A new study from Agilysys, a leading provider of hospitality software and services, reveals a powerful trend shaping the future of the APAC hotel industry: travelers are eager to spend more for personalized experiences. The 2024 APAC Hospitality Impact Study surveyed over 1,000 travelers across Australia, Hong Kong, New Zealand, and Singapore, uncovering valuable insights into their preferences and spending habits.
The study unveils a striking statistic: 68% of APAC travelers are willing to increase their hotel expenditures for personalized experiences. This desire for tailored services is evident in various aspects of their travel: 73% would pay up to 30% more for room upgrades offered after booking, 66% are willing to spend more if wait times are reduced, and 68% would increase their spending if a loyalty program is in place.
Interestingly, the study also highlights the “rebooking paradox.” Despite 86% of travelers reporting high satisfaction and 61% perceiving good value for money, only 37% opt to return to hotels they previously enjoyed. This suggests that while guests are satisfied with their experiences, they may not be consistently rewarded for their loyalty, emphasizing the need for strong loyalty programs and personalized touchpoints to encourage repeat visits.
The study emphasizes the importance of personalized service and staff interactions. Forty-six percent of respondents value staff members who go above and beyond, while 41% appreciate personalized recommendations for activities. Small touches like staff remembering previous conversations (30% positive influence) or offering guests their favorite room (40% willing to spend more) can significantly impact guest satisfaction and spending. Additionally, 28% of guests increase their spending when restaurant staff recall their preferences, and 57% respond positively to small surprises like pillow chocolates.
The 2024 APAC Hospitality Impact Study underscores the need for hotels to move away from traditional Revenue Per Available Room (RevPAR) models and adopt a more comprehensive Revenue Per Available Guest (RevPAG) approach. This shift allows hotels to optimize guest spending across all touchpoints, from personalized amenities to tailored services and experiences. By focusing on individual guest needs and preferences, hotels can create a more rewarding experience for travelers and unlock significant revenue growth potential.
