1.Social media and reviews are changing the landscape of revenue managementKarthick Prabu

2. Next Gen Revenue Management RTCP Room, Time, Customer, Price Added with, The Right Distribution Channel with the best commission efficiency Proactive decisions Possible with knowledge on: Customers, customers, and customers. 3. Where to find, What they do Social media The obvious: Facebook, Twitter, Instagram, Pinterest, YouTube, Blogs Beyond the obvious: Quora, Vine, Squidoo The non-obvious: Humans Core review sites: TripAdvisor, HolidayIQ, Zomato, Burrp Type of content: Text, picture, video Your own website 4. Quora: Text based search 5. Twitter Vine: 6 second Postcard 6. What To Do1. Know the tools, like a pro Facebook EdgeRank, NearBy, GraphSearch, Home, Quora points2. Descriptive statistics: Snapshot of historical and current performance Answer questions like, how many fans do I have? How many reviews have been posted over the last six months? What is my average rating on each of the OTAs?3. Social network analysis: Uses the connections among users, and the impact of their activity, to determine the degree of influence Targeted marketing efforts can be directed at the most influential users4. Text analysis:3.1 Content categorization Automatically categorize responses on guest surveys, route to the appropriate department3.2 Text mining Understand the semantics, uncover key topics that can be used to predict or understand guest behavior3.3 Sentiment analysis Uses natural language processing to determine how guests feel about attributes of your brand, product or service. 7. What To Do Contd5. Product alignment Know the value score of your brand Price according to your value Test the value: In increments Identify purchase drivers Higher ADR, higher overall yield Super informed consumers make revenue managers to watch RevPAR by room type. Ex: Google streetview,BusinessPhotos, Room 77 Consumers have RM products at hand. Ex: Bings Farecast 8. What To Do Contd 9. What To Do Contd6. Competitive benchmarking Know what is said about your competitor Metrics: Number of reviews on online travel websites, videos, Facebook fans, Twitter, photo shares, bookmarks and blog entries7. Strategic pricing New retail concepts that offer members-only deals, flash sales, group buying and auctions 70% same day bookings Focus on value instead of price, value seekers will pay more Better-informed consumers and shrinking lead time8. Google Hotel Finder Yet another distribution channel that needs to be monitored Deep integration happening with Google suit of products Make sure your property is listed. Keep it updated 10. What To Do Contd 11. What To Do Contd9. Brand protection Protect your brand from advertising hijacking OTAs and other travel websites bid on search engines on your hotel name; diverts people Costs you commission, instead of a direct sale Facebook Ad options are even more granular 12. What To Do Contd10. Make your website social Build social analytics 13. What To Do Contd 14. What To Do Contd 15. What To Do Contd 16. Social Media Quadrant For Revenue ManagersTime ScopeSHORT TERMLONG TERMTacticalStrategic INBOUND(1) Inform (3) Inform pricing,User Generatedpromotions and distribution andInformationContentpricing decisionsCRM strategyFlow OUTBOUND (2) Drive short term (4) Drive customerHotel Generated demand and build development andContent brand awarenessretention 17. Online Reputation Management Source: ReviewPro 18. Online Reviews Importance90% of online shoppers said they trust recommendations from people they know70% trust opinions of unknown users10% rate swings due to online reviews50% of people wont book a hotel if there are no reviews26% of TripAdvisor visits occur in the last five days prior to reservation booking 19. Online Reviews Importance71%of Indian accommodations have rating of 3.5 (out of 5) in TripAdvisor38%customers are ready to pay more, for reviews that indicate superior service#1reason visitors leave a hotel website - to check reviews elsewhere40%of consumers that leave hotel websites to validate their decision with other sitereviews end up booking there 20. Impact of ORM on revenue A 1-point increase in a review score equates to a 9% increase in average dailyrate Expedia Cornell University study reaffirms the impact of online reviews on all offlineand online distribution channels +0.80%ADR 1 point increase in hotels Global Review Index (of ReviewPro) +0.54% Occupancy +1.42%RevPar 21. Reputation drives revenue now what?1. Reputation is everything Reviews are like glass. Handle with care. Have good reputation and review score Directly impacts ADR (average daily rate) Set up a combined task force together with the operations team to improve the service level of the hotel,and tackle concerns or suggestions raised by guests Its not just about service. You need to get reviews.2. Grow direct sales Help your marketing team to secure a relevant budget to grow direct sales Make sure your website is well optimized and conversions are high Most important social revenue channel Loss in direct bookings is loss of revenue Boost confidence: Integrate reviews, leverage analytics Save commission from 3rd-party distribution channels Direct bookings enable you to take better decisions, serve customers better 22. Reputation drives revenue now what? Contd.. 23. Reputation drives revenue now what? Contd..3. Track your reputation against others Which are the places your potential guests check while theyre shopping When satisfaction drops or surges, dig deeper to understand the forces driving those trends, and thenmake changes based on what you learn Semantic analysis of online feedback for a property can reveal opportunities for targeted improvementsthat make the biggest, fastest impact on guest satisfaction. Doing this for a competitive set will help build a stronger unique value proposition for that hotel. 24. ORM Based Revenue Optimizer Quadrant Source: ReviewPro 25. Revenue Optimizer Quadrant - Example Source: ReviewPro 26. Case Study 1Olivia Plaza Hotel, 4 Star, Barcelona: Used semantic analysis to improve breakfast offering Significantly reduced the number of negative reviews and comments 27. Case Study 2CitizenM Hotels, Europe Checkout includes guest satisfaction check Negative: A manager is involved to resolve problem! Positive: Receptionist encourages sharing experience in review! Higher volume of negative reviews are minimized because guests do not leave the hotelwith a negative feeling 28. Case Study 3Corinthia Hotels, Europe Used their Twitter account to resolve Marc Benioffs complaint Brand and customer mileage 29. References HotelMarketingCoach Xotels Tnooz ReviewPro HotelExecutive HotelNewsNow ISHC WebInTravel Altimeter Group Awareness Inc Cornell university school of hotel administration PhoCusWright TripAdvisor comScore eConsultancy eMarketer 30. Q Q??Social media and reviews are changing the landscape of revenue managementKarthick Prabu 31. Appendix 32. The Social Media ROI SceneWhat are the challenges in tying social media to revenueSource: Altimeter, July12 33. The Social Media ROI SceneHow effective is your company at connecting social media to revenueSource: Altimeter, July12 34. The Social Media ROI SceneWhat are the business benefits of social media measurementSource: Altimeter, July12