Positive Social Media Interaction with Guests During Their Stay Produces Increases in Revenue and Loyalty, According to Research from Local Measure
Unveiled at Cornell’s Hospitality Research Summit, Analysis of Millions of Posts Shows the Potential for Thousands of Dollars in Revenue Increases, and Bumps in Brand Advocacy and Loyalty
According to the data, guests who are engaged by a hotel on social media during their stay on property, post 2.5 times more than other guests.
Based on the average follower reach, standard Instagram conversion metrics, and a $200 Average Daily Rate (ADR) over a two-night stay, the data suggests that a hotel stands to gain more than $2,000 in revenue per engaged guest through a consistent program of engaging such guests on social media during their stay.
The study also revealed that guest advocacy and loyalty increased 12x-19x when the hotel engages with the guest within 30 minutes of a post being published - reinforcing that the real opportunity for hotels is to build guest loyalty and revenue while a guest is on property, before online reviews ever appear.
Sara Axelrod, Chief Operating Officer (COO) of Local Measure, said, "There has long been a hypothesis about the power of real-time social media engagement to produce concrete ROI for hoteliers. Now there is data to support it." "We were happy to share the results of our research with thought leaders at the recent Center for Hospitality Research Summit, and are pleased to discuss it widely with decision-makers across the industry. Local Measure merges local content, social media and mobile technology to help hotels reach their guests as they have never been reached before – directly and during their stay, allowing more personalized service and generating concrete benefits from engaging with them in person as well as online. Our research shows just how concrete those benefits can be."
Headquartered in Australia, with offices in Singapore, Dubai, London, Miami and Los Angeles, Local Measure has proprietary technology that allows brands and businesses to deliver exceptional service to their customers, engage with them in real-time to resolve service issues and acquire the rights to use user-generated content.
About Local Measure
Local Measure is the leading customer intelligence platform in the tourism and hospitality sectors. Local Measure's clients include many of the world's largest tourism and hospitality brands. The company merges local content, social media and mobile technology, to provide customers with live access to operationalise customer data, rich content and analytics at a local level. For more information about Local Measure, visit our website and follow us on Instagram and Facebook.