• Toucan Insights Staff

Hotel Analytics: What are the Most Important Performance Metrics for Hotels?


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The hospitality industry has seen its biggest changes in the 21st century.


In 2018, online travel booking was estimated to have made $756 billion in revenue worldwide. Additionally, 82% of online travel bookings (121 million) were made without any human interaction.


Looking at these numbers clearly shows that having a strong online presence is crucial to succeeding in the growing digital age.


Therefore, having an effective digital marketing strategy in place is becoming an important asset for hotels to reach an increasingly tech-savvy audience.


Especially luxury consumers are more demanding and require special attention.


Hospitality digital marketing agencies target these customers using more sophisticated methods.


Read on - Luxury Hospitality: The Big Shift in The High-End Travel.


Incorporating data analytics into your strategy and measuring the right metrics is essential to motivate important decisions of hotels.


Key Hotel KPIs for Conversions and Direct Bookings


analyzing performance and metrics

1 - Website Conversion Rate


This measures the website visitors that successfully complete the booking process. It looks at how many people who land on the hotel website convert into new guests.


On average, the conversion rate for hotel websites is 2.2%.


No matter the effort of hospitality digital marketing agencies, if the website from the hotel doesn’t convince travelers to stay, it becomes an impossible task to convert them through other methods.


Investing in a well-optimized website pays off in the long term as online visitors expect user-friendly design in this day and age.


Tips to improve the website conversion rate


Most online visitors leave before completing a form. Simplify the process for the user by:

  • Removing unnecessary questions

  • Including automatically filled-in forms

  • Making the forms mobile-friendly

Hotels save money when converting a higher percentage of website visitors as it also lowers the marketing costs per booking (MCPB).


Bringing in more people through the website ensures that the hotel receives more qualified traffic.


2 - Assisted conversions


This metric measures how different marketing channels assist in generating revenue.


This is useful in the case where different channels don’t directly influence the booking process of customers.


For example, measuring the generated revenue from a social media campaign can be difficult to quantify.


With the multi-channel funnel report in Google Analytics, hospitality digital marketing agencies can visualize how marketing channels like social media assist in the booking decision of customers.


Tips to attract customers at the Top of the funnel


As online visitors coming from social media campaigns are usually not looking to book yet, attract them first with a customized landing page.


Instead of pushing visitors to book now, create a call-to-action to sign up for the newsletter instead.


This is also a great moment to share some highly valuable content like travel guides for the designated area where the hotel is from (eg. biggest city hotspots, hidden restaurant gems, local shopping streets, etc.).


3 - Organic Traffic Growth & Net Promoter Score


These metrics show the organic interest that your property gathers.


Organic traffic growth measures the number of customers who naturally show interest in your property by searching and clicking on search engines for your hotel.


The net promoter score (NPS) measures the likelihood that existing customers would recommend you to other people.


By increasing the organic interest that your hotel gets you can increase your bookings without spending money on ads or other digital marketing campaigns.


Tip to improve organic interest


Improve your customer service to create positive word-of-mouth. This will prompt guests to leave positive reviews that you can use to advertise your brand on the website.

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4 - On-page interactions


Knowing what online visitors are doing on the hotel website is key in understanding how to improve the online experience for customers.


By analyzing on-page interactions, hospitality digital marketing agencies can identify friction points in which people pre-maturely leave the website.


This behaviour report also measures if visitors don’t perform the desired action like clicking on a call-to-action button.


Hoteliers should focus on high converting pages that share the most important information to customers. Here, it is critical to ensure a smooth online experience to improve conversions.


Tips to decrease page-exists (bounce rate)


In order to encourage people to stay on the most important website pages, it is important to reduce distractions to a minimum.


This means that links like for the hotel social media accounts and other exit points should be removed from reservation pages.


Beware when to include upselling during the booking process. If additional upgrades result in drop-offs, place these upselling options after the booking completion in the confirmation email.


Lastly, mention all fees upfront to avoid customers getting frustrated at the check-out process.


5 - Impression share


This metric explains the percentage of impressions that ads actually receive compared to the total amount of impressions that these ads could theoretically get.


In more clear terms, the impression share shows the percentage of the times that your ads were shown on the results page when they were eligible.


As an example, when your impression share is 80%, this means that 80% of the time your ads were shown in the SERP.


The other 20% didn’t manage to get ranked because they lost the auction to other ads.


Hospitality digital marketing agencies can use impression shares to compare the visibility of their hotel and that of competitor hotels or OTA’s bidding on your brand name.


This metric is used to further increase brand awareness and website visibility on the search results page.


Tips to improve your visibility on search engines


Personalize your ad campaigns for different segments of your audience. This way you increase the chance of addressing their specific needs in the ad copy and prompt them to click on it.


Implement a remarketing strategy to get back previous customers.


Offer a special deal after they completed the booking process or remind customers to finish their reservation with follow-up emails.


6 - Keyword Ranking


It is important to rank for relevant keywords in order to increase your online visibility.


Looking for how your customers search for your brand can bring you valuable knowledge to optimize your existing copy.


It is important to know the searchers intent for every search term and to be up-to-date with search trends.


Tips to improve your keyword ranking


Improve your CTR by writing your meta titles and meta descriptions in a more SEO-friendly way by including target keywords.


Start a blog to improve your keyword ranking. Positioning your hotel as an expert in your industry will greatly affect the ranking on the search engine results pages.


One way is to find new keyword opportunities your hotel can rank for. It is optimal to have a mix between short-tail keywords and long-tail keywords to increase online visibility.


7 - Bookings from different channels


Taking together all your different traffic sources is key to know where your online visitors are coming from.


Hospitality digital marketing agencies leverage each channel to maximize customer touchpoints during their different stages in the customer journey.


From bookings that come from OTA’s like Expedia or Kayak to reservations that come from organic searches on Google, you should distinguish every channel.


To better visualize the customer journey for each channel, you can set up specific goals or attribute a monetary value to customer actions. This shows the value that every marketing channel brings to your brand.


For instance, if you have videos or other interactive visuals you can try to implement a call-to-action button just below it. This way you can track how many people can visit your website via this way compared to other ways.


Key Metrics for Hotel Managers


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Except for the offline metrics that hotels should strongly focus on, here is a list of the more general online metrics to pay attention to.


1 - Bounce Rate


A bounce is when a user arrives on your web page and leaves without having clicked on anything else.


This metric indicates if people interact with your web pages or not. This can give you a clue if you need to make the design of your website more user friendly.


However, a low bounce rate doesn’t automatically mean that everything is correct. For example, people could search through your website for specific information but they can’t find it.


Therefore, you should always look at the big picture and look at a number of metrics together before analyzing your situation.


2 - Pages per Visit


This metric is closely related to the bounce rate as they measure the behaviour of the website visitor.


This number indicates how many pages of your website the user visits before leaving.


When many people leave after only a few pages, then your website doesn’t seem to give them the right information they were looking for.


Therefore, aim to write only valuable content for your customers and put it as concise as possible in order for them to stay interested and keep looking on your website.


3 - Time on-site


Another key number is the time on-site. This metric lets hoteliers know how long online visitors spend on a specific page of your website.


This number is highly dependable on the type of page. For example, blog articles or information pages aim for higher time on site than booking pages.


You can calculate the total time a user spends on your site and compare it with your competition.


4 - Conversion rate


Defining specific goals gives you a better overview of your website visitors are taking the key actions like accomplishing the booking process or subscribing to your newsletter.


Specify these goals and look at the percentage of people who fulfill them. With this knowledge, you can develop strategies that focus on improving the conversion rate of your goals.


Maybe they need more information first before completing the booking process or they still have some unanswered questions.


5 - Customized metrics for visuals


Advanced marketers and hotel managers create custom metrics to measure customer behaviour.


This is often done with interactive images that encourage people to take a specific action.


Comparing the actions of people who interacted with your images with those who haven’t can give you insights into the effectiveness of these interactive images.


Final thoughts


It is important for hotels to leverage their customer data and other analytics to use that to their advantage.


Having a clear set of goals in mind and measuring the right metrics for your hotel is the first big step to improve the demand generation activities.


Create data-driven digital marketing strategies to improve your website’s performance in a smart and efficient way. This will attract more quality visitors who will more easily convert into new guests.

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