According to the L2 Digital IQ Index, Marriott has the highest digital IQ of all luxury hotel brands, at 162. This is a considerable margin above the second ranked hotel group, which has been given a Digital IQ of 137. An understanding of how to engage online is vital to the success of a hospitality business today, but given that traditional hotel brands’ strongest skill is in service, they will always be at a disadvantage to specialised tech companies in the digital arena, as our hospitality experts discuss:
The Index assesses the digital competence of 55 Luxury Hotel brands by looking at the ‘effectiveness of brand site and E-commerce investments’, ‘Search, display and email marketing efforts’, ‘Social Media presence, community size, content and engagement,’ and ‘Mobile compatibility, optimization and marketing on smartphones & tablets’.
One reasons for Marriott’s high score is its online visibility. The study shows that in a Google search made from the US, Marriot is the most visible brand when looking for hotels in The Americas and Asia, and top three in Europe and Asia.
The study found that 81% of online travel booking is abandoned before completion. The study highlights frustrations during the booking process as key factor in and says that nearly 40% of sites surveyed required four or more clicks from search result to reservation.
Another barrier in the booking journey is the device used. According to the study, 46% of travellers who performed research via a mobile device did not execute their booking on that same channel.
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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.
2015 has been a great year for hotel investment so far. There has been renewed positivity in the market and a rise in portfolio transactions. According to JLL, the UK has led transactions in the EMEA, with deals up 172% in the first half of 2015 compared to 2014. Overall in the EMEA region half year transaction volumes are up 85%. The US has also seen a rise in investment with transaction volume nearly doubling in the first half of 2015.
In this briefing industry insiders discuss the state of hotel investment, and who is investing in what:
JLL have reported that significant amounts of investments into the EMEA region has come from China and North America. Chinese investment has amounted to $1.9 billion so far this year. Investment from North American private equity funds, which has reached $1.1 billion, has accounted for 57% of regional UK portfolio deals.
International investment into America amounted to $6.6 billion in the first half of 2015 representing nearly 30% of deal volume and showing a marked increase on 2014.
Some portfolio moves this year have included Accor’s restructuring of HotelInvest’s assets, which has involved the sale of 29 hotels in Germany and the Netherlands under a €234 million sales & Franchise back agreement in April, and the sale of seven hotels in the UK and Ireland for €38 million in May.
In June, Ashford Trust announced its intention to sell a 23 select-service hotel portfolio. And last month Pinnacle Hotel Management (PHM) sold a 15-hotel, select-service portfolio comprised of Marriott- and Hilton-branded hotels for $203 million to the Blackstone Group.
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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.