Thursday April 11 2019
Price and customer ratings are more important than brand value when choosing a hotel, according to a new study conducted by travel platform Expedia Group and Unabashed Research, which surveyed more than 900 customers. This means that independent hotels can now compete with their branded counterparts.
Unsurprisingly, price is by far the most important factor in choosing a hotel, as customers prioritize it when setting their travel budget. This is according to a recent study conducted by the global travel platform Expedia Group with over 900 participants. Promotions and discounts, which are very important to customers, are a virtually guaranteed way to attract their attention and persuade them to choose a particular hotel.
Another finding: the influence of ratings. Customers are actually willing to spend more for hotels with more positive reviews, and significantly more than for premium brands. Overall, participants are willing to spend more for a hotel with higher customer ratings: 24% more for a hotel rated 3,9 versus 3,4, and 35% more for a hotel rated 4,4 versus 3,9. “ Ratings from other travelers or customers have leveled the playing field for independent hotels, as more and more potential customers seek third-party endorsements for the properties they are considering booking ,” explains Abhijit Pal , Head of Research at Expedia Group. “ Today, independent hotels can compete with brands globally because distribution and technology allow them to do so, and they control the quality of their services .” Thus, this study shows that an independent, unbranded property can compete with a well-established hotel brand in terms of traveler preference by focusing on the customer experience.
The study also revealed that hotel brand had a slight advantage over other attributes, including renovations, room photos, and hotel star rating. Premium brands were found to have more influence on travelers' choices, and customers rewarded these brands by spending more per day, though not as much as they did for excellent customer ratings.
With kind permission from the Journal de l'Hôtellerie