US Hotels’ Mobile App Push Drives Growth

Key Takeaways:

• In the US hotel cohort, IHG has had the highest average quarterly YoY download growth, rising 40% YoY per quarter over 1Q24-3Q24, per Sensor Tower data. This was followed by Radisson (39% YoY), Hilton (8% YoY), Hyatt (7% YoY), Marriott (-1% YoY), Wyndham (-6% YoY) and Choice Hotels (-32% YoY) over the same period

  • Radisson’s share gains and growth in downloads can be partially attributed to its surge in paid downloads, which comprised an average of 16.5% of its total downloads in YTD 2024, while paid download penetration for the rest of cohort was 6% or less

  • While Wyndham’s average quarterly download growth fell 6% YoY, it has seen the largest gains in its penetration of organic downloads (average of 12ppts YoY gains per quarter), suggesting that its been able to drive brand awareness and mindshare with prospective consumers, particularly those looking for mid-tier budget friendly accommodations

• Of the cohort in YTD 2024, Marriott is the largest brand by MAUs, with 55% of total share, followed by Hilton and IHG at 22% and 16%, respectively. Hilton has been a share gainer since 2019, up 3ppts, while Marriott share has fallen 4ppts

  • Despite significant advertising spend, Marriott and Hilton still face high levels of churn, as consumers’ use of their mobile apps ebbs and flows with holidays and trends in discretionary spending. Marriott’s 3Q24 churn rate of 48% is 4ppts lower than Hilton’s, though Hilton’s penetration of new users (18%) is 4ppts higher than Marriott’s

• US advertising spend for the cohort is up 10% YoY in 3Q24, led by increased allocations to Facebook, Instagram, Pinterest, Snapchat, TikTok and YouTube. Facebook and Instagram are the advertising channels of choice, making up 27% and 24% of 3Q24 spend

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