Lotte Hotel boosts booking rates by 49% with Google Optimize
Case Study

Lotte Hotel boosts booking rates by 49% with Google Optimize


Find a better way to look

South Korea’s largest hotel group, Lotte Hotel, has expanded to more than 30 hotel locations around the world. This scale means that the hotel group’s site is regularly visited by a wide range of travelers looking to visit countries with Lotte Hotel locations. After looking into site analytics from the first half of 2017, Lotte Hotel saw that although it was expanding and maximizing the volume of site visits, its revenue wasn’t meeting expectations.

In the past, Lotte Hotel used SEO, SEM, and social marketing data from Google Analytics 360 to maximize the group’s channel performance. But after seeing that site visits weren’t generating conversions at the desired ROI, Lotte Hotel realized that website barriers might prevent people from making reservations. So the hotel group teamed up with the agency iProspect, a Google Marketing Platform Partner, which hypothesized that improvements in the site’s layout and calls to action would increase conversion rates. To test this theory, Lotte Hotel and iProspect turned to another Google Marketing Platform product: Google Optimize.

Exploring the power of experimentation in real time

To better understand Lotte Hotel’s customers’ paths to purchase, iProspect created a four-step optimization strategy to ensure effective time management and performance testing:

  1. Find the point of user drop-off by using Analytics 360 data, such as Goal Flow and Shopping Behavior reports
  2. Analyze the page and benchmark competitors to find the cause of the deviation
  3. Run A/B tests with Optimize
  4. Apply the best-performing learnings to the Lotte Hotel site

Employing this strategy, Lotte Hotel and iProspect assessed different site changes to see which drew the biggest results. Through testing, the team found the most success with four key variables: relocating menu items, changing the booking button color and call to action, using a promotional pop-up window, and displaying special messaging for fee-less booking — all based on insights from Analytics 360.

Rather than manually implementing different site changes, which would have involved a developer and taken lots of time, Optimize allowed Lotte Hotel to use A/B testing to evaluate different hypotheses and see how small site changes could drive massive conversions.

To offer convenient online services to our customers around the world, we utilized Optimize, which helped us increase customer visits by more than 44%. Having seen this success, we will continue to do our best to provide our guests with a pleasant online experience.

Andrew Kang, Managing Director of the Marketing Division, Lotte Hotels and Resorts

Discovering a rise in reservations

The team let Optimize test 30+ site variations. Each experiment examined different site elements to see which most effectively drove conversions. Optimize accurately analyzed the data and user behavior patterns to determine successes and weak points.

During the course of the experiment, Lotte Hotel saw growth in booking conversions. One experiment that tested promotional pop-ups geared toward online booking rewards led to a 49% increase in booking rates, and overall, Optimize helped the hotel group see a total 0.9% increase in booking conversions across the site. Once this winning variation had been identified, Lotte Hotel scaled it to all visitors.

Benefiting from a boost in bookings

Going forward, Lotte Hotel and iProspect are committed to using Optimize to build a new site interface that uses the winning results from the A/B tests.

“Optimize helped us experiment and, ultimately, improve our business,” said Andrew Kang, managing director of Lotte Hotel’s marketing division. “Now, with Optimize, we can run different tests weekly and see immediate results. With the help of the Google Marketing Platform, we’ll be able to continue to improve our site in today’s competitive market.”