What Do Instagram-able Generation Say About Luxury Hotels?
22/10/2013 by WiT


Do travelllers tell others they are getting enough value out of their money spent?  Continuing the analysis published in our recently released ILTM Report on Luxury Hotels, we at Circos Brand Karma decided to dig deeper into our data to find out more about the generation that’s creating the era of ‘Is Your Hotel Instagram-able?’

To ensure we had a comprehensive view, we looked at the top 11 websites featuring traveller reviews worldwide. They included global heavyweights such as Tripadvisor, Booking.com and Expedia, as well as local heavyweights like Qunar (China) and Rakutan (Japan). From this list of sites we selected over 100,000 reviewers who had reviewed at least 1 of 400+ luxury hotels in Asia within the last 2.5 years and also identified in their profile where they were from.

Next, we created behaviuoral clusters based on the following four dimensions:
  1. How prolific, or how frequently the reviewer wrote reviews about luxury hotels that existed anywhere in the world
  2. How luxury, or what is the ratio of luxury v. non-luxury hotels reviewed
  3. How critical, or what is the level of satisfaction displayed across all their reviews
  4. How frugal, or how often the reviewer felt that the price paid was worth it

Based on their reviews, each reviewer was then assigned to one of 100 persona clusters defined by the degree of prolific, luxury, critical, and frugal.  Finally, we looked at the location of the reviewer and the location of the hotels they reviewed to form our analysis.

In all – the results formed interesting insights into travelers at the top of the travel pyramid. We will be releasing a follow-up guide in conjunction with Web In Travel, called “Winning the Hearts & Dollars of the Instagram-able Generation”.  But ahead of its release, here are some tidbits.

Our first key finding is that satisfied customers don’t explicitly spread great word-of-mouth about value. The majority of reviewers who had the propensity to write about their guest experience positively either didn’t mention value for money or wrote about it in a neutral manner. This suggests that services that enable price comparison become an important arbiter of value in the absence of strong testimonials about value.

Our second key finding is what drives dissatisfaction in value for exclusively luxury reviewers’ differs by region. Most frequently mentioned driver is staff and service for travellers except for those from East Asia – they’re more likely to focus their dissatisfaction on the room product.  This reflects a difference in the definition of value.

On the other hand, when examining what drives satisfaction in value for the exclusively luxury reviewers, staff and service was the top driver for travelers across all regions, but aesthetics of the hotel ended up being N Americans’ 2nd most of-mentioned driver and tied for 3rd with the room product for West Europeans.

This finding, combined with the one above, suggests that exclusively luxury E Asia travelers are more likely to evaluate the hardware of a hotel by its functional specification, whereas N America and Europeans are placing at least equal, if not more emphasis, on the design of the hardware.

The full report will be issued in conjunction with Web in Travel in early November.

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