2024 Hospitality Benchmark Report takeaways for APAC hoteliers

The Asia-Pacific (APAC) region boasts a rich tapestry of cultures, cuisines, and landscapes — from bustling metropolises to serene retreats —and the hospitality sector faces unique challenges and opportunities.

Each year, Revinate shares industry insights and metrics in our Hospitality Benchmark Report based on data analysis from over 12,000 hoteliers. This year, we examined 1.8 billion emails and more than 37 million guest reviews from 2023. Zooming in on the APAC region, here are some of the most important takeaways.

What you will see here

• Database health is essential in the era of first-party data
• Benchmarks for maximizing revenue through upselling strategies
• APAC guests are the most keen to leave reviews
• Sending highly segmented emails improves conversion rates
• Setting recurring campaigns helps you automate guest communications

1. Database health is essential in the era of first-party data

First-party data is important – we all know this. 2024 is the year that the tracking cookie is coming to an end. In 2023, our customers experienced impressive database expansion, particularly evident in the APAC region, where hoteliers increased their guest records by 26%. North America held the highest growth rate at 29%, closely followed by EMEA at 27%.

These impressive growth figures underscore hoteliers’ commitment to gathering first-party data and cultivating robust guest profiles, especially in anticipation of the impending end of third-party tracking cookies. We believe this emphasis on prioritizing guest data will persist as the hospitality sector embraces digital advancements and adopts data-driven marketing strategies.

If you want to learn more about how to put your first-party data into action, check out our guide, “The complete guide to first-party data for hoteliers”.

2. Benchmarks for maximizing revenue through upselling strategies

In APAC, the adoption of upsells in confirmation or pre-arrival emails among hoteliers has increased to 41%, marking a two-percentage-point rise compared to 2022. Australia and New Zealand (ANZ) lead the pack with the highest utilization rate at 52%. This increase in upsell utilization has translated into significant revenue growth, with upsell revenue from confirmation emails lifting by 24.1%, from $54 to $67 per booking.

Similarly, revenue from pre-arrival emails experienced a robust growth of 19.6%. Leveraging the power of automated campaigns, these figures contribute to the establishment of an ever-flowing revenue stream. Revinate customers collectively generated over six million dollars in amenity and upsell sales in 2023, highlighting the effectiveness and profitability of upsell strategies in the APAC region.

When it comes to upsell options, Food and Beverage (F&B) takes the lead as the crowd favorite. However, it’s crucial to acknowledge that what proves effective for one hotel may not yield similar outcomes for another. Customizing upsell offerings to align with your property’s unique attributes can significantly boost their efficacy. For instance, during Lunar New Year, consider offering special festive packages or room upgrades to capitalize on the celebratory spirit and enhance guest experiences. By strategically aligning upsell offerings with your hotel’s distinct features and guest preferences, you can unlock untapped revenue potential and elevate the overall guest experience.

3. APAC guests are the most keen to leave reviews

Ever wondered how many reviews a hotel gets in a month? In APAC, the answer might surprise you. Hotels there saw an large increases in monthly review numbers compared to last year growing by 45.3%, from 65 to 94. Meanwhile, EMEA and North America experienced more modest increases of 4.4% and 4.1%, respectively.

Keep in mind, receiving more high-quality reviews requires proactive effort. Don’t wait for them to magically appear. Consider reaching out to guests during their stay, especially via the messaging channel, to gauge their satisfaction levels. This approach allows you to promptly address any concerns and ensure a positive experience. After check-out, utilize automated emails to request feedback, and witness a surge in glowing five-star reviews.

4. Sending highly segmented emails improves conversion rates

As your audience becomes smaller and more precisely targeted, your open rates, click-through rates, and conversion rates soar. Why? Because that targeting leads to messaging that is more relevant to your guests’ interests.

For instance, in APAC, campaigns directed at segments with fewer than 5,000 recipients achieve conversion rates 2.7 times higher than the regional benchmark, and 22 times higher than those sent to over 50,000 recipients.

Instead of sending the same message to all guests, it’s better to send different messages to smaller groups of guests based on their preferences, booking behavior, or demographic features.. This way, you can get better results and build stronger relationships with guests.

To help with this, businesses can use something called a Customer Data Platform. This is like a kitchen for a chef, where they have all the tools and ingredients they need to make something delicious. With a Customer Data Platform, businesses can create marketing campaigns that are just right for each person, making their experience even better.

5. Setting recurring campaigns helps you automate guest communications

Recurring campaigns are like your personal assistant in the digital realm—they’re set up once and then automatically deployed when certain guest actions occur, such as a reservation cancellation. These campaigns come with pre-defined messages and targeted segments for each send, making them easy to manage. But don’t mistake their simplicity for lack of impact.

When we look at metrics like average booking value (ABV) and average room nights per booking (RNB), the potential of these campaigns becomes crystal clear. For instance, cancellation recovery emails boast the highest ABV in the region, ringing in at an impressive $1,628.

Benchmark your performance now against the industry’s numbers now

We trust that these insights from our 2024 Hospitality Benchmark Report will help you to assess your marketing strategy and performance while comparing yourself against industry peers. Dive into even more data in the 2024 Hospitality Benchmark Report for APAC hoteliers.

To discover how Lub d and IHG Australia, among others, increase their direct revenue and create memorable guest experiences, schedule a meeting with us today to explore our solutions further.