Experiences and e-Commerce demand increases Q1 2024 hotel revenue says Journey

Experiences and e-Commerce demand increases Q1 2024 hotel revenue says Journey

Hotel partners of hospitality technology company Journey increased its average order value by 10.3% in Q1 2024

Seamless digital transactions available at all hours, paired with the desire for memorable in-person interactions and experiences, has seen hotels boost the value of their online bookings, according to hospitality technology company Journey. 

Providing guests with an all-in-one digital retail booking experience has led to Journey’s hotel clients increasing their average order value by 10.33% in Q1 2024, compared to the same time last year.

By facilitating easy purchasing, Journey’s ecommerce platform drove an overall 118.9% increase in revenue for its clients in the first quarter of 2024, it has revealed. 

Hotels using Journey’s ecommerce platform also experienced improved conversion on direct booking websites, with an average conversion rate of 4.14% in Q1 2024 - significantly higher than the industry average of 3%. 

Simon Bullingham, CEO and founder of Journey, said: “Half of our hotel clients’ bookings are made outside the traditional business hours of 9am to 5pm. 

"People crave convenience so using a holistic ecommerce platform to ensure potential guests can access a hotel’s full range of facilities and services when booking is without doubt the best way to secure bookings and capture incremental revenue. 

“Cross-selling at check-out is long-established in physical stores with items placed near the queues and tills, while online retailers promote personalised ‘recommended’ extras, but the hospitality industry has been slow to adopt retail practices. 

"For hoteliers, Journey’s ecommerce platform is the best-in-class way of showcasing everything a hotel has to offer and making it instantly bookable, transforming a hotel booking into an online retail experience.”

Journey has unveiled a new Performance Hub, where all its strategists, analysts and client account teams can be found. It is led by performance director Susanne Williams. 

The Hub’s digital marketing experts drove a Return On Advertising Spend (ROAS) of 13 to 1 across the quarter, well above the hotel and travel industry benchmark range of 5-10, completing a circle of support to the UK’s leading luxury independent hotels and resorts. 

Williams said: “The digital landscape continues to evolve at a rapid pace. For a hotel to not only be competitive but to succeed requires expertise and an army of support - something independent and boutique hotels can’t afford to hire in-house. 

"By pooling Journey’s expertise together under our new Performance Hub, we’re able to enhance our already exceptional results for our clients and help them continue to grow their direct business and increase profitability.”

Data from Journey’s 750 clients also highlighted Mondays as the peak day to make luxury hotel bookings, and 8-9pm as the busiest hour. 

Further social behavioural changes were reflected in devices used to book.

Mobile remains the primary device (54.81% of traffic) but experienced a fall of 6.9%, offset by a 9.95% increase in desktop and a 6.45% increase in tablet bookings.