online satisfaction and experience in the hospitality …...find hotel info compare rates make...

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

3575 Boulevard St‐Laurent, Suite 310, Montreal, Quebec, H2X 2T7

T. 877.796.3600 F. 866.484.2600 [email protected] | www.iperceptions.com

1760 Old Meadow Road, Suite 500, McLean, Virginia 22012 T. 703.506.3280 F. 703.506.3266 [email protected] | www.hsmai.org

An iPerceptions & HSMAI Special Report

Online Satisfaction and Experience in the Hospitality Industry

Q2 2012

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Online Satisfaction and Experience in the Hospitality Industry – Q2 2012

Table of Contents ................................................................................................................................................................ 2

About the Report ................................................................................................................................................................. 3

Executive Summary ............................................................................................................................................................. 3

Overall Satisfaction .............................................................................................................................................................. 4

Task Completion .................................................................................................................................................................. 5

Type of Traveler ................................................................................................................................................................... 6

Hotel Category – Overall Satisfaction and Task Completion ............................................................................................... 6

Type of Traveler by Hotel Category ..................................................................................................................................... 7

Loyalty Program Membership by Type of Traveler ............................................................................................................. 7

Visit Frequency by Type of Traveler .................................................................................................................................... 7

Purpose of Visit .................................................................................................................................................................... 8

Purpose of Visit by Type of Traveler .................................................................................................................................... 9

Task Completion by Purpose of Visit by Type of Traveler ................................................................................................... 9

Task Completion Barriers for Bookers ............................................................................................................................... 10

Path to Site ........................................................................................................................................................................ 11

Path to Site by Visit Frequency .......................................................................................................................................... 12

iPerceptions Perceptual Framework ................................................................................................................................. 13

Attribute Questions ........................................................................................................................................................... 13

Attribute Ratings ................................................................................................................................................................ 14

Attribute Ratings by Loyalty Program Membership .......................................................................................................... 15

Key Drivers of Online Satisfaction for Bookers .................................................................................................................. 16

About iPerceptions and HSMAI ......................................................................................................................................... 17

Table of Contents

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The following report is based on immediate post‐experience feedback from 163 iPerceptions webValidator and 4Q Suite surveys deployed on hospitality websites around the world. The data represents aggregated information obtained from over 81,000 visitors between April 1 and June 30, 2012.

Setting the Stage For the second consecutive year, the outlook for summer travel has brightened, with more than three in five U.S. adults (64%) planning on taking at least one trip for leisure purposes during the next six months. Further, the percentage of Americans planning to travel between May and October is up from 61 percent last April and 56 percent in April 2010 (source: travelhorizons™ quarterly report, co‐authored by MMGY Global and the U.S. Travel Association). This is encouraging news for brands in the hospitality and tourism sector, many of which suffered setbacks during the recent financial recession.

Increase in Leisure Travelers As is expected at this time of year, the share of leisure travelers increased significantly in Q2 2012 (64%) compared to Q1 (59%). Moreover, a year on year increase in Leisure travelers is noted (62% in Q2 2011). They favor staying in Midscale or Economy tier hotels, although it is important to note that their presence grew in almost all hotel tiers, including luxury, midscale and economy brands. In turn, the percentage of business travelers – who mainly opt for extended stay or luxury tier hotels ‐ decreased in Q2 2012.

Loyalty Program Membership Over three‐quarters (77%) of leisure travelers were members of a loyalty program in Q2 2012, a slight yet significant increase over Q1 (76%), suggesting positive intentions of future travel among this website visitor group. Among business travelers, however, loyalty program membership has decreased significantly, from 90% in Q4 2011 and 89% in Q1 2012, to 87% in Q2. This is perhaps a result of fewer marketing dollars being spent on loyalty program development, or it could be a symptom of loyalty program saturation, where visitors simply do not wish to join any additional loyalty programs.

Frequency of Visit & Path to Site The majority (68%) of hospitality and tourism website visitors are repeat visitors. However, the share of first time visitors increased significantly in Q2 2012 among both Business and Leisure travelers. As such, it is not surprising that usage of a search engine to reach a brand website increased significantly this quarter as well.

About the Report

Executive Summary

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Overall Experience & Task Completion The Overall Experience score for the hospitality industry was 73 in Q2 2012, unchanged from the previous quarter. It did decrease, however, among Business travelers (72 in Q2 2012 down from 74 in Q1 2012), but this is likely because there were fewer loyalty program members within this cohort this quarter. As such, most ratings evaluating the various aspects of the online experience (Attributes) decreased significantly among the Business traveler group.

Regression analysis shows that easy navigation and content relevancy (information provided is pertinent and meaningful to the traveler’s purpose of visit) are critical in the visitor’s website experience, and remain the core strength of websites in the hospitality and tourism sector. There are opportunities, however, to improve ratings for site Responsiveness, as this is the area of the online experience that is rated lowest and has the highest level of influence on the visitor’s overall website experience. This means that hospitality and tourism providers must prioritize ensuring that the website is functioning optimally, that room inventory is up to date and that all features are working smoothly in order to maximize website satisfaction and boost chances of conversion.

In addition to higher overall experience scores this quarter, task completion increased significantly from 70% in Q1 2012 to 71% in Q2 2012 among Leisure travelers. Specifically, task completion grew among Leisure Bookers, yet decreased among Business Bookers. Further, task completion rates for “other” tasks, which typically relate to membership profile maintenance, inquiring about business services, etc., decreased significantly among the Business segment. Importantly, however, is that despite decreases this quarter, task completion rates remain higher for Business travelers; this is due to, at least in part, to the fact that they are more likely to be repeat site visitors and loyalty program members, thus facilitating their online experience.

Still, almost 1 in 3 Bookers does not complete their intended reservation. Key reasons include usability issues such as navigational difficulties and cluttered layout, as well as lack of room availability, which further underscores the importance of site Responsiveness in the visitor’s experience. Other common problems were that visitors were waiting for property owners to get back to them regarding questions needing clarification, availability, etc., and that they were still comparison shopping.

The Road Ahead With the upswing in Leisure travel forecasted over the summer, hospitality and tourism providers can expect to enjoy the benefits of a recovering economy and renewed enthusiasm to travel. It is important to remember, however, that the recent economic downturn has caused consumers to become quite savvy when it comes to securing the best value they can find. Therefore, offering competitive rates and standing by the Best Rate Guarantee will be important in order to maintain traction and build confidence with website visitors.

Content personalization is an area that is growing rapidly in all industry domains. Specifically for hospitality and tourism brands, providing Relevant content has historically been an area of strength for most sites, and one that has a strong impact on the online experience. However, as brands begin to implement programs to personalize content based on visitor profile and preferences, the element of relevant content will become even more important. With this in mind, opportunities exist for brands to explore content optimization and personalization solutions so that they can tailor the online experience as much as possible to their target market, thus facilitating their website visit and ultimately, their booking decision.

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73.0

73.0

50 55 60 65 70 75 80

Q1 2012

Q2 2012

70.0%

71.0%

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

Q1 2012

Q2 2012

Overall Satisfaction

Task Completion

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Percent Share Overall Satisfaction Task Completion

Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012

Leisure Traveler 66% 60% 73 73 71% 70%

Business Traveler 24% 29% 72 74 77% 79%

Other 11% 10% 72 72 68% 68%

Overall Satisfaction Task Completion

Q2 2012 Q1 2012 Q2 2012 Q1 2012

Luxury 72 73 70% 72%

Midscale 75 74 74% 73%

Economy 73 73 69% 70%

Extended Stay 75 75 76% 77%

11%

24%

66%

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

Other

Business Travelers

Leisure Travelers

Type of Traveler

Hotel Category – Overall Satisfaction and Task Completion

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Luxury Midscale Economy Extended Stay

Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012

Leisure Travelers 59% 56% 68% 65% 70% 67% 52% 52%

Business Travelers 31% 35% 20% 22% 10% 13% 36% 37%

Other 10% 9% 12% 13% 20% 21% 12% 11%

Overall Leisure Travelers Business Travelers

Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012

Membership 78% 79% 77% 76% 87% 89%


Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012

First‐time Visitor 32% 29% 33% 31% 23% 21%

Repeat Visitor 68% 71% 67% 69% 77% 79%

87%

77%

78%

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

Business Travelers

Leisure Travelers

Overall

Loyalty Program Membership by Type of Traveler

Type of Traveler by Hotel Category

Visit Frequency by Type of Traveler

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Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012

Make Reservation 27% 25% 73 73 69% 68%

Compare Rates 19% 21% 72 72 70% 70%

Find Hotel Info 20% 20% 75 74 69% 68%

View / Cancel Res 7% 7% 76 76 79% 79%

Other 27% 27% 71 72 73% 73%

27%

7%

20%

19%

27%

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

Other

View / Cancel Res

Find Hotel Info

Compare Rates

Make Reservation

Purpose of Visit

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Leisure Travelers Business Travelers

Q2 2012 Q1 2012 Q2 2012 Q1 2012

Make Reservation 31% 29% 35% 33%

Compare Rates 25% 28% 13% 14%

Find Hotel Info 16% 18% 10% 9%

View / Cancel Res 5% 5% 7% 8%

Other 23% 21% 34% 36%

Leisure Travelers Business Travelers

Q2 2012 Q1 2012 Q2 2012 Q1 2012

Make Reservation 71% 70% 76% 78%

Compare Rates 69% 68% 74% 74%

Find Hotel Info 68% 67% 76% 76%

View / Cancel Res 78% 79% 82% 82%

Other 73% 75% 78% 81%

Purpose of Visit by Type of Traveler

Task Completion by Purpose of Visit by Type of Traveler

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Property

• “None of the calendars would work and you could not tell whether the property was booked or notI needed answers because I am driving to the beach tomorrow specifically to book a place. None of these will fall into that category since I cannot get correct”

• “Many of your property owners do not update their calendar for available dates. Very frustrating” • “Did not find a property that we are interested in” • “Still looking for property in rolling hills area” • “Still waiting to hear back from property owner”

Back

• 48 hours wait time for the owner to get back to me • I am waiting to hear back from inquires made regarding rental properties in Maui

Booking

• “Waiting for information regarding availability and price said it would take about 24 hrs to respond back to me” • “Site kept telling me there was an error ended up booking with Expedia instead” • “It would not let me book just one child” • “Reservations page wouldn’t load using both Google chrome and Mozilla. Switching to IPhone to see if that

works. Not sure it’s a PC issue at my end as I could load and book W Times Square at same time” • “NOT ENOUGHT CHOICESALL ROOMS BOOKED” • “Most properties were already booked and remaining selection was limited ‐ need to research further” • “It is not a user friendly site when to look at prices and availability and wasn’t the easiest to get too. Went ahead

to another hotel site and booked a room. You ask what site Country Inn and suites a lot easier to navigate” • “Tried to book a single room at Moriartys Farmhouse but it wouldn’t allow a pop up screen“

Looking

• “Looking at prices everywhere before actually booking” • “Could not find exactly what I was looking for” • “Could not find any hotels in the town i was looking for”

Task Completion Barriers for Bookers*

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Site

• “The new design of your website does not allow checking of government rates or senior rate” • “There were no search optionsI wanted a house on the oceanfront with pricingI had to look at too many so I quit

looking” • “Not comfortable moving through site” • “Site very frustrating wanted to find a motel near downtown Fort Collins ‐ instead I was offered motels in other

cities, some an hour or more away. Not useful at all. Also it kept taking me away from the list of motels to the start point”

• “Your site needs a total overhaul; couldn’t even find one hotel that i wanted and i know Palm Springs like the back of my hand, and I am ready to book now. Next site!!”

• “Your site was very messy and hard to navigate to the area of my preference”

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

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Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012

Search Engine 39% 30% 70 69 63% 60%

Typed in URL 22% 25% 72 72 64% 62%

Bookmark / Fav 8% 15% 76 75 73% 67%

Clicked on Ad 2% 3% 71 71 65% 61%

Other Site Link 4% 3% 70 69 65% 65%

Email Link 7% 2% 74 73 73% 67%

Link from Friend 1% 1% 73 74 70% 71%

Social Net Link 1% ‐‐ 73 ‐‐ 71% ‐‐

Other 16% 21% 72 72 65% 64%

16%

1%

1%

7%

4%

2%

8%

22%

39%

0% 10% 20% 30% 40% 50%

Other

Social Net Link

Link from Friend

E-mail Link

Other Site Link

Clicked on Ad

Bookmark / Fav

Typed in URL

Search Engine

Path to Site

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First‐Time Visitors Repeat Visitors

Q2 2012 Q1 2012 Q2 2012 Q1 2012

Search Engine 40% 33% 40% 28%

Typed in URL 15% 20% 23% 28%

Bookmark / Fav 5% 5% 9% 19%

Clicked on Ad 3% 4% 2% 2%

Other Site Link 3% 1% 4% 2%

Email Link 5% 2% 7% 1%

Link from Friend ‐‐ ‐‐ 1% 1%

Social Net Link 1% ‐‐ 1% ‐‐

Other 25% 35% 13% 19%

Path to Site by Visit Frequency

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Dimension Attribute Question

Adoption Starting Point ...is one of the first sites you use when you plan a trip or event?

Return ...encourages you to return?

Content Breadth ...covers the range of information you need?

Relevancy ...has content that is relevant to the purpose of your visit?

Interactivity Contacts ...enables you to identify and contact the right people?

Responsive ...is truly interested in responding to your needs?

Motivation Bottom Line ...can save you money on room rates?

Convenience ...is the most convenient way to choose your hotel accommodations?

Navigation Discovery ...enables you to find what you’re looking for?

Ease of Use ...is easy for you to navigate?

iPerceptions Perceptual Framework

Attribute Questions

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Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012

Relevancy 7.52 7.53 7.56 7.54 7.47 7.59

Ease of Use 7.44 7.44 7.48 7.46 7.36 7.43

Breadth 7.42 7.42 7.45 7.43 7.39 7.49

Return 7.39 7.44 7.42 7.46 7.32 7.45

Discovery 7.38 7.39 7.41 7.40 7.34 7.45

Starting Point 7.37 7.35 7.40 7.38 7.39 7.37

Convenience 7.32 7.37 7.35 7.38 7.28 7.39

Contacts 7.25 7.21 7.29 7.24 7.16 7.20

Responsive 7.22 7.25 7.26 7.27 7.13 7.25

Bottom Line 7.13 7.14 7.15 7.13 7.11 7.19

7.52

7.44 7.42 7.39 7.38 7.377.32 7.29

7.22

7.13

6.9

7.0

7.1

7.2

7.3

7.4

7.5

7.6

Attribute Ratings

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Members Non‐members

Q2 2012 Q1 2012 Q2 2012 Q1 2012

Relevancy 7.63 7.67 7.13 7.07

Ease of Use 7.52 7.53 7.15 7.09

Breadth 7.54 7.57 7.04 6.98

Return 7.55 7.59 6.90 6.92

Discovery 7.50 7.54 7.00 6.94

Starting Point 7.64 7.58 6.66 6.66

Convenience 7.44 7.51 6.94 6.92

Contacts 7.39 7.34 6.90 6.86

Responsive 7.32 7.37 6.91 6.89

Bottom Line 7.34 7.36 6.67 6.71

Attribute Ratings by Loyalty Program Membership

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The following Attributes together best predict overall site satisfaction for in‐market visitors.

Dimension Attribute Question

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?

Content Relevancy ...has information that is relevant to your purpose of visit?

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

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

7.1 7.2 7.3 7.4 7.5 7.6 7.7

HigherInfluence

LowerInfluence

Lower iPSI 7.4 HigherRating Rating

Influence chart for Hospitality Industry Q2 2012 BOOKERS

Responsive

Discovery

Ease of use

Relevancy

Key Drivers of Online Satisfaction for Bookers*

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3575 Boulevard St‐Laurent, Suite 310, Montreal, Quebec, H2X 2T7 T. 877.796.3600 F. 866.484.2600 [email protected] | www.iperceptions.com iPerceptions is the leader in online Voice of Customer analytics, using advanced intercept surveys to gather feedback from representative samples of real visitors. Its webValidator Continuous Listening solution and 4Q Suite solution turn millions of data points into easy‐to‐understand strategic and tactical decision support, while its Web Analytics Solution Profiler (WASP) provides superior web analytics quality assurance. iPerceptions’ clients include well‐known brands such as InterContinental Hotels, Fairmont, Best Western, Choice Hotels International and Wyndham Vacations. For more information, please visit www.iperceptions.com.

1760 Old Meadow Road, Suite 500, McLean, Virginia 22012 T. 703.506.3280 F. 703.506.3266 [email protected] | 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.

About iPerceptions and HSMAI

online satisfaction and experience in the hospitality …...find hotel info compare rates make...

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