IgnitionOne: 33% Increase in Cart Abandonment Since Q4 2018
IgnitionOne, a global marketing technology and services leader with a focus on the travel and hospitality sector, announced the release of its Q2 2019 Hospitality Industry Report. The report’s most notable finding revealed that revenue lost to cart abandonment reached an estimated $3.2B – a 33% increase since Q4 2018. Of the increase, luxury hotels saw the highest abandonment rates with economy and mid-scale hotels coming in 4.5-5% lower than the average across all hotel tiers.
“The IgnitionOne Customer Intelligence Platform has been crucial in granting us the insight we need to understand our prospective customers in real time,“ said Jeff Thomas, Director of Distribution & eCommerce at G6 Hospitality LLC. “The quarterly Hospitality Report provides our properties with a holistic overview of the industry overall and where we stand against our competitors.”
Since the inaugural report in Q4 2018, the IgnitionOne Hospitality Report has examined data from 15.6M bookings and tracked just over $4.7B in total revenue. While the volume of bookings was relatively consistent between Q1 and Q2, revenue tracked was down 5%. The report establishes key industry benchmarks including cart abandonment rates, booking values and daily rates, site activity, and travel breakdown by business and leisure for all tiers: Luxury, Upscale, Midscale, Economy and Extended Stay.
In addition to revenue opportunities, the report found varying booking trends in three major cities across the U.S.
- New York City – There was a decrease in bookings for April and May relative to the nine-month average since October 2018. May 20 to June 2 was the lowest volume booking period of the year.
- Las Vegas – In June, the volume of bookings at Las Vegas hotels was more than 10% higher than the average over the last nine months, perhaps correlated to average booking values being 10% lower.
- Chicago – There was increased booking volume and booking values throughout June due to a roster of popular music festivals, like Lollapalooza, in July and August.
Additional highlights from the report include:
- Users who book at extended stay, economy or midscale hotels are spending more time on the site before completing bookings in Q2.
- Luxury hotels saw a 15% increase in average latency compared to Q1 and a 20% increase in lead time compared to Q4.
- A new section highlights how hotel marketers can leverage insights in this report into their digital marketing strategy – and includes an exclusive offer with IgnitionOne.
For more information and to download the full report, visit here.
The IgnitionOne Hospitality Industry Report is based on first-party data gathered from more than 25,000 hotel properties across more than 65 hotel brands. The report looks at global trends in booking value, site activity, cart abandonment rates, and travel breakdown. The data is aggregated to show trends over time as well as by hotel tier.