May 6, 2020

Is Your Hotel Chain App Scale?

Many of our hotel chain clients are evaluating or already attempted to build an App. The reasoning behind the decision is not difficult to fathom. A chain with 50 properties of 100 room reach, is serving in excess of 4500 guests a day at 60% occupancy and assuming every second occupied room hosts two adults. At about 1.5 lakhs guests a month it wont be too difficult to get 30% to download the app? if that assumption is correct reaching million downloads in about a 18 months is much better than what most apps manage to get

Except actual observation differs. A quick round of 10 hotels apps from chain that have between 50 to 300 properties shows the downloads are anywhere between 500 to 50000 tops. And the average age of the above sample apps is about 24 months. The numbers that larger chains have managed, by large we mean chains with 300 to 3000 properties, does look impressive with many of them breaching the million mark by some distance.

One can infer a chain can consider itself app scale, if they have around 300 properties or more. Chains of that scale tend to have sizeable IT teams too, making it easy for them design, maintain and manage an app.

We feel obliged to mention, chains of any size are messaging scale though. Among of client hotels we count a number a independents who engage in excess of 50 unique visitors a day and convert about 10% of them into transactions. Not to mention a messaging comes at a much lesser investment.