Recap Of a ReviewPro Webinar: Revenue Strategy Management for Hoteliers
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- 1. B. Idrissi MBA-2B Course Instructor: L.Craig
- 2. Daniel E. Craig Josiah MacKenzie Directo of Business Development of ReviewPro Jason Lewis VP of Sales EMEA of Siteminder Chadi Farhat VP Revenue Mangement & Distribution of Morgans Hotel Grop Presentator and Participants
- 3. Plan ReviewPro Presentation Reputation = Revenue Evolution of Revenue Management How to fight the rising cost of acquisition? How to increase direct booking? RevPar or ProPar? Recommendations
- 4. ReviewPro collects reviews accross the web => tools to track and evaluate performance with the Global Review Index and the Sentiment Analysis. GRI is used to benchmark competition, maximize distribution strategy,
- 5. Reputation = Revenue The results of the Cornell University Research has shown that: - Revenue can be maximized through online reputation. - The impact of online reputation on revenue depends on the demand, the pricing power and also the service/performance.
- 6. Evolution of Revenue Management Revenue Management (RM) is selling the right product to the right customer at the right time for the right price. RM originated in airlines companies in 1980s, and had bing used to improve the performance of a lot of business like hospitality industry in 1990s. To practice Revenue Management certain conditions is required : perishable inventory, fixed resources to sell, Nowadays Revenue manager has to be a good: analyst, arbitrator, strategist, The role of revenue manager continues to evolve: pricing, forecasting and budgeting is not enough anymore, now revenue managers have to create the demand and work closely with other departments: sales, marketing Today RM challenges : lot of intermediary (OTAs), review sites (tripadvisor)
- 7. How to fight the rising cost of acquisition? Hoteliers are facing a rising costs of acquisition due to commissions They need to develop strategies in order to adapt and thrive, by implementing more digital interaction with customers. For this, Customer journey must be clear: Dream: being inspired like with Tripadvisor Search Today customer has more price intelligence, play on the public perception of the brand (Trivago) Book (booking.yeah) Gain insight in order to reach volume Stay By creating a valuable guest experience
- 8. How to increase direct booking? Know the cost effectiveness in order to be ready to go to a specific market. The deal/offer/service has to be good, and create a value added to the customer like with free wifi, 20% off, => in order to capture the audience. Optimize the cost of distribution (GDS, OTA, META SEARCH, IBS) It is important to have a presence on at least one of THE BIG 4 : Tripadvisor, Google Hotel Finder (become stronger and stronger), Trivago and Kayak.
- 9. Revpar or ProPar? Management contract is related to Revpar The fact that the Revpar is still used by many hoteliers and is in fact an effective metric. But the ProPar is a better way to mesure the performance of a business, even if it does not take into account the value of the guest and operational cost.
- 10. Recommendations From SiteMinder: Have a global strategy. Have as more channel distribution as possible, in order to capture different market. Keep auditing and review the content, Turn the direct audience in a customer/direct bookers.
- 11. Recommendations (Suite) From MORGANS HOTEL : Measure the total revenue and not just the rooms revenue. Keep in mind that pricing is not the differenciator but the service/reputation of the hotel. Do not stay on the comfort zone/daily routines, when it comes to pricing think of the customer. The key for a good distribution is to play differentiation and favoritism. Do not treat all customer equaly => distinguish the value of each customer.