online satisfaction and experience in the hospitality industry q3 2012

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3575 Boulevard St-Laurent, Suite 310, Montréal, Québec, 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

Q3 2012

2

Online Satisfaction and Experience in the Hospitality Industry – Q3 2012

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

About the Report ................................................................................................................................................................. 2

Executive Summary ............................................................................................................................................................. 2

Overall Satisfaction .............................................................................................................................................................. 2

Task Completion .................................................................................................................................................................. 2

Type of Traveler ................................................................................................................................................................... 2

Hotel Category – Overall Satisfaction and Task Completion ............................................................................................. 2

Type of Traveler by Hotel Category .................................................................................................................................... 2

Loyalty Program Membership by Type of Traveler ............................................................................................................ 2

Visit Frequency by Type of Traveler .................................................................................................................................... 2

Purpose of Visit .................................................................................................................................................................... 2

Purpose of Visit by Type of Traveler .................................................................................................................................... 2

Task Completion by Purpose of Visit by Type of Traveler .................................................................................................. 2

Task Completion Barriers for Bookers* .............................................................................................................................. 2

Path to Site ........................................................................................................................................................................... 2

Path to Site by Visit Frequency ............................................................................................................................................ 2

iPerceptions Perceptual Framework ................................................................................................................................... 2

Attribute Questions .............................................................................................................................................................. 2

Attribute Ratings .................................................................................................................................................................. 2

Attribute Ratings by Loyalty Program Membership ........................................................................................................... 2

Key Drivers of Online Satisfaction for Bookers* .................................................................................................................. 2

About iPerceptions and HSMAI .......................................................................................................................................... 2

Table of Contents

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The following report is based on immediate post-experience feedback from 257 iPerceptions webValidator and 4Q Suite surveys deployed on hospitality websites around the world. The data represents aggregated information obtained from over 82,000 visitors between July 1 and Sept 30, 2012.

Setting the Stage The third quarter of 2012 represents the height of the summer travel season. As such, one can expect an increase in the share of leisure travelers looking to plan their holidays. While the number of successful bookings is always an important key performance indicator for most brands at any time of year, this metric is of paramount significance during the high leisure travel season. And since price is one of the most important decision points when booking a leisure trip, brands often compete and become very creative when trying to offer the best deal. Whether offering free nights, discounts on rooms or services or additional membership benefits, hospitality providers will need to continuously develop creative solutions in order to keep their brand at the top of the traveler’s consideration set.

Increase in Leisure Travelers Two-thirds of hospitality and tourism website visitors were of a Leisure context in Q3 2012. While this share is similar to that reported last quarter, it marks a significant increase over the same quarter last year. That being said, the share of Business travelers has decreased in consequence. Leisure travelers frequented all hotel tiers, but were most likely to stay at Midscale or Economy brands due to their price point and value offering. Business travelers, on the other hand, preferred Extended Stay or Luxury hotels, mainly because their hotel choice is often dictated by corporate policy, or because they are less affected by price concerns since the cost does not impact them personally.

Loyalty Program Membership Most hospitality and tourism website visitors were members of a loyalty program in Q3 2012, unchanged since Q2. However, a year on year decrease is noted as result of lower membership among Business travelers. This could be due to less frequent marketing activity surrounding membership program promotion, or it could be that travelers have reached the saturation point in terms of how many programs they feel they can join. Membership among Leisure travelers, on the other hand, has increased since last year. Understandably, membership remained higher among the Business segment, as this segment tends to travel more often and is more likely to join such programs in order to earn rewards.

About the Report

Executive Summary

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Frequency of Visit & Path to Site The bulk of hospitality and tourism websites were comprised of repeat visitors in Q3 2012. Since Business travelers were more frequent travelers than their Leisure counterparts, repeat website visits were more common in this group. Importantly, however, is that first time visitors within the Business cohort increased significantly since last quarter as well as versus the same period last year.

Interestingly, despite a strong prevalence of repeat visitors, most travelers accessed hospitality and tourism sites via search engine – first time and repeat visitors alike. About one in four typed in the brand URL to reach the website, an incidence that has increased among first time visitors not only since last quarter but last year as well, suggesting that promotional efforts may have helped with brand awareness and recall. The fact that bookmarking tracked as a distant third in terms of path to site suggests either that brand loyalty has not been optimized, or that typing in the URL served as a proxy for bookmarking since recalling the URL is a form of brand identification. Interestingly, the share of visitors accessing hospitality and tourism websites via email link has increased significantly since last year, indicating that marketing efforts employed by brands has been working to drive visitors to their websites.

Overall Experience Overall Satisfaction has remained steady at 73.0 for Q3 2012. Content Relevancy is the key strength for hospitality and tourism websites, indicating that the information and visual content (Relevancy, Breadth) were in line with visitors’ expectations. As well, visitors found these websites easy to navigate (Ease of use, Discovery). On the other hand, the perception of receiving the best rates through the brand website (Bottom line) remained the lowest ranked Attribute, suggesting that visitors felt that they could get better value by shopping around.

Regression analysis indicates that four Attributes had a significant impact on the outcome of a hospitality and tourism website visitor’s experience. Navigation elements of Discovery (the ability to find what the visitor was looking for) and site Ease of Use both surfaced as Attributes that were scored on the higher side and exerted a strong level of influence on overall experience. As such, these elements should be maintained, meaning that websites should continue to provide an easy and intuitive navigation process. Site Responsiveness – which involves interactive elements associated with the booking process such as calendar functionality, room selection, personal information input, etc., were not only the lowest rated Key Driver of the visitor’s experience, but the most influential. As result, the overall Convenience of using a specific website for travel needs – although not as influential – also emerged as a key element of the online experience. Therefore, when it comes to prioritizing website enhancements, streamlining and optimizing the booking process should be the area on which to focus on in order to promote successful booking.

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Online Satisfaction and Experience in the Hospitality Industry – Q3 2012 Purpose of Visit & Task Completion The main reason for visiting a hospitality and tourism website in Q3 2012 was to book, particularly among Business travelers. About one in five travelers were interested in finding hotel information, or comparing rates, which was more common among the Leisure segment.

Overall task completion improved significantly versus last quarter and last year. Leisure travelers were primarily responsible for this gain, likely due, at least in part, to a stronger presence of repeat visitors, thus facilitating task completion due to stronger familiarity with the website in question, etc. However, Business travelers remained more successful than Leisure at completing their tasks, due to the higher share of repeat visitors in this group. Viewing/cancelling a reservation continued to yield the highest rate of task completion, likely since this task is fairly easy to do. Finding hotel information posted the lowest rate of task completion, mainly because visitors faced challenges in locating the sufficient level of detail about the hotel or price for which they were looking. This further reinforces the need to ensure that websites respond to visitors’ needs by providing an optimal search and booking process – thus focusing on the Responsive attribute as cited above. Over 7 in 10 Bookers were able to complete their reservation in Q3 2012 – a significant improvement over the previous quarter and year. Nonetheless, almost 30% were unable to complete their booking, mainly because they could not find the room or hotel information they needed, the room or hotel was not available during the travel dates required, or that Bookers encountered technical or usability issues while trying to make their reservation. And while sometimes this resulted in the Booker calling the hotel directly to complete their transaction, it also led to abandonment, such that they left the website in order to consider other brands.

The Road Ahead

There is no question that the hospitality space is becoming exponentially more competitive. For travelers, this is a double edged sword because while the growth in the number of players in the space means that they have more options to consider, it also can be quite overwhelming. As the Priority Grid suggests, travelers value website Convenience, and want to complete their tasks quickly and efficiently. For brands, therefore, the opportunity is how to facilitate the traveler’s decision making process by providing an intuitive website with content that is clearly laid out, and a smooth, hassle free booking process. Voice of Customer data provides an excellent basis for which brands can identify what the pain points are for their customers, but understanding how they should be addressed and repaired can be complex. Usability audits serve as an excellent compliment to Voice of Customer research as a means of helping outline these objectives, and together, can provide the roadmap on guiding site improvement strategy and optimizing overall online brand health.

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73.0

73.0

73.0

50 55 60 65 70 75 80

Q3 2011

Q2 2012

Q3 2012

71.0%

71.0%

72.0%

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

Q3 2011

Q2 2012

Q3 2012

Overall Satisfaction

Task Completion

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Percent Share Overall Satisfaction Task Completion

Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Leisure Traveler 67% 66% 63% 74 73 74 72% 71% 69% Business Traveler 23% 24% 27% 73 72 73 76% 77% 78%

Other 11% 11% 10% 73 72 73 68% 68% 68%

Overall Satisfaction Task Completion

Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Luxury 73 72 74 72% 70% 72%

Midscale 75 75 74 73% 74% 71%

Economy 72 73 72 69% 69% 71%

Extended Stay 75 75 74 75% 76% 73%

11%

23%

67%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Business Travelers

Leisure Travelers

Type of Traveler

Hotel Category – Overall Satisfaction and Task Completion

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Luxury Midscale Economy Extended Stay

Q3

2012 Q2

2012 Q3

2011 Q3

2012 Q2

2012 Q3

2011 Q3

2012 Q2

2012 Q3

2011 Q3

2012 Q2

2012 Q3

2011 Leisure Travelers

59% 59% 57% 69% 68% 69% 71% 70% 74% 55% 52% 47%

Business Travelers

32% 31% 34% `19% 20% 19% 12% 10% 12% 33% 36% 36%

Other 10% 10% 9% 12% 12% 12% 18% 20% 14% 12% 12% 17%

Overall Leisure Travelers Business Travelers

Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Membership 78% 78% 79% 77% 77% 76% 88% 87% 90%


Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

First-time Visitor 28% 32% 28% 29% 33% 31% 21% 23% 17%

Repeat Visitor

72% 68% 72% 71% 67% 69% 79% 77% 83%

88%

77%

78%

70% 72% 74% 76% 78% 80% 82% 84% 86% 88% 90%

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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Q3

2012 Q2

2012 Q3

2011 Q3

2012 Q2

2012 Q3

2011 Q3

2012 Q2

2012 Q3

2011 Make Reservation

28% 27% 29% 74 73 73 71% 69% 69%

Compare Rates 18% 19% 22% 73 72 72 71% 70% 69%

Find Hotel Info 21% 20% 24% 75 75 74 70% 69% 71% View / Cancel Res 8% 7% 8% 77 76 76 81% 79% 79%

Other 25% 27% 20% 72 71 73 73% 73% 75%

25%

8%

21%

18%

28%

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

Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Make Reservation

32% 31% 31% 37% 35% 37%

Compare Rates 23% 25% 26% 13% 13% 14%

Find Hotel Info 19% 16% 23% 11% 10% 11% View / Cancel Res

5% 5% 5% 7% 7% 8%

Other 21% 23% 16% 31% 34% 30%

Leisure Travelers Business Travelers

Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Make Reservation

72% 71% 69% 78% 76% 77%

Compare Rates 71% 69% 67% 75% 74% 74%

Find Hotel Info 68% 68% 68% 75% 76% 77% View / Cancel Res 82% 78% 81% 83% 82% 81%

Other 74% 73% 75% 80% 78% 81%

Purpose of Visit by Type of Traveler

Task Completion by Purpose of Visit by Type of Traveler

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Available “Dates not available” “I didn’t find anything available in my price range and dates “Few choices and non availability” “Hotels I prefer are not available” Room/rooms “Because you won’t show a pic of the rooms “I kept trying to enter my dates every time I clicked search nothing happened am giving up had the intention of booking a room for four nights “I needed more information casino information and photos what is the distinction between the Greenbrier and Glade “Springs spa information and photos golf course information and photos examples of breakfast menus or buffets and photos ballroom information “I WANTED TO KNOW MORE DETAILS OF THE ROOMS AVAILABLE AND I COULDNT GET A PHONE “Looking for a room in North Myrtle Beach Map didn’t show what I needed to know “Never could find a king bed room to click on only suites were offered “The virtual tour of the room that I wanted did not match the floorplan.There was credibility gap on what I was purchasing Find “Could not find any hotels with indoor pools in the area we wanted for a decent price that had rooms available “Couldn’t find a property in the area I wanted that was pet friendly “Did not find what I was looking for “I could not find a hotel that offered all of the services I needed “I could not find the information I needed “I could not find the rates on your site-Would be helpful to compare and find a good rate although I like your Motel”

Task Completion Barriers for Bookers*

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Site “Found the website slow and awkward to use” “Difficult to navigate website” “Could not navigate through your website for rooms would not give me the option to click on any other option” “Could not get locations from your website - not only that but it appears that the Americinn i was looking for is no longer there - will be staying somewhere else” “Website performed poorly, not able to navigate” Reservation “2nd time I have tried to book reservations on this web site unsuccessfully. E either I am not very smart or viewing Book reservation is not very evident but I am going to use a handy dandy phone line once again to book a reservation at my convenience” “I found the website confusing as far as booking a reservation couldn’t figure out how to make a reservation. In the end found a different hotel on Hotels com” “Site would not accept final steps had to call” “The site did not complete my reservation which had to be done on line in order to obtain the special rate” “The site told me that one or more of my rooms had been reserved but there was errors and I had to call a number to complete my reservation I would like to have completed it at that time not have to call a number to complete.” “The site was slow and then it kept saying unable to book”

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

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Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Search Engine 40% 39% 30% 70 70 72 66% 63% 62%

Typed in URL 23% 22% 25% 72 72 73 66% 64% 65%

Bookmark / Fav 9% 8% 15% 77 76 76 76% 73% 69%

Clicked on Ad 2% 2% 3% 71 71 72 64% 65% 65%

Other Site Link 4% 4% 3% 71 70 70 71% 65% 72%

Email Link 7% 7% 2% 76 74 74 81% 73% 74% Link from Friend 1% 1% 1% 77 73 73 73% 70% 74%

Social Net Link 1% 1% -- 76 73 76 78% 71% 83%

Other 12% 16% 21% 72 72 73 66% 65% 65%

12%

1%

1%

2%

4%

7%

9%

23%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other

Social Net Link

Link from Friend

Clicked on Ad

Other Site Link

E-mail Link

Bookmark / Fav

Typed in URL

Search Engine

Path to Site

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First-Time Visitors Repeat Visitors

Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Search Engine 42% 40% 33% 39% 40% 22%

Typed in URL 23% 15% 16% 23% 23% 35%

Bookmark / Fav 8% 5% 5% 10% 9% 21%

Clicked on Ad 2% 3% 3% 3% 2% 2%

Other Site Link 3% 3% 1% 5% 4% 1%

Email Link 6% 5% 1% 7% 7% 1%

Link from Friend 1% -- 1% 2% 1% 1%

Social Net Link 1% 1% 1% 1% 1% 1%

Other 15% 25% 31% 11% 13% 18%

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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Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Relevancy 7.57 7.52 7.55 7.61 7.56 7.59 7.53 7.47 7.52

Ease of Use 7.50 7.44 7.42 7.53 7.48 7.49 7.44 7.36 7.30

Breadth 7.47 7.42 7.41 7.50 7.45 7.49 7.44 7.39 7.39

Discovery 7.45 7.38 7.57 7.49 7.41 7.41 7.42 7.34 7.33

Return 7.43 7.39 7.41 7.47 7.42 7.48 7.36 7.32 7.38

Starting Point 7.40 7.37 7.29 7.44 7.40 7.31 7.36 7.39 7.33

Convenience 7.39 7.32 7.33 7.41 7.35 7.36 7.34 7.28 7.31

Contacts 7.25 7.25 7.15 7.30 7.29 7.22 7.15 7.16 7.02

Responsive 7.25 7.22 7.24 7.29 7.26 7.29 7.17 7.13 7.18

Bottom Line 7.14 7.13 6.94 7.17 7.15 6.93 7.06 7.11 6.97

7.57 7.50 7.47 7.45 7.43 7.40 7.39

7.25 7.25

7.14

6.9

7.0

7.1

7.2

7.3

7.4

7.5

7.6

7.7

Attribute Ratings

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Members Non-members

Q3 2012 Q2 2012 Q3 2011 Q3 2012 Q2 2012 Q3 2011

Relevancy 7.71 7.63 7.69 7.11 7.13 7.12

Ease of Use 7.61 7.52 7.49 7.14 7.15 7.10

Breadth 7.61 7.54 7.56 7.00 7.04 7.00

Discovery 7.59 7.50 7.51 7.00 7.00 6.96

Return 7.60 7.55 7.58 6.88 6.90 6.98

Starting Point 7.68 7.64 7.56 6.63 6.66 6.71

Convenience 7.53 7.44 7.49 6.91 6.94 6.93

Contacts 7.40 7.39 7.25 6.84 6.90 6.86

Responsive 7.37 7.32 7.36 6.87 6.91 6.88

Bottom Line 7.33 7.34 7.25 6.61 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?

Motivation Convenience …is the most convenient way to choose your

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

7.2 7.3 7.4 7.5 7.6 7.7 7.8

HigherInfluence

LowerInfluence

Lower iPSI 7.5 HigherRating Rating

Influence chart for Hospitality Industry Q3 2012 BOOKERS

Responsive

Discovery

Ease of use

Convenience

Key Drivers of Online Satisfaction for Bookers*

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accommodations/plan your travel?

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

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3575 Boulevard St-Laurent, Suite 310, Montréal, Québec, H2X 2T7 T. 877.796.3600 F. 866.484.2600 [email protected] | www.iperceptions.com A trusted market research firm and global leader in Voice of Customer (VoC) analytics, iPerceptions captures customer perceptions on the touch point of choice and at the critical time using advanced intercept technologies and proven research frameworks to deliver action in real-time. Its platform provides advanced business intelligence reporting and global benchmarking to assist in strategic and tactical decision-making. Also inject VoC results to provide seamless integration of customer insights into current processes and improve the overall customer experience. So from standard to custom solutions, from full service to self service, it’s no wonder InterContinental Hotels, Fairmont, Best Western, Choice Hotels International and Wyndham Vacations and over 3,000 brands trust iPerceptions. For more information visit 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.

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online satisfaction and experience in the hospitality industry q3 2012

Travel

type of traveler

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