Hospitality is changing the way people do business today. Combined with the power of the internet, more is happening remotely than ever before. People can book their own trips, find their own discounts, and even book their own reservations up to 6 months in advance without a hassle.
Hospitality Industry in the Technology Age
Hyatt Hotels engages over 60,000 people every day through their Twitter account.
With online reviews being encouraged by major web browsers, including Google, the power has shifted from the hospitality industry to the customer in many ways. What was once a monopoly has become highly competitive and this has caused the industry to adapt, improve, and ultimately become cheaper for the average person. That, in turn, has caused this industry to grow when globally many sectors are contracting.
Interesting Facts About Hospitality
1. 20% of companies in the travel industry utilize social media to initiate bookings.
2. 30% of people regularly use mobile phones to pay for hospitality costs, a majority of which occur in restaurants.
3. 40% of the bookings that occur within the hospitality industry occurred online in 2013.
Takeaway: You used to go to a trusted travel agency in order to get a great deal for your travel. You can still do that to some extent, but thanks to the access of the internet, people can get great deals from their home computers as well. This has allowed more transparency within the industry, giving the average person the tools they need to be able to secure their own deals while they travel. Add in mobile technologies and today’s hospitality industry is more about providing resources than necessities.
Additional Facts About the Hospitality Industry
1. 54% of the revenues that the hospitality generated within the last 12 months came from specials or discounts that were posted online in some way.
2. As job satisfaction has increased in this industry, so have overall revenues. Hotels, for example, are making more than $15 per room more than they were just 5 years ago.
3. 60% of the online reviews regarding this industry are placed on TripAdvisor.
4. 1 billion restaurant visits per year are influenced in some way by the internet, either through advertising or reviews.
5. 78% of hospitality industry organizations utilize social media for one specific purpose: to improve customer engagement.
6. How much is social media worth? 1 addition Facebook like is the equivalent to 20 new organic website visits in this industry.
7. Although 70% of Americans utilize reviews when booking in the hospitality industry, only 32% of them leave reviews themselves.
Takeaway: Information is the key to the future success of the hospitality industry. By providing people with consistent resources and honest information, there are many opportunities for profits. Your average person wants to feel like they got a good value for the price that they’ve paid and when they can secure that on their own, that feeling leads to multiple bookings and higher revenues.