revenue strategy management for hoteliers
TRANSCRIPT
Revenue Strategy Management for Hoteliers
Lorine Benintendi
MBA 2A
Mrs Craig
What does revenue management mean?
« Selling the right product to the right customer at the right time for the right price »
Link between the and the
History
• Practiced in 1980s by airlines
- Fixed resources to sell- Perishable inventory- Customer willing to pay a different price for the same product
• Practiced in 1990s by hotels
- New opportunities- Dedicated staff- Training / Metrics / tools
Responsibilities
- Managing rates and inventory- Segmentation and channel management- Analyzing and reporting- Budgeting and forecasting- Meetings and arbitration- Strategy
Strategy: Most important role of a revenue
manager
Long term sustainable interest of the hotel
Issue: Rising cost of acquisition
Hotel acquisition and retention expenses are rising at twice the rate of revenue growth
WHAT TO DO ???
How should hoteliers shift strategy to maintainprofitability?
1. Integrated digital marketing
2. Price / Value equation (Tripadvisor)
3. Customer acquisition and consumer pricingintelligence
4. Volume and reach
5. Local or commodity
OTA versus Direct Bookings: How to increasedirect bookings?
- Exclusive offers
- Very good deals
- Incentives to book direct: Free Wifi, 20% off
- Gift cards, on-site amenities, room service included
Some recommendations…
- Think GLOBAL
- Metasearch: Can I make it work for MY property?
- Content: What was the last time you audited your online content?
- Direct still king: house promotions to make guests come back
Two typical mistakes made by marketers:
How to avoid these 2 mistakes ??
The Morgan Hotel Group is workinghard not to make these 2 mistakes
« Money is spent for marketing but not for retaining guests »
What is the solution??
- « Get out of your comfort zone »- SERVICE and REPUTATION is core- Pricing: look from the lens of the customers- Distribution: Differentiate and play favoritism- Know your customers lifetime value
Is Revpar an obsolete metric?
Revpar replaced by
A positive online reputation
Creation of more demand and optimization of the revenue via:
- Data Partners for hotels- IDEAS or Reviewpro that would definite a potential rate according to the reputation of the
hotel
Some last recommendations:
- Keep up with trends- Utilize tools to optimize the positioning of the hospitality
industry- When assessing performance, take into account costs of
acquisition- Focus on brand distinction: In what is your hotel different from
the other?