How to Increase Hotel Bookings and Revenue with VR / 360 Tours

This article was initially published on LinkedIn on August 9, 2020.

Table of Contents

Introduction

Virtual reality (VR) and 360-degree tours for the hospitality industry have been around for a while, and are here to stay. They offer potential customers a unique and immersive experience of a hotel or property before they book.

In this post, we will explore the benefits and ROI of 360/VR tours in the hospitality industry. We also discuss how they can help increase online bookings and revenue. With the right technology and strategy, 360/VR tours can be a powerful tool for hotels looking to stand out from the competition and drive more business.

What is a Virtual / 360 Tour?

A virtual tour is a 360-degree or VR experience that allows the viewer to explore a space or location in an immersive way. 360-degree content is created using 360-degree cameras, which capture the environment in high-resolution images or video. These images or videos are then stitched together and linked through a "jump to" function, allowing the viewer to move through the space and look around in any direction.

In the EXP360 ecosystem, Virtual tours can be accessed through a web browser, VR headsets, or the mobile app. EXP360 provides browser access in sharable links or direct website integration. Our virtual tours can also include additional features such as interactive elements, sound, or other multimedia content.

Increasing online bookings and traffic to the website

The main reason why hotels invest in 360/VR tours is their ability to increase online bookings and traffic to a hotel's website. By providing potential guests with an immersive experience of a hotel's facilities and rooms, 360/VR tours can help pique their interest and encourage them to book a room.

Google analysed the performance of virtual tours from 147 restaurants in New York. “When presented a virtual tour, 50% of online visitors would click through to make a reservation. In the end, participating restaurants experienced an increase in online reservations of 30%.”

360 tours not only help bring potential customers to your website, but it also increases the amount of time they will spend on your site. A site with a 360 virtual tour and interactive media will receive 40% more views than a competitor’s site that is lacking media (Pew Internet Life Study). Websites with virtual tours are viewed 5-10 times longer than those without virtual tours.

Many of the world’s leading hotel groups have already experienced an uptake in direct bookings after creating 360 content.

More Likely to Book

Another study by Omni Hotels found that when online visitors were offered 360 VR tours they were 67% more likely to book a room online. Source

250000

Views through Virtual Tours

Within 12 months, West Hotels by Hilton was able to receive over 250,000 views and increase room bookings by 7% through the use of 360 videos. Source

135

Increase in Online Revenue

The Radisson Hotel chain introduced virtual tours for a number of their branches worldwide and achieved a 135% increase in online revenue amounting to $7,200 per hotel per month over those without a virtual tour. Source

Increasing online revenue

Hand-in-hand with increasing impressions with virtual tours goes the potential for increased online revenue.

The Radisson Hotel chain experienced a 135% increase in online revenue, amounting to $7,200 per hotel per month, after introducing virtual tours for their branches worldwide. Other hotels have also reported similar results, with some seeing a 67% increase in online bookings after implementing 360/VR content.

How exactly can virtual tours increase revenue in the hospitality industry?

Virtual tours increases the upselling potential by providing guests with an immersive view of the hotel's facilities and rooms. This allows customers to better understand the size and amenities of each room, which can encourage them to book a higher-end room or add additional services to their reservation.

An engaging and informative experience can help to make booking guests feel more secure in their decision. This can lead to a higher conversion rate and more bookings.

Providing potential guests with a detailed preview of a hotel's facilities and rooms, virtual tours can also help reduce the number of cancellations or no-shows. When customers have a clear understanding of what to expect from their stay, they are less likely to be surprised or disappointed when they arrive.

Virtual tours can also help hotels increase revenue by attracting more direct bookings. When customers are able to explore a hotel's facilities and rooms through a virtual tour, they are more likely to book directly with the hotel rather than through a third-party website. This can help hotels capture a larger share of the revenue from each booking.

Finally, virtual tours can help hotels increase revenue by improving their ranking on search engines and online travel agencies. When a hotel's website includes a virtual tour, it is likely to be more engaging and informative than a competitor's website without one. This can help the hotel rank higher in search results, which can lead to more visibility and bookings.

Conclusion

In conclusion, virtual tours are a powerful tool for hotels looking to increase bookings, revenue, and customer engagement. By providing potential customers with a detailed and immersive view of a hotel's facilities and rooms, virtual tours can help hotels attract more website traffic and convert more visitors into bookings. Additionally, virtual tours can help hotels upsell to customers and reduce the number of cancellations or no-shows.

With the right technology and strategy, hotels can leverage the benefits of virtual tours to stand out from the competition and drive more business.