Eric Oppegaard
The final installment in our “Why Does Placement Matter?” series examines the overall impact of preferential placement of a property in an availability list or booking window. Click for previous posts:
- Part 1 – Impact on hotel bookings
- Part 2 – Impact on hotel nights
- Part 3 – Impact on overall hotel revenue
- Part 4 – Correlating ADR and revenue growth
At the start of our journey
Our journey down the path of examining the value of participation in multi-property availability and hotel listing displays began with a simple question:
Does preferential placement in these listings yield better results?
A quick online search demonstrates the general statistics available to validate the power of placement in search rankings. But, we wanted to take this a step further. We enlisted the help of an external consultant to examine a sampling of data for customers enrolled in the Amadeus Instant Preference (AIP) solution.
Along the way we identified:
- who makes up the core demographic of travelers,
- strategies to increase hotel revenue,
- the industry forecast for the remainder of 2015 and outlook for 2016, and
- the consumer outlook
A look at the value of preferential placement
There were many key factors to take into account when relating the value gained by hotels when enrolling in AIP. For the purposes of this series, we’ve narrowed it down to the following overall results for the analyzed group:
- Bookings increased by 11.25% compared to 5.74% for non-AIP enrolled properties.
- Hotel nights increased by 11.80% while Amadeus hotel nights increased by 6.09%.
- Average increase of 7.8% revenue growth can be seen after properties enroll in AIP – nearly double the growth of those properties not enrolled.
- Properties enrolled in AIP have an ADR that is nearly 20% higher than the ADR for all Amadeus properties allowing for decrease in pricing without jeopardizing revenue
- AIP enrolled properties realize faster revenue increases and slower ADR decreases when compared to non-AIP properties.
Next Steps
As discussed in Part 3 of our series, you must first start with an understanding of your business. Then consider how you can capitalize on your competitive advantages. Identify new ways to optimize your channel mix and increase visibility to existing and prospective customers. Consider how you can increase your opportunity for revenue growth with Amadeus Instant Preference!
Learn more about preferential placement with AIP
