WEBINAR –

ReviewPRO

REVENUE STRATEGY

MANAGEMENT

SESSION 3 – ONLINE REPUTATION MANAGEMENT

Student: IDA BAILLOT

Class: MBA 2B

Instructor: Liz CRAIG

TOPICS DISCUSSED:

DEVELOPMENT OF REVENUE MANAGEMENT STRATEGIES

RISING COST OF CUSTOMER ACQUISITION

MANAGEMENT OF MULTIPE CHANNELS

METASEARCH, RATE PARITY, ProPAR

REVIEW ANALYTICS

TOOLS AND BEST PRACTICES

ReviewPRO = 10,000 hotels in 90+ countries

Goal

Educate hotels on online reputation and guest satisfaction management

Rule

Collect online review so hotels can use them ton increase performance, set internal goals of performance, maximize rate and optimize distribution strategy !

MODERN Hotel Revenue Management

Key factor = online reputation has now a direct link to demand

92% of travelers of travelers indicate that their decisions are highly influenced by reviews & other UGC!

38 = The average number of websites travelers visit before booking a trip!

53% of consumers say they wonʼt book a hotel if it has zero reviews…

“Positive online reputation doesnʼt merely provide higher pricing power for online sales. It is correlated to higher group booking rates and corporate negotiated rates in addition to reservations made over the phone.”! Chris Anderson, Cornell University

CHALLENGES OF REVENUE MANAGEMENT

Distribution channel proliferation !

Metasearch: search engines for search engines!

Rising costs of guest acquisition !

Commissions are rising at twice

the rate of revenue growth

Rate parity – increasingly challenging to maintain !

Reviews – huge influence on traveler decisions and demand!

HOW TO MAINTAIN PROFITABILITY

Attractive content to capt a direct audience

Add more channels – Think Ctrip, MakeMyTrip, Ostrovok! Think GLOBAL

Strategic pricing with value added: customer have developped pricing intelligence, they follow prices through internet. If the hotel makes a deal, the deal must be really good: in house promotions can help to ensure clients are coming back as direct bookers…

Customer stay = moment of truth: opportunity to reinforce the hotel value and offer a valuable guest experience. Otherwise, customer will use substitutes such as Air BnB…

Optimize costs of distribution : PLAY FAVORITISM by adding more inventory to partners that offer cheapest commissions

RevPAR -> ProPAR

RevPAR excludes cost of booking -> obsolete metric

Hotels are not ready to change this metric because too many elements are

attached such as management contracts, anaylsis and market share

ProPar is a disruptive metric that hotels need to embrace

1st step is to get revenue management system allowing to yield by net rates

FINAL RECOMMANDATIONS Focus on long-term strategies!

Optimize your reach across channels!

When assessing performance, take into account costs of acquisition (ProPAR vs. RevPAR)!

Focus on brand distinction vs. commodatization – what makes your hotel more desirable/worth more? !

Donʼt forget the traveler! Audit rate positioning from traveler perspective

THANK YOU !

Josiah Mackenzie!ReviewPro

Jason Lews!SiteMinder

Chadi Farhat!Morgans Hotel Group!

Daniel Craig!Reknown