Hoteliers could see 12% increase on room rates by selling their best features or services

New research from technology innovators Amadeus explores what travelers are looking for from a trip and how technology can make those ambitions come true. The report– Travel Dreams – draws on input from 6,000 travelers from US, China, India, UK, France and Germany to understand how they choose where to visit, how they want to book and what factors most impact a trip once they are on the road.

The study finds that two-thirds of hotel guests (63%) are willing to pay extra for features such as a specific view or floor, to have an Xbox in their room or to have local attractions added to their package. The research shows these features could add around 12% to the average daily rate (ADR) charged by the hotel, which could increase revenues by over $5,300 per room*, per year, for an average mid-range hotel chain looking to sell these extra features.

The channels now driving travel are changing too. Social media ads and travel influencers have risen the most in influence in the last five years, while newspapers, in-person travel agents and TV ads are all seeing fluctuations in importance as a source of inspiration for a travelers’ next destination.

Leisure travelers crave the personal touch from hotels, with 50% of travelers saying that receiving a personalized service and welcome would be top of the list in achieving their ideal hotel experience. Over half of guests (52%) said they would be willing to share personal data in return for tailored deals (with fewer people, 40%, open to doing so for a reduced price). Nearly half (48%) of all leisure guests shared a preference for a traditional check-in desk, with a person to talk them through the hotel amenities.

Business travelers are looking for more technology in their pursuit of efficiency, with 71% of business travelers interested in a form of online or self-service check-in. Nearly a quarter (22%) of business travelers want the option of paying with crypto currency or a digital wallet in the future – suggesting the payments landscape may also be shifting.

Lack of insurance is costing travelers real money. The global travelers surveyed said the average amount they think they have lost due to not having travel insurance stands at an average of US$1,210 per person – a sizeable sum. For the average Chinese traveler specifically, they put this figure at over $2,500 per person.

Travelers want to embrace virtual reality and artificial intelligence. 82% of business travelers and 66% of leisure travelers said they would like to explore a destination before arrival with a virtual tour. Half of all travelers said they would now turn to AI to tell them about the best places for dinner at their destination. 18% of travelers said they would even ask an AI assistant to write a review on their behalf about a hotel or dinner they had experienced on their trip.

Commenting on the findings, Francisco Pérez-Lozao Rüter, President, Hospitality, Amadeus, says: “From the moment travelers begin thinking about their trip to the time they return home, our mission is to empower the industry to be able to provide exceptional experiences at every step of the journey.

“Projects of this kind show how diverse people’s needs are, depending on key factors such as the purpose of their trip, their age or where they are from. By combining this knowledge with innovative new technology, hoteliers, destinations, mobility and travel protection providers have real opportunities to drive profitable demand, create personalized trips for guests and connect the dots across the end-to-end experience for people. Working in lock step with our customers, together we are transforming travel.”

Notes to the editors:

Methodology

Findings for Travel Dreams are based on input from 6,000 travelers around the world. Collaborating with Opinium Research, researchers questioned a combination of business and leisure travelers in six key markets – USA, China, Germany, UK, France and India – to deepen understanding of the end-to-end travel experience.

To deliver an industry perspective on the key topics covered in the report, interviews were conducted with executives from Amadeus, Flemings Hotels, Lexis Hotels, The Trans Hotel Group, Marcus Hotels, Geronimo Hospitality Group, Core Hospitality, Hegg Companies, Europcar, ProColombia and AXA Partners.

* To calculate the potential revenue that could be added by selling hotel attributes, the following calculation was used, based on Amadeus Demand360^® data:

• Average hotel occupancy worldwide stood at 69%, or 252 days, in 2024.
• Average daily rate worldwide in 2024 stood at $178, or $44,856 per annum.
• Therefore, if travelers are willing to spend an average of 12% on top of ADR for attributes, this could equate to an additional $5,383 per room, per year.

About Amadeus

Amadeus makes the experience of travel better for everyone, everywhere by inspiring innovation, partnerships and responsibility to people, places and planet.

Our technology powers the travel and tourism industry. Inspiring more open ways of working. More connected ways of thinking, centered around the traveler. Our open platform connects the global travel and hospitality ecosystem. From startups to big industry players and governments too. Together, redesigning the travel of tomorrow.

Learn more about Amadeus at www.amadeus.com, and www.amadeus-hospitality.com follow us on:

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