- New research indicates that hotel guests are willing to pay extra for specific features or services, potentially boosting hotel revenues by over $5,300 per room, per year.
- The influence of traditional travel inspiration sources such as newspapers and TV ads fluctuates, while social media ads and influencers increasingly drive travel decisions.
A recent study by Amadeus reveals that travelers are more likely to pay extra for specific features or services, potentially adding around 12% to the average daily rate hotels charge. The “Travel Dreams” report is based on data from 6,000 travellers from the US, China, India, the UK, France, and Germany.
According to the study, 63% of hotel guests are willing to pay additional charges for features such as a specific view or floor, having an Xbox in their room, or including local attractions in their package. For an average mid-range hotel chain offering these additional features, this could potentially increase annual revenues by over $5,300 per room.
The channels influencing travel decisions are also evolving. Over the past five years, the influence of social media ads and travel influencers has significantly increased. In contrast, traditional sources like newspapers, in-person travel agents, and TV ads have seen variations in their impact.
The report also highlights that personalized service is a crucial factor for leisure travelers, with 50% stating that a personalized welcome would top their list for an ideal hotel experience. More than half of the guests (52%) expressed their willingness to share personal data in exchange for tailored deals.
In contrast, business travelers prefer technology and efficiency, with 71% showing interest in online or self-service check-in. Interestingly, nearly a quarter of business travelers (22%) expressed interest in using cryptocurrency or a digital wallet for future payments, indicating a potential shift in the payments landscape.
The study also sheds light on the financial losses incurred by travelers due to lack of insurance. The average amount lost by global travelers due to lack of travel insurance stands at US$1,210 per person. Chinese travelers reported an even higher figure, estimating their loss at over $2,500 per person.
In terms of future technology, both business and leisure travelers expressed their willingness to use virtual reality and artificial intelligence. Most business (82%) and leisure travelers (66%) indicated their interest in exploring a destination before arrival through a virtual tour. Half of all travelers are open to relying on AI for recommendations on dining options at their destination.
Francisco Pérez-Lozao Rüter, President, Hospitality, Amadeus, commented on the findings, stating that understanding diverse needs of travelers based on factors such as the purpose of their trip, age, and origin, can provide hoteliers and travel service providers with opportunities to create personalized experiences, drive profitable demand, and enhance the overall travel experience.
Discover more at Amadeus.
