foodnhotel asia 2014 - increasing revenue without significant financial investment
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Maximizing Revenue Per Available Room - Increasing Revenue Without Significant Financial InvestmentTarandeep Singh Director Revenue Management for Hire (AMEA) & Manila Ops (AMEA, Greater China & Europe)
09 April 2014
2Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
What we will cover?
On Premise Mobile Marketing
Innovative Revenue Generating Ideas
Upsell Training
Targeting Ancillary Revenue
3Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
What we will cover?
On Premise Mobile Marketing
Innovative Revenue Generating Ideas
Upsell Training
Targeting Ancillary Revenue
4Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
The only way to interact with
your customer whilehe is enjoying your product or is in a position to enjoy your product
(i.e. traveling) is using a
mobile device
5Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
TEXT MESSAGING
MOBILE OPTIMIZED WEBSITES
MOBILE ADVERTISING
MOBILE EMAIL
6Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
No one wants to be marketed to,But everyone likes to have relevant information available to them.
7Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
On Premise Mobile Marketing
8Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
On Premise Mobile Marketing
9Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
On Premise Mobile Marketing
10Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
On Premise Mobile Marketing
V/S
11Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
What we will cover?
On Premise Mobile Marketing
Innovative Revenue Generating Ideas
Upselling
Targeting Ancillary Revenue
12Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
13Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Every stage in the travel cycle has
become an engagementOpportunity.
Contextualize & Personalize
14Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
15Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Think of inventory
as a precious asset versus
a perishable commodity
16Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Fractional Pricing
Applied to a hotel, fractional pricing could be used to day rate pricing
Car rental companies calculate their extra hour price by taking a percentage of the price per day.
If the cost of the extra hours meets or exceeds the daily rate, then the system automatically jumps to the daily rate.
17Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Fractional Pricing
Car Rental Company Methodology applied to Hotels
$250
Price of the Room per night
Fractional TimeHour
Fractional Price15%
18Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Airport hotels are prime examples of where fractional pricing helps
Key questions that a hotel should consider before using fractional pricing: Does it make sense for the product/service to be sold in fractional increments? What increments should be made available? What is the % of price applied to the fraction?
Airport Hotel – Day rate example
A guest wants to book a room to use between flights for 3 hours
Price $37.50 per hour ($250*15%) Times 3 hours =
$112.50
Guest changes the request for a longer stay of 7 hours
Price $37.50 per hour ($250*15%)Times 7 hours =
$262.50Since fractional price is greater than the primary price, we need to sell room for $250.00
x
19Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
What we will cover?
On Premise Mobile Marketing
Innovative Revenue Generating Ideas
Upsell Training
Targeting Ancillary Revenue
20Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Setting your house in order…
Communications need to be
thoughtful and transparent
Clear signs of executive support need to start at the
top and cascade throughout the
organization
Think outside the box to deliver training and
communications
We need to be aware of cultural and generational differences in
learning styles
We need to ensure everyone understands that this is business
transformation not just a n incentive exercise
Learn from past experiences – a project like this
should not fail during delivery
Owner engagement and leadership is
important
21Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Training your Front Desk in Upselling
Successful Upselling Program
Pricing Structure
Staff TrainingRecognition
22Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
IDENTIFYANCILLARY REVENUE
UNBUNDLESERVICES
INTELLIGENTCHECK IN PROCESS
23Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Quick Tips for In-house Upselling Training
Remember – Its all about Communication!! Reconfirm the pre-reserved accommodation Reassure the guest that they already have a nice room Probe to find out if the guest is aware of available upgrades Present the availability of upgrades as a unique opportunity Upsell early arrivals into a higher room category. Utilize incremental sales techniques. Differentiate between OTA bookings and others Demonstrate the value received. Be as specific as possible Mention higher rates as a reference point to position lower rates as being a good
value. When quoting rates to walk-ins, always offer a menu of options. Most importantly - Use Visual Aids Get their Buy In and Feedback Document a SOP
Simplicity is the key
24Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Sample Up-sell Tracker
25Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Quick Tips for In-house Upselling Training
26Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
What we will cover?
On Premise Mobile Marketing
Innovative Revenue Generating Ideas
Upsell Training
Targeting Ancillary Revenue
27Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
28Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Ancillary Revenue Opportunity
F&B
Breakfast
Cake
Meals
Wine
BottleFruit
Basket
Mini Bar
Cookery Classes
29Asia, Middle East & Africa Revenue Management
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Transportation
A/P trsfrs
Local trsfrs
Office trsfrs
Bike rental
Ancillary Revenue Opportunity
30Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Business Meetings
Meeting Equipment
Upgraded
Wi-Fi
Team Events
Soft
Mini Bar
Ancillary Revenue Opportunity
31Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Ancillary Revenue Opportunity
Spa & Wellness
Pool(for Non
Residents)
Massage
Treatments
Gym (Non Residents)
Sports Facilities
Trainer
32Asia, Middle East & Africa Revenue Management
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Miscell.
Flowers
Extra Bed / Crib
Connecting Rooms
Butler Service
Valet Services
Parking Fee
Ancillary Revenue Opportunity
33Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Key Points
Understand the profitability of all your offerings - packages, food, drinks, spa - as well as what the demand for each of these are
Identify the biggest revenue opportunities – food & beverage, conference facilities, spa, etc
Prioritize by revenue and ease of implementation
Set the targets and define a clear action plan
Make sure you have the right information and the key support needed to achieve your goals
34Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
Thank You
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