Download - CRM and RM
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Eye for TravelCRM in Travel Europe 2007
CRM and RMMaximizing revenue through
understanding the guest
Juston Parker
President/CEOParker Hospitality Group, Inc.
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CRM and Revenue ManagementTodays Objectives
Can RM and CRM can be integrated in a mutuallybeneficial relationship?
Ensure that CRM and RM work together to increasecustomer loyalty
See how integrating loyalty programs with PMS andRM models can boost sales Can Revenue Management be used to target
specific consumer groups and isolate high valueconsumers?
How can you reward guests for planning ahead?How can forecasting can be utilized to promoteunsold inventory to certain customer segments atspecific times to generate additional revenue
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CRM and Revenue Management
Customer Relationship Management is
key.
Customer REVENUE Management =
Customer REVENUE Optimization
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CRM and Revenue Management
ContributionThe value that
the customer
generates in
terms of revenue
CommitmentThe longer term
value of a
customer & wallet
share
ChampioningThe customers
belief in the brand
& communication
to others
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CRM and Revenue ManagementStrategic Travel Management
Strategic Identification
Demand Forecasting
Pricing Channel Management
Ancillary Revenue
Performance Analysis
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CRM and Revenue ManagementStrategic Identification
What is the supply?
What is the demand?
What is the price?
What is your role in the market?
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CRM and Revenue ManagementDemand Forecasting
Who is buying? What percent of guests travel alone? With a family? With a group? What percent of guests are local/regional? What percent traveled to
your market? International? Family?
What are they buying? What room types? What additional services or amenities do your guests buy? When are guests staying at your property? For how long? When do most guests book their room?
Why are they buying?
What purpose does the guest have for staying in your market? What purpose does the guest have for staying in your hotel?
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CRM and Revenue ManagementPricing
Price is what people pay
Value is what people get
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CRM and Revenue ManagementPricing
Create a buying environment
Put the product in front of the segments you
identified that they value and let them buy
versus trying to sell a destination
Strategic Identification and Demand
Forecasting come together
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CRM and Revenue ManagementPricing
Proactive pricing is both strategic and
tactical.
You must have a plan in place to optimize
both to optimize revenues!
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Align Management
Customer Analytics
Loyalty Programme
Sales &Catering
System
PMS
CRS
Other
External
System
Extract,Transform
& Load
OTHER
CRS
S&C
PMS
Data Hygiene
Productionelements
Profile
elements
Production
Profile
CRM and Revenue ManagementCreating Buying Environments
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CRM and Revenue ManagementChannel Management
Guest
Hotel
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CRM and Revenue ManagementChannel Management
Guest
Hotel
Internet
Web 2.0
OTAs
People
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CRM and Revenue ManagementChannel Management
Guest
Hotel
Internet
Web 2.0
OTAs
People
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CRM and Revenue ManagementPricing/Channel Management
MODEL A
MODEL B
MODEL C
modelling and
profiling ofmembers
selectionof
top-targets
RULES
additionalbusiness
rules
Mailing(1,000
Data Mining)
Process of customer selection
customer
data
application ofmodel to
non-members
current
programmembers
Mailing(2x10,000
traditional)
vs.
model testing
(test set),final model
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CRM and Revenue ManagementAncillary Revenue
Wallet Share
Additional spend
Tracking profitability
Identifying strong segments
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CRM and Revenue ManagementPerformance Analysis
What did we expect to happen?
What actually did happen?
What did we do well? What can we do better?
How can we learn from what occurred?
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CRM and Revenue ManagementCase Study
A hotel management company with 40 propertieshad no affinity program and felt they were leavingmoney on the table with ineffective crossmarketing and targeted segmentation of guests.
Situation
Developed a series of collections andimplemented affinity branding and marketing onthe individual collections. The brand was dividedinto several collections golf, beach, city,conference, etc. The collections each createdtheir own SOPs around tracking affinity for theprogram to develop a starting point of what theguests actually valued.
Each collection implemented their own affinityprogram to meet the needs of the guests. Forexample the golf group did a program aroundgolf stays and spend. The beach collection did aprogram around summer stays and then crossmarketed to off season. Then promotions wererun in conjunction with cross collections basedon need periods.
Response
40 property upper scale/luxury management company
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CRM and Revenue ManagementCase Study
Desired outcomes were determined at the corporatelevel and the collections were developed based onreview of high level and micro-segmentation ofguests. Data collection was completed throughCRM data management system and then scrubbedfor desired collection identification.
Action Step 1
The hotelier implemented a process of evaluation of
the market demands and review of the guest needs,requests and value of the product. In addition, thecollections were evaluating A-List guests based ontotal spend and room night and comparing withother collections for opportunities to offer affinityprogramme.
Action Step 2
Each collection implemented their own affinityprogramme based of the micro-segmentation ofguests. In addition, corporate was tracking all newlycollected and scrubbed data to implement crossmarketing strategy for collections and identificationand targeting of A-List guests.
Action Step 3
CRM d R
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CRM and RevenueManagement
Case Study
First year returns for the beach collection (consisting of 6properties) saw an increase in room nights of nearly 5%
over the market set and guest spend of 45% over the marketset. In addition, they discovered that the member guestspent an average of 1.3 nights more than the non-memberguest at the property per stay. They also noticed that theconversion of their member guest in off season increasedby in excess of 45% when targeted marketing was applied.
All actions for the beach collection recognized animprovement of $2.35 in GOPPAR from year to year (year 1-2) based on member tracking over non-member spend. Thisequated to approximately $617,000USD in GOP from themember spend.
The other collections saw similar results with the Spacollection (4 properties) seeing improvement of ancillaryspend in excess of $350,000USD over the prior year and theresort collection (14 properties) seeing an improvement ofnearly $2,000,000 top line spend.
Results
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Thank you!
Juston ParkerPresident/CEOParker Hospitality Group, Inc.