revenue strategy management for hoteliers

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?