Monday, August 24, 2015

Hotel Booking Abandonment - Part 1

Hotels in recent years have been striving to steer their guests away from booking their stays with online travel websites (OTAs). Some degree of success has been attained in these regards, usually at great effort and expense by hotels. However, there is a leak in the booking funnels of many hotels and an acutely costly leak the hospitality industry cannot afford to ignore. The remarketing company, SaleCycle, earlier this year released the results of a combined study examining both their clients and their clients’ customers, in the travel realm. The findings are extremely eye opening for an industry seeking to keep ahead of the many outside channels competing to book their prospective guests.

The Problem

  • According to the study, 81 percent of potential guests leave the online booking process before completion. The 81 percent represents guests who have entered into actively booking their hotel stay, as opposed to all website visitors.  

When Do They Leave?

  • 53 percent give up the booking process upon seeing the price.
  • 26 percent will leave when personal information is requested.
  • 21 percent depart as soon as form of payment is required.

Why Do They Leave?

  • 39 percent were either just looking or needed to search for other offers and deals. 
  • 37 percent thought the price was too high and wanted to compare prices elsewhere.
  • 21 percent wanted to read travel reviews before making a booking decision. 
  • 13 percent found the process of booking to be too long or unnecessarily complicated.
  • 9 percent experienced technical issues.
  • 7 percent had some issue with payment or didn’t find suitable payment options.

The Upside

  • Fully 87 percent stated their intention to return and complete the hotel booking
             process.
  • 43 percent said they would return within a week.
  • 33 percent would come back to complete the booking the same day.
  • 13 percent promised to be back next week.
  • 11 percent after one week.

To begin an analysis of these results, it appears that price is the most important motivating factor driving when and if a potential guest is going to abandon the hotel booking process. Whether this is a result of the user thinking the price truly is too high, or just their need to seek a better deal, is hard to say. However, the fact remains that they do leave in large numbers. The silver lining in this report is the potential guest’s willingness to return. In the next part of this series we will take a closer look at the results of the survey and examine some steps that hoteliers can take to reverse the trend and cut down on the number of hotel booking abandonments.

Posted via OnFast - http://www.OnFast.com

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