Customer segmentation is one of most critical things you have to do in your revenue management practice. This segmentation is based on which offer a person has booked. Breaking down the business in segments allows us to focus and drive the performance of that segment.
This is a guest post by Jeong, pronounced “Jung”, Pyon. He is the Director of Revenue at the Trump Vancouver, Canada. A good friend of mine with whom I have spent countless hours talking about Revenue Management. The numerous conversations and observing his work lead me to inviting him to contribute this article.
The hospitality industry is one of the few industries that are fortunate enough to have a ‘report card’, AKA ‘STAR Report’, that shows where you stand against your competition on a weekly basis. By reviewing the STR Report, the hotel is able to identify whether their rate strategy had succeeded or not.
Unfortunately, many hotels are not using STAR to its fullest potential, and some are even using it for the wrong purpose. In all fairness, sometimes it is difficult to define the comp set due to the vast number of hotels around you, or the lack of hotels in your immediate surroundings. However, if you follow the logic below, you should have little problem defining your true comp set.
Smartphones continue to deliver amazing experiences. All industries are being transformed. Today, I can order a taxi, grocery, coffee etc. with a couple of taps. I don’t have to speak to anyone and it magically just happens.
Hotel Tonight started out with same day bookings. They deliver an excellent experience. Within a few taps I could have a hotel room. No need to book in advance.
Hotel booking windows are typically within 14 days. It is when we see very high booking activity. Progressively this is shrinking and coming closer to the arrival date. [Read more…]
More and more services are moving to an on demand model.
What is on demand?
It means if you need anything, you just order it through an app, and the transaction is completed.
You need a car. One tap and it will be there. Need to book a hotel room a couple of taps and done.
This is a guest post by Kristen Gramigna, CMO for BluePay
Mobile payments are now a common means of accepting payment in stores, food trucks and festivals — but did you know travelers have embraced them wholeheartedly, too? In fact, nearly half of travelers who responded to a survey by the air transport firm SITA said they’d “definitely” use mobile payments during their journey.
Here’s are a look at why customers now expect that the hotel they choose has embraced mobile payment technology.
One of the things Booking.com and Expedia do very well is testing and optimizing. Most of the Ecommerce players in the market have this culture but these two are extremely well known for it.
Have a look at the work that went into building Booking.com for Business.
We are seeing some of this happening in hotels as well. This is coming from some chain hotels and new technology providers. Hotels have to build this culture internally. As the idea of testing to find improvements is the one that keeps innovation happening.
As the budget season is approaching and we are thinking about expenses for next year. Why do we not have a small amount in the yearly budget just dedicated to trying out new things.
It is not the amount but the mindset that will make the difference. Don’t get me wrong if you have a big budget it definitely helps but the initially you are focused on getting everyone to buy in and see the benefits of this approach.
Reviews continue to be part of the shopping process for stays at hotels. Ask any hotel who is in the top 3 of their cities and find out the impact it has on their revenues.
The internal processes and tools are now fueling this growth to these platforms. There are also tools that help you analyze these responses so hoteliers can respond and take action based on the feedback. These platforms are used for a variety of reasons. Software Advice, a hotel reservation consultancy group, did research on this to find out how people are using these platforms.
They found quite a few interesting things. Not only how the platforms are being used but also what impact it has on a customer’s willingness to pay more.
What do you use review websites for? [Read more…]
The practice of Revenue Management and having a strategy for your hotel can mean the difference between continued success and failure.
Online marketing is just an extension of your overall Revenue Management strategy. Online Marketing is not only about using paid channels, like Adwords and Re-targeting, It is about your entire digital presence. At the centre of this digital presence is your website.
Your website is the central link that funnels traffic (paid, organic or earned) to your booking engine for a transaction to take place. [Read more…]
This is a guest post by Eden Grant
There is confirmation that the Groups and Meetings space is geared to support hotel giants and independents, going into 2014.
Today, there is demand for unique spaces and unconventional meeting ideas. This is the margin of opportunity when working towards supporting overall rate growth and a healthier TrevPar.
The basic of all business, remains correct pricing in your marketplace. Always ensure you take a quick look at your price position.
But, caution to those expecting correct pricing alone to ensure capturing fair share. Efforts focused towards high customization and sublime service delivery will be key.
This is a guest post by Eden Grant
In the revenue management game, the goal to remain competitive, innovative and consistent can be tough. In today’s revenue arena, we need to adapt and drive change projects, while holding on to beneficial procedures and standard tactics.
How do you get the right mix of adaptability and rigidity in 2014?
There are three mechanisms to be aware of when working with flexibility in your agenda [Read more…]