cutting-edge revenue strategies for hotels
DESCRIPTION
Breakthrough technologies are removing the costly inefficiencies of traditional revenue management for hotel owners. So perhaps you should learn how to maximize profitability in the new environment? This FREE Tnooz-Duetto webinar will cover cutting-edge strategies to enable hotel managers, brands and owners to: Leverage independently yieldable hotel segments to capture maximum value Leave offers open, yielding them to demand and remaining visible to prospective business Integrate powerful insights from revenue analytics with demand-generation efforts in sales, marketing, distribution, digital marketing and loyalty programs. Panelists for the webinar are: Marco Benvenuti, co-founder and chief analytics officer, Duetto Cindy Estis Green, co-founder and CEO, Kalibri Labs Jason Thielbahr, SVP revenue optimization and distribution services, Red Lion Hotels Kevin May, editor and moderator, Tnooz Gene Quinn, CEO and producer, Tnooz This webinar took place on Thursday 9 October 2014TRANSCRIPT
Cutting-edge revenue strategies for hotel managers
Webinar9 October 2014
Your hosts
Kevin MayEditor & moderator
Gene QuinnCEO & producer
K
Your panelists
Marco BenvenutiChief Analytics Officerand Co-founderDuetto
Cindy Estis GreenCEO & Co-founderKalibri Labs
Jason ThielbahrSVP, Revenue andDistributionRed Lion Hotels
Cutting-edge Revenue Strategies for Hotels
Marco BenvenutiCo-founder & Chief Analytics OfficerDuetto
Traditional PricingBAR
Traditional PricingBAR + Room Types Modifiers
Traditional PricingHurdle Rate
Post OTA LandscapeCommissions Are Skyrocketing
Source: 2013 HAMA Study & Kalibri
Labs
2009 2010 2011 20120%
10%
20%
30%
40%
Commissions Total Revenue
Open Pricing
Room Types
Next FrontierCorporate Rates
Current Landscape: Restrictive Clauses Non-yieldable, fixed rates Last Room Availability / inability to close Sub-optimal yielding strategies Frequent unavailability
Future: Open Pricing Optimal hotel revenue strategy Market transparency Better Corporate Rate availability
Next FrontierCorporate Rates: Today
$109 Weekday / $149 Weekend - ROH Last Room Availability
Next FrontierCorporate Rates: Tomorrow
$99 Weekday / $149 Weekend Flat – Yieldable
Booking Brands and Stay Brands
15
2009 2010 2011 20120%
5%
10%
15%
20%
25%
30%
35%
40%
Room Revenue
Total Revenue
Total S&M
Commissions
Total Acq Costs
Commissions Rise at 2x the Rate of Revenue Growth(retail commissions only)
Commissions
Total Revenue
© 2013 Kalibri Labs Source: HAMA Study 2013-14
Contribution to Operating Expenses and Profit Ranges − NYC 2012
Cost Type Low High
Commissions Only
10% 20%
Commissions + Sales/Marketing
20% 30%
© 2013 Kalibri Labs
Hotel Business Acquisition CostsCommissions and Transaction Fees (buying)
Sales and Marketing Expenses (shopping)
04/10/2023 18
04/10/2023 19
Net RevPARHow much revenue net of acquisition costs?
Contribution by Channel(COPE %)
How much revenue in each channel net of transaction-
specific costs?
Net Sales & Marketing Efficiency
How much net revenue for every $1 spent in sales & marketing?
Contribution by Channel
Commissions and Transaction FeesErode the Revenue that Flows Through to Profit
COPE: 86.7%
Net RevPAR NYC Hotel 2013 vs. 2012
04/10/2023 21
+1.5% -.50%
RevPARNet RevPAR
919293949596979899
100101
Last YearThis Year
Sales and Marketing EfficiencyHow much revenue is generated for every $1 spent in
Sales and Marketing?
22
$11.70 $11.80 $11.90 $12.00 $12.10 $12.20 $12.30 $12.40 $12.50
$12.02$12.49
$12.50NYC-LuxuryComp SetMy Hotel
RevenueSales and Marketing Expense
Minus Commissions and Transaction Fees
Acquisition Costs by Category
04/10/2023 23
LOCATIONS
26
NEW BRAND RLH RLI&S
SEGMENT Full Service Full Service Select Service
CATEGORY 3-3.5 stars 3-3.5 stars 3 stars
SERVICE Upscale Midscale w/ Midscale no
F&B F&B
AVERAGE SIZE 125-450 125-450 80-200 keys
keys (market Keys (market
depending) depending)
NUMBER Coming 42 12
OF PROPERTIES Soon!
TARGET Radisson, Holiday Inn, Comfort Inn,
COMP SET Wyndham, Best Western, Country Inn & Suites
Crowne Plaza, Doubletree Hampton Inn
BRAND SUMMARY
ANALYTICAL
ENVIRONMENT &
REVPAK
27
28
ABOUT
RLHC
06 LEADERSHIP12 MARKETING
REVPAK
16 LOYALTY
PROGRAM
27 RED
LION
HOTELS
36
TIMELINE
& CONTACT
71OPPORTUNITY61SIGNATURE
MOMENTS
56NEW
BRAND
47RED
LION
INN & SUITES
41
The RevPak Guest Management System has a singular focus on 3 core objectives:
1. Engage Customers
2. Increase Bookings
3. Measure Results
Its integrated platform of custom applications is designed to provide a single view of all RLHC customers and accounts for 1-to-1 Marketing
DuettoRevenue
Management System
Customer Direct Voice BI Portal
Adobe Omniture Web Analytics
Compass Sales Force Automation
Revinate
OPERABusiness
Intelligence
SerenataCRM
WindsurferCRS
29
ABOUT
RLHC
LEADERSHIP12 MARKETING
REVPAK
16 LOYALTY
PROGRAM
27 RED
LION
HOTELS
36
TIMELINE
& CONTACT
71OPPORTUNITY61SIGNATURE
MOMENTS
56NEW
BRAND
47RED
LION
INN & SUITES
41
DuettoRevenue
Management System
Customer Direct Voice BI Portal
Adobe Omniture Web Analytics
Compass Sales Force Automation
Revinate
OPERABusiness
Intelligence
SerenataCRM
WindsurferCRS
Lag Measures:Forecasting Accuracy
E-Commerce Mix
Premium Retail Mix
Call Center Conversion
Sell-out Effectiveness
Rate Parity
Reputation Management
Organic Search Rankings
Member Profile
Emotional Loyalty
30
DYNAMIC RATE MARKETING
Dynamic Rate Marketing allows real-time hotel inventory availability and pricing to be featured in various marketing initiatives.
Meta Search Email Marketing Travel Ads Network
Website Merchandising SEM/Paid Search
WE ARE MOVING
QUICKLY
TOWARDS THAT
BRIGHTER HORIZON
31
Thank you!
Send your questions and comments to [email protected]
Replay and presentation of webinar will be available on www.tnooz.com