Hospitality's Tech Surge: Riding the 2024 Digital Marketing Wave
What are the technology investment plans of today’s hoteliers and what sort of role does digital marketing play in their planned tech spending?
Amadeus recently embarked on its Travel Technology Investment Trends 2024 research project, surveying 100 global leaders across ten major markets to understand more about how hoteliers plan to invest in technology over the coming year. The comprehensive research highlighted the role of digital media campaigns in enabling hoteliers to reach the right guests and drive bookings, and also shed light on new technologies such as artificial intelligence (AI), with its potential to revolutionize the industry.
Digital media is a top investment priority in 2024
Hoteliers are increasingly relying on technology to offer more personalized services, enhance revenue, and differentiate their offerings in the market. Every hotelier surveyed expressed plans to channel resources into digital media campaigns to target profitable audiences and increase occupancy during periods of low demand. A full third of respondents are earmarking between $50,001 and $100,000 for digital campaigns in 2024, while another 21% plan on spending over $100,000 on digital advertising efforts.
The survey’s findings are not surprising, as they align with the industry’s broad perspective on the significant role of digital media. 41% of hoteliers acknowledge the effectiveness of data-driven advertising campaigns in targeting new audiences, and 40% recognize improved engagement through effective media campaigns. Additionally, 39% of hoteliers surveyed find it essential to track where guests search and book, while 38% value flight data analysis for anticipating guest arrivals when building media strategies.
Media campaigns are also pivotal for group business, with 45% of respondents affirming their importance in bolstering relationships, and 41% noting an improvement in prospecting for both new and repeat business through effective media strategies.
Although the survey revealed a range of budgets allocated for digital media campaigns, all hoteliers surveyed agree on the necessity of a dedicated budget for such campaigns due to their potential to significantly increase revenue and enhance guest engagement.
Unlocking success with effective campaigns
Hoteliers aiming to expand bookings, boost visibility, and connect with new travelers can achieve their goals using highly effective digital media campaigns.
Toronto’s One King West Hotel & Residence used the approach of offering packages and promotions through online digital media ads, tapping into new areas of revenue. The property achieved enhanced brand recognition and increased average daily rate (ADR) through a strategic mix of display prospecting and remarketing, with campaigns specifically focused on marketing premium suites and encouraging longer stays. Revenue per booking through the Brand.com channel saw a remarkable increase of +57%.
Luxury Puerto Rico property El Conquistador Resort realized success by bundling digital media into its larger tech stack. This strategic combination helped the resort attract the right guests and boost direct bookings during its transition from luxury branded to independent property. The resort experienced a significant growth in direct booking rates, soaring from 22% during its first year operating independently to an impressive 46% direct booking rate.
The vast potential of artificial intelligence (AI)
AI has been identified as a priority technology for the hospitality industry, and across the board, hoteliers recognize the considerable benefits that AI can bring to their businesses. Nearly all hoteliers, in fact - 98% - recognize the potential of artificial intelligence to positively impact their operations.
In the area of digital media, AI can benefit hoteliers in a number of ways. It helps them look at consumer preferences and behaviors to help craft personalized marketing campaigns, for instance, allowing for increasingly personalized guest experiences. AI also helps identify opportunities for upselling and helps generate content for websites, improving guest engagement. Overall, AI-driven digital media campaigns empower hoteliers to make the best-informed marketing decisions.
Recently, Capital Region USA (CRUSA), the destination marketing organization (DMO) for Washington, D.C., Virginia and Maryland was able to increase the number of visitors from key origin markets by using a comprehensive approach using both video and display ads. The successful campaign ended up with over 4,500 geolocation and booking conversions as a result of advertisements that used AI-based algorithms to influence travelers who were undecided as to their destination. The CRUSA campaign is a perfect example of how artificial intelligence can make a true impact in digital media advertising.
The hospitality industry is embracing technology with optimism for the future. By investing in digital media campaigns, new technology tools such as AI and more, hoteliers will be able to enhance revenue, improve efficiency and create the sort of unique experiences guests have come to expect in 2024.
To find out more about the hospitality industry’s technology investment plans for 2024 and what drives those decisions, download our report: Travel Technology Investment Trends 2024.
About Amadeus
Amadeus powers more personalized and authentic travel experiences. Our solutions are designed to enrich every stage of the traveller journey and help hospitality providers acquire, service, and retain guests by profitably driving demand and converting them into loyal fans.
Backed by over 30 years of experience, we design open, cutting-edge software to provide the most efficient, trusted, and reliable systems for our customers. With experts in 175+ countries, we have a deep understanding of the hospitality industry and a desire to enable our hotel partners to create memorable guest experiences.
To find out more about Amadeus, visit www.amadeus-hospitality.com.
