REPUTATION MANAGEMENT

Reputation Drives Revenue

RELATIONSHIP BETWEEN QGI AND REVENUE GAINS

Positive correlation between the analysis of global review and revenue gains

Reviews drives revenue

1% increase in review score will result in an increase of 13,5% in demand

What’s more prices can increase by 8% with no impact on market share 1% increase in review score will result in an

increase of 1% in average RevPAR

RELATIONSHIP BETWEEN QGI AND REVENUE GAINS How to explain this positive causality

relationship of global review and review gains?

User generated content has become an important part of the research process

Also an impact on purchase path of customers

So increasing demand for the hotel

It can be translated into pricing power

PERSON/POSITION RESPONSIBLE FOR ANALYSIS OF PRICING CHANGES

1st Generation : part of the reservation manager’s job

2nd Generation : revenue management is becoming more and more technical (use of specific tools dedicated to this function) the position has to become distinct

3rd Generation : technical aspects + online marketing + sales function the position has to be fully integrated into the overall executive committee

analytical and strategic role

NEW MEASUREMENT USED TO MEASURE  QUALITY SCORES TO REVENUE PERFORMANCE

Key Performance Indicators :

Before : - Occupancy Index- Average Rate Index- RevPAR Index

Now : Quality Penetration Index (QPI).

NEW MEASUREMENT USED TO MEASURE  QUALITY SCORES TO REVENUE PERFORMANCE

Quality Index Penetration : tool that can be used to compare guest review performance relative to competitors, using Global Review Index

QPI = Global Review Index of my hotel

Average Global Review Index of competitors

It can help hoteliers: to better understand their opportunities in terms of

volume and ADR to find the best position in the marketplace

ORM, THE REVENUE MAXIMIZATION OF THE FUTURE Now with the development of User Generated Content,

the customer path has evolved people rely on online reputation to make a choice.

Because of the online reputation, demand can rise, the optimal positioning of the hotel can change, the pricing strategy can evolve, all that in order to maximize revenue.

With online reputation gaining so much influence, it has now become crucial for hoteliers to take back control over it, and to find solutions to manage in a way to take advantage out of it.

As a consequence, reputation management position will become a new strategical function to be integrated in the executive team, progressively replacing the role of revenue manager.