Why Are People Not Returning To Their Favorite Hotels?

Despite a high guest satisfaction rate of 86%, only 37% of travelers return to hotels they enjoyed, according to the Agilysys 2024 APAC Hospitality Impact Study. This survey, which included over 1,000 travellers from Australia, Hong Kong, New Zealand, and Singapore, uncovered vital insights into guest preferences and spending habits, revealing significant revenue growth opportunities in the hospitality sector.

The study found that 68% of APAC travellers want to increase their hotel spending for personalized experiences. Additionally, 73% would consider paying up to 30% more for room upgrades if offered post-booking. Furthermore, 66% of respondents indicated they would spend more if wait times across all hotel experiences were reduced, and 68% would increase their spending if a robust loyalty program existed. Melbourne accommodation providers increasingly cater to these shifting preferences, offering personalized experiences and tailored loyalty programs.

Interestingly, the research highlighted a notable "rebooking paradox" in the APAC market: despite high satisfaction (86%) and perceived value for money (61%), only 37% of travellers choose to return to hotels they have previously enjoyed.

“Our research sends a clear message: APAC travellers are willing to spend more for tailored, efficient, and memorable experiences,” said Tony Marshall, VP Managing Director APAC at Agilysys. “Hotels not offering personalized guest experiences are missing out on significant revenue opportunities.”

The study identified key factors driving increased spending among APAC travellers. Staff interactions are critical, with 46% of respondents valuing staff who go the extra mile, 41% appreciating personalized activity recommendations, and 30% influenced by staff recalling previous conversations. Personalized touches also play a significant role; 40% of guests value being assigned their favourite room, 28% are more likely to spend more when restaurant staff remember their preferences and 57% respond positively to small surprises like pillow chocolates.

The 2024 APAC Hospitality Impact Study stresses the need for a shift from traditional Revenue Per Available Room (RevPAR) metrics to a more comprehensive Revenue Per Available Guest (RevPAG) approach. This change allows hotels to capture the full range of guest spending and tailor their offerings accordingly. “To maximize profitability, hoteliers must utilize advanced Property Management Systems that provide real-time, data-driven insights into guest preferences,” Marshall added. “By adopting a RevPAG focus, hotels can unlock hidden revenue streams, enhance guest satisfaction, and foster long-term loyalty in the competitive APAC market.”

In cities like Melbourne, where the hospitality landscape is evolving, offering furnished apartments can enhance guest experiences. These accommodations provide the comfort and convenience of home, appealing to both business and leisure travellers seeking extended stays furnished apartments. Integrating personalized services within these furnished apartments could further capitalize on the willingness of guests to spend more for tailored experiences.