Average order value (AOV) tracks the average amount spent each time a customer completes a transaction on a hotel’s own website. Using data from over 300 UK hotels, we have been able to compare the first half of April’s data with the last 12 months to monitor how AOV peaked over the Easter period.
Comparing the first half of April 2023 against the same period in 2022, Average Order Value was up 3.5%, and when comparing hotels in the 5-star category against 4-star hotels, the difference in AOV was £670.
UK hotels in urban locations enjoyed AOV’s 95% higher than hotels in rural locations as holiday makers favoured city-stays over rural or coastal locations.
Increasing revenue by increasing Average Order Value
When it comes to increasing on-line revenue, hotel marketers’ first instinct is to attract more customers/traffic, but another approach is increasing Average Order Value. Not only does it help to drive revenue upwards, but it means you can grow your hotel’s on-line results without significantly increasing your marketing costs. Simple strategies like upselling customers to higher room categories can really help. Instead of sending customers to your check-out/payment page, send them to an upsell page where they can upgrade their room to the next category or suite with a discount to purchase the upgrade. Or think about creating and promoting packages. If your hotel offers additional services like spa treatments package them together with accommodation to help drive AOV upwards and encourage guests to use services they may not have been aware of or thought about using.
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