Revenue Strategy Management for Hoteliers
Revenue Strategy Management for HoteliersLorine BenintendiMBA 2A
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 sellPerishable inventoryCustomer willing to pay a different price for the same product
Practiced in 1990s by hotels
New opportunitiesDedicated staffTraining / Metrics / tools
ResponsibilitiesManaging rates and inventorySegmentation and channel managementAnalyzing and reportingBudgeting and forecastingMeetings and arbitrationStrategy
Strategy: Most important role of a revenue manager
Long term sustainable interest of the hotel Issue: Rising cost of acquisitionHotel acquisition and retention expenses are rising at twice the rate of revenue growthWHAT TO DO ???
How should hoteliers shift strategy to maintain profitability?Integrated digital marketingPrice / Value equation (Tripadvisor)Customer acquisition and consumer pricing intelligenceVolume and reachLocal or commodity
OTA versus Direct Bookings: How to increase direct bookings?Exclusive offersVery good dealsIncentives to book direct: Free Wifi, 20% offGift cards, on-site amenities, room service included
Some recommendationsThink GLOBALMetasearch: 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 working hard 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 zoneSERVICE and REPUTATION is corePricing: look from the lens of the customersDistribution: Differentiate and play favoritismKnow your customers lifetime valueIs Revpar an obsolete metric?
Revpar replaced by
A positive online reputation
Creation of more demand and optimization of the revenue via:
Data Partners for hotelsIDEAS or Reviewpro that would definite a potential rate according to the reputation of the hotel
Some last recommendations:Keep up with trendsUtilize tools to optimize the positioning of the hospitality industryWhen assessing performance, take into account costs of acquisitionFocus on brand distinction: In what is your hotel different from the other?