hotels - התאחדות המלונות בישראל€¦ · or travel agents.3 rooms booked through...

1© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED

ExcErpT from the 2013 Digital IQ Index®: Hotels To access the full report, contact [email protected]

© L2 2013 L2ThinkTank.com

Hotels


January 31, 2013

ScOTT GALLOWAYNYU Stern

In partnership with:

http://l2thinktank.com

http://www.l2thinktank.com/research/hotels-2013/

mailto:membership%40l2thinktank.com?subject=Membership

http://www.l2thinktank.com




Inquire about your brand’s ranking: [email protected]


• Sixty-six percent of travellers indicate they will spend more

time online researching travel purchases in 20122 (up from

59 percent in 2011). In an industry flooded with choice, deft

search engine marketing, loyalty initiatives, and site content

investments are the sharpest tools to cut through the clutter.

• Direct bookings via brand websites are three to five times

more profitable than bookings secured through OTAs and/

or travel agents.3 Rooms booked through a hotel brand site

also register a higher average price.

• Sixty-three percent of travelers consult online reviews before

booking, including 73 percent of consumers between the

ages of 18 and 34.4 Transactional data from Travelocity

indicates a one point bump in review scores (on a five point

scale) which translates to an 11.2 percent price premium.5

• Fifty-seven percent of business travelers access travel

information from a mobile device, up from 25 percent in

2009.6 A third of mobile searchers reserve within 24 hours,

resulting in high margin bookings.7

UpgradeEleven brands in the Index launched sites in the past year

including icons Hilton, Mandarin Oriental, and Sofitel.

Eighty-one percent of hotel brands now boast a mobile-

optimized site, up from 66 percent in 2012. Eighty-one

percent feature at least one iOS application, many of which

are designed to enhance the guest experience during their

stay. All but two brands are present on Pinterest and 82

percent are present on Instagram—social media’s latest

objects of affection. Content destinations, ranging from the

Four Seasons’ Weddings and Taste features to Fairmont’s

“Everyone’s an Original,” transform sites from booking

engines to travel portals.

VacancyThere is considerable untapped opportunity. Despite the

importance of online reviews, just 28 percent of brands in

the Index include user reviews or link to third-party review

sites such as TripAdvisor, which is now worth ($6.7 billion)

more than the majority of firms in the Index. Tablet searches

for hotel brands are up 180 percent in the past 12

months, but no brand in the Index hosts a fully optimized

touch commerce and browsing experience. And, while 74

percent of affluent travelers suggest that they are more likely

to book after watching video,8 just 25 percent of the brands

feature video on their property pages.

Digital IQ = Shareholder ValueBrands that have embraced digital innovation—and their

shareholders—are reaping rewards. Our data reveals a

positive relationship between year-over-year growth in Digital

IQ (across multi-brand companies) and change in stock

price, supporting our thesis that digital competence is linked

to shareholder value in the hotel sector.

Our third annual study quantifies the digital competence

of 57 global hotel brands. Our aim is to provide a tool for

identifying areas of strength and weakness, helping brands

achieve greater return on digital investments. Like the

medium we are assessing, our approach is dynamic. Please

reach out with comments to improve our methodology and

findings. You can reach me at [email protected].

Scott GallowayProfessor of Marketing, NYU SternFounder, L2

20 & 92Nearly 20 years since the advent of the Netscape browser, 92 percent of U.S. travelers book hotel reservations online.1 Several factors have converged to make digital key to a brand’s success or failure:

1. Travel Booking—U.S., Mintel, December 2012.2. The Traveler’s Road to Decision, Google and Ipsos MediaCT. July 2012.3. Distribution Channel Analysis: a Guide for Hotels,” Green, Cindy Estis & Lomanno, Mark, 2012.4. Travel Booking U.S., Mintel, December 2012.

5. Cornell Hospitality Report, November 2012.6. The Traveler’s Road to Decision, Google and Ipsos MediaCT. July 2012.7. Tnooz.8. The Traveler’s Road to Decision, Google and Ipsos MediaCT. July 2012.

Year-Over-Year Growth in Digital IQ and 52-Week percent change in Stock price

Hotel companies with published Data, n=10

r=0.447

-40%

60%

-10%

0%

10%

20%

30%

40%

50%

-30% 20% 10% 0% 10% 20% 30% 40%

Growth in Digital IQ percent rank

52 W

eek

cha

nge

in S

tock

pri

ce


mailto:info%40l2thinktank.com?subject=Brand%20Ranking



mailto:scott%40stern.nyu.edu?subject=Digital%20IQ%20Index%3A%20Hotels

http://www.tnooz.com/2012/08/09/news/nielsen-study-shows-travel-usage-trends-for-mobile-devices-infographic/




30% Digital MarketingSearch, Display, and Email Marketing Efforts Search: Traffic, SEM, SEO, Web Authority

Advertising and Innovation: Display, Retargeting, Cross-Platform Initiatives

Blog & Other User-Generated content: Mentions, Sentiment

Email: Frequency, Content, Innovation, Segmentation and Trigger Emails

Digital IQ classesGenius 140+Digital competence is a point of competitive differentiation for these brands. Creatively engineered messaging reaches travelers on a variety of devices and in many online environments.

ABOUT THE rANKING

Gifted 110–139Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with brand image and larger marketing efforts.

Average 90–109Digital presence is functional yet predictable. Efforts are often siloed across platforms.

Challenged 70–89Limited or inconsistent adoption of mobile and social media platforms. Sites lack inspiration and utility.

Feeble <70Investment does not match opportunity.

The Methodology

40% Site

20% Mobile

10% Social Media

Effectiveness of Brand Site 75% Site Technology and Tablet Experience Site Search and Navigation Reservations Property Pages and Destination Guides Customer Service Account Functionality and Loyalty Programs

Brand Translation 25% Aesthetics Messaging and Visuals (Provided by SapientNitro)

compatibility, Optimization, and Marketing on Smartphones, and Tablets Mobile Site: Compatibility, Functionality, Transaction Capability

iOS Applications (both iphone & ipad): Availability, Popularity, Functionality

Android: Availability, Popularity, Functionality

Innovation: Geolocal, Recent Brand Initiatives

Brand presence, community Size, content, and Engagement Facebook: Likes, Growth, Tabs & Applications, Responsiveness, Interaction Rate

Twitter: Followers, Growth, Frequency, Online Voice

YouTube: Search Visibility, Views, Number of Uploads, Subscriber Growth, Viral Videos

TripAdvisor: Site and Social Media Integration, Brand Responsiveness, Number of Reviews

Emerging Social Media: Instagram, Google+, Pinterest, Tumblr








GENIUSW Hotels

GIFTEDInterContinental

WestinFour Seasons

The Luxury CollectionSheratonSt. Regis

HiltonFairmont

The Ritz-CarltonMandarin Oriental

SofitelWaldorf-Astoria

Hotel IndigoMarriott

Renaissance MGM Resorts

SwissôtelLe Méridien

OmniHyatt

Shangri-La

AVERAGEConrad

JW MarriottLoews

RadissonOrient-Express

Radisson Blu Small Luxury Hotels

of the WorldWyndham

Kimpton Park HyattJumeirah

Dream

CHALLENGEDMorgans Hotel Group

Viceroy Joie de Vivre

The Peninsula Kempinski

The Leading Hotels of the World

Pullman Taj

Millennium Preferred

Tryp by WyndhamOne&Only

The Langham Rosewood

Dorchester CollectionMGallery

Warwick International HotelsPan Pacific

Concorde Relais & Châteaux

Oberoi

FEEBLERaffles

Banyan Tree

1

RANK BRAND DIGITAL IQ

142

DIGITAL IQ rANKING

Starwood Hotels & Resorts Worldwide


2 136

2 136

4 134

4 134

6 133

7 130

8 127

Four Seasons Hotels



InterContinental Hotels Group



Hilton Worldwide

Gifted


9 122

10 118

11 117

11 117

13 115

14 114

14 114

Fairmont Raffles Hotels International

Mandarin Oriental Hotel Group

InterContinental Hotels Group

Marriott International

Hilton Worldwide

Accor









GENIUSW Hotels


WestinFour Seasons


HiltonFairmont






OmniHyatt

Shangri-La

AVERAGEConrad

JW MarriottLoews

RadissonOrient-Express

Radisson Blu Small Luxury Hotels

of the WorldWyndham

Kimpton Park HyattJumeirah

Dream





Pullman Taj







Oberoi

FEEBLERaffles

Banyan Tree


14 114

17 112

17 112

19 111

19 111

21 110

21 110


Hyatt Corporation

MGM Resorts International


Omni Hotels & Resorts


Shangri-La International Hotel Management


23 109

24 105

24 105

26 104

27 101

28 100

29 99


Orient-Express Hotels

Hilton Worldwide

Carlson Rezidor Hotel Group

Loews Hotels

Carlson Rezidor Hotel Group

Small Luxury Hotels of the World

Average


30 98

31 96

31 96

33 95

34 92

35 88

35 88

Hyatt Corporation

Morgans Hotel Group

Kimpton Hotel & Restaurant Group

Wyndham Hotel Group

Wyndham Hotel Group

Jumeirah International

Viceroy Hotel Group

challenged

DIGITAL IQ rANKING








GENIUSW Hotels


WestinFour Seasons


HiltonFairmont






OmniHyatt

Shangri-La AVERAGE

Conrad JW Marriott

Loews Radisson

Orient-ExpressRadisson Blu

Small Luxury Hotels of the World

Wyndham Kimpton

Park HyattJumeirah

Dream





Pullman Taj







Oberoi

FEEBLERaffles

Banyan Tree

DIGITAL IQ rANKING


37 87

37 87

39 85

39 85

41 84

41 84

43 82

Joie de Vivre Hospitality

Kempinski

The Indian Hotels Company

The Hongkong and Shanghai Hotels

Accor


Millennium & Copthorne Hotels


43 82

43 82

46 80

46 80

48 79

49 77

49 77

Kerzner International Resorts

Dorchester Collection

Wyndham Hotel Group

Preferred Hotel Group

Rosewood Hotels and Resorts

Langham Hotels International

Accor


51 76

52 75

53 74

53 74

55 71

56 69

57 65

Warwick International Hotels and Resorts

Concorde Hotels & Resorts

The Oberoi Group

Pan Pacific Hotels Group

Relais & Châteaux


Banyan Tree Holdings

Feeble








regional LeadersPhoCusWright and PricewaterhouseCoopers reported

that in 2010 59 percent of U.S. travel revenues originated

online, versus 43 percent in Europe and 21 percent in

the Asia-Pacific.9 Hotel brands headquartered in North

America boast significantly higher digital IQ’s than global

counterparts.

Regardless of HQ locale, the lion’s share of growth will

come from emerging economies. Brands are beginning to

customize site experiences, regardless of where properties

are located. Two thirds of brands offer a Chinese version

of the site and more than half offer German, French and

Spanish versions.

9. “Web Is Bright Spot in Europe Travel Market,” Karin von Abrams, eMarketer, January 14, 2010.

percentage of Brands with a Site Available in the Following Languages

January 2013

Average Digital IQBy region (HQ)

January 2013

علا رَ بَ يِ � ة ُ ع/ َ ر

ب ع/يِ رَ بَ ىِрусский

язык한국어Italianoportuguês

日本語françaisespañol

Deutsch64%Chinese

55%German

53%Spanish

53%French

48%Japanese

29%Portugese

28%Italian

16%Korean

14%Russian

9%Arabic

Source: Euromonitor

Travel Accomodation Market Size by regionMarket Size (2011, USD billion) Growth (2011-2016 CAGR)

North America

Middle East & AfricaAsia Pacific

Western Europe

153.7

25.4

180.6

212.41.0%

3.8%

5.1%

4.9%

106 94

88 86

North America

n=35

Europen=12

Middle East & Africa

n=2

Asia Pacific

n=8

KEY FINDINGS





http://ezproxy.library.nyu.edu:2736/Article.aspx%3FR%3D1007464%26dsNav%3DNtk:basic%257chotels%2Bregion%257c1%257c%2CRo:4




KEY FINDINGS

The Booking EngineNearly two-thirds of travelers are booking hotels online, with

43 percent of business travelers and 39 percent of leisure

travelers booking directly from a lodging website.10 While 88

percent of travelers comparison shop and 63 percent consult

travel reviews before booking, more sophisticated site features

such as 360 degree tours, product-page video, and hotel staff

tips are just starting to emerge. Use of on-site user ratings and

reviews is 28 percent versus 17 percent in 2012.

Fewer than one in four brands provide live chat functionality.

When Omni Hotels implemented live chat features in 2010, it

registered a dramatic lift in conversion rates (from 3 percent for

site visitors who did not use the feature to 18 percent for those

that did), and an 8 percent increase in AOV.11 On average,

visitors spend 27 percent more time and register 39 percent

more page views on hotel sites with live chat.

Forty-two percent of leisure travelers indicate that virtual tours

or pictures are important features when selecting a hotel,12

however just 28 percent of hoteliers offer detailed photographs

of their accommodations, and only 28 percent offer virtual

tours or 360 degree views.

10. “The Hotel Traveler’s Road to Decision,” Google Ipsos OTX MediaCT, July 2012.11. http://www.liveperson.com/sites/default/files/pdfs/Omni_CaseStudy.pdf12. “The Hotel Traveler’s Road to Decision,” Google Ipsos OTX MediaCT, July 2012.

customer Service percent of Brand Sites with the Following Features

December 2012

property Functionality percent of Brand property pages with the Following Features

December 2012

Ratings and Reviews Live Chat Callback Contact Concierge28% 23% 19% 16%

Restaurant Reservations 360 Degree RoomView or Virtual Tour

Videos Book Hotel Amenities(Spa, Golf, etc.)

39% 28%Detailed Room View28% 25% 21%

“Curated, personalized content is resonating more with luxury hotel guests. Videos, local tips provided by experts, exclusive amenities, booking

rewards—all play an important role in providing a unique guest experience.”

BILL KANArIcK worldwide cMo, SapientNitro





http://www.liveperson.com/sites/default/files/pdfs/Omni_CaseStudy.pdf




KEY FINDINGS

Search continuedSeventy-four percent of brands purchase against their

own brand keywords. The competition for paid real estate

between brands and OTAs is fierce. Brands command 49

percent of real estate for brand terms, OTAs are not far

behind garnering a third of the search results.

Organic Search real EstateAverage percent of Brand-Owned

real Estate by Industry

Hotels Specialty Retail

Sportswear FashionBeauty Spirits Watches & Jewelry

46% 38% 36% 30% 27% 25% 25%

percent paid real Estate of First page Brand Search results

December 2012

Brand

TripAdvisor

Competitor

Other

OTA

4%

7%

8%

32%

49%

percent Organic real Estate of First page Brand Search results

December 2012

Brand

Competitors

OTA

TripAdvisor

Other

3%

8%

15%

29%

46%








KEY FINDINGS

MobileEighty-one percent of the brands in this year’s Index offer

a mobile site experience, a year-over-year increase of 15

percent. Across the app ecosystem, increases in mobile

platform adoption are substantial, with each operating system

seeing double-digit growth. Both Android and BlackBerry—

with a waning, but travel-savvy user base—saw increases of

above 18 percent in app adoption. Eight of 10 smartphone

users and nine of 10 tablet users who have booked travel on

their devices reported they would do so again.13

Hotel brands’ mobile sites and apps typically have different,

complementary foci. Brand sites focus on the m-commerce

(bookings) experience, while many apps provide functionality

to enhance the in-stay experience. Forty percent of iOS apps

feature city guides, 18 percent provide concierge services,

and 15 percent allow users to order room service directly

from the app.

Hotel brands are investing heavily in mobile search,

with the average brand owning 57 percent of its organic

results for brand search. Starwood saw its monthly mobile

bookings increase 20 percent after running click-to-call

ads for its brands.14

13. “The Rise of Mobile Adoption, Sentiment and Opportunity,” comScore, November 2012.14. “Advertising Relearned for Mobile,” Claire Cain Miller, New York Times, October 28, 2012.

“Once again, accessible mobile platforms are the dominating factor in reaching consumers. Connecting your consumer to your hotel needs to be immediate, constant,

and compatible across media channels.”

BILL KANArIcK worldwide cMo, SapientNitro

Mobile Adoptionpercent of Brands on the Following Mobile platforms

2011 vs. 2012 vs. 2013

20122011 2013

iOS Mobile App Functionalitypercent of Apps

December 2012

43%40%

33%

26%

20%18%

15% 14%12% 12%

10%

Reservations

City Guides

Rich Media Content

Property Directory

Email Sign Up

Concierge

Room Service

Language Selection

Housekeeping

Guest Reviews

Check in/Out

Mobile Website Android App

iPad App Blackberry App

iPhone App

54%

68%

81%

12%

44%

60%

20%

22%

40%

63%

66%

81%

10%

46%

65%





http://www.nytimes.com/2012/10/29/technology/advertisers-refine-mobile-pitches-for-phones-and-tablets.html%3Fpagewanted%3Dall




Click to Jump To:

4 Methodology

5 Digital IQ Rankings5 Genius

6 Gifted

7 Average

8 Challenged

9 Feeble

10 Key Findings10 Digital IQ Distribution

11 Enterprise Effect

13 Regional Leaders

14 Biggest Winners & Losers

15 The Booking Engine

16 Loyalty

17 Touch

19 Search

21 Email: Baby Steps

22 The World’s #1 Travel Destination

23 Social Media Penetration

25 Global Management

26 F-Booking?

27 Size vs. Engagement

29 Instagram > 1k Words

30 The New Kid

31 YouTube

33 Mobile

34 Property All Stars

35 Flash of Genius35 Shangri-La, W Hotels, and Four Seasons: UGC Contests

36 Fairmont, One & Only Resorts: Digital “I Do”

37 Hilton Hotels & Resorts: Vacation Rx

38 Hotel Indigo, Relais & Chateau: Destination Guides

39 Conrad: Swipe for Service

40 Renaissance: Digital Rebirth

41 Sofitel: Pick a Pastry

42 Lowes, Millennium, Only&Only, SLH: Crucial Communication

43 Shangri-La: Incentivizing App Adoption

44 Four Seasons: The Many Faces of Luxury

45 L2 Team

46 About L2

Watch the Hotels Video Click to Play

TABLE OF cONTENTS






12


A THINK TANK for DIGITAL INNOVATION

51 East 12th Street, 2nd Floor New York, NY 10003 L2ThinkTank.com [email protected]

© L2 2013 L2ThinkTank.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.





mailto:info%40l2thinktank.com?subject=




hotels - התאחדות המלונות בישראל€¦ · or travel agents.3 rooms booked through...

Documents