Hotel loyalty programmes appear to be serving their purpose in the US as share of bookings rise year-on-year in 1H2019
Across the first six months of 2019, the percentage of total room nights booked by members of brand loyalty programmes at US hotels increased +4.4% year-over-year to 53.9% of all room nights booked at hotel brands with existing loyalty programmes, according to data from the US Hotel Industry Performance Overview (HIPO) from benchmarking specialist Kalibri Labs.
The company evaluates and predicts revenue performance in the digital marketplace, but in addition to the traditional metrics of hotel-collected revenue per available room (RevPAR), average daily rate (ADR) and occupancy, its HIPO platform also displays metrics such as net revenue, cost of acquisition, length of stay, booking lead time, loyalty contribution and online reputation.
Alongside the rise in bookings through the loyalty channel, HIPO’s data shows that when looking at bookings by source of business, brand.com and OTA bookings each grew +6.6% year-on-year to 24% and 15% respectively.
But guest-paid RevPAR and contribution to operating profit and expense (COPE) RevPAR (the revenue per available room based on the total room revenue paid by guests, after transaction-specific direct reservation costs have been deducted) decreased -1.6% and -1.39% yearon-year, respectively, driven by occupancy declines of -1.9% YOY, and indicating only modest ADR growth.
Nationally, HIPO shows length of stays decreased by -2.67% to 1.94 days during the first half of 2019, with each of the top ten metropolitan statistical areas (MSAs) across the US all showing single-digit declines in this metric. Booking lead time held steady at 23.6 days (up +0.05%) across all markets, chain scales and channels.
READ MORE via The Blue Swan Daily: Hotel loyalty programmes appear to be serving their purpose in the US as share of bookings rise year-on-year in 1H2019