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Hostel Industry Insights #10 – Personalisation, privacy & profits

Hostel Industry Insights #10 – Personalisation, privacy & profits

Stay the Night, digital marketing service for hostels

Each week, we give you a run down of the latest hostel industry insights and offer our take (we can also provide a variety of GIFs for your entertainment, too!).

1. PERSONALISATION AND PRIVACY MUST GO HAND IN HAND

Personalised experiences, respect for guest privacy and long-term trust have become a challenging trio in recent months for travel brands across the world.

In Epsilon’s 2018 Power of Me Personalisation study, it was found that just 64% of consumers surveyed thought travel brand websites were delivering personalised experiences well.

However, with more and more travellers aware of how and why their private information is being used by businesses, it has become a challenge for brands to strike the right balance between effective 1:1 personalisation and a respect for consumer privacy.

While it may be a challenge, it’s vital that hostels invest time and effort into developing a personalised online guest experience. As travellers move through the dreaming, planning, and booking stages of their trips, using personalised communications – especially email – to build relationships with them is fundamental in establishing both trust and brand loyalty.

The best way for hostels to overcome this issue is by focusing on using the information they receive via direct bookings to build up a profile of their upcoming guests. This information allows you to tailor your email  communications in the run up to the guest’s arrival, sharing information on your tours, activities and any special offers they might be interested in. 

Marriott’s Director of Member Marketing, Marc Sheinkin said: “Three to five years ago, we were using [email] more like a billboard, batching and blasting communications to millions of people at a time. Now we’re starting to see emails as very much a 1:1 communication.”

Building persistent, long term relationships with guests that are customised to their unique needs while ensuring their data is protected is a challenge – but one we are sure the hostel industry can overcome.

2. CHINESE MILLENNIALS TRANSFORMING THE TRAVELSPHERE


“As Chinese millennials and Gen Zers come of age, their shopping binges won’t likely be as important, and they’ll be willing to venture to off-the-beaten-track destinations more than their elders were.” – Source.

Ditching the shopping bags for adventurous experiences, Chinese millennials tourists are proving to have caught the travel bug far more than older generations.

Not put off by potential language barriers or travel times, young Chinese travellers are heading for farther flung destinations such as Turkey, Czech Republic, the UAE and Egypt. They are also heading to lesser known North American destinations – so much so that airlines have boosted the number of routes available from China.

Cheaper international airfares have been a growing trend that Chinese millennials are cashing in on so they are able to devote more of their budgets towards experiences at their destinations.

As the younger generations of China become adventure seekers, it’s the perfect opportunity for hostels to target this group of potential guests in their digital marketing efforts and showcase the experiences on offer to them.

3. FACT: MORE WEB HITS = HIGHER PROFITS! WHO KNEW…

In the latest Wolfgang E-commerce Report, it has been found that websites which generate the most online revenue have the highest number of sessions per user over the last 12 months.

The analysis found that the more a user visited a website, the more likely they were to spend money on the site. This isn’t just about overall web hits – when looking at your Google Analytics, you should also look at the total number of users and the number of sessions.

There are a whole host of ways that hostels can direct potential guests to their website – social media output, online content like blogs and email newsletters can all play a huge role.

However, the most effective way to reach those who have already visited your site is through retargeted advertising. This can be carried out through social media ads and GoogleAds. If you’re thinking of using paid ads to market your hostel, make sure you have answered these 5 questions before you start. 

Are you enjoying our Hostel Industry Insights? We’d love to hear your thoughts…


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