From big data to personalization, a new year brings new advancements in technology and marketing strategy. Learn what hotels and hospitality brands can expect for the year to come.
2. Hoteliers worldwide are fed up. Hospitality
brands are reporting bullying practices from
the OTAs that include dictating what must
be featured on a hotel’s website, how a
property can communicate with their guests,
and even publishing misleading rates on their
websites. A growing movement in the travel
world, spurred by these unsavory practices,
is encouraging travelers to eschew the shiny
discounts featured on booking sites and…
gasp…book directly. As it turns out, booking
directly was the best way to book all along.
Hotels Find Ways
Around Rate Parity
3. Digital advertising is up
16% in both 2014 & 2015
Projected to hit $69B
in 2016 v $66B in 2015
Ad blockers will force
advertisers to learn to
please consumers again
instead of annoying them
DIGITAL ADVERTISING
TO OVERTAKE TV
When was the last time you sat through the
commercials during your favorite television show?
Exactly. As consumers devour more and more
media online, that means they are consuming less
and less television. Smart advertisers have already
made the move online, but brilliant advertisers are
finding creative ways to delight customers with
advertising rather than bombarding them with
half-baked trash.
4. growth in digital video ad spend
35% YoY
In the era of instant gratification,
witty copy and compelling imagery
aren’t enough to appeal to the ADD
most consumers seem to have
developed. They want information,
but not just information - it must
be funny, entertaining, or make
them feel something. Oh, and it
must come in video form. That’s
not asking too much is it?
Digital Video
Is On The Rise
5. Growing Spend on
Display Advertising
In 2016, digital display ad spending will eclipse search
ad spending in the US for the first time. Combined,
the categories of video, sponsorships, rich media and
banners will account for the largest share of digital ad
spending. Display spend is expected to hit $32 billion
this year.
6. #Social
Is Increasingly Dominant
As earned media grows in value, a social
media strategy and an influencer outreach
plan are a must for marketers who want
to boost their brands. In 2015, we saw
the rise of live streaming on social with
platforms like Periscope coming to the
forefront, Facebook hitting the 1 billion
mark for users in one day and even
Google making changes to its search
results to reflect the importance of
social posts. Social, once thought of as
the internet’s annoying little sister, is all
grown up, and everyone has noticed.
One out of every 6 minutes
spent on the internet is spent
on Facebook
7. If you haven’t heard of Airbnb then allow me to assist you with
removing that rock you have been living under. Hotels are feeling
backed into a corner with the meteoric rise in popularity of alternative
lodging options. Millennials love experiencing the culture of where they
are visiting and often times that means living like a local. The influence
of Airbnb is forcing hotels to reconsider their bread and butter. Many
hotels will start focusing on recreating lobbies and common spaces as
communal spots for socializing, including local elements and unique
touches to reflect the surrounding city.
Alternative Accommodation
Overtaking Hotel Stays
Cultural
Diversity
Living
Local
Millennials
Love
8. Big
Data
&
The
Marketing
Ecosystem
No two customers will take the
same path to conversion. By
using data, marketers can start
understanding how different buyer
personas are taking different paths
to purchase: what is motivating
them, what appeals to them, and
ultimately what makes them
decide to buy
Testing will become increasingly
more important when it comes
to making data driven
marketing decisions
Now, advertising technology can
narrow in on specific variables like
content and relevant keywords
that make the difference between
no traffic and heavy traffic to
your site
9. What if every time that you traveled, the hotel
concierge greeted you by name and provided
you with a list of restaurants in the area that
they knew you would love? Most hoteliers get
into the business because of special touches
like those. They aren’t just hotel owners and
employees, but “experience craftsmen” who
recognize that a hotel stay is never just a hotel
stay, but an escape. Hotels that are already
embracing personalization on property and
online see an increase in guest loyalty and
return bookings. Basically, travelers get a tailored
experience and hotels get an increase in revenue.
Sounds like a win for all parties.
Personalization
Hello
10. MOBILE
CONTINUES
AS
FASTEST
GROWING
SEGMENT
The channel already accounts for 35% of digital spend
In the past year, conversion rates have grown 88% on
mobile travel sites
Reaching shoppers during micro-moments is essential
“Consumers are doing research in the many connected
moments on mobile and desktop throughout their day.
We’re thinking a lot about how we should be evolving
our products to keep pace with this change.”
- Oliver Heckman (Google)
In 2015, we watched consumers become even more reliant
on their mobile devices to tell them where to go, how to get
there, and what to do once they are there (it’s a wonder we
still have brains at all!) Not only are shoppers browsing on
their devices, but they are increasingly making purchases
here too - a fact that marketers would be remiss to ignore.
11. The pervasiveness of technology, especially in regards to
the Internet of Things, might seem a bit dystopian to those
who value privacy, but it is opening doors in the realm of
personalization. Some day in the not too distant future,
travelers will be able to breeze through security and arrive
at their seats on the plane where a drink they ordered
earlier awaits them. Upon arrival at their hotel, they will be
able to check in using mobile technology and go straight
to their rooms where all of the technology in their rooms
will already be adjusted to their preferences.
- Photo courtesy of Teage Design Consultancy
The Internet of Things