30 May 2023

Digital Performance | Boosting conversion rates in the Hospitality Industry

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Digital Performance | Boosting conversion rates in the Hospitality Industry
Megan KingWritten ByMegan King

Megan is the Head of Client Services at Propeller. Leading the Account Management team, Megan handles effective and timely communications with clients to ensure great outcomes.

In the competitive landscape of the hotel industry, improving hospitality conversion rates is crucial for driving bookings and revenue. 

Converting website visitors into actual guests requires careful planning, optimisation, and a deep understanding of your target audience’s needs and preferences. 

In this article, Propeller explores key factors that will boost your hotel’s conversion rate and maximise your online potential.

Why is conversion rate important? What benefits does it provide?

Conversion rate is a key metric for those in the hospitality industry. It measures the ratio of site visitors to online bookings. Understanding your conversion rate, your brand strategy’s weaknesses and areas for improvement will propel your brand beyond competitors.

Breaking down a customer’s journey into various steps helps us to understand what aspects of the customer experience require improvements.

It’s important to determine ways to make your site’s booking engine more attractive. This, specifically, can be accomplished through UX (user experience) optimisations.

If the conversion rate for the contact page is poor, specific fixes to improve the user experience must be given priority.

What’s a good website conversion rate?

Given the average conversion rate for hotels is 2.2%, Little Hotelier states a conversion rate of 3% or above is considered good. However, the higher the rate is, the better.

It is wrong to think that a conversion rate is only good if it is as high as possible, though.

Let’s take an example of a hotel investing in a marketing campaign to increase bookings. While traffic to the website increases, the conversion rate will likely dip down.

This is not a negative result, as even though the conversion rate had dipped, there is likely an increase in bookings- which should be the ultimate goal.

Propeller’s top tips for improving conversion rate in hospitality

Examining hospitality conversion rates will provide specific information about which channels are doing well and which need to be monitored. Here are our top tips for improving conversion rates.

Streamline the booking experience

Simplify the process of getting from A to B. The user should be able to book a room with just a few clicks. If customers can’t book with ease, it’s more likely that they’ll abandon their booking and look elsewhere.

Only ask for essential information and make the process as quick and straightforward as possible. Implement auto-fill options and progress indicators to guide users through each step.

Chatbots

You can also use chatbots to provide 24/7 assistance to guests with their bookings. Chatbots answer questions, recommend rooms and packages, provide information about the hotel and make further suggestions.

UX copy

When reviewing your website, reviewing the UX is vital to improving conversion rates. Providing clear calls to action and using text to guide customers to booking will boost conversion rate and customer experience all in one.

Image optimisation

Another quick and effective win for your brand is image optimization. Proud to be working with the Azzurri Group on their digital presence, Propeller recently assisted Azzurri across all of their brands: Zizzi, ASK and Coco di Mama.

Image optimization will improve website loading speed, and a faster website makes for a happier site visitor. See our work with Azzurri Group here.

Leverage social media and online reviews

Maintain an active presence on relevant social media platforms to engage with your audience. Achieve this through captivating visuals, promotions and responding to inquiries and comments.

Email marketing

If a customer abandons a transaction on your website, set up a reminder email to encourage them to complete their booking. You can do this using an email marketing tool or your CRM system.

Interested in setting this up for your hotel? See our partners or speak to us to find the best solution for your website.

What are some common mistakes hospitality brands are making?

Most hotels make common mistakes that damage their conversion rate and affect their revenue generation.

Here are some errors that our specialists have picked up on over the years on hospitality conversion rates:

  • A cluttered or confusing design can adversely affect user experience.
  • A lack of compelling content can deter visitors and fail to move them to the net stage of conversion. e.g. Faulty information, bad imagery, unstructured writing.
  • Lack of customer support for clarification and complaints.
  • Outdated information or incorrect information tends to destroy trust.
  • Not offering discounts or special deals may induce guests to look for cheaper options.
  • Making the booking process too complicated.
  • Failing to provide clear calls to action.

Summary

Your hotel’s booking conversion rate depends on many factors such as the design of your website, the quality of your content, the ease of use of your booking engine and the offers or discounts that you provide to guests. By improving your website and making it more user-friendly, you can increase your chances of converting visitors into paying guests.

FAQ

1. How long does it take to see improvements in a hotel’s conversion rate?

The time required to see improvements in a hotel’s conversion rate can vary depending on various factors, including the effectiveness of implemented strategies, website traffic, and market conditions. It’s important to continually monitor performance and make data-driven adjustments to optimise conversion rates over time.

2. How can social media help improve a hotel’s conversion rate?

Social media provides an opportunity to engage with potential guests, share captivating content, and build brand awareness. By maintaining an active presence, responding to inquiries, and leveraging user-generated content, social media can positively influence potential guests’ decision-making process and drive conversions.

3. What role does personalization play in improving conversion rates for hotels?

Personalization allows hotels to tailor their marketing efforts and offers to specific target groups. By delivering personalised messages, offers, and recommendations based on guests’ preferences and behaviors, hotels can create an individual and engaging experience, in turn, increasing conversion rates.

4. Is it necessary to monitor and respond to online reviews?

Yes, monitoring and responding to online reviews is crucial for managing your hotel’s reputation and influencing potential guests’ perception. By addressing feedback, whether positive or negative, in a professional and empathetic manner, you demonstrate your commitment to guest satisfaction and build trust with potential guests.