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iSeatz, Inc., the travel technology company powering ancillary product booking and merchandising for some of the largest travel, financial services and entertainment brands, today announced the first wave of results from its Hotel Ancillary Opportunity Report. iSeatz commissioned the research to determine current perceptions and preferences regarding the sale of ancillary goods and services by hotels.
In-Destination Activities a Go
The survey found that 81% of respondents had participated in a bookable in-destination activity during their last trip, with day trips, excursions and sightseeing tours (42%), visiting museums, galleries or cultural attractions (30%) and outdoor activities (28%) the most popular. Day trip, excursion and sightseeing tours are the most booked in-destination activity, especially among 18- to 34-year-olds, as 50% booked one for their last leisure trip.
Last Trip In-Destination Activities |
||||
Ages 18-34 |
Ages 35-54 |
Ages 55+ |
All Ages |
|
Day trip, excursion or sightseeing tour |
50% |
38% |
38% |
42% |
Museum, gallery or cultural attraction |
34% |
24% |
26% |
30% |
Outdoor activity (such as water sports and hiking) |
30% |
27% |
27% |
28% |
Ticketed event (theater, sporting event or concert) |
26% |
20% |
16% |
21% |
Theme park or amusement park |
27% |
21% |
7% |
19% |
Other |
4% |
9% |
15% |
9% |
The stage at which these in-destination activities are booked varies significantly. For both tours and activities (including snorkeling, sightseeing tour or yoga class) and general admission activities (such as museum, zoo, theme park or monument), most were booked while the consumer was within the destination and, for the most part, on the day of the activity itself. In contrast, ticket events such as concerts, sporting events and theatre tickets tend to be booked prior to travelling, with only just over one-third booked the day before or the day of the event itself and nearly one-third securing tickets before booking the flight or hotel. Such a pattern makes sense, as in many cases the event in question may be the motivation for the trip, making the pre-booking of event tickets essential.
Baby Boomers Resist Pre-Booking, While Millennials Embrace It
Regardless of the category, pre-booking activity decreases with age. In all cases, those aged 18-34, followed by those aged 35-54, were far more likely to pre-book their in-destination activities. Older travelers (55+) showed a marked resistance to pre-booking, with most making their bookings only once they had arrived in the destination and on the day of the activity itself.
Last Trip In-Destination Activities Booking Window |
||||
Ages 18-34 |
Ages 35-54 |
Ages 55+ |
Overall |
|
Before booking flights or hotels |
25% |
18% |
8% |
19% |
At the same time as booking flights or hotels |
26% |
20% |
12% |
20% |
While in-destination but at least a day before |
17% |
20% |
23% |
20% |
The day of the activity |
31% |
41% |
60% |
41% |
“Facilitating the purchase of ancillary in-destination activities during booking or confirmation communications clearly represents an interesting opportunity for U.S. hotels,” said Kenneth Purcell, Founder and CEO of iSeatz. “Millennials and Gen Xers are a strong and willing market, showing the highest likelihood of engagement in these activities. When well-executed, hoteliers can benefit from the added profit margin and full-service feel ancillary in-destination offerings add to their brand.”
In-Destination Activities Most Popular Among Millennials
Those aged 18-34 represent the highest potential for pre-purchase of in-destination ancillary products, notably being the heaviest consumer across all segments, particularly for day trips / excursions as well as theme or amusement park admission.
Last Trip In-Destination Activities Purchased At the same time as or after booking flights or hotels but before traveling, combined |
||||
Ages 18-34 | Ages 35-54 | Ages 55+ | Overall | |
Ticketed event (theater, sporting event or concert) |
43% |
38% |
36% |
40% |
Tour or activity (snorkeling, sightseeing tour or yoga class) |
42% |
34% |
19% |
34% |
General admission attraction (museum, zoo, theme park or monument) |
39% |
35% |
22% |
34% |
“From breakfast and bike rentals to in-room entertainment and event tickets, ancillary sales offer a compelling way for hotels to boost their bottom line,” says Phocuswright research analyst Mark Blutstein.
In addition to adding top-to-bottom-line growth, hoteliers are increasingly looking to ancillary product offerings such as in-destination activities and local experiences as a way to compete with online travel agencies and sharing economy players such as Airbnb. To learn more about the iSeatz approach to hotel ancillary merchandising and hotel in-path solutions, please visit iSeatz.com.
About iSeatz
Founded in 1999 and based in New Orleans, iSeatz is a leading digital commerce experience and ancillary merchandising technology company for travel, financial services and entertainment brands. Focused on customization and backed by proven deliverability, reliable advanced analytics and travel lifecycle expertise, iSeatz sets the bar for a superb travel journey from the very first search. The award-winning iSeatz OneView platform meets brands’ exact requirements for delivering a highly personalized and engaging commerce experience that drives conversions, customer satisfaction and advocacy. iSeatz custom digital experiences allow prospective travelers to search, discover and book a spectrum of travel-related products. iSeatz travel technology solutions connect people to unique travel journeys, generating over $2.5 billion in annual sales for our partners each year from more than three million annual bookings. The iSeatz partner portfolio includes brands such as American Express, Air Canada, Amtrak, Expedia, IHG and Marriott. Learn more at iSeatz.com.
Survey Methodology
This research study was approached from two complementary angles by Phocuswright and iSeatz. Initially, to understand the demand side, Phocuswright fielded an online consumer survey between March 8 and March 15, 2017, through Lightspeed, targeting the general U.S. adult population who has internet access and travels for leisure. To qualify for participation in the study, respondents had to indicate that they had taken at least one leisure trip at least 75 miles from home in the past 12 months that included paid lodging and/or air travel. An additional screener required consumers to have played an active role in planning their leisure trips. Phocuswright received 1,724 qualified responses, and the weighted respondent pool can be projected with confidence to the U.S. adult population with internet access. To understand the supply side of the issue, Phocuswright conducted a series of in-depth, 30- to 40-minute telephone interviews with key personnel within U.S. hotels. Respondents comprised representatives of both chains and independent properties and included a mix of e-commerce, sales and marketing and operations functions. For complete survey methodology, including weighting variables, please contact Alessandra Nagy.
Media Contact for iSeatz
Alessandra Nagy
714-310-4439
alessandra@bospar.com
About iSeatz
Founded in 1999 and based in New Orleans, iSeatz is a leading digital commerce experience and ancillary merchandising technology company for travel, financial services and entertainment brands. Focused on customization and backed by proven deliverability, reliable advanced analytics and travel lifecycle expertise, iSeatz sets the bar for a superb travel journey from the very first search. The award-winning iSeatz OneView platform meets brands’ exact requirements for delivering a highly personalized and engaging commerce experience that drives conversions, customer satisfaction and advocacy. iSeatz custom digital experiences allow prospective travelers to search, discover and book a spectrum of travel-related products. iSeatz travel technology solutions connect people to unique travel journeys, generating over $2.5 billion in annual sales for our partners each year from more than three million annual bookings. . The iSeatz partner portfolio includes brands such as American Express, Air Canada, Amtrak, Expedia, IHG and Marriott. Learn more at iSeatz.com.