Hilton gets 100,000 hotel bookings from mobile apps

Hilton Worldwide received over 100,000 room bookings via its mobile applications in 2010, demonstrating the revenue-generating potential of a rounded social media strategy for hotels, the brand has said.

Speaking at the latest Cornell Hospitality Research Summit (CHRS) in the United States, Hilton’s senior VP of corporate strategy Kevin Jacobs said the hotel group had “gone all in” with its social media strategy, which included a focus on mobile applications.

“Since over 80 per cent of Hilton’s guests travel with a mobile device and 40 per cent use it to search travel, mobile apps make sense,” he said.

Hilton’s mobile apps have seen more than 340,000 downloads, he added, and guests used them to book well over 100,000 room-nights in 2010, with revenue up 200 per cent.

CHRS last month published its summit proceedings, which include key points from presentations made by Jacobs and other hospitality industry experts at the summit held in October 2010.

Social media for hotels

Presentations revealed that many hotels in the United States and globally have embraced social media outlets, while others are not represented at all.

Mobile applications were highlighted as one of the most important areas of focus for hotels, since travellers expect to use their mobile devices to book rooms or other travel services on the spot.

“Hospitality operators must integrate their marketing efforts with social media – a process which will require new approaches to marketing,” said Glenn Withiam, director of publications for the Cornell Center for Hospitality Research.

Marriott most visible online brand

A study presented by Peter O’Conner, a professor at Essec Business School, the top 50 hotel brands used at least three of four social media outlets in 2010 (Facebook, Twitter, YouTube and Flickr), although seven of the top brands could not be found at all.

“Marriott is the most visible online brand, especially given its large presence on Twitter,” he said.

“Hyatt Regency recorded the most activity, while Holiday Inn had the most ‘likes’ on Facebook, and Best Western has the strongest social media presence overall, as judged by its consistency across the channels, followed by Hilton and Marriott.”

Facebook hotel bookings

Another survey by market research firm PhoCusWright found that Facebook is a key channel for most consumers around the world.

“Ninety per cent of respondents to a PhoCusWright survey aged 18 to 24 said they are on Facebook,” she said. “More to the point, 66 per cent of travellers are on Facebook. Facebook referrals are far more likely to convert into bookings than are referrals from travel review sites.”

In addition, the group’s Traveller Technology Survey also found that 20 per cent of people have asked for an opinion online, are also a fan of a company and are Twitter followers of a company. Around of third of respondents also said they post pictures and reviews, and are influenced by social networks when making bookings.

“These are reasons that hotels should make themselves as visible as possible on social media sites,” she said.

How to succeed on social networks

However, in order to ensure a successful presence on social networks, hotels need to ensure they contribute regular – and useful – content, said Anil Aggarwal, CEO of internet marketing firm Milestone.

“Merely offering promotions is insufficient,” he said.

Ideas for hotels to participate in social media include offering tips of the day, restaurant suggestions, local weather, insider tips, and deals that emphasize value.

For example, Ramada built a quiz that allowed users to determine which brand fits their personality. That increased Ramada’s web traffic by 300 per cent.

Polls are another way to get people engaged, he suggested, and visitors like lists and tips, especially when the hotel is offering local information. For example, a hotel in Hawaii earned a great response by posting the ‘Top ten things that only locals know.’

The 2011 Cornell Hospitality Roundtable & Conference proceedings can be downloaded for free from the Cornell Center for Hospitality Research (CHR).