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TripAdvisor Survey Reveals 47% of U.S. Hotels Expect Higher Rates Ahead of Fall Travel Season Compared to Last Year

World's Largest Hotel Survey Unveils Hospitality Industry's Top Trends

NEWTON, Mass., July 30, 2012 /PRNewswire/ -- TripAdvisor®, the world's largest travel site*, today announced the results of the latest TripAdvisor Industry Index™, the world's largest hotel survey. With more than 25,000 responses from hoteliers around the globe, and over 5,000 from the U.S. alone, the survey has revealed some startling findings about today's top hospitality industry trends. Among the key findings: U.S. hoteliers expect pricier rates for travelers ahead of the Fall travel season, as nearly half (47%) expect rates to go up higher this year compared to the same time last year, while only 16 percent expect comparatively lower rates.

(Logo: http://photos.prnewswire.com/prnh/20080902/TRIPADVISORLOGO)

TripAdvisor's biannual hotel survey has also uncovered a number of other industry insights, including accommodations' business outlook, how they are engaging with travelers on social and mobile platforms and their plans to offer eco-friendly programs.

Bright Business Outlook for U.S. Hotels

The U.S. ranks fourth in the world for hotels with the best business outlook, while Greece ranks last, according to respondents' answers to a number of questions gauging the perceived health of their business.

Most Positive Outlook:
1. Indonesia
2. Brazil
3. Russia
4. United States
5. India

Most Negative Outlook:
18. New Zealand
19. France
20. Spain
21. Italy
22. Greece

Larger Properties Most Profitable and Optimistic

Thirty percent of U.S. accommodations reported to have been extremely or very profitable within the last six months, up from 27 percent when TripAdvisor conducted its last Industry Index survey in Dec. 2011. By comparison, 24 percent of accommodations in the Caribbean and 21 percent in Canada indicate they have been profitable in the last six months.

Across North America, larger properties (with over 50 rooms) reported to be more profitable than smaller properties (with 50 or fewer rooms). In the U.S., 34 percent of larger properties indicated that they had been extremely or very profitable, compared to 24 percent of smaller properties.

In the U.S., accommodation owners' economic outlook has diminished slightly, as 62 percent now expect the economy to improve, down from 65 percent in Dec. 2011. Economic outlook, however, appears to vary by property size: 67 percent of larger properties and 57 percent of smaller properties expect economic conditions to improve a little or a lot in the next six months.

Mexico and Caribbean, Not U.S., Best Place for Hotel Jobs in North America

According to the survey, a greater percentage of Mexican (21%) and Caribbean (20%) hoteliers plan to increase the size of their staffs than their counterparts in the U.S. (15%). In the U.S. plans to hire have dropped down from 27 percent, according to TripAdvisor's Dec. 2011 survey.

Outside of North America, hoteliers in India (39%) and Brazil (34%) are reportedly the most likely to increase the size of their staffs, while hoteliers in France (6%) and the UK (8%) are least likely to add new employees.

Room Rate Rankings: Who's Increasing/Decreasing Rates ahead of Fall
(Note: Rate trends compared to same time last year)

Top 5 for Lower Rates:
1. Greece – 58%
2. Spain – 43%
3. Italy – 37%
4. Australia – 32%
5. New Zealand – 29%

Top 5 for Higher Rates:
1. U.S. – 47%
2. Brazil – 42%
3. Russia – 42%
4. Indonesia – 37%
5. Turkey – 35%

Special Offers and Deals: How U.S. Accommodations Win Guests
(Note: Special Offers used most often to attract guests)

Top 5 Special Offers:
1. Discounts of rooms – 58%
2. Special amenities (e.g., free WiFi) – 44%
3. Free parking – 31%
4. Rewards points – 30%
5. Free newspapers – 20%

Twelve percent of U.S. accommodations do not offer any special offers.

What's with Free WiFi?
93 percent of U.S. respondents report offering free in-room WiFi Internet access
17 percent of the respondents who do not currently offer free WiFi, plan to do so in the next six months

Social Media Rankings Show U.S. Falling Behind
(Note: Rankings based on respondents claiming to use social media to engage with travelers)

Ranked #13 in the world for usage of social media to attract travelers, the U.S. (69%) trails behind Malaysia (89%), Indonesia (84%) and Mexico (83%) who all topped the charts.

In the U.S., 70 percent of hotels and 69 percent of B&Bs reported using social media to engage with current or potential guests. Overall, across property types and sizes, respondents cited industry research/reports (57%) and staying current with the competition (30%) as the top reasons why they are using social media, while posting deals (64%) and responding to guest feedback (58%) were the most common responses for how they are using these sites.

Thirty percent of respondents monitor mentions of their property once a day with 56 percent reporting that internal staffs manage monitoring responsibility. In both cases, these were the most common responses.

In U.S., Hotels Outpace B&Bs in Mobile Marketing


HOTELS

B&BS

Ability to book via my property's website on a mobile device is "very important"

75%

51%

Making special offers available to mobile device users is "very important"

48%

16%

Offers a function to engage with guests via mobile devices

43%

16%

Eco-Friendly Programs: 'Win-Win' for Hotel Budgets and Environment
(Note: Rankings based on respondents claiming to offer eco-friendly practices)

Ranking #7 in the world for eco-friendly practices, U.S. hoteliers (81%) are staying ahead of their counterparts in Mexico (75%), but trailing behind Canada (91%).

The most common eco-friendly programs are towel/linen reuse (82%) and energy efficient light bulbs (78%).

When asked why they offer eco-friendly programs, respondents cited cost reduction (66%) and industry trend (51%) as their top rationales.

"The TripAdvisor Industry Index underscores the current economic climate, as hoteliers in North America, Asia-Pacific and Latin America are all approximately twice as likely to report being profitable in the last six months that hoteliers in the EMEA region," said Christine Petersen, president, TripAdvisor for Business. "What's encouraging is the traction accommodations are making in the areas of online, social and mobile marketing. While currently only a quarter of respondents offer programs to engage with mobile device users, we expect this number to grow, especially since a separate TripAdvisor survey confirmed that 44 percent of travelers plan on using their mobile phone or smartphone more as a travel resource during trips this year."

For more data from the TripAdvisor Industry Index, please download the report here: http://cdn.tripadvisor.com/pdfs/email/IndustryIndex2012_NA_US.pdf

Methodology
The latest installment of the TripAdvisor 2012 Industry Index was conducted June 7- 14, 2012 and was sent by email to a random sample of global accommodation owners and managers. The survey generated 25,517 responses worldwide. Data analysis and other survey consultation were performed by Brainbox Research Ltd. Please note sample sizes for the following countries were low compared to the other countries surveyed: China (188), Malaysia (129), Mexico (151) and Russia (64).

About TripAdvisor
TripAdvisor® is the world's largest travel site,* enabling travelers to plan and have the perfect trip. TripAdvisor offers trusted advice from real travelers and a wide variety of travel choices and planning features with seamless links to booking tools. TripAdvisor branded sites make up the largest travel community in the world, with more than 56 million unique monthly visitors*, and over 75 million reviews and opinions. The sites operate in 30 countries worldwide, including China under daodao.com. TripAdvisor also includes TripAdvisor for Business, a dedicated division that provides the tourism industry access to millions of monthly TripAdvisor visitors.

TripAdvisor, Inc. (NASDAQ: TRIP) manages and operates websites under 19 other travel media brands, and together the sites attract more than 69 million unique monthly visitors.** TripAdvisor, Inc.'s travel media brands include www.airfarewatchdog.com, www.bookingbuddy.com, www.cruisecritic.com, www.everytrail.com, www.familyvacationcritic.com, www.flipkey.com, www.holidaylettings.co.uk, www.holidaywatchdog.com, www.independenttraveler.com, www.onetime.comwww.seatguru.com, www.sniqueaway.com, www.smartertravel.com, www.tingo.com, www.travel-library.com, www.travelpod.com, www.virtualtourist.com, www.whereivebeen.com, and www.kuxun.cn.

*Source: comScore Media Metrix for TripAdvisor Sites, Worldwide, May 2012

**Source: comScore Media Metrix for TripAdvisor, Inc. and its subsidiaries, Worldwide, May 2012

©2012 TripAdvisor, Inc. All rights reserved. 

SOURCE TripAdvisor

 

SOURCE TripAdvisor