17%




Loyalty Program Membership by Type of Traveler


             Overall                               78%


  Leisure Travelers                             77%


Business Travelers                                                                           88%


                       70%   72%      74%       76%     78%    80%       82%     84%      86%      88%    90%


                                    Overall                              Leisure Travelers                       Business Travelers

                   Q3 2012         Q2 2012       Q3 2011      Q3 2012        Q2 2012      Q3 2011        Q3 2012      Q2 2012      Q3 2011
Membership             78%           78%           79%          77%             77%          76%           88%            87%         90%


Visit Frequency by Type of Traveler

                              Overall                                 Leisure Travelers                          Business Travelers

               Q3 2012       Q2 2012          Q3 2011      Q3 2012         Q2 2012        Q3 2011        Q3 2012     Q2 2012       Q3 2011
First-time
                 28%          32%              28%            29%            33%             31%           21%            23%         17%
Visitor
Repeat
                 72%          68%              72%            71%            67%             69%          79%             77%         83%
Visitor




                                                                     8
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

Purpose of Visit


Make Reservation                                                                    28%


   Compare Rates                                             18%


    Find Hotel Info                                                 21%


View / Cancel Res                       8%


             Other                                                          25%

                      0%           5%            10%    15%          20%          25%          30%


                                 Percent Share            Overall Satisfaction             Task Completion

                        Q3            Q2          Q3     Q3         Q2       Q3          Q3       Q2      Q3
                       2012          2012        2011   2012       2012     2011        2012     2012    2011
Make
                       28%           27%         29%    74         73        73         71%      69%     69%
Reservation
Compare Rates              18%       19%         22%    73         72        72         71%      70%     69%
Find Hotel Info            21%       20%         24%    75         75        74         70%      69%     71%
View / Cancel
                           8%         7%         8%     77         76        76         81%      79%     79%
Res
Other                  25%           27%         20%    72          71       73         73%      73%     75%




                                                               9
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

Purpose of Visit by Type of Traveler

                            Leisure Travelers                       Business Travelers

                  Q3 2012      Q2 2012          Q3 2011   Q3 2012       Q2 2012          Q3 2011
Make
                   32%           31%             31%       37%            35%             37%
Reservation
Compare Rates      23%           25%             26%       13%            13%             14%
Find Hotel Info     19%          16%             23%        11%           10%             11%
View / Cancel
                    5%            5%              5%        7%             7%              8%
Res
Other               21%          23%             16%       31%            34%             30%




Task Completion by Purpose of Visit by Type of Traveler

                            Leisure Travelers                       Business Travelers

                  Q3 2012      Q2 2012          Q3 2011   Q3 2012       Q2 2012          Q3 2011
Make
                   72%           71%             69%       78%            76%             77%
Reservation
Compare Rates       71%          69%             67%       75%            74%             74%
Find Hotel Info    68%           68%             68%       75%            76%             77%
View / Cancel
                   82%           78%             81%       83%            82%             81%
Res
Other              74%           73%             75%       80%            78%             81%




                                                10
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

 Task Completion Barriers for Bookers*




Available
“Dates not available”
“I didn’t find anything available in my price range and dates
“Few choices and non availability”
“Hotels I prefer are not available”

Room/rooms
“Because you won’t show a pic of the rooms
“I kept trying to enter my dates every time I clicked search nothing happened am giving up had the intention of booking a
room for four nights
“I needed more information casino information and photos what is the distinction between the Greenbrier and Glade
“Springs spa information and photos golf course information and photos examples of breakfast menus or buffets and
photos ballroom information
“I WANTED TO KNOW MORE DETAILS OF THE ROOMS AVAILABLE AND I COULDNT GET A PHONE
“Looking for a room in North Myrtle Beach Map didn’t show what I needed to know
“Never could find a king bed room to click on only suites were offered
“The virtual tour of the room that I wanted did not match the floorplan.There was credibility gap on what I was
purchasing

Find
“Could not find any hotels with indoor pools in the area we wanted for a decent price that had rooms available
“Couldn’t find a property in the area I wanted that was pet friendly
“Did not find what I was looking for
“I could not find a hotel that offered all of the services I needed
“I could not find the information I needed
“I could not find the rates on your site-Would be helpful to compare and find a good rate although I like your Motel”




                                                            11
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012
Site
 “Found the website slow and awkward to use”
“Difficult to navigate website”
“Could not navigate through your website for rooms would not give me the option to click on any other option”
“Could not get locations from your website - not only that but it appears that the Americinn i was looking for is no longer
there - will be staying somewhere else”
“Website performed poorly, not able to navigate”

Reservation
“2nd time I have tried to book reservations on this web site unsuccessfully. E either I am not very smart or viewing Book
reservation is not very evident but I am going to use a handy dandy phone line once again to book a reservation at my
convenience”
 “I found the website confusing as far as booking a reservation couldn’t figure out how to make a reservation. In the end
found a different hotel on Hotels com”
“Site would not accept final steps had to call”
“The site did not complete my reservation which had to be done on line in order to obtain the special rate”
“The site told me that one or more of my rooms had been reserved but there was errors and I had to call a number to
complete my reservation I would like to have completed it at that time not have to call a number to complete.”
“The site was slow and then it kept saying unable to book”




*Bookers: Purpose of Visit = ‘Make a Reservation’




                                                            12
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012


Path to Site



  Search Engine                                                                          40%

   Typed in URL                                            23%

Bookmark / Fav                     9%

     E-mail Link                     7%

  Other Site Link              4%

  Clicked on Ad           2%

Link from Friend         1%

  Social Net Link        1%

           Other                        12%

                    0%        5%        10%    15%        20%     25%       30%       35%      40%   45%


                                   Percent Share                        Overall Satisfaction                Task Completion

                     Q3 2012         Q2 2012       Q3 2011       Q3 2012     Q2 2012     Q3 2011     Q3 2012   Q2 2012    Q3 2011

Search Engine            40%            39%         30%            70           70             72     66%        63%          62%
Typed in URL             23%            22%         25%            72           72             73     66%        64%          65%
Bookmark / Fav           9%             8%           15%           77           76             76     76%        73%          69%
Clicked on Ad            2%             2%           3%            71            71            72     64%        65%          65%
Other Site Link          4%             4%           3%            71           70             70     71%        65%          72%
Email Link               7%             7%           2%            76           74             74     81%        73%          74%
Link from
                         1%             1%           1%            77           73             73     73%        70%          74%
Friend
Social Net Link          1%             1%           --            76           73             76     78%         71%         83%
Other                    12%            16%          21%           72           72             73     66%        65%          65%




                                                                    13
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012



Path to Site by Visit Frequency


                             First-Time Visitors                       Repeat Visitors

                   Q3 2012        Q2 2012          Q3 2011   Q3 2012     Q2 2012         Q3 2011
Search Engine       42%            40%              33%       39%          40%            22%
Typed in URL        23%            15%              16%       23%          23%            35%
Bookmark / Fav       8%             5%               5%       10%           9%            21%
Clicked on Ad        2%             3%               3%        3%           2%             2%
Other Site Link      3%             3%               1%        5%           4%             1%
Email Link           6%             5%               1%        7%           7%             1%
Link from Friend     1%             --               1%        2%           1%             1%
Social Net Link      1%             1%               1%        1%           1%             1%
Other               15%            25%              31%        11%         13%            18%




                                                   14
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

iPerceptions Perceptual Framework




Attribute Questions

Dimension       Attribute        Question
                Starting Point   ...is one of the first sites you use when you plan a trip or event?
Adoption
                Return           ...encourages you to return?
                Breadth          ...covers the range of information you need?
Content
                Relevancy        ...has content that is relevant to the purpose of your visit?
                Contacts         ...enables you to identify and contact the right people?
Interactivity
                Responsive       ...is truly interested in responding to your needs?
                Bottom Line      ...can save you money on room rates?
Motivation
                Convenience      ...is the most convenient way to choose your hotel accommodations?
                Discovery        ...enables you to find what you’re looking for?
Navigation
                Ease of Use      ...is easy for you to navigate?




                                                             15
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

 Attribute Ratings

7.7
7.6
7.5       7.57
                 7.50
7.4                         7.47       7.45    7.43
                                                        7.40      7.39
7.3
7.2                                                                          7.25          7.25
 7.1                                                                                                 7.14
7.0
6.9




                                   Overall                      Leisure Travelers                    Business Travelers

                   Q3 2012         Q2 2012    Q3 2011   Q3 2012     Q2 2012    Q3 2011        Q3 2012       Q2 2012   Q3 2011

Relevancy            7.57           7.52       7.55      7.61         7.56          7.59          7.53       7.47      7.52
Ease of Use          7.50           7.44       7.42      7.53         7.48          7.49          7.44       7.36      7.30
Breadth            7.47             7.42       7.41      7.50         7.45          7.49          7.44       7.39      7.39
Discovery          7.45             7.38       7.57      7.49         7.41          7.41          7.42       7.34      7.33
Return             7.43             7.39       7.41      7.47         7.42          7.48          7.36       7.32      7.38
Starting Point     7.40             7.37       7.29      7.44         7.40          7.31          7.36       7.39      7.33
Convenience        7.39             7.32       7.33      7.41         7.35          7.36          7.34       7.28         7.31
Contacts           7.25             7.25       7.15      7.30         7.29          7.22          7.15       7.16      7.02
Responsive         7.25             7.22       7.24      7.29         7.26          7.29          7.17       7.13         7.18
Bottom Line        7.14             7.13       6.94      7.17         7.15          6.93          7.06        7.11     6.97




                                                          16
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012


Attribute Ratings by Loyalty Program Membership



                             Members                         Non-members

                 Q3 2012    Q2 2012      Q3 2011   Q3 2012    Q2 2012      Q3 2011
Relevancy         7.71        7.63        7.69       7.11       7.13        7.12
Ease of Use       7.61        7.52        7.49      7.14        7.15        7.10
Breadth           7.61        7.54        7.56      7.00        7.04        7.00
Discovery         7.59        7.50         7.51     7.00        7.00        6.96
Return            7.60        7.55        7.58      6.88        6.90        6.98
Starting Point    7.68        7.64        7.56      6.63        6.66        6.71
Convenience       7.53        7.44        7.49      6.91        6.94        6.93
Contacts          7.40        7.39        7.25      6.84        6.90        6.86
Responsive        7.37        7.32        7.36      6.87        6.91        6.88
Bottom Line       7.33        7.34        7.25      6.61        6.67        6.71




                                         17
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012



Key Drivers of Online Satisfaction for Bookers*


                                  Influence chart for Hospitality Industry Q3 2012 BOOKERS
              0.40
                                                                              Discovery

              0.35


              0.30
   Higher
  Influence
              0.25                                                                 Ease of use
                               Responsive


              0.20


              0.15                                              Convenience

    Lower
  Influence   0.10


              0.05


              0.00
                     7.2               7.3                7.4              7.5              7.6               7.7   7.8

                                             Lower                   iPSI 7.5                        Higher
                                             Rating                                                  Rating


The following
Attributes
together best
predict overall            Attribute           Question
site satisfaction
for in-market
visitors.Dimension
Interactivity              Responsive          ...is truly interested in responding to your needs?
Navigation                 Discovery           ...enables you to find what you’re looking for?
Navigation                 Ease of Use         ...is easy for you to navigate?
Motivation                 Convenience         …is the most convenient way to choose your




                                                                   18
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012
                                                    accommodations/plan your travel?


*Bookers: Purpose of Visit = ‘Make a Reservation’




                                                                  19
Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

 About iPerceptions and HSMAI




3575 Boulevard St-Laurent, Suite 310, Montréal, Québec, H2X 2T7
T. 877.796.3600 F. 866.484.2600
info@iperceptions.com | www.iperceptions.com

A trusted market research firm and global leader in Voice of Customer (VoC) analytics, iPerceptions captures
customer perceptions on the touch point of choice and at the critical time using advanced intercept technologies and
proven research frameworks to deliver action in real-time. Its platform provides advanced business intelligence
reporting and global benchmarking to assist in strategic and tactical decision-making. Also inject VoC results to
provide seamless integration of customer insights into current processes and improve the overall customer
experience. So from standard to custom solutions, from full service to self service, it’s no wonder InterContinental
Hotels, Fairmont, Best Western, Choice Hotels International and Wyndham Vacations and over 3,000 brands trust
iPerceptions. For more information visit iperceptions.com




1760 Old Meadow Road, Suite 500, McLean, Virginia 22012
T. 703.506.3280 F. 703.506.3266
info@hsmai.org | www.hsmai.org

The Hospitality Sales and Marketing Association International (HSMAI) is committed to growing business for hotels
and their partners, and is the industry’s leading advocate for intelligent, sustainable hotel revenue growth. The
association provides hotel professionals & their partners with tools, insights, and expertise to fuel sales, inspire
marketing, and optimize revenue through programs such as HSMAI’s MEET, Adrian Awards, and Revenue
Optimization Conference. HSMAI is an individual membership organization comprising more than 7,000 members
worldwide, with 40 chapters in the Americas Region. Connect with HSMAI at www.hsmai.org,
www.facebook.com/hsmai, www.twitter.com/hsmai and www.youtube.com/hsmai1.




                                                        20

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  • 1. An iPerceptions & HSMAI Special Report Online Satisfaction and Experience in the Hospitality Industry Q3 2012 Additional reports available at the iPerceptions Resource Center http://www.iperceptions.com/resource-center/ 3575 Boulevard St-Laurent, Suite 310, Montréal, Québec, H2X 2T7 T. 877.796.3600 F. 866.484.2600 info@iperceptions.com | www.iperceptions.com 1760 Old Meadow Road, Suite 500, McLean, Virginia 22012 T. 703.506.3280 F. 703.506.3266 info@hsmai.org | www.hsmai.org
  • 2. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Table of Contents Table of Contents ................................................................................................................................................................ 2 About the Report ................................................................................................................................................................. 2 Executive Summary ............................................................................................................................................................. 2 Overall Satisfaction .............................................................................................................................................................. 2 Task Completion.................................................................................................................................................................. 2 Type of Traveler ................................................................................................................................................................... 2 Hotel Category – Overall Satisfaction and Task Completion............................................................................................. 2 Type of Traveler by Hotel Category .................................................................................................................................... 2 Loyalty Program Membership by Type of Traveler ............................................................................................................ 2 Visit Frequency by Type of Traveler .................................................................................................................................... 2 Purpose of Visit .................................................................................................................................................................... 2 Purpose of Visit by Type of Traveler.................................................................................................................................... 2 Task Completion by Purpose of Visit by Type of Traveler .................................................................................................. 2 Task Completion Barriers for Bookers* .............................................................................................................................. 2 Path to Site ........................................................................................................................................................................... 2 Path to Site by Visit Frequency ............................................................................................................................................ 2 iPerceptions Perceptual Framework ................................................................................................................................... 2 Attribute Questions.............................................................................................................................................................. 2 Attribute Ratings .................................................................................................................................................................. 2 Attribute Ratings by Loyalty Program Membership ........................................................................................................... 2 Key Drivers of Online Satisfaction for Bookers*.................................................................................................................. 2 About iPerceptions and HSMAI .......................................................................................................................................... 2 2
  • 3. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 About the Report The following report is based on immediate post-experience feedback from 257 iPerceptions webValidator and 4Q Suite surveys deployed on hospitality websites around the world. The data represents aggregated information obtained from over 82,000 visitors between July 1 and Sept 30, 2012. Executive Summary Setting the Stage The third quarter of 2012 represents the height of the summer travel season. As such, one can expect an increase in the share of leisure travelers looking to plan their holidays. While the number of successful bookings is always an important key performance indicator for most brands at any time of year, this metric is of paramount significance during the high leisure travel season. And since price is one of the most important decision points when booking a leisure trip, brands often compete and become very creative when trying to offer the best deal. Whether offering free nights, discounts on rooms or services or additional membership benefits, hospitality providers will need to continuously develop creative solutions in order to keep their brand at the top of the traveler’s consideration set. Increase in Leisure Travelers Two-thirds of hospitality and tourism website visitors were of a Leisure context in Q3 2012. While this share is similar to that reported last quarter, it marks a significant increase over the same quarter last year. That being said, the share of Business travelers has decreased in consequence. Leisure travelers frequented all hotel tiers, but were most likely to stay at Midscale or Economy brands due to their price point and value offering. Business travelers, on the other hand, preferred Extended Stay or Luxury hotels, mainly because their hotel choice is often dictated by corporate policy, or because they are less affected by price concerns since the cost does not impact them personally. Loyalty Program Membership Most hospitality and tourism website visitors were members of a loyalty program in Q3 2012, unchanged since Q2. However, a year on year decrease is noted as result of lower membership among Business travelers. This could be due to less frequent marketing activity surrounding membership program promotion, or it could be that travelers have reached the saturation point in terms of how many programs they feel they can join. Membership among Leisure travelers, on the other hand, has increased since last year. Understandably, membership remained higher among the Business segment, as this segment tends to travel more often and is more likely to join such programs in order to earn rewards. 3
  • 4. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Frequency of Visit & Path to Site The bulk of hospitality and tourism websites were comprised of repeat visitors in Q3 2012. Since Business travelers were more frequent travelers than their Leisure counterparts, repeat website visits were more common in this group. Importantly, however, is that first time visitors within the Business cohort increased significantly since last quarter as well as versus the same period last year. Interestingly, despite a strong prevalence of repeat visitors, most travelers accessed hospitality and tourism sites via search engine – first time and repeat visitors alike. About one in four typed in the brand URL to reach the website, an incidence that has increased among first time visitors not only since last quarter but last year as well, suggesting that promotional efforts may have helped with brand awareness and recall. The fact that bookmarking tracked as a distant third in terms of path to site suggests either that brand loyalty has not been optimized, or that typing in the URL served as a proxy for bookmarking since recalling the URL is a form of brand identification. Interestingly, the share of visitors accessing hospitality and tourism websites via email link has increased significantly since last year, indicating that marketing efforts employed by brands has been working to drive visitors to their websites. Overall Experience Overall Satisfaction has remained steady at 73.0 for Q3 2012. Content Relevancy is the key strength for hospitality and tourism websites, indicating that the information and visual content (Relevancy, Breadth) were in line with visitors’ expectations. As well, visitors found these websites easy to navigate (Ease of use, Discovery). On the other hand, the perception of receiving the best rates through the brand website (Bottom line) remained the lowest ranked Attribute, suggesting that visitors felt that they could get better value by shopping around. Regression analysis indicates that four Attributes had a significant impact on the outcome of a hospitality and tourism website visitor’s experience. Navigation elements of Discovery (the ability to find what the visitor was looking for) and site Ease of Use both surfaced as Attributes that were scored on the higher side and exerted a strong level of influence on overall experience. As such, these elements should be maintained, meaning that websites should continue to provide an easy and intuitive navigation process. Site Responsiveness – which involves interactive elements associated with the booking process such as calendar functionality, room selection, personal information input, etc., were not only the lowest rated Key Driver of the visitor’s experience, but the most influential. As result, the overall Convenience of using a specific website for travel needs – although not as influential – also emerged as a key element of the online experience. Therefore, when it comes to prioritizing website enhancements, streamlining and optimizing the booking process should be the area on which to focus on in order to promote successful booking. 4
  • 5. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Purpose of Visit & Task Completion The main reason for visiting a hospitality and tourism website in Q3 2012 was to book, particularly among Business travelers. About one in five travelers were interested in finding hotel information, or comparing rates, which was more common among the Leisure segment. Overall task completion improved significantly versus last quarter and last year. Leisure travelers were primarily responsible for this gain, likely due, at least in part, to a stronger presence of repeat visitors, thus facilitating task completion due to stronger familiarity with the website in question, etc. However, Business travelers remained more successful than Leisure at completing their tasks, due to the higher share of repeat visitors in this group. Viewing/cancelling a reservation continued to yield the highest rate of task completion, likely since this task is fairly easy to do. Finding hotel information posted the lowest rate of task completion, mainly because visitors faced challenges in locating the sufficient level of detail about the hotel or price for which they were looking. This further reinforces the need to ensure that websites respond to visitors’ needs by providing an optimal search and booking process – thus focusing on the Responsive attribute as cited above. Over 7 in 10 Bookers were able to complete their reservation in Q3 2012 – a significant improvement over the previous quarter and year. Nonetheless, almost 30% were unable to complete their booking, mainly because they could not find the room or hotel information they needed, the room or hotel was not available during the travel dates required, or that Bookers encountered technical or usability issues while trying to make their reservation. And while sometimes this resulted in the Booker calling the hotel directly to complete their transaction, it also led to abandonment, such that they left the website in order to consider other brands. The Road Ahead There is no question that the hospitality space is becoming exponentially more competitive. For travelers, this is a double edged sword because while the growth in the number of players in the space means that they have more options to consider, it also can be quite overwhelming. As the Priority Grid suggests, travelers value website Convenience, and want to complete their tasks quickly and efficiently. For brands, therefore, the opportunity is how to facilitate the traveler’s decision making process by providing an intuitive website with content that is clearly laid out, and a smooth, hassle free booking process. Voice of Customer data provides an excellent basis for which brands can identify what the pain points are for their customers, but understanding how they should be addressed and repaired can be complex. Usability audits serve as an excellent compliment to Voice of Customer research as a means of helping outline these objectives, and together, can provide the roadmap on guiding site improvement strategy and optimizing overall online brand health. 5
  • 6. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Overall Satisfaction Q3 2012 73.0 Q2 2012 73.0 Q3 2011 73.0 50 55 60 65 70 75 80 Task Completion Q3 2012 72.0% Q2 2012 71.0% Q3 2011 71.0% 50% 55% 60% 65% 70% 75% 80% 6
  • 7. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Type of Traveler Leisure Travelers 67% Business Travelers 23% Other 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% Percent Share Overall Satisfaction Task Completion Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Leisure Traveler 67% 66% 63% 74 73 74 72% 71% 69% Business 23% 24% 27% 73 72 73 76% 77% 78% Traveler Other 11% 11% 10% 73 72 73 68% 68% 68% Hotel Category – Overall Satisfaction and Task Completion Overall Satisfaction Task Completion Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Luxury 73 72 74 72% 70% 72% Midscale 75 75 74 73% 74% 71% Economy 72 73 72 69% 69% 71% Extended Stay 75 75 74 75% 76% 73% 7
  • 8. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Type of Traveler by Hotel Category Luxury Midscale Economy Extended Stay Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 2012 2012 2011 2012 2012 2011 2012 2012 2011 2012 2012 2011 Leisure 59% 59% 57% 69% 68% 69% 71% 70% 74% 55% 52% 47% Travelers Business 32% 31% 34% `19% 20% 19% 12% 10% 12% 33% 36% 36% Travelers Other 10% 10% 9% 12% 12% 12% 18% 20% 14% 12% 12% 17% Loyalty Program Membership by Type of Traveler Overall 78% Leisure Travelers 77% Business Travelers 88% 70% 72% 74% 76% 78% 80% 82% 84% 86% 88% 90% Overall Leisure Travelers Business Travelers Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Membership 78% 78% 79% 77% 77% 76% 88% 87% 90% Visit Frequency by Type of Traveler Overall Leisure Travelers Business Travelers Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 First-time 28% 32% 28% 29% 33% 31% 21% 23% 17% Visitor Repeat 72% 68% 72% 71% 67% 69% 79% 77% 83% Visitor 8
  • 9. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Purpose of Visit Make Reservation 28% Compare Rates 18% Find Hotel Info 21% View / Cancel Res 8% Other 25% 0% 5% 10% 15% 20% 25% 30% Percent Share Overall Satisfaction Task Completion Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 2012 2012 2011 2012 2012 2011 2012 2012 2011 Make 28% 27% 29% 74 73 73 71% 69% 69% Reservation Compare Rates 18% 19% 22% 73 72 72 71% 70% 69% Find Hotel Info 21% 20% 24% 75 75 74 70% 69% 71% View / Cancel 8% 7% 8% 77 76 76 81% 79% 79% Res Other 25% 27% 20% 72 71 73 73% 73% 75% 9
  • 10. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Purpose of Visit by Type of Traveler Leisure Travelers Business Travelers Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Make 32% 31% 31% 37% 35% 37% Reservation Compare Rates 23% 25% 26% 13% 13% 14% Find Hotel Info 19% 16% 23% 11% 10% 11% View / Cancel 5% 5% 5% 7% 7% 8% Res Other 21% 23% 16% 31% 34% 30% Task Completion by Purpose of Visit by Type of Traveler Leisure Travelers Business Travelers Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Make 72% 71% 69% 78% 76% 77% Reservation Compare Rates 71% 69% 67% 75% 74% 74% Find Hotel Info 68% 68% 68% 75% 76% 77% View / Cancel 82% 78% 81% 83% 82% 81% Res Other 74% 73% 75% 80% 78% 81% 10
  • 11. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Task Completion Barriers for Bookers* Available “Dates not available” “I didn’t find anything available in my price range and dates “Few choices and non availability” “Hotels I prefer are not available” Room/rooms “Because you won’t show a pic of the rooms “I kept trying to enter my dates every time I clicked search nothing happened am giving up had the intention of booking a room for four nights “I needed more information casino information and photos what is the distinction between the Greenbrier and Glade “Springs spa information and photos golf course information and photos examples of breakfast menus or buffets and photos ballroom information “I WANTED TO KNOW MORE DETAILS OF THE ROOMS AVAILABLE AND I COULDNT GET A PHONE “Looking for a room in North Myrtle Beach Map didn’t show what I needed to know “Never could find a king bed room to click on only suites were offered “The virtual tour of the room that I wanted did not match the floorplan.There was credibility gap on what I was purchasing Find “Could not find any hotels with indoor pools in the area we wanted for a decent price that had rooms available “Couldn’t find a property in the area I wanted that was pet friendly “Did not find what I was looking for “I could not find a hotel that offered all of the services I needed “I could not find the information I needed “I could not find the rates on your site-Would be helpful to compare and find a good rate although I like your Motel” 11
  • 12. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Site “Found the website slow and awkward to use” “Difficult to navigate website” “Could not navigate through your website for rooms would not give me the option to click on any other option” “Could not get locations from your website - not only that but it appears that the Americinn i was looking for is no longer there - will be staying somewhere else” “Website performed poorly, not able to navigate” Reservation “2nd time I have tried to book reservations on this web site unsuccessfully. E either I am not very smart or viewing Book reservation is not very evident but I am going to use a handy dandy phone line once again to book a reservation at my convenience” “I found the website confusing as far as booking a reservation couldn’t figure out how to make a reservation. In the end found a different hotel on Hotels com” “Site would not accept final steps had to call” “The site did not complete my reservation which had to be done on line in order to obtain the special rate” “The site told me that one or more of my rooms had been reserved but there was errors and I had to call a number to complete my reservation I would like to have completed it at that time not have to call a number to complete.” “The site was slow and then it kept saying unable to book” *Bookers: Purpose of Visit = ‘Make a Reservation’ 12
  • 13. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Path to Site Search Engine 40% Typed in URL 23% Bookmark / Fav 9% E-mail Link 7% Other Site Link 4% Clicked on Ad 2% Link from Friend 1% Social Net Link 1% Other 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Percent Share Overall Satisfaction Task Completion Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Search Engine 40% 39% 30% 70 70 72 66% 63% 62% Typed in URL 23% 22% 25% 72 72 73 66% 64% 65% Bookmark / Fav 9% 8% 15% 77 76 76 76% 73% 69% Clicked on Ad 2% 2% 3% 71 71 72 64% 65% 65% Other Site Link 4% 4% 3% 71 70 70 71% 65% 72% Email Link 7% 7% 2% 76 74 74 81% 73% 74% Link from 1% 1% 1% 77 73 73 73% 70% 74% Friend Social Net Link 1% 1% -- 76 73 76 78% 71% 83% Other 12% 16% 21% 72 72 73 66% 65% 65% 13
  • 14. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Path to Site by Visit Frequency First-Time Visitors Repeat Visitors Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Search Engine 42% 40% 33% 39% 40% 22% Typed in URL 23% 15% 16% 23% 23% 35% Bookmark / Fav 8% 5% 5% 10% 9% 21% Clicked on Ad 2% 3% 3% 3% 2% 2% Other Site Link 3% 3% 1% 5% 4% 1% Email Link 6% 5% 1% 7% 7% 1% Link from Friend 1% -- 1% 2% 1% 1% Social Net Link 1% 1% 1% 1% 1% 1% Other 15% 25% 31% 11% 13% 18% 14
  • 15. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 iPerceptions Perceptual Framework Attribute Questions Dimension Attribute Question Starting Point ...is one of the first sites you use when you plan a trip or event? Adoption Return ...encourages you to return? Breadth ...covers the range of information you need? Content Relevancy ...has content that is relevant to the purpose of your visit? Contacts ...enables you to identify and contact the right people? Interactivity Responsive ...is truly interested in responding to your needs? Bottom Line ...can save you money on room rates? Motivation Convenience ...is the most convenient way to choose your hotel accommodations? Discovery ...enables you to find what you’re looking for? Navigation Ease of Use ...is easy for you to navigate? 15
  • 16. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Attribute Ratings 7.7 7.6 7.5 7.57 7.50 7.4 7.47 7.45 7.43 7.40 7.39 7.3 7.2 7.25 7.25 7.1 7.14 7.0 6.9 Overall Leisure Travelers Business Travelers Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Relevancy 7.57 7.52 7.55 7.61 7.56 7.59 7.53 7.47 7.52 Ease of Use 7.50 7.44 7.42 7.53 7.48 7.49 7.44 7.36 7.30 Breadth 7.47 7.42 7.41 7.50 7.45 7.49 7.44 7.39 7.39 Discovery 7.45 7.38 7.57 7.49 7.41 7.41 7.42 7.34 7.33 Return 7.43 7.39 7.41 7.47 7.42 7.48 7.36 7.32 7.38 Starting Point 7.40 7.37 7.29 7.44 7.40 7.31 7.36 7.39 7.33 Convenience 7.39 7.32 7.33 7.41 7.35 7.36 7.34 7.28 7.31 Contacts 7.25 7.25 7.15 7.30 7.29 7.22 7.15 7.16 7.02 Responsive 7.25 7.22 7.24 7.29 7.26 7.29 7.17 7.13 7.18 Bottom Line 7.14 7.13 6.94 7.17 7.15 6.93 7.06 7.11 6.97 16
  • 17. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Attribute Ratings by Loyalty Program Membership Members Non-members Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Relevancy 7.71 7.63 7.69 7.11 7.13 7.12 Ease of Use 7.61 7.52 7.49 7.14 7.15 7.10 Breadth 7.61 7.54 7.56 7.00 7.04 7.00 Discovery 7.59 7.50 7.51 7.00 7.00 6.96 Return 7.60 7.55 7.58 6.88 6.90 6.98 Starting Point 7.68 7.64 7.56 6.63 6.66 6.71 Convenience 7.53 7.44 7.49 6.91 6.94 6.93 Contacts 7.40 7.39 7.25 6.84 6.90 6.86 Responsive 7.37 7.32 7.36 6.87 6.91 6.88 Bottom Line 7.33 7.34 7.25 6.61 6.67 6.71 17
  • 18. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Key Drivers of Online Satisfaction for Bookers* Influence chart for Hospitality Industry Q3 2012 BOOKERS 0.40 Discovery 0.35 0.30 Higher Influence 0.25 Ease of use Responsive 0.20 0.15 Convenience Lower Influence 0.10 0.05 0.00 7.2 7.3 7.4 7.5 7.6 7.7 7.8 Lower iPSI 7.5 Higher Rating Rating The following Attributes together best predict overall Attribute Question site satisfaction for in-market visitors.Dimension Interactivity Responsive ...is truly interested in responding to your needs? Navigation Discovery ...enables you to find what you’re looking for? Navigation Ease of Use ...is easy for you to navigate? Motivation Convenience …is the most convenient way to choose your 18
  • 19. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 accommodations/plan your travel? *Bookers: Purpose of Visit = ‘Make a Reservation’ 19
  • 20. Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 About iPerceptions and HSMAI 3575 Boulevard St-Laurent, Suite 310, Montréal, Québec, H2X 2T7 T. 877.796.3600 F. 866.484.2600 info@iperceptions.com | www.iperceptions.com A trusted market research firm and global leader in Voice of Customer (VoC) analytics, iPerceptions captures customer perceptions on the touch point of choice and at the critical time using advanced intercept technologies and proven research frameworks to deliver action in real-time. Its platform provides advanced business intelligence reporting and global benchmarking to assist in strategic and tactical decision-making. Also inject VoC results to provide seamless integration of customer insights into current processes and improve the overall customer experience. So from standard to custom solutions, from full service to self service, it’s no wonder InterContinental Hotels, Fairmont, Best Western, Choice Hotels International and Wyndham Vacations and over 3,000 brands trust iPerceptions. For more information visit iperceptions.com 1760 Old Meadow Road, Suite 500, McLean, Virginia 22012 T. 703.506.3280 F. 703.506.3266 info@hsmai.org | www.hsmai.org The Hospitality Sales and Marketing Association International (HSMAI) is committed to growing business for hotels and their partners, and is the industry’s leading advocate for intelligent, sustainable hotel revenue growth. The association provides hotel professionals & their partners with tools, insights, and expertise to fuel sales, inspire marketing, and optimize revenue through programs such as HSMAI’s MEET, Adrian Awards, and Revenue Optimization Conference. HSMAI is an individual membership organization comprising more than 7,000 members worldwide, with 40 chapters in the Americas Region. Connect with HSMAI at www.hsmai.org, www.facebook.com/hsmai, www.twitter.com/hsmai and www.youtube.com/hsmai1. 20