Apple Pay and Apple SIM, Hotel Profitability Analysis, and Qualitative Data
This week in hospitality, Tnooz reported on the release of Apple SIM and Apple Pay. Hotel News Now published an editorial on the value of qualitative data over quantitative data. And, HNN also reported on STR findings regarding hotel profitability analysis that examined the relationship between occupancy and ADR to profitability.
Apple SIM, Apple Pay, and Travel
This week, Tnooz reported on the release of the Apple SIM. It also published a run-down on how Apple Pay will affect the travel industry.
Apple SIM, released as a part of the iPad Air update, allows users to select short term data plans, directly in the Settings menu. This means that users can easily select a local carrier while traveling. With this update, mobile technology has become even easier to use and rely on while traveling. Given previous analyses on how the presence of mobile optimized web affects direct bookings, it’s safe to say that it’s more important than ever before for hoteliers to invest in responsive web design.
CLICK HERE to read the Tnooz article on Apple SIM.
Tnooz also touts Apple Pay, which launches this week with the new iOS update, as the “last, best hope for mobile wallets.” Previous attempts at such a device have failed because of data control, security, and privacy concerns. But clearly, there is high demand for such a product, as one in five leisure travelers and one in three business travelers already have some form of mobile wallet on their mobile devices.
As Glenn Gruber of Tnooz highlights, there is one huge benefit for hoteliers here: Often, the direct booking process fails because there are too many forms and fields to fill in, including their credit card information. Gruber writes, “It’s hard enough to do that on a desktop, but can be really painful on a smartphone. So if there was the ability to invoke Apple Pay to reduce the friction of the transaction and increase conversion, which beyond having the benefit of increasing revenue, it would also improve the ROI on search engine marketing [for hotels].”
The Tnooz article on Apple Pay is pretty extensive, but it’s worth your time to read it in full when you get a chance. CLICK HERE to read the full article.
Qualitative over Quantitative Data
Hotel News Now published an editorial this week about the qualitative nature of guest reviews. Larry Mogelonsky of HNN notes that, while guest reviews can be emotional and not objective, they do shine a light on important issues for your hotel. “Worry less about your actual number and more about what the individual rater says in the description. It’s the qualitative that counts millions over the quantitative,” he writes. “If a visitor takes the time to draft a review online, then what they comment on should be considered imperative to improving your hotel. Think qualitatively (and, of course, look for commonalities in the reviews), and you will undoubtedly boost your overall rating and increase bookings.”
CLICK HERE to read the full editorial on HNN.
Hotel Profitability Analysis: Occupancy or ADR?
Hotel News Now also published a report this week that used STR data to examine the relationship between occupancy and ADR to profitability. The report found that 85% of the most profitable properties had a greater-than-average ADR. It also found that for luxury properties, occupancy seems to have played a greater role in profitability than ADR for 2013. “While these two analyses imply some level of correlation between occupancy or ADR and profitability, we certainly cannot say, for example, that ADR drove profitability in the upscale class,” writes Joseph Rael Senior Project Manager for STR Analytics. “More accurately, we are simply characterizing the most profitable properties in each class in terms of occupancy and ADR, and examining profitability of the properties that achieved the greatest occupancies and ADRs,” he says.
CLICK HERE To read the full article.