Global Update
TheDisrupTors mobile
The Disruptors addresses issues ranging from the impact of emerging booking channels and metamediaries to how to best implement new strategies related to technologies and social media . lasT-mInuTe cauTIon
Expedia ’ s launch of its Sell Tonight platform , which allows hoteliers to more easily manage last minute inventory , is an indication that more traditional distribution players are going after the hot last-minute booking space that HotelTonight and others pioneered .
Hoteliers should be aware of the costs , risks and benefits inherent in channels providing this service and enter into any agreement with open eyes and reasonable expectations about net revenue , customer profile and consumer perception in the market .
Forecasting is essential to optimize prices against expected demand , and last-minute bookings wreak havoc with this process . A head in a bed can be important in the short term , but not if it undermines daily rates because guests expect a deal and know they can wait until the last minute to book .
If sustainable profit is the objective , weigh the costs and benefits carefully before opening the doors to last-minute business channels . Matt Carrier , KaLibri LabS , Potomac , Maryland
case for responsIve markeTIng cosTs
As the New Year begins , many hoteliers are coming to grips with their 2015 budget and , for the most part , projections for significant growth in room revenue . Once a property forecasts that their revenue will fall short of budget , digital marketing can be the answer .
Online campaign tracking for digital marketing has become extremely accurate . In fact , some of the more sophisticated tracking systems allow marketers to project the impact of additional spend with great accuracy . With these tools in mind , it may be time to challenge the notion of fixed marketing costs based on a budget that may be many months old .
If a hotel is projecting a US $ 20,000 room revenue deficit to budget but knows that they could spend an extra US $ 1,500 to bridge that gap , it makes good business sense to allow the marketing budget to become variable and essentially more responsive to the business demands . Chris Jackson , GCOmmErCE , Park City , Utah sTep up your loyalTy game
If hotels could offer the best deals without question , they ’ d gain that business and increase profitability .
Many chains use CRM systems with some form of profit-based segmentation and their loyalty programs provide login capability so customers are recognized at the point of booking .
Instead of offering redeemable points , why not always provide lower rates based on the value of the customer ? These specials wouldn ’ t break parity because the offers would be fenced and discreet . Even first-time customers just joining the program could receive a slight discount and the hotel could market the program as the way to get the best rate . If consumers knew this , they wouldn ’ t have to shop around .
And rather than lowering rates for known customers , hotels could instead slightly raise the public best available rates everywhere else . RevPAR would increase , even if only slightly , but profits would soar with more direct bookings . Patrick Bosworth , DuETTO , San Francisco
InsTeaD of offerIng reDeemable poInTs , why noT always provIDe lower raTes
baseD on The value of The cusTomer ?
22 HOTELS March 2015 www . hotelsmag . com