Hotels must create more ancillary products to maximize revenue growth via @hotelmarketing & @phocuswright

Source: Carroll Rheem, principal analyst at PhoCusWright,  during The Traveler’s Appetite for Ancillary Products webinar

“According to PhoCusWright’s research in a survey commissioned by Monetate, between 10% and 20% of travelers report never being interested in purchasing ancillary products.

The upside to that metric is that the large majority of travelers have some level of interest in purchasing ancillary products…

That means turning to data to determine exactly when to target ancillary offers to certain travelers can ensure upsells and cross-sells resonate. Which data should you review to uncover the best segments and timing? Here’s what the survey found:

Rheem noted that the survey found there’s a strong relationship with age when it comes to interest in ancillary products. Let’s take a look at the stats for interest in airline offers:

Age Chart

“Ultimately, younger travelers are a bit more likely to say they are interested in ancillary offers more often,” Rheem said. And this trend carried across to lodging and car rentals, as well, suggesting travel and hospitality websites might want to try targeting more of these types of offers to younger visitors.

Frequency of Travel
PhoCusWright also uncovered that infrequent travelers are less likely to be interested in ancillary offers compared to those who travel frequently. Let’s look at the stats:
Frequency Chart

According to Rheem, while frequent travelers are a small segment, they are still ideal for targeting ancillary offers to, especially since they are often in loyalty programs. But it’s also important to keep in mind that less frequent travelers make up the majority of the responders to this survey, and travel and hospitality brands would do well to find a compelling way to offer upsells and cross-sells to this segment.

In the end, using data to uncover segments and trends can help travel and hospitality firms more effectively time and target their upsell and cross-sell messaging to the right visitors at the right time based on the type of trip they are booking.”

Read more at Hotel Marketing: Hotels must create more anchillary products to maximize revenue growth.


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