Hotel Website Conversion Rates: Key Tactics for Improvement in 2018
February 5, 2018 11:44am
By Max Starkov
As the travel planning journey continues to become increasingly more complex, hoteliers need to be looking for more impactful ways to engage and retain their best potential guests. Today’s typical online travel consumer is exposed to over 38,983 micro-moments in any 60-day timeframe, during which time they visit an average of 18 websites via multiple devices in eight sessions before making a hotel booking (Google).
Hotels are not just competing with OTAs, their competitive set, and Airbnb—they are also competing with every micro-moment that distracts the travel planner, such as emails, text messages, video, and social media feeds. There is some serious competition out there for the travel consumer’s attention, making it all the more important to engage and convert them while they are visiting the property website. A key imperative for hoteliers in 2018 is preventing these travel planners from becoming distracted by digital noise and serving them content at the correct time in order to convert them into bookers.
Why is it important to improve website conversion rates?
The average hotel website conversion rate (bookings divided by unique monthly visitors) is typically below 2%. For example, imagine 100 people visit your hotel website. Out of those people, less than two will complete a booking, and more than 98 will look around before leaving to make a booking elsewhere—either with your competitors or with the OTAs. Hoteliers are spending precious advertising dollars on SEO, paid search, online media, PR, and social media in order to bring users to the hotel website. However, 98% of them are not converting.
Now imagine the monetary benefit from improving the conversion rate from a property with an ADR of $200, a website with 25,000 unique monthly visitors, and 1.5% conversion rate. If conversion rate increases by 25%, this will result in additional website revenue of $37,500 per month. A 33% increase will bring an additional $50,000 per month.
What Are the Main Factors Impacting Hotel Website Conversion Rates?
o Case Study: Luxury Island Resort Increases Revenue with a New Responsive Website With their previous website, only 4% of total room revenue was coming from their online channel. Despite the beauty and luxury of the hotel, the property was losing money each year due to their website. In order to increase online revenue and conversion rates, the entire website was re-vamped with new copy and images all controlled by an advanced CMS.
After one month the website paid for itself, with year-over-year revenue increasing by 203%. The total return on their investment was 2,168%.
o Case Study: A Central California Hotel Increase Conversion Rates by 25% With Reservation Abandonment Tools With a collection of four hotels, this resort was in need of increasing their website conversion rate and getting website users back to the booking engine. After implementing Reservation Abandonment Emailers and Reservation Abandonment Lightbox Displays, the resort saw a 25.9% increase in their conversion rate year-over-year and a 3,520% return on their investment.
o Case Study: An NYC Boutique Hotel Increased Their Conversion Rate by 55% with Smart Personalization As more consumers expect a personalized experience, this NYC hotel was looking for a strategy that would improve the user experience on their website while increasing conversion rates. With messages targeted to visitors depending on their location and behavior, the hotel was able to see an increase of 55% year-over-year in the website conversion rate and a 44% increase in revenue after just three months.
Developing a robust website conversion strategy should become the top priority for hoteliers in 2018. This is a crucial step for improving direct bookings and lowering distribution costs. Any investment in website conversions will not only pay for itself, but will reward the hotel generously by improving the bottom line. Start by evaluating your current website conversion rates, the quality of your website technology, and the overall design.
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Founded in 2001, HEBS Digital is headquartered in New York City and has global offices in Las Vegas, Europe, and Asia Pacific. Through its Smart Guest Acquisition Suite, including the smartCMS®, Smart Personalization Engine, Smart Data Marketing, and full-stack digital consulting and marketing solutions, HEBS Digital helps hoteliers drastically boost direct bookings, lower distribution costs, and increase the lifetime value of guests.
Part of NextGuest Technologies, HEBS Digital and Serenata CRM, the most comprehensive Hotel CRM Suite today, are the creators of the hospitality industry’s first Fully-Integrated Guest Engagement & Acquisition Platform.
A diverse client portfolio of top-tier luxury and boutique hotel chains, independent hotels, resorts and casinos, franchised properties and hotel management companies, convention centers, spas, restaurants, DMO and tourist offices across the globe are all benefiting from HEBS Digital’s direct online channel strategy and digital marketing expertise.
HEBS Digital’s technology, website design and digital marketing services have won more than 500 prestigious industry awards, including World Travel Awards, HSMAI Platinum Adrian Awards, Stevie Awards (American Business Awards), Travel Weekly’s Magellan Awards, and more.
The HEBS Digital team is comprised of thought leaders, a diverse team of experts comprised of over 33 nationalities speaking over 22 languages. Contact HEBS Digital’s experts at 1 (800) 649-5076 (North America), +64 (0) 9 889 8489 (Asia Pacific) or email@example.com.
Contact: Garrick Lee
HEBS Digital's smartCMS® Wins a Stevie® Award for The Fifth Consecutive Year at the 2018 American Business Awards®
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