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Despite stalled growth in China, Brazil and Russia, a wave of newly middle-class travelers from the BRICs and beyond will start visiting international destinations in the coming decades — dwarfing the numbers we’ve seen thus far.
Targeting bookers that are the most likely to upgrade is a cost efficient way for hotels to make sure their most expensive rooms are full without ever blocking the inventory from guests willing to pay full price.
Men taking a vacation are the hotel guests most likely to accept an available upgrade, according to data compiled by upsell technology provider Nor1.
When booking a room directly on a hotel’s website, Nor1 offers travelers the ability to buy a more expensive room at a discounted rate pending room availability at check-in. If the upgraded room has been reserved at full price in the time between booking and check-in, the traveler is given the standard room that they initially set out to book.
Based on more than 150 million upgrade offers over the past decade, the company has noticed several habits of the travelers that show interest in and accept upgrades.
In both leisure and business situations, men are more likely than women to select the upgrade opportunity.
But leisure travelers, both men and women, are almost 50 percent more likely to purchase a hotel upgrade than business travelers. Nor1 attributes this difference in part to the restrictions placed on business travel spend for many employees.
Strong demand among leisure travelers also leads to hike in upgrade interest in the summer. More guests are likely to want an upgrade in the summer than any other time of the year.
Nor1’s data also shows that guests who book longer stays, three or more days, are more likely than those who booking just a one or two-night stay. However, the longer the guests’ stay, the more likely it is that the hotel has booked the room for full-cost for at least a portion of that time.
Nor1 is integrated into Hilton, Hyatt and IHG hotels in each of its markets across the U.S. Travelers spend between 10 percent and 20 percent more per upgrade with the most expensive upgrades made available in San Francisco.