iSeatz, Inc., the travel technology company powering ancillary product booking and merchandising for travel, financial services and entertainment brands, today announced the second wave of results from its Hotel Ancillary Opportunity Report. iSeatz commissioned Phocuswright to perform research to determine the state of play regarding the sale of ancillary goods and services by hotels.
Despite What Many Think, Hotel Supplemental Offers Are Helpful
Among its many findings, the survey found that nearly half of the responding consumers found offers from the hotel for supplemental travel products helpful during the online booking process (47%), as well as during the hotel check-in process (48%). Younger consumers in particular were more open to receiving offers of this type, with nearly a third of both 18-24 and 25-34 year-olds rating such offers as being very helpful.
Traveler Opinions on Receiving Supplemental Travel Product Offers
- When Booking Hotel Online
- Very helpful: 21%
- Helpful: 26%
- Neutral: 35%
- Unhelpful: 9%
- Very Unhelpful: 9%
- When Checking Into Hotel
- Very helpful: 21%
- Helpful: 27%
- Neutral: 34%
- Unhelpful: 9%
- Very Unhelpful: 8%
“Very Helpful” Rating on Receiving Supplemental Travel Product Offers, by Age
- When Booking Hotel Online: (26% ages 18-24, 29% ages 25-34, 22% 35-44, 16% ages 45-54, 14% ages 55-64, 12% ages 65+)
- When Checking Into Hotel: (28% ages 18-24, 29% ages 25-34, 23% 35-44, 14% ages 45-54, 16% ages 55-64, 13% ages 65+)
In-Hotel Ancillaries More Popular Among Older Consumers
When it comes to which in-destination services travelers would be willing to pre-book, younger travelers, aged 18 to 34, selected activities from the hotel, such as museum and attraction tickets, while older consumers, aged 55 and up, chose activities such as early/late check-out and dining at the hotel instead of sightseeing tours. All generations said that they are “most likely” to consider purchasing hotel dining from the hotel or early check-in/late check-out. Additional in-destination purchases include:
Supplemental Travel Products Willing to Purchase or Book from Their Hotels
- Dining at the hotel: (36% overall, 35% ages 18-34, 35% ages 35-54, 38% ages 55+)
- Early check-in/late check-out: (28% overall, 27% ages 18-34, 25% ages 35-54, 31% ages 55+)
- Museum and attraction tickets: (27% overall, 31% ages 18-34, 26% ages 35-54, 22% ages 55+)
- Sightseeing or other tours: (26% overall, 25% ages 18-34, 26% ages 35-54, 28% ages 55+)
- Room upgrade: (26% overall, 25% ages 18-34, 25% ages 35-54, 26% ages 55+)
Additionally, 5% of millennials are willing to purchase child care in-destination.
“iSeatz has seen a marked increase in demand to incorporate a broader range of products in our partner implementations in order to enhance customer experience and capture an increased share of the customer wallet through upselling and cross-selling, no matter the device,” said Kenneth Purcell, Founder and CEO of iSeatz. “In offering a more comprehensive range of products and services to customers during the accommodation booking process, we have seen two results: 1) better customer service for the guest and 2) higher revenues or increased share of customer wallet for hoteliers.”
Mobile Offers Out, Online Offers In
The survey also found that consumers in general preferred to receive ancillary offers during the online booking process. Nearly one-third (31%) of consumers noted that they preferred to receive ancillary offers on the hotel or travel website during the primary booking process. A substantial number were also open to receiving such offers within the hotel booking confirmation email (23%) or in a pre-arrival email from the hotel (19%). Despite the prominence of mobile devices, and perhaps because of their intrusiveness, fewer consumers expressed a desire to receive such offers through their mobile phone, irrespective of whether it was delivered as a text-message (13%), within the hotel app (12%) or as a push notification (7%). And within the destination, most consumers preferred to use a traditional concierge service to make bookings (25%), with fewer expressing a preference for automated services such as self-service kiosks (12%) or in-room technology such as smart TVs, tablets or other devices (13%).
Phocuswright’s white paper Hotel Ancillaries: An Unexplored Opportunity, written by Peter O’Connor, Senior Market Analyst of Phocuswright Inc., finds that, “[d]espite the challenges, hotels clearly see the potential of being able to better serve their customers by expanding the portfolio of ancillary goods and services they offer. Both technological and organizational barriers will ultimately be overcome. This will enable hotels to more effectively tap this highly interesting potential market and generate valuable additional revenue. It may perhaps even reverse consumer perceptions that all booking channels are the same, by providing a complete, robust product selection through direct channels. With such clear advantages, attacking the ancillary revenue issue should clearly be a priority to ensure success in the future.”
To learn more about the iSeatz approach to hotel ancillary merchandising and hotel in-path solutions, please visit iSeatz.com.
About iSeatz:
Founded in 1999 and based in New Orleans, iSeatz is a leading digital commerce experience and ancillary merchandising technology company for travel, financial services and entertainment brands. Focused on customization and backed by proven deliverability, reliable advanced analytics and travel lifecycle expertise, iSeatz sets the bar for a superb travel journey from the very first search. The award-winning iSeatz OneView platform meets brands’ exact requirements for delivering a highly personalized and engaging commerce experience that drives conversions, customer satisfaction and advocacy. iSeatz custom digital experiences allow prospective travelers to search, discover and book a spectrum of travel-related products. iSeatz travel technology solutions connect people to unique travel journeys, generating over $2.5 billion in annual sales for our partners each year from more than three million annual bookings. The iSeatz partner portfolio includes brands such as American Express, Air Canada, Amtrak, Expedia, IHG and Marriott. Learn more at iSeatz.com
Survey Methodology
Phocuswright fielded an online consumer survey commissioned by iSeatz between March 8 and March 15, 2017, through Lightspeed, targeting the general U.S. adult population who has internet access and travels for leisure, receiving 1,724 qualified responses. For complete survey methodology, including weighting variables, please contact Alessandra Nagy.
Media Contact for iSeatz
Alessandra Nagy
714-310-4439
alessandra@bospar.com
About iSeatz
Founded in 1999 and based in New Orleans, iSeatz is a leading digital commerce experience and ancillary merchandising technology company for travel, financial services and entertainment brands. Focused on customization and backed by proven deliverability, reliable advanced analytics and travel lifecycle expertise, iSeatz sets the bar for a superb travel journey from the very first search. The award-winning iSeatz OneView platform meets brands’ exact requirements for delivering a highly personalized and engaging commerce experience that drives conversions, customer satisfaction and advocacy. iSeatz custom digital experiences allow prospective travelers to search, discover and book a spectrum of travel-related products. iSeatz travel technology solutions connect people to unique travel journeys, generating over $2.5 billion in annual sales for our partners each year from more than three million annual bookings. . The iSeatz partner portfolio includes brands such as American Express, Air Canada, Amtrak, Expedia, IHG and Marriott. Learn more at iSeatz.com.
