Study: Increase Revenue, Loyalty With Social Media Engagement

SYDNEY—Local Measure, the location-based social intelligence platform for hospitality and tourism, released data from an analysis covering social media posts by eight million guests at hotel properties belonging to 100 of the world’s largest hotel groups over a 30-month period.

According to the data, guests who are engaged by a hotel on social media during their stay on-property, post 2.5 times more than other guests. The engaged guests have more than twice the number of followers as other guests—an average reach of 52,000 followers.

Based on the average follower reach, standard Instagram conversion metrics, and a $200 Average Daily Rate (ADR) over a two-night stay, the data suggests that a hotel stands to gain more than $2,000 in revenue per engaged guest through a consistent program of engaging such guests on social media during their stay, according to the company.

The study also revealed that guest advocacy and loyalty increased 12x-19x when the hotel engages with the guest within 30 minutes of a post being published—reinforcing that the real opportunity for hotels is to build guest loyalty and revenue while a guest is on property, before online reviews ever appear.

Sara Axelrod, COO of Local Measure, said, “There has long been a hypothesis about the power of real-time social media engagement to produce concrete ROI for hoteliers. Now there is data to support it.”

Headquartered in Australia, with offices in Singapore, Dubai, London, Miami and Los Angeles, Local Measure has proprietary technology that allows brands and businesses to engage with customers in real-time to resolve service issues and acquire the rights to use user-generated content.