2024 Hospitality Benchmark Report takeaways for EMEA Hoteliers
Revinate’s 2024 Hospitality Benchmark Report has just been released, with a format that is even more engaging. This year’s report offers an in-depth analysis of over 1.8 billion emails and more than 37 million guest reviews from 2023.
With the data thoroughly reviewed, we’re excited to share actionable insights aimed at enhancing your direct revenue and elevating guest experiences.
Our 2024 Hospitality Benchmark Report serves as a valuable tool to assess your hotel’s marketing strategies and reputation management performance while allowing you to benchmark against industry peers. Here’s a sneak peek into five key takeaways designed to enhance your hotel marketing and guest feedback efforts.
1. Improving your database health significantly reduces OTA-dependency
Approximately 73% of EMEA hoteliers’ database records boast valid email addresses not obscured by OTAs, a vital indicator of email health crucial for database effectiveness. Why is this great news? The better your database health, the less you depend on OTAs. You can communicate to your guests directly throughout their journey and store their data in your CRM.
But don’t let those OTA-masked emails be forgotten. We found out that 31% of raw profiles within hotel databases in EMEA contain OTA-masked emails, rendering up to 31% of potential guests inaccessible for retargeting. This not only undermines the potential to gain loyal guests but also affects the revenue earned from reengagement efforts. This could lead to increased costs in reacquiring guests and could reduce profit margins.
So, what can you do to ensure no revenue is left on the table? Collect all guest data and promptly update email addresses sourced from OTA bookings within the property management system (PMS). With the right technology, particularly identity resolution powered by a Customer Data Platform (CDP), hoteliers can regain control over the guest experience and direct booking revenue.
2. Sending highly segmented emails improves conversion rates
Are you ready for a trip that feels tailor-made just for you? The next generation of travelers sure is! They’re all about seamless tech, personalized services, and social vibes. So, how can hotels step up to match these travel-savvy preferences? Well, it’s all about investing in tech, delivering personalized experiences, and creating spaces where connections come naturally.
Our 2024 Hospitality Benchmark Report tells us that when emails are sent to fewer than 5,000 people, they are twice as likely to lead to action compared to emails sent to larger groups. This means it’s better to send emails that are tailored to specific groups of people rather than sending the same message to everyone.
Instead of sending identical messages to all guests, it’s more effective to tailor different messages to smaller groups who are likely to be interested. For instance, culinary travel is a popular trend this year. For guests who are food enthusiasts, consider offering special discounts or €20 food credits per guest as part of their stay.
To help with this, you can use a Customer Data Platform. A CDP will bridge the gap between your various management systems, like spa, restaurant, golf, and others to help you identify a single guest across all activities. Once you know your guest’s specific interests, you can tailor your messaging to them. This is like a kitchen for a chef, where they have all the tools and ingredients they need to make something delicious. With a CDP, hotels can create marketing campaigns that are just right for each person, making their experience even better.
3. Upselling strategies maximize revenue
In EMEA, 59% of hoteliers are tapping into the power of upsells within their confirmation or pre-arrival emails. This figure surpasses other regions. The impact of this strategy is evident, with upsell revenue from confirmation emails experiencing a notable 14.2% increase, soaring from $73 (€67) to $83 (€76) per booking. Similarly, revenue generated from pre-arrival emails witnessed a robust growth of 18.8%. These statistics underscore the effectiveness of automated upsell campaigns to create a consistent revenue stream.
Among the various upsell options, Food and Beverage (F&B) emerges as the most popular choice. However, it’s essential to recognize that what works for one hotel may not necessarily yield the same results for another. Tailoring upsell offerings to suit the unique characteristics of your property can significantly enhance their effectiveness. For instance, if your hotel is located near an airport, consider incorporating airport transfer offers into your upsell campaign to capitalize on additional revenue opportunities. Likewise, if your hotel collaborates with local travel agents, recommending tailored day trip packages for families or couples can further augment revenue streams. By strategically aligning upsell offerings with your hotel’s distinctive features and guest preferences, you can unlock untapped revenue potential and elevate the overall guest experience.
4. Encouraging survey responses results in valuable guest feedback
In EMEA, the average survey response rate stands at 9.4%, indicating the importance of actively engaging guests to gather valuable feedback. To maximize the impact of survey responses, it’s crucial to implement best practices such as automatically prompting respondents to cross-post their feedback as reviews. This not only increases the volume of reviews for your hotel but also enhances your rankings, bolstering your online reputation.
If you want to learn more about best practices for effectively leveraging guest feedback to drive continuous improvement and guest satisfaction, read our survey best practices blog.
5. Implementing website and cart abandonment campaigns leaves no revenue behind
Are you ready to transform missed opportunities into revenue goldmines for your hotel? Picture this: Out of every 100 visitors to your booking engine, roughly 20 complete their reservations. What if you could capture even a fraction of the remaining 80? It’s possible! A simple follow-up email could secure an additional 11 bookings, contributing to the EMEA regional average conversion rate of 17%.
Take, for example, the Pulitzer Amsterdam of the Lore Group. By harnessing Revinate’s cart abandonment campaigns, they’ve achieved astounding results with average open rates exceeding 80% and click-through rates of 21.6%. Don’t miss out on this game-changing strategy — explore our comprehensive guide for examples and tips to elevate your campaigns.
Benchmark your performance now against the industry’s numbers now
We trust that these insights from our 2024 Hospitality Benchmark Report will help you to enhance your hotel marketing and guest feedback approaches. However, this is merely a glimpse. Our new 2024 Hospitality Benchmark Report offers a wealth of additional information.
To discover how The July, IPP Hotels, and others increase their direct revenue and create memorable guest experiences, schedule a meeting with us today to explore our solutions further.
About Revinate
Revinate is a direct booking platform that leads the hospitality industry in driving direct revenue and increased profitability.
Our products and our people combine to give hoteliers the superpowers they need to crush their goals. With Revinate, hoteliers shift share away from OTAs and drive tangible results across an individual property or a portfolio. Our industry-leading, AI-powered, customer data platform collects, unifies and, synthesizes data giving hoteliers a foundational advantage.
Hoteliers gain critical intelligence – guest lifetime spend, stay preferences, ancillary revenue, and more. With our Rich Guest Profiles database, hoteliers don't need to guess who their most profitable guests are, or how to drive conversions across email, voice, messaging, and digital channels.
Revinate's direct booking platform and omnichannel communication technology powers 900+ million Rich Guest Profiles across 12,500+ hotels to drive over $17 billion in direct revenue.
Sanjana Chappalli
VP of Brand Marketing and Communications
Revinate, Inc.
