WHAT EVERY HOSPITALITY PROFESSIONAL SHOULD KNOW ABOUT BOOKING ABANDONMENT

Booking Abandonment

What is Booking Abandonment?

Booking Abandonment is a phenomenon in the hospitality industry where potential guests begin the process of booking a stay online but abandon their efforts before finishing. It happens at such a high rate (up to 81%) that a mini-industry has developed to try and solve the problem.

Why don’t users finish the booking process?

According to a survey by salescyle.com there are 6 main reasons people start the booking process, but don’t finish it.

  1. 39% are just looking or want more information
  2. 37% think the price is too high, or are comparing prices
  3. 21% need to check with other travelers
  4. 13% things the booking process is too long
  5. 9% have technical issues
  6. 7% have payment issues

Looking at the first couple reasons, it appears that abandonment might just be a normal part of the lodging research process. Obviously potential guests need to know about offerings, amenities, and prices before they make a decision to stay at a certain property.

Unfortunately, the bottom half of the list reveals a bit of a different story, a story of a broken process. While the majority of abandonments are just side effects of shopping around,  a  full 29% of abandoned booking efforts are a result of problems with the process itself.

How can hotels recover this lost 29%?

1) Simplify
Gathering more and more information from consumers is a major trend in e-commerce. While great for building databases and generating emails lists, it can result in slower online transactions. One reason that 13% of potential guests think the booking process is too long could be because hotels ask them for too much information.

Even if that’s not the culprit, looking for ways to simplify transactions is a good idea for any business that utilizes the internet to make a sale.

2) Research 
It’s important to keep in mind that the stats from salecyle’s survey give broad industry trends and each property or brand will have their own strengths and weaknesses when it comes to their booking. Anyone looking to address booking abandonment should  conduct their own research and analytics to determine the biggest problems with their particular process.

Plus doing research could reveal glaring technical or payment processing issues that need to be addressed.

3) Let the experts handle it.  
Abandonment by itself has become such a problem that specialized solutions have been developed to address it. Companies like Zdirect and Adobe have had success helping hotels recover bookings lost through abandonment.

Before throwing money at an outside solution though, it’s important to do your homework first. You’ll want to ask questions like:

  • “Can a simple website redesign fix this?”
  • “How much is booking abandonment really costing us?”
  • “Will finding a solution be more expensive than the money lost through abandonment?”

What do you think is the best way to deal with booking abandonment? Leave us your thoughts in the comment section below! 

FRENCH RESORT DESIGNED BY FACEBOOK FANS

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It was only a matter of time…

Social media’s influence on hospitality has been growing ever since hotels first started getting their own Facebook pages. Last year, the Sol Wav hotel took a big step forward in this area by becoming the first “Twitter Hotel,” using the popular service as an integral part of guest services. Now, social media integration in the hotel world has reached another new peak, an entire property has been designed by its Facebook fans!

The Val Thorens Sensations, by Club Med,  in the French Alps was designed based on opinions pulled from social media. Major hotel features  like a lobby climbing wall, main dining room yurt, and outdoor jacuzzi were decided by the hotel’s fans on Facebook before it opened. Even smaller decisions such as bed size and mirror locations in the rooms were made through the social network.

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Main eating area at the hotel, complete with central-Asian inspired “yurt”

The property doesn’t look half bad either. The Facebook generated opinions were a little quirky, but the end result is impressive. Besides the more original features, like the previously mentioned yurt,  Sensations also features some practical accommodations, like beer taps on each floor.

Why more brands should follow Club Med’s example

Though, Val Thorens Sensations is making waves due to the novelty of its design process, the idea of “crowd-sourcing”  is something that has real value for future developments in the hospitality world.

Notoriety – being a “designed by Facebook”  hotel comes with guaranteed media attention, at least while it’s still a new thing.

Brand Loyalty – This type of guest interaction not only makes a brand seem forward thinking and progressive, it adds an element of  authenticity that’s  tough to replicate. Giving guests the power to add real input to a property’s layout gets them more emotionally invested in it. Even guests who didn’t directly participate will appreciate the “guest-first” mentality of the idea.

Social media boost – “Follow us on Facebook and help design the look of our new resort” is a pretty compelling pitch.

More guest-oriented attitude and culture – In general, this type of guest-first approach is a nice refresher that any brand can use. When your resort was designed on the opinions of guests, an attitude of high quality service will be inevitable.

 

But it’s not all good 

Even though the idea of “design by Facebook” has its benefits, there are definitely some drawbacks as well.

Idea vs. Reality

Guests don’t always know what they want. Sure,  the rock wall in the lobby and outdoor jacuzzi sound like great ideas in theory, but until they’ve been tried it’s hard to tell if they will be good for guests in real life. Maybe the rock wall will be annoying or loud to other guests nearby, maybe it’s just too cold to get in and out of the jacuzzi in the alp winter?

Gimmicky

Having your hotel layout determined by a social media campaign  could definitely be a turnoff for the guests of some higher end luxury properties. It’s easy to imagine that certain brands might worry about cheapening their image by being associated with Facebook, or viewed as a gimmick.

 

My hotel isn’t due for a major renovation any time soon. Why should I care?

Even established properties can benefit from Club Med’s model. The basic idea behind crowd-sourcing can be used in existing properties, with a little creativity! There’s no reason to think it’s an all-or-nothing proposition.

Some examples of how you can use social media opinions to add value to your property: 

What color should our new lobby carpet be? You can launch a campaign showing two options of carpet and ask fans to make their voices heard.

What brand / type of wine should we keep in the bar?  Wine enthusiasts will be all over this. There are so many choices in variety, vintage and brand, why not just hand this decision over to your fans?

How should we stock the mini-bar? What types of amenities do you want in your bathroom? Even simpler questions can have a big impact.

The idea of a Facebook designed hotel sounds outrageous at first, but when you think about it, it’s really just an extension of great service towards guests.

What do you think about crowd-sourcing in hospitality? Give us your feedback in our comments section below! 

 

 

PITTSBURGH, A SURPRISING BOUTIQUE HOTEL HOTSPOT

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Steel City, The City of Bridges… Boutique Hotel City?  It might not be as catchy as Pittsburgh’s traditional nicknames, but this last one’s quickly becoming just as accurate.

 

Boutiques Invade Pittsburgh

Three new boutique hotels will be joining Pittsburgh’s hospitality portfolio this year.  Hotel Monaco, Hotel Indigo and Ace Hotel are each opening properties in 2015. Pittsburgh probably wasn’t where you’d expect these brands to be expanding into. In fact,  Pittsburgh has one the oldest demographics in America, and western Pennsylvania is more frequently associated with blue collar industry than high class sophistication. So why the sudden influx of boutique hotels in Pittsburgh? Well, if you look beyond the surface, Pittsburgh actually has all the qualities a city needs to be a perfect spot for boutique hotels to thrive.

 

What makes a good “Boutique Hotel City?” 

Boutique hotels are smaller properties that offer luxury accommodations and service. They usually have a unique theme and individual style. Boutique’s pride themselves on giving guests a specific experience rather than offering the same uniform stay that major luxury chains do. More than anything, boutique hotels rely on their personality, which in part comes from the city they’re in.

Obviously big cities like New York, Chicago and L.A. have plenty of boutique hotels, but they also pop up in smaller towns and cities, specifically locations with character. Cities that have a distinct culture, history or persona, like Boston, Washington D.C. and of course Pittsburgh work well with the boutique concept because they offer themes and ideas the hotel can build off of. In other words, Boutiques can capitalize on a city’s brand.

 

Why Pittsburgh is perfect for this type of Hotel

What the Steel City lacks in size, it makes up for in personality. Here are some characteristics of Pittsburgh that have made it irresistible to boutique hotel brands.

Culture- the city’s culture includes the community feel of a smaller working town. The neighborhoods each have their own unique spots and communities, but the shopping, night life and entertainment options rival anything a big city has to offer. Also, the sports franchises are very successful and have fairly new venues, and incredibly loyal fans.

Size- It’s big enough to support a thriving tourism industry but not too big that it loses its identity.  Pittsburgh is in the sweet spot that makes it so attractive for boutiques.

Academics-  Though it’s demographically one of the older cities in the U.S. the number of colleges in it have brought a growing number of young people to the area. The influx of youth makes Pittsburgh great pool for outside the box thinkers that boutique properties are looking for.

Art- Besides being Andy Warhols’ hometown, Pittsburgh is also home to an Art Institute, and the Carnegie Museum of Art.

History- Pittsburgh’s industrial past provides the perfect canvas for creative hotel managers to take advantage of. It’s easy to shape the personality and past of pittsburgh into a unique hospitality environment.

 

What do you think about Pittsburgh’s newfound boutique hotel industry? Will the steel city become a hub of luxury travel? Give us your thoughts in the comment section below! 

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THE WHAT AND WHY OF POP-UP RESTAURANTS

Have you noticed your attention span getting shorter?

Don’t worry, it’s nothing to be ashamed about. You’re just a product of modern life.

Fresh and new have become  a standard feature in a lot of industries and it’s finally reached food and beverage. Say “Hello” to pop-up restaurants!

 

What the heck is a pop-up restaurant?

Pop-up restaurants are appropriately named temporary restaurants that “pop-up” for a short period of time and then shut down.

Usually lasting only weeks or months at a time, these boutique style eateries offer a unique blend of quality, exclusivity and novelty to patrons. Though they’ve been around since the 70s,  pop-up restaurants have just started to gain mainstream popularity in the last decade.

Pop-ups are perfectly suited for our instant gratification culture. They offer a fresh experience but don’t overstay their welcome, but how exactly can they compete financially with traditional restaurants?

 

Why pop-ups make sense as a business model

To better understand the merits of a pop-up’s unique business model,  check out this fun infographic from intuit.

Pop Up Restaurant

via: pop-up Restaurant [Infographic]

 

Our experience with pop-ups

We got to enjoy the fun of pop-up restaurants first hand when we visited New York last week.

The best way to describe “Broadway Bites”, a collection of pop-ups we saw,  would be to call it a high quality outdoor food court.

Broadway Bites

A company called Urban Space, organizes the event, which includes over two dozen restaurants.  Broadway Bites is a great example of what pop-ups are all about. It  features a different lineup every year, and lasts a few weeks. This year it was only around from October 6th until November 14th!

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Pop-ups and the hotel biz

Besides the obvious fact that pop-ups are additional competition for traditional F&B venues there are a few other reasons the hospitality industry should be paying attention to them.

 

1. They can be integrated into hotels

Some properties, like the Marriot, are offering space in their hotel lobbies to pop-up restaurants. It’s a great way for them to give guests a novel dining experience  that’s different with each stay.

 

2. The pop-up concept can be applied to a lot more than just restaurants

The idea of temporary, unique and exclusive that comes with pop-up restaurants is powerful. It’s a good starting point to discover  other opportunities.

Hotels can apply the model by offering pop-up shops in their lobby, offering pop-up bars or something else. The bottom line is that by using the pop-up mentality hoteliers can give guests a unique and interesting experience while differentiating themselves from the competition.

What do you think about pop-up restaurants? Will the whole pop-up movement only exist for a short period of time like the restaurants involved? Give us your thoughts in our comment section below! 

What is a Hotel’s Most Important Amenity?

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Hotels are in a constant battle to stand out from the competition.

In a world where sites like  Priceline, Expedia and Kayak have become the most popular ways to book, guests tend to view price as the only difference between hotels. 

Some properties have tried to combat this trend using futuristic gimmicks  like adding Robot Butlers to their staff  or enabling guests to use their phones as room keys, but the best solution might look less like the year 2114 and more like 2014.

Give the people what they want.

According to a study cited by innovationexcellence.com  94%  of people  think WiFi is the most important amenity in hotels. Not free Coffee, not complimentary breakfast… but Internet access.

That statistic is hardly surprising given the fact that most people carry an internet connected smartphone with them 24/7, not to mention the 45% of  guests who bring at least 2 internet connected devices with them while traveling.  

What IS surprising is that while 87% of guests think Wifi should be free,  only 64% of hotels actually offer complimentary Wifi. 

Standing out doesn’t necessarily mean that hotels need to come up with some extravagant marketing strategy or creative gimmick. It might mean simply giving guests a better experience then everyone else when it comes to internet access.

Fortunately for guests some hoteliers are already taking steps to establish a competitive advantage based on Wifi.  28-Percent of hotel operators plan to upgrade and increase bandwidth to guest rooms in the next 6 months.

So before upgrading your property’s coffee selection or extending the hours of continental breakfast, think about investing in better Wifi. It could be simple solution to setting yourself apart that you’ve been looking for!